10 Cheap REITs with Huge Upside

In this article, we will look at the 10 Cheap REITs with Huge Upside.

On February 23, Steve Brown, Senior Portfolio Manager at American Century Investments, spoke with InvestmentNews about where REITs stand heading into 2026, noting that the outlook is more promising than many investors might expect. After essentially going nowhere in 2025, REITs are already off to a strong start this year, up nearly 9.5% year to date. Earnings forecasts are solid, valuations are attractive, and a number of property sectors actually have the pricing power to raise rents above inflation, something not every asset class can say right now.

The rotation away from tech-heavy investments is also working in REITs’ favor. With little exposure to AI and the broader tech bubble conversation, the sector is quietly picking up momentum. On top of that, the reshoring push bringing manufacturing back to the U.S. is starting to drive real demand for industrial properties. Retail, senior housing, hotels, and data centers are among the sectors seeing the strongest fundamentals right now, with demand outpacing supply across the board, making this a space worth watching closely in 2026.

So which REIT stocks are worth watching in 2026? Here’s a look at our 10 Cheap REITs with Huge Upside.

Our Methodology

To identify relevant stocks for this article, we screened U.S.-listed real estate investment trusts with market capitalizations above $2 billion. We shortlisted REITs that were trading at a price-to-FFO (funds from operations) ratio below 15 and simultaneously offered a dividend yield above 3%. Also, we included only REITs with at least 15% upside potential according to TipRanks consensus as of the March 13 closing.

In the final part of our search, we selected 10 REITs with the highest upside and ranked them in ascending order.

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 498.7% since May 2014, beating its benchmark by 303 percentage points (see more details here).

10. Host Hotels & Resorts Inc. (NASDAQ:HST)

Host Hotels & Resorts Inc. (NASDAQ:HST) is one of the 10 cheap REITs with huge upside.

As of the March 13 closing, consensus sentiment for Host Hotels & Resorts Inc. remained moderately bullish. The stock received coverage from 12 analysts, 6 of whom assigned Buy ratings and 6 gave Hold calls. With no Sell rating, it has a projected median 1-year price target of $21.36, which leads to an upside potential of more than 15%.

On February 27, Deutsche Bank increased its target price for Host Hotels & Resorts Inc. from $26 to $27. The firm reiterated its Buy rating on the stock, which currently offers an adjusted upside potential of almost 46%.

On February 23, Bank of America Securities also increased the price target for Host Hotels & Resorts Inc. to $22 from $20. The firm maintained a Buy rating on the stock, which yields a revised upside potential of almost 19% at the prevailing level. Bank of America Securities updated its forecasts following the company’s latest earnings report.

Earlier on February 19, Hotels & Resorts Inc. announced its fourth-quarter results, reporting an adjusted FFO of 51 cents per share, outpacing the consensus forecast of 47 cents. The company President and CEO, James Risoleo, attributed this outperformance to the portfolio quality and successful execution of its strategy. Reflecting on the expansion of hotel revenue per available room (RevPAR), he stated:

“Our strong fourth quarter and full year 2025 results underscore the success of our strategy and the quality of our portfolio. We delivered comparable hotel Total RevPAR growth of 5.4% over the fourth quarter of 2024, and full year growth of 4.2%, reflecting increased transient demand and improvements in food and beverage revenues and ancillary spending. Comparable hotel RevPAR increased 4.6% for the quarter and 3.8% for the full year due to higher rates across the portfolio.”

Host Hotels & Resorts Inc. is a self-managed REIT that focuses on lodging services. It owns and operates various luxury and upscale hotel properties. The company also partners with major hotel brands, including Marriott, with the aim of targeting markets that contain high barriers to entry.

9. AvalonBay Communities Inc. (NYSE:AVB)

AvalonBay Communities Inc. (NYSE:AVB) is one of the 10 cheap REITs with huge upside.

On March 4, Scotiabank reduced the firm’s price target on AvalonBay Communities Inc. from $193 to $190. The firm maintained its Sector Perform rating on the shares, which now offer a revised upside potential of over 12%.

The update comes as the firm revises its price targets across the U.S. multifamily REITs under its coverage. Scotiabank noted that many apartment markets continue to operate with occupancy levels below the pre-COVID period of 2015 to 2019. Investors may need to wait for the upcoming spring leasing season and clearer signs of improving market growth before a meaningful positive catalyst for the sector emerges.

On February 9, Piper Sandler decreased the firm’s price target for AvalonBay Communities Inc. from $190 to $183. The firm maintained a Neutral rating on the stock. It referred to recent earnings reports that indicate its inclination towards industrials while pulling back from the apartments sector. The outlook for later stems from deflated projections on rents.

AvalonBay Communities Inc. is a leading residential REIT that specializes in the development, acquisition, and management of the most sought-after apartment communities. Its primary focus is to provide an elevated residential experience to high-demand markets through skilled operational management and technological innovation.

8. VICI Properties Inc. (NYSE:VICI)

VICI Properties Inc. (NYSE:VICI) is one of the 10 cheap REITs with huge upside.

On March 12, Mizuho downgraded VICI Properties Inc. to a Neutral rating. The firm estimated a target price of $30 for the stock, citing potential tenant credit concerns. These are tied to reports that Tilman Fertitta is exploring an acquisition of Caesars Entertainment Inc. (NASDAQ:CZR).

Mizuho stated that Caesars’ business accounts for 39% of VICI’s rent. Nevertheless, VICI’s management has clarified that it lacks the ability to prevent a transaction unless there is a modification of the lease agreement. There is no indication that Fertitta’s offer is contingent on a modification of the lease agreement now, although it may be considered a negative factor from a credit perspective because Fertitta carries leverage.

On February 26, VICI Properties Inc. reported Q4 revenue of $1.01 billion, slightly ahead of the $1 billion consensus estimate. The company used the update to highlight several partnerships announced during 2025 that it believes will support its long-term growth strategy. These include investments and financing deals tied to major development projects and gaming operators, which also expand VICI’s tenant base.

VICI Properties Inc. specializes in hospitality, entertainment stations, and market-leading gaming. The company consists of premium assets, which are exclusively run by industry experts under a triple net lease agreement. It has managed to achieve viable growth through its strategic and intentional partnerships with leading developers and operators.

7. Independence Realty Trust Inc. (NYSE:IRT)

Independence Realty Trust Inc. (NYSE:IRT) is one of the 10 cheap REITs with huge upside.

On March 6, Barclays decreased the target price for Independence Realty Trust Inc. from $21 to $18. The firm maintained an Equal Weight rating on the stock, which now offers an adjusted upside potential of almost 14%. The update is based on the firm’s downward revisions across the residential REIT segment.

Back on February 12, Independence Realty Trust Inc. reported its fourth quarter results. The company shared its outlook for the coming year, pointing to easing supply pressures in the apartment market and steps taken to strengthen its financial position, including securing a new term loan that covers upcoming debt obligations. Commenting on the results and outlook, the company stated:

“Our solid full year 2025 results were in line with expectations. With supply pressure receding, we expect stable occupancy and stronger leasing rates. That combined with our continued focus toward managing expenses will allow us drive growth in same-store results in 2026. Additionally, our new term loan satisfies all debt maturities through the end of 2027 and increases our number of unencumbered assets.”

Independence Realty Trust Inc. is a self-managed REIT that acquires and manages multifamily apartment communities to generate optimal risk-adjusted returns. They target areas surrounding employment & retail centers, and schools across the expanding non-gateway U.S. market. The company aims to deliver a strong return on capital to investors in the form of dividends and capital gains.

6. Ryman Hospitality Properties Inc. (NYSE:RHP)

Ryman Hospitality Properties Inc. (NYSE:RHP) is one of the 10 cheap REITs with huge upside.

On March 3, Cantor Fitzgerald increased its price target on Ryman Hospitality Properties Inc. from $108 to $115, while maintaining an Overweight rating on the stock. The firm further explained that hotel REITs entered the fourth quarter with cautiously optimistic forecasts because the initial estimates for 2026 may have been too low.

Cantor Fitzgerald noticed that luxury and upscale hotels continued to perform better than lower-rated hotels, but a defensive strategy is still a good idea because of the growth in the industry and the uncertainty of the economy.

On February 25, Ryman Hospitality Properties Inc. announced that its subsidiaries, RHP Hotel Properties and RHP Finance Corporation, intend to offer $700 million in aggregate principal amount of senior notes due 2034 through a private placement, subject to market conditions.

The notes will represent senior unsecured obligations of the issuers and will be guaranteed by the company along with certain subsidiaries that back the operating partnership’s existing credit facility and outstanding senior unsecured notes. Ryman said it plans to use the net proceeds from the offering, together with available cash on hand, to redeem in full its 4.750% senior notes due 2027, including any accrued interest as well as related fees and expenses tied to the transaction.

Ryman Hospitality Properties Inc. focuses on upscale, group-oriented convention centers and also top-notch entertainment experiences. It owns a highly sought-after portfolio of mega hotels, which are managed by Marriott. Furthermore, it also has a majority interest in the Opry Entertainment Group that runs one of the most legendary stages for music and brands.

5. Invitation Homes Inc. (NYSE:INVH)

Invitation Homes Inc. (NYSE:INVH) is one of the 10 cheap REITs with huge upside.

On March 6, Barclays lowered its price target on Invitation Homes Inc. from $33 to $31, which now results in an adjusted upside potential of 24% at the prevailing level. The firm also maintained an Overweight rating on the stock. The revision is part of Barclays’ adjustments within the residential REITs category, where it has cut down its outlook.

Earlier on February 27, Raymond James downgraded Invitation Homes Inc. from an Outperform to Market Perform rating, as demand for rentals in the multifamily and single-family rental space declined. Furthermore, the firm added that the consensus numbers and the new guidance for 2026 could be too optimistic.

The company is prepared for the seasonal boost in leasing and comparisons in the second half of the year. However, challenges in leasing, supply, and concessions, as well as macro headwinds such as job losses due to AI, immigration enforcement, and regulatory issues, could put earnings under pressure.

Invitation Homes Inc. is the United States’ largest single-family home leasing and management company. Catering to a growing rental housing demand with a focus on convenience, it offers access to areas that are located near major employment hubs, commercial centers, and educational institutions. The company leverages Smart Home technology and AI capabilities for its resident services portals.

4. Kilroy Realty Corp. (NYSE:KRC)

Kilroy Realty Corp. (NYSE:KRC) is one of the 10 cheap REITs with huge upside.

On March 2, Scotiabank decreased the firm’s price target for Kilroy Realty Corp. from $42 to $37, leading to an adjusted upside potential of almost 30%. The firm maintained a Sector Perform rating on the stock.

Following the fourth quarter results, the firm updated its targets across the U.S. Real Estate & REIT segments. It believes that currently, the focus of real estate investment trusts should be to elevate development yields, which would create an impact on funds from operations per share in the near term. Scotiabank also has an inclination towards acquisitions, as they view these to offer a “better thematic story.”

On February 26, Kilroy Realty Corp. announced several leadership changes across its board and key committees. The company appointed Gary Stevenson as chair of the board, succeeding Edward Brennan, who has served as a board member since 2003 and held the chair position since 2024. Stevenson has been part of Kilroy’s board since 2014. As part of the transition, Brennan will take on the role of chair of the audit committee, while Jolie Hunt has been named chair of the executive compensation committee, overseeing executive pay and incentive programs.

Kilroy Realty Corp. is engaged in the development and management of office and mixed-use properties. Well-known for its sustainable and innovative approach, it ensures a productive environment for leading tech, media, and life science companies.

3. Cousins Properties Inc. (NYSE:CUZ)

Cousins Properties Inc. (NYSE:CUZ) is one of the 10 cheap REITs with huge upside.

On February 26, Barclays reduced the target price on Cousins Properties Inc. from $34 to $28, which still yields an upside of almost 23%. The firm maintained an Overweight rating on the stock.

Post fourth quarter announcements, the firm updated its models for the office REIT space. It fears the ongoing “AI disruption narrative” will remain in play, which will adversely affect valuation numbers.

On February 17, a new share repurchase program was authorized by Cousins Properties Inc., which will enable the company to repurchase a maximum of $250 million of its outstanding common shares.

Funds for this purpose will be arranged through a mix of debt, cash flow, and sales proceeds from non-core assets, as well as repayment of shares issued under its ATM program. The need to repurchase a certain number of shares under the program is not necessary for the company. It does not specify an expiration date, and the possibility of suspending or terminating the program exists.

Cousins Properties Inc. is a fully integrated and self-managed REIT that owns, develops, and manages high-end Class A office buildings and mixed-use properties. Their investment strategy focuses on Sun Belt markets across the United States, such as Dallas, Charlotte, Atlanta, and Austin. Their revenue streams include rentals, as well as property development & management fees.

2. SL Green Realty Corp. (NYSE:SLG)

SL Green Realty Corp. (NYSE:SLG) is one of the 10 cheap REITs with huge upside.

On March 9, SL Green Realty Corp. reportedly capped a potentially record-breaking first quarter through the leasing of the remaining office space at One Madison Avenue to Harvey AI via an addition of 92,663 square feet. In reaction to concerns that AI is contributing to a reduction in employment in New York City, Marc Holliday, the CEO, highlighted that the city is poised to reap the benefits of advancements in technology, productivity, and innovation.

On March 2, SL Green Realty Corp. said it signed 32 office leases in Manhattan totaling 491,098 square feet during the first two months of 2026, while maintaining a current leasing pipeline of more than 1M square feet. The activity included several notable long-term agreements across its portfolio.

A large global investment firm signed a new 10-year lease for 150,036 square feet at 245 Park Avenue, while TD Securities agreed to a 10-year expansion lease for 51,081 square feet at 125 Park Avenue. Additional deals included new or expanded leases with One Main General Services Corp, McDermott Will & Schulte at One Vanderbilt Avenue, UHY Advisors Northeast, and Turner & Townsend across multiple Park Avenue properties.

SL Green Realty Corp. specializes in the ownership, development, and management of commercial properties, such as shopping centers and office properties. It is a self-managed real estate investment trust that also possesses expertise in property management, debt investing, leasing, development, and redevelopment.

1. BXP Inc. (NYSE:BXP)

BXP Inc. (NYSE:BXP) is one of the 10 cheap REITs with huge upside.

On March 2, Scotiabank reduced its price target on BXP Inc. from $74 to $65. The firm maintained a Sector Perform rating on the stock that yields an adjusted upside potential of 25%.

The firm also revised its set of targets for all its U.S. real estate and REIT coverage based on the fourth quarter announcements. Scotiabank believes that REITs should focus on improved development yields to preserve near-term funds from operations per share, and that external expansion through acquisition-driven growth currently offers a more attractive thematic story.

On February 24, Mizuho analyst Vikram Malhotra downgraded BXP Inc. from an Outperform rating to a Neutral rating. The analyst reduced his price target from $79 to $62, resulting in a revised upside of more than 19%.

Malhotra said the rapid advancement of AI models could emerge as a potential disruptor for office-related jobs and, over time, demand for office real estate. While the analyst does not currently expect a direct impact on cash flows, he believes the shift could pressure valuation multiples across office REITs. He added that even modest changes in job growth could lead to structurally higher vacancy levels, ultimately limiting rent growth and creating further downside risk for the group.

BXP Inc. is a unified real estate investment trust that focuses on the development, ownership, and management of premier workplaces. It is also reputed for swift customer service and in-house building management expertise. The company has an impressive track record of delivering value across office, mixed-use, and residential real estate.

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