In this piece, we will take a look at the 12 most profitable real estate stocks now. For more real estate stocks, head on over to 5 Most Profitable Real Estate Stocks Now.
The real estate sector is one of the most lucrative industries in the world. Its importance is underscored by the fact that some of the largest economies in the world are inextricably linked to real estate development. The biggest example of the sector’s importance is the 2008 financial crisis. This crisis, the after effects of which we are dealing with even today, shook the real estate industry badly . Spurred by a policy of low interest rates, homeowners borrowed extravagantly to own their properties, and banks then used these loans as an asset to sell their interest payments to investors. However, once the interest rates went up, the mortgage owners started to default – kicking a vicious cycle that forced the Federal Reserve to pump billions of dollars into the economy to prevent an all out collapse. How much did the Fed spend to prevent disaster? Well, its latest balance shows that while before the crisis its balance sheet had roughly $0.9 trillion of assets, these swelled to $2.2 trillion by the end of 2008. Effectively, the central bank had to more than double its assets to bail out big banks and the economy, and it is still struggling to contain it, as the coronavirus pandemic further exacerbated the problem and led to the balance sheet swelling to $8.96 trillion.
Another more recent example of the perhaps outsized role that real estate plays come from the world’s second largest economy, China. Spurred by the financial difficulties of China Evergrande Group (OTCMKTS:EGRNF), the crisis continues to threaten not only the Chinese market but also the global economy due to the interlinking of large asset managers such as BlackRock with the Chinese stock market. In order to stimulate real estate, and by extension the broader economy, the Chinese government allowed low interest rates and increased bank lending to real estate companies to build properties and increase home ownership in the country. These stimuli led to the home prices in Shanghai rising by a whopping 150% between 2003 and 2010 and paved the way for excessive borrowing for big construction companies who then used these loans to pay other debts and take out more loans. The spiral led to the government making new laws, called the Three Red Arrows, which limited real estate developers’ ability to raise new funds. Steeped in debt, Evergrande found it difficult to raise working capital and missed bond payments.
In terms of market value, the real estate sector is one of the most valuable in the world. According to research from Allied Market, the global real estate market was worth a whopping $28 trillion in 2021. From then until 2031, the firm believes that it will grow at a compounded annual growth rate (CAGR) of 5.3% to sit at an estimated $48 trillion by the end of the forecast period. Cementing the importance of China in the industry, Allied Market Research points out that Asia Pacific is the world’s largest real estate sector, and that it accounts for more than two fifths of the global market. However, in terms of growth, the research firm believes that Latin America, the Middle East, and Africa (LAMEA) market will be the strongest growing region, as it outpaces the broader industry by posting a CAGR of 6.4%.
Today we’ll look at some of the biggest money makers in the real estate world, with the top performers being Longfor Group Holdings Limited (HKG:0960.HK), China Overseas Land & Investment Limited (HKG:0688.HK), and Prologis, Inc. (NYSE:PLD).
We sifted out the biggest real estate companies in the world in terms of their market capitalization and revenue. Then, their net income for the past twelve months was determined, and the top twelve performers are listed.
CBRE Group, Inc. (NYSE:CBRE) is a real estate services company that provides services such as building engineering, construction management, investment services to commercial real estate investors, and property sales and mortgage services.
CBRE Group, Inc. (NYSE:CBRE) received a Buy share price rating and a $100 price target from Citi in January 2023 as the bank outlined that the firm is slated to benefit from real estate outsourcing. By the end of September 2022, 47 of the 920 hedge funds polled by Insider Monkey had invested in the firm.
CBRE Group, Inc. (NYSE:CBRE)’s largest investor is Natixis Global Asset Management’s Harris Associates which owns 13.6 million shares that are worth $1 billion.
Along with Prologis, Inc. (NYSE:PLD), Longfor Group Holdings Limited (HKG:0960.HK), and China Overseas Land & Investment Limited (HKG:0688.HK), CBRE Group, Inc. (NYSE:CBRE) is a profitable real estate stock.
Public Storage (NYSE:PSA) is an American company that is headquartered in Glendale, California. The firm is a real estate investment trust (REIT) that buys, builds, and operates storage units. It has thousands of facilities all over the U.S., alongside interests in a European storage company that also provides it with a global footprint.
Public Storage (NYSE:PSA) faced a setback in February 2023 when another storage company rejected the firm’s massive $11 billion buyout offer, sharing that it believes the offer is paying too little. 34 of the 920 hedge funds polled by Insider Monkey in Q3 2022 had held a stake in the company. The trailing twelve month net income removes the effect of a security sale on the firm’s profit.
Public Storage (NYSE:PSA)’s largest investor in our database is Jeffrey Furber’s AEW Capital Management which owns 457,800 shares that are worth $128 million.
Simon Property Group, Inc. (NYSE:SPG) focuses on developing and operating hospitality properties such as restaurants and entertainment centers alongside also focusing on high end shopping malls. The firm is headquartered in Indianapolis, Indiana.
Simon Property Group, Inc. (NYSE:SPG) is the largest shopping mall operator in the United States, but despite this, the firm missed a rather large $295 million loan maturity in February 2023. By the end of last year’s third quarter, 35 of the 920 hedge funds surveyed by Insider Monkey had bought the firm’s shares.
Out of these, Israel Englander’s Millennium Management is Simon Property Group, Inc. (NYSE:SPG)’s largest investor. It owns 569,619 shares that are worth $66 million.
10. China Evergrande Group (OTCMKTS:EGRNF)
Trailing Twelve Month Net Income: $2.32 billion (1HKD = 0.13USD)
Number of Hedge Fund Holders in Q3 2022: N/A
China Evergrande Group (OTCMKTS:EGRNF) is a diversified Chinese property company that operates in the development, investment, management, and consumer sales segments. The firm also has finance, healthcare, and internet divisions.
China Evergrande Group (OTCMKTS:EGRNF) is busy investigating matters of financial impropriety, with an investigation revealing in February 2023 that its directors had acted improperly in redirecting loans from its property services division to the group as a whole.
9. Goodman Group (ASX:GMG.AX)
Trailing Twelve Month Net Income: $2.34 billion (1AUD = 0.69USD)
Number of Hedge Fund Holders in Q3 2022: N/A
Goodman Group (ASX:GMG.AX) is an Australian company headquartered in Rosebery, New South Wales. The firm has a global operational footprint, with a presence in lucrative markets such as the United Kingdom, Brazil, North America, Asia, and Europe.
Goodman Group (ASX:GMG.AX)’s first fiscal half of 2022 financial results shared in February 2023 revealed that the firm had raked in AUD1 billion in revenue, which marked a 1.5% drop. At the same time, its operating profit of AUD877 million marked an 11.5% annual increase.
American Tower Corporation (NYSE:AMT) is a specialty real estate company that focuses on operating telecommunications towers. The firm has hundreds of thousands of communications sites all over the world.
American Tower Corporation (NYSE:AMT) is busy expanding its global footprint, as a report in February 2023 speculated that the firm is interested in buying out a Spanish mobile tower operator. Insider Monkey dug through 920 hedge fund portfolios for last year’s third quarter to determine that 42 had held a stake in American Tower Corporation (NYSE:AMT).
American Tower Corporation (NYSE:AMT)’s largest investor is Charles Akre’s Akre Capital Management which owns 6.9 million shares that are worth $1.4 billion.
7. Vonovia SE (ETR:VNA.DE)
Trailing Twelve Month Net Income: $3 billion (1EUR = 1.07USD)
Number of Hedge Fund Holders in Q3 2022: N/A
Vonovia SE (ETR:VNA.DE) is a German real estate company that focuses its attention on the residential sector. The firm has more than half a million residential units in its portfolio that are spread across several European countries such as Germany and Sweden.
Vonovia SE (ETR:VNA.DE) is interested in the sustainable real estate development industry, as it is leading a 100 million funding round for an Austrian sustainable homes developer.
Vonovia SE (ETR:VNA.DE) joins our list of profitable real estate stocks, alongside others such as Longfor Group Holdings Limited (HKG:0960.HK), China Overseas Land & Investment Limited (HKG:0688.HK), and Prologis, Inc. (NYSE:PLD).
5. CK Asset Holdings Limited (HKG:1113.HK)
Trailing Twelve Month Net Income: $3.01 billion (1HKD = 0.13USD)
Number of Hedge Fund Holders in Q3 2022: N/A
CK Asset Holdings Limited (HKG:1113.HK) is an Asian property developer with a global footprint. It is headquartered in Central Hong Kong and primarily concerns itself with operating hospitality locations, developing residential properties, and leasing commercial properties such as offices and warehouses. CK Asset Holdings Limited (HKG:1113.HK) has operations in the U.S., China, Hong Kong, the U.K., Singapore, and several other countries.
CK Asset Holdings Limited (HKG:1113.HK) scored a big win in the Hong Kong property scene in February 2023 when it was able to buy 1.42 million square feet of land for a bargain price of $1.1 billion. The purchase came as property prices were dropping, and CK Asset Holdings Limited (HKG:1113.HK) is also required to build a nursing home and a childcare facility as part of the deal.
4. Sun Hung Kai Properties Limited (HKG:0016.HK)
Trailing Twelve Month Net Income: $3.25 billion (1HKD = 0.13USD)
Number of Hedge Fund Holders in Q3 2022: N/A
Sun Hung Kai Properties Limited (HKG:0016.HK) is a Chinese real estate company that develops and sells a wide variety of properties such as shopping malls, residential properties, office spaces, hotels, and more. It has more than a hundred million square feet of property in Mainland China and Hong Kong and is headquartered in Wan Chai, Hong Kong.
Sun Hung Kai Properties Limited (HKG:0016.HK) is one of the leading Hong Kong property developers when it comes to selling eco friendly properties – a feature that has let it generate over a billion dollars in revenue in Mai Po wetlands.
Prologis, Inc. (NYSE:PLD) is an American real estate company that is based in San Francisco, California. The firm has almost a billion square feet of ventures, properties, and projects in more than a dozen countries.
One crucial market that Prologis, Inc. (NYSE:PLD) operates in is Japan, where its properties help with disaster relief operations. The firm expanded this recently by signing agreements with 11 cities for disaster relief. Insider Monkey’s Q3 2022 survey of 920 hedge funds revealed that 59 had held a stake in the company.
Prologis, Inc. (NYSE:PLD)’s largest investor is Jeffrey Furber’s AEW Capital Management which owns 2.8 million shares that are worth $316 million.
2. Longfor Group Holdings Limited (HKG:0960.HK)
Trailing Twelve Month Net Income: $3.49 billion (1HKD = 0.13USD)
Number of Hedge Fund Holders in Q3 2022: N/A
Longfor Group Holdings Limited (HKG:0960.HK) is a diversified Chinese investment holding company that has several real estate divisions that develop, invest in, and manage properties. The firm concerns itself with developing and selling residential, corporate, and commercial properties.
Longfor Group Holdings Limited (HKG:0960.HK) is a rare Chinese property developer that has received funding from government banks to pay off foreign debts. The firm received a $100 million loan for this purpose by keeping its Chinese properties as collateral in December 2022.
1. China Overseas Land & Investment Limited (HKG:0688.HK)
Trailing Twelve Month Net Income: $5.26 billion (1HKD = 0.13USD)
Number of Hedge Fund Holders in Q3 2022: N/A
China Overseas Land & Investment Limited (HKG:0688.HK) is a holding company with real estate interests in China and the U.K. The firm builds and rents residential and commercial properties, alongside providing design consultancy services. It is headquartered in Central Hong Kong.
China Overseas Land & Investment Limited (HKG:0688.HK) won a major reprieve in February 2023 when Fitch reiterated the company’s debt rating to A- at a time when the Chinese real estate segment is suffering from a crisis of confidence.
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MONTREAL – Two Quebec real estate brokers are facing fines and years-long suspensions for submitting bogus offers on homes to drive up prices during the COVID-19 pandemic.
Christine Girouard has been suspended for 14 years and her business partner, Jonathan Dauphinais-Fortin, has been suspended for nine years after Quebec’s authority of real estate brokerage found they used fake bids to get buyers to raise their offers.
Girouard is a well-known broker who previously starred on a Quebec reality show that follows top real estate agents in the province.
She is facing a fine of $50,000, while Dauphinais-Fortin has been fined $10,000.
The two brokers were suspended in May 2023 after La Presse published an article about their practices.
One buyer ended up paying $40,000 more than his initial offer in 2022 after Girouard and Dauphinais-Fortin concocted a second bid on the house he wanted to buy.
This report by The Canadian Press was first published Sept. 11, 2024.
MONTREAL – The Quebec Professional Association of Real Estate Brokers says Montreal-area home sales rose 9.3 per cent in August compared with the same month last year, with levels slightly higher than the historical average for this time of year.
The association says home sales in the region totalled 2,991 for the month, up from 2,737 in August 2023.
The median price for all housing types was up year-over-year, led by a six per cent increase for the price of a plex at $763,000 last month.
The median price for a single-family home rose 5.2 per cent to $590,000 and the median price for a condominium rose 4.4 per cent to $407,100.
QPAREB market analysis director Charles Brant says the strength of the Montreal resale market contrasts with declines in many other Canadian cities struggling with higher levels of household debt, lower savings and diminishing purchasing power.
Active listings for August jumped 18 per cent compared with a year earlier to 17,200, while new listings rose 1.7 per cent to 4,840.
This report by The Canadian Press was first published Sept. 6, 2024.
In the quest to find cities where renters can enjoy the best of all worlds, a recent study analyzed 24 metrics across three key categories—Housing & Economy, Quality of Life, and Community. The study ranked the 100 largest cities in Canada to determine which ones offer the most to their renters.
Here are the top 10 cities that emerged as the best for renters in 2024:
St. John’s, NL
St. John’s, Newfoundland and Labrador, stand out as the top city for renters in Canada for 2024. Known for its vibrant cultural scene, stunning natural beauty, and welcoming community, St. John’s offers an exceptional quality of life. The city boasts affordable housing, a robust economy, and low unemployment rates, making it an attractive option for those seeking a balanced and enriching living experience. Its rich history, picturesque harbour, and dynamic arts scene further enhance its appeal, ensuring that renters can enjoy both comfort and excitement in this charming coastal city.
Sherbrooke, QC
Sherbrooke, Quebec, emerges as a leading city for renters in Canada for 2024, offering a blend of affordability and quality of life. Nestled in the heart of the Eastern Townships, Sherbrooke is known for its picturesque landscapes, vibrant cultural scene, and strong community spirit. The city provides affordable rental options, low living costs, and a thriving local economy, making it an ideal destination for those seeking both comfort and economic stability. With its rich history, numerous parks, and dynamic arts and education sectors, Sherbrooke presents an inviting environment for renters looking for a well-rounded lifestyle.
Québec City, QC
Québec City, the capital of Quebec, stands out as a premier destination for renters in Canada for 2024. Known for its rich history, stunning architecture, and vibrant cultural heritage, this city offers an exceptional quality of life. Renters benefit from affordable housing, excellent public services, and a robust economy. The city’s charming streets, historic sites, and diverse culinary scene provide a unique living experience. With top-notch education institutions, numerous parks, and a strong sense of community, Québec City is an ideal choice for those seeking a dynamic and fulfilling lifestyle.
Trois-Rivières, QC
Trois-Rivières, nestled between Montreal and Quebec City, emerges as a top choice for renters in Canada. This historic city, known for its picturesque riverside views and rich cultural scene, offers an appealing blend of affordability and quality of life. Renters in Trois-Rivières enjoy reasonable housing costs, a low unemployment rate, and a vibrant community atmosphere. The city’s well-preserved historic sites, bustling arts community, and excellent educational institutions make it an attractive destination for those seeking a balanced and enriching lifestyle.
Saguenay, QC
Saguenay, located in the stunning Saguenay–Lac-Saint-Jean region of Quebec, is a prime destination for renters seeking affordable living amidst breathtaking natural beauty. Known for its picturesque fjords and vibrant cultural scene, Saguenay offers residents a high quality of life with lower housing costs compared to major urban centers. The city boasts a strong sense of community, excellent recreational opportunities, and a growing economy. For those looking to combine affordability with a rich cultural and natural environment, Saguenay stands out as an ideal choice.
Granby, QC
Granby, nestled in the heart of Quebec’s Eastern Townships, offers renters a delightful blend of small-town charm and ample opportunities. Known for its beautiful parks, vibrant cultural scene, and family-friendly environment, Granby provides an exceptional quality of life. The city’s affordable housing market and strong sense of community make it an attractive option for those seeking a peaceful yet dynamic place to live. With its renowned zoo, bustling downtown, and numerous outdoor activities, Granby is a hidden gem that caters to a diverse range of lifestyles.
Fredericton, NB
Fredericton, the capital city of New Brunswick, offers renters a harmonious blend of historical charm and modern amenities. Known for its vibrant arts scene, beautiful riverfront, and welcoming community, Fredericton provides an excellent quality of life. The city boasts affordable housing options, scenic parks, and a strong educational presence with institutions like the University of New Brunswick. Its rich cultural heritage, coupled with a thriving local economy, makes Fredericton an attractive destination for those seeking a balanced and fulfilling lifestyle.
Saint John, NB
Saint John, New Brunswick’s largest city, is a coastal gem known for its stunning waterfront and rich heritage. Nestled on the Bay of Fundy, it offers renters an affordable cost of living with a unique blend of historic architecture and modern conveniences. The city’s vibrant uptown area is bustling with shops, restaurants, and cultural attractions, while its scenic parks and outdoor spaces provide ample opportunities for recreation. Saint John’s strong sense of community and economic growth make it an inviting place for those looking to enjoy both urban and natural beauty.
Saint-Hyacinthe, QC
Saint-Hyacinthe, located in the Montérégie region of Quebec, is a vibrant city known for its strong agricultural roots and innovative spirit. Often referred to as the “Agricultural Technopolis,” it is home to numerous research centers and educational institutions. Renters in Saint-Hyacinthe benefit from a high quality of life with access to excellent local amenities, including parks, cultural events, and a thriving local food scene. The city’s affordable housing and close-knit community atmosphere make it an attractive option for those seeking a balanced and enriching lifestyle.
Lévis, QC
Lévis, located on the southern shore of the St. Lawrence River across from Quebec City, offers a unique blend of historical charm and modern conveniences. Known for its picturesque views and well-preserved heritage sites, Lévis is a city where history meets contemporary living. Residents enjoy a high quality of life with excellent public services, green spaces, and cultural activities. The city’s affordable housing options and strong sense of community make it a desirable place for renters looking for both tranquility and easy access to urban amenities.
This category looked at factors such as average rent, housing costs, rental availability, and unemployment rates. Québec stood out with 10 cities ranking at the top, demonstrating strong economic stability and affordable housing options, which are critical for renters looking for cost-effective living conditions.
Québec again led the pack in this category, with five cities in the top 10. Ontario followed closely with three cities. British Columbia excelled in walkability, with four cities achieving the highest walk scores, while Caledon topped the list for its extensive green spaces. These factors contribute significantly to the overall quality of life, making these cities attractive for renters.
Victoria, BC, emerged as the leader in this category due to its rich array of restaurants, museums, and educational institutions, offering a vibrant community life. St. John’s, NL, and Vancouver, BC, also ranked highly. Québec City, QC, and Lévis, QC, scored the highest in life satisfaction, reflecting a strong sense of community and well-being. Additionally, Saskatoon, SK, and Oshawa, ON, were noted for having residents with lower stress levels.
For a comprehensive view of the rankings and detailed interactive visuals, you can visit the full study by Point2Homes.
While no city can provide a perfect living experience for every renter, the cities highlighted in this study come remarkably close by excelling in key areas such as housing affordability, quality of life, and community engagement. These findings offer valuable insights for renters seeking the best places to live in Canada in 2024.
