10 Best REIT Stocks to Buy According to Billionaires

In this article, we will take a look at the 10 best REIT stocks to buy according to billionaires.

News from the US Real Estate Market

Although the spring housing season started off with more sellers and increasing homes for sale as pointed out by the chief economist at Realtor.com, Danielle Hale, home buyers are still facing a high cost of buying in addition to economic concerns thereby suggesting a rather ‘sluggish response from buyers in early spring’.

With regards to the tariff impact on real estate, the announcement of the new Trump tariffs resulted in a sell-off and a sharp drop in mortgage rates while homeowners and home buyers seized the moment, with mortgage applications moving to a six-month high. Realtor.com suggests that tariffs often translate into higher costs for the consumer. In the case of housing, the new tariffs could result in increased construction costs for homebuilders considering the fact that 10% of the building materials utilized in residential construction tend to be imported. Realtor.com Senior Economist Joel Berner emphasized the downside of these tariffs as he talked about many homebuyers being sidelined in case of a small rise in costs and stated:

“The US faces a supply gap of nearly 4 million homes, and the only long-term solution to this problem is to build them, but the implementation of these tariffs will make it more costly to do so, putting a question mark on whether they can be built at the lower price points that are most undersupplied”

Although many economists still think that tariffs could lead to a recession which typically results in lower mortgage rates, another concern looming over real estate is that tariffs could keep inflation higher for longer which might lead to the Federal Reserve reversing or reducing future cuts to its policy rate which would keep mortgage rates higher for longer.

Now that we have taken a look at the real estate sector, let’s move to our list of the best REIT stocks to buy according to billionaires.

10 Best REIT Stocks to Buy According to Billionaires

Aerial view of high-rise buildings representing the investing and ownership of Equity Real Estate Investment Trust.

Our Methodology

To compile our list of the best REIT stocks to buy according to billionaires, we used Insider Monkey’s exclusive database of billionaire stock holdings. Firstly, we shortlisted the most prominent REIT stocks using a stock screener and ETFs. Then, we selected the top 10 REIT stocks based on the highest number of billionaire investors, updated as of Q4 2024. For the stocks with the same number of billionaire holdings, we have used the total value of billionaire holdings as a secondary metric to rank the stocks.

Why are we interested in the stocks that hedge funds pile into? The reason is simple: our research has shown that we can outperform the market by imitating the top stock picks of the best hedge funds. Our quarterly newsletter’s strategy selects 14 small-cap and large-cap stocks every quarter and has returned 373.4% since May 2014, beating its benchmark by 218 percentage points (see more details here).

10 Best REIT Stocks to Buy According to Billionaires

10. Extra Space Storage Inc. (NYSE:EXR)

Number of Billionaires: 9

Number of Hedge Fund Holders: 36

Extra Space Storage Inc. (NYSE:EXR) is a fully integrated, self-administered, and self-managed real estate investment trust headquartered in Salt Lake City. The REIT offers customers conveniently located and secure storage units, which include boat storage, RV storage, and business storage. The firm owned and/or operated 4,011 self-storage stores in 42 states and Washington, D.C., as of December 31, 2024.

As the largest operator of self-storage properties in the United States, Extra Space Storage Inc. (NYSE:EXR) is well positioned. The REIT focuses on self-storage which is a need-based, recession-resilient asset class with rising utilization, awareness, length of customer stay, and demand drivers in positive and negative economic environments. The REIT has demonstrated consistent growth of its geographically diverse portfolio through accretive acquisitions, joint-venture partnerships, and third-party management services which have resulted in a strong portfolio. The REIT’s portfolio strength and the resiliency of the self-storage sector are evident from the fact that on March 5, Extra Space Storage Inc. (NYSE:EXR) celebrated a major milestone as it announced reaching more than 4,000 stores across the nation. The REIT successfully added 297 stores to its operating platform in 2024.

9. Public Storage (NYSE:PSA)

Number of Billionaires: 9

Number of Hedge Fund Holders: 37

Public Storage (NYSE:PSA) is the largest owner, operator, and developer of self-storage facilities in the world. The firm is a member of the S&P 500 and FT Global 500. As of December 31, 2024, the real estate investment trust owned and/or operated 3,380 self-storage facilities situated in 40 states in the United States.

Public Storage (NYSE:PSA), is positioned in a fundamentally strong industry with favorable demand dynamics and a declining new competitive supply. 23% of the REIT’s total portfolio is in the high-growth lease-up pool with $80 million of net operating income (NOI) upside beyond 2025. Recently, Public Storage and Ki Corporation have offered a premium to acquire Abacus Storage King, one of the largest self-storage owners in Australia and New Zealand which are countries with growing self-storage markets that tend to benefit from strong economic growth, outsized population inflows, and increasing adoption among consumers. On December 31, 2024, the REIT also owned a 35% common equity interest in Shurgard Self Storage Limited which owned 318 self-storage facilities in seven Western European nations.

8. AvalonBay Communities, Inc. (NYSE:AVB)

Number of Billionaires: 10 

Number of Hedge Fund Holders: 37

Avalonbay Communities, Inc. (NYSE:AVB) is a leading multifamily REIT that develops, redevelops, acquires, and manages distinctive apartment homes in the US. It focuses on metropolitan areas with less housing affordability, a vibrant life quality, and strong employment growth. The REIT owned or held a direct or indirect ownership interest in 306 apartment communities in 12 states and the District of Columbia, as of December 31, 2024.

Avalonbay Communities, Inc. (NYSE:AVB) serves as the largest publicly traded multifamily REIT and has shown 30 years of growth as an industry leader. The REIT is focusing on delivering superior growth by optimizing its portfolio and increasing allocation to suburbs and expansion regions. The REIT advanced its portfolio optimization through a planned acquisition of eight apartment communities located in Texas, a transaction that is expected to double the size of the REIT’s portfolio in its Texas Expansion Regions. AvalonBay’s Chief Investment Officer, Matthew Birenbaum, reiterated the strategic move by saying:

“The assets are suburban garden communities with an average age of 11 years, providing a strong complement to our current and planned development activity with rents at a more affordable price point, and allowing for increased operating synergies as we increase our scale in these high-growth regions.”

The stock was recently downgraded at BMO Capital to Market Perform from Outperform with a price target of $220, on weaker demand in its home market and potentially increased costs. An increase in construction costs has been predicted based on an anticipated increase in lumber tariffs. Furthermore, deportation which can raise labor costs is also expected to affect class B and C rental demand thereby cutting the overall renter net absorption in AVB’s markets.

7. Prologis, Inc. (NYSE:PLD)

Number of Billionaires: 10

Number of Hedge Fund Holders: 55

Prologis, Inc. (NYSE:PLD) is a global leader in logistics real estate and focuses on high-barrier, high-growth markets. The REIT leases modern logistics facilities to 6,700 diverse customers across the business-to-business and retail/online fulfillment categories.

Prologis, Inc. (NYSE:PLD) serves as the largest global owner of logistics real estate complimented by an irreplaceable portfolio scale and portfolio, with nearly 1.3 billion square feet across four continents. 2.8% of the global GDP flows through the REIT’s distribution centers annually. Logistics real estate continues to offer robust trends to the REIT such as rising e-commerce which is more space intensive as compared to brick and mortar. Simultaneously, the REIT is capitalizing on the growing data center needs in the modern digital economy by focusing on finding potential conversion opportunities across its large portfolio of warehouses. Recently, Prologis, Inc. (NYSE:PLD) announced the sale of a data center development in its Chicago market to HMC Capital. The REIT has plans to develop nearly 20 data center opportunities over the next 4 years.

6. Digital Realty Trust, Inc. (NYSE:DLR)

Number of Billionaires: 10

Number of Hedge Fund Holders: 47

Digital Realty Trust, Inc. (NYSE:DLR) is a real estate investment trust that owns, operates, and invests in carrier-neutral data centers. The firm delivers the full spectrum of data center, colocation, and interconnection solutions thereby supporting leading enterprises and service providers.

The REIT’s leading data center platform benefits from the growing global demand from a diversified, high-quality customer base. The firm continues to grow its global footprint as it recently announced a joint venture with a leading Southeast Asian digital infrastructure platform, Bersama Digital Infrastructure Asia, to operate and develop data centers in Indonesia.

Furthermore, secular tailwinds currently remain strong for the REIT with digital transformation driving a strong data center demand. With embedded internal expertise as one of the world’s largest data center acquiror, developers, owners, and operators, Digital Realty Trust, Inc. (NYSE:DLR) is a promising stock. Reiterating the strong demand drivers for the REIT, Baron Funds stated the following in its Q4 2024 investor letter:

“Data center landlords such as Equinix and Digital Realty Trust, Inc. (NYSE:DLR) are benefiting from record low vacancy, demand outpacing supply, more constrained power availability, and rising rental rates. Several secular demand vectors, which are currently broadening, are contributing to robust fundamentals for data center space globally. They include the outsourcing of information technology infrastructure, increased cloud computing adoption, the ongoing growth in mobile data and internet traffic, and AI as a new wave of data center demand. Put simply, each year data continues to grow exponentially, and all of this data needs to be processed, transmitted, and stored – supporting increased demand for data center space. In addition, while it is still early innings, we believe AI could not only provide a source of incremental demand but also further accelerate existing secular trends by driving increased prioritization and additional investment in digital transformation among enterprises.”

5. Realty Income Corporation (NYSE:O)

Number of Billionaires: 11 

Number of Hedge Fund Holders: 36

Realty Income Corporation (NYSE:O) serves as a real estate partner to leading firms and invests in diversified commercial real estate. It is one of the largest global REITs with properties in 8 countries. The REIT owned or held interests in 15,621 properties as of December 31, 2024.

Realty Income Corporation (NYSE:O) is a global leader in a fragmented net lease sector. The REIT is pursuing a promising growth trajectory with a $5.4 trillion total addressable market in the US and an attractive growth avenue with limited direct competition in Europe. Amidst this market opportunity, the REIT boasts a diversified and high-quality real estate portfolio supporting stable cash flows, with its top 20 clients resistant to changing consumer behavior. The REIT recently closed 2024 with a solid 4.8% year-over-year increase in AFFO per share which marks the 14th consecutive year of annual AFFO per share growth. The firm anticipates approximately $4 billion in investment volume for 2025 considering current investment spreads and visibility to the deal pipeline.

Investors should also note that the firm’s portfolio of commercial real estate has offered dependable rental revenue historically and has supported the payment of monthly dividends. Realty Income Corporation (NYSE:O) has witnessed 30 consecutive years of rising dividends and recently announced its 658th consecutive common stock monthly dividend.

4. VICI Properties Inc. (NYSE:VICI)

Number of Billionaires: 11

Number of Hedge Fund Holders: 48

VICI Properties Inc. (NYSE:VICI) is one of the largest owners of gaming, hospitality, and entertainment destinations in the US. The S&P 500 experiential real estate investment trust owns 93 experiential assets comprising 54 gaming properties and 39 other experiential properties across the US and Canada.

As compared to other traditional net lease real estate investment trusts, the REIT’s assets have high barriers to entry and high financial transparency. With demand currently inclining towards developments that tend to blend luxury, hospitality, and experience, the REIT recently made a strategic move giving it an opportunity to invest in place-based history and experiential luxury. In February, VICI Properties Inc. (NYSE:VICI) announced a strategic relationship with Cain International and Eldridge Industries, a collaboration that launched with VICI’s $300 million investment into a mezzanine loan related to the development of a landmark 17.5-acre luxury mixed-use development ‘One Beverly Hills’. In the prevailing scenario, the stock also has less exposure to tariffs as a diversified commercial real estate investment trust focusing on stable domestic properties.

3. Equinix Inc. (NASDAQ:EQIX)

Number of Billionaires: 11 

Number of Hedge Fund Holders: 56

Equinix Inc. (NASDAQ:EQIX) serves as the world’s digital infrastructure company. The company was founded in 1998 as a vendor-neutral multitenant data center provider and serves 73 markets across 34 countries, enabling businesses to scale across the world’s largest network of interconnected data centers.

Equinix Inc.’s (NASDAQ:EQIX) global ecosystem is bigger than its next 10 competitors combined and gives customers access to 2,000 network services, 3,000 cloud and IT services, and 400 content and digital media services. The REIT is well positioned to capitalize on future opportunities with digital infrastructure becoming crucial to delivering services globally. While the firm is focusing on the growing AI opportunity, it is delivering robust financial results and ended 2024 with revenues up 8% year-over-year. Equinix Inc. (NASDAQ:EQIX) is positioning itself as a leader in private AI infrastructure and distribution, with more than half of the top 25 deals in the REIT’s retail business in 2024’s fourth quarter focused on high-performance compute and AI workloads. Due to service providers aiming to boost their AI and cloud initiatives, the REIT’s global xScale portfolio also witnessed strong leasing activity and demand in the preceding year. For the current year, the REIT’s CEO Adaire Fox Martin believes that the pace of technological change is quick and the REIT has significant relevance to the market opportunity present, with AI being a major secular demand driver for its business.

2. Crown Castle Inc. (NYSE:CCI)

Number of Billionaires: 12

Number of Hedge Fund Holders: 54

Crown Castle Inc. (NYSE:CCI) serves as the largest provider of shared communications infrastructure in the United States. The REIT offers a nationwide footprint of towers, small cells, and fiber to help businesses and organizations connect to technologies and innovations.

Crown Castle Inc. (NYSE:CCI) has a comprehensive infrastructure portfolio comprising 40,000 cell towers, nearly 105,000 on-air or under-contract small cell nodes, and nearly 90,000 route miles of fiber. CCI has a presence in every major US market and is set to benefit from the long-term US wireless data demand growth. The REIT offers the US wireless carriers the prime real estate they require to run their networks. For emerging markets such as 5G, smart city technologies, and the Internet of Things which are to stay, the REIT’s infrastructure solutions are crucial. Crown Castle Inc. (NYSE:CCI) recently transitioned into a pure-play, public US tower company by announcing its agreement to sell its Fiber segment to EQT and Zayo. The firm believes that such a focused US tower business would be in a unique position to benefit from the expected consistent growth in mobile data demand.

1. American Tower Corporation (NYSE:AMT)

Number of Billionaires: 16 

Number of Hedge Fund Holders: 70

American Tower Corporation (NYSE:AMT) is an independent owner, operator, and developer of multitenant communications real estate. The REIT has a portfolio of nearly 149,000 communications sites and a highly interconnected footprint of US data center facilities.

American Tower Corporation (NYSE:AMT) is a rather long-term investment as it continues to benefit from the rising strong growth in mobile data consumption and the demand for its portfolio of communications assets. The REIT is in one of the ‘ most durable businesses, capitalized by ever-increasing mobile network demand’ in the words of its CEO Steve Vondran. With emerging market players beginning to roll out 5G and carriers in its US and European markets deploying mid-band spectrum assets, the REIT’s communications assets are becoming critical. Meridian Funds stated the following regarding the REIT in its “Meridian Hedged Equity Fund” fourth quarter 2024 investor letter:

“American Tower Corp. is a leading global owner and operator of wireless communications infrastructure, with a portfolio spanning the U.S. and key international markets. We hold American Tower for its exposure to the secular growth in wireless data consumption and its strategic positioning in underpenetrated emerging markets. The company benefits from long-term contracts with investment-grade wireless carriers, providing strong visibility into future cash flows”

Overall, AMT ranks first among the 10 best REIT stocks to buy according to billionaires. While we acknowledge the potential of the best REIT stocks, our conviction lies in the belief that AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. There is an AI stock that went up since the beginning of 2025, while popular AI stocks lost around 25%. If you are looking for an AI stock that is more promising than AMT but that trades at less than 5 times its earnings, check out our report about this cheapest AI stock.

READ NEXT: 20 Best AI Stocks To Buy Now and 30 Best Stocks to Buy Now According to Billionaires.

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