10 Most Undervalued REIT Stocks to Buy Right Now

In this article, we will take a look at the 10 Most Undervalued REIT Stocks to Buy Right Now.

On January 14, CBRE reported its forecasts that the annual U.S. GDP growth will drop to 2.0% in 2026, with deteriorating labor economic conditions and somewhat lower rates of inflation at 2.5%. Despite these hurdles, commercial real estate investment spending is predicted to rise by 16% in 2026 to $562 billion, roughly mirroring the pre-pandemic yearly average.

Overall, real estate stocks head into 2026 with a unique combination of positive momentum and unaddressed points of tension. While mortgage rates in the US dipped as 2025 came to a close, the housing market remains constrained, and commercial real estate fundamentals keep shifting dramatically by property type. Speaking on this, James Knightley, chief international economist at ING, said the following:

“Housing demand is constrained by a lack of affordability – high prices, elevated mortgage rates – while rising fears of joblessness are further depressing homebuyer appetite. At the same time, supply is on the rise with insurance and property taxes putting financial pressure on stretched homeowners.”

The macroeconomic background is also evolving. The Federal Reserve dropped rates earlier in December, and Chair Jerome Powell stated that the median contributor in the Fed’s Summary of Economic Projections anticipates the benchmark rate being set at 3.4% by the end of 2026.

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Our Methodology

For this list, we compiled a list of U.S.-listed REIT stocks with a forward P/E ratio of less than 15.  In addition, we ranked these stocks based on the number of hedge funds invested in each of them as of Q3 2025.

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 427.7% since May 2014, beating its benchmark by 264 percentage points (see more details here).

10. Orchid Island Capital, Inc. (NYSE:ORC)

Forward P/E Ratio: 7.07

Number of Hedge Fund Holders: 11

Orchid Island Capital, Inc. (NYSE:ORC) ranks among the most undervalued REIT stocks to buy right now. On December 15, Compass Point began coverage of Orchid Island Capital, Inc. (NYSE:ORC), rating it Neutral and setting a $7.50 price target on the stock. Compass Point said that political and policy concerns will come out as significant factors for mortgage asset performance in the following quarters, generating prospects for MBS investors.

Even with these favorable aspects, Compass Point was concerned that Orchid Island Capital’s substantial dividend payout compared to core ROE and GAAP earnings would keep stifling book value per share growth.

More recently, on January 14, Orchid Island Capital, Inc. (NYSE:ORC) announced its preliminary projections for the fourth quarter of 2025, forecasting a book value per share of $7.54 and a net income per share of $0.62, including $0.43 in realized and unrealized profit on residential mortgage-backed securities (RMBS) and derivatives.

Orchid Island Capital, Inc. (NYSE:ORC) is a specialty finance company that invests on a leveraged basis in Agency residential mortgage-backed securities.