In this article, we will take a look at some of the best undervalued REIT stocks.
Real estate stocks experienced a strong start to 2025, with the MSCI US REIT Index posting a 1.1% gain in March, in contrast to declines of 1.6% and 5.2% in the S&P 500 and Russell 2000, respectively. Anthony Paolone, Co-Head of US Real Estate Stock Research at JPMorgan, noted that in the event of a significant economic slowdown, REIT earnings are likely to exhibit greater resilience relative to broader market sectors, historically declining less sharply and at a slower pace than S&P 500 earnings.
JPMorgan Research estimates a 3% year-over-year increase in bottom-line funds from operations (FFO) for REITs in 2025, consistent with growth observed in 2024, with a further increase to nearly 6% anticipated in 2026. According to Anthony Paolone, this improvement is expected to come from a boost in investment activity as transaction volumes recover, creating new avenues for REIT-led expansion.
Although growth trajectories are likely to differ across asset classes, JPMorgan forecasts that a combination of approximately 4% dividend yields, low-to-mid single-digit FFO growth, and potential valuation multiple expansion could yield a total return in the vicinity of 10%.
Commercial real estate fundamentals are expected to remain resilient, with same-store net operating income growth for REITs projected at approximately 3% in 2025, consistent with the rate observed in 2024. This organic performance is expected to be led by an increasingly favorable investment environment. Additionally, external growth is forecasted to gain momentum in 2025 and 2026, driven by improving capital markets liquidity and a gradual recovery in commercial real estate transaction volume.
With that in mind, let’s take a look at the 10 most undervalued REIT stocks that are also on Wall Street’s radar.
Aerial view of a city office building, symbolizing the modernity of the REIT business.
Our Methodology
We used the Finviz stock screener to filter REIT stocks based on P/E ratios. Then, we shortlisted stocks with price-to-earnings (P/E) ratios below the sector average of 44. The 10 chosen stocks were some of the most undervalued REITs that also received coverage from Wall Street analysts and mainstream media outlets recently. These momentum stocks were favored by top hedge funds in the first quarter of 2025, as per Insider Monkey’s Q1 2025 database.
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. Omega Healthcare Investors, Inc. (NYSE:OHI)
Number of Hedge Fund Holders: 21
P/E Ratio as of June 19: 22.97
Omega Healthcare Investors, Inc. (NYSE:OHI) is one of the most undervalued stocks. On June 9, Citizens JMP maintained a Market Perform rating on Omega Healthcare. The decision reflects improving fundamentals, including expanding coverage ratios and more favorable Medicaid trends in priority regions.
Omega Healthcare is benefitting from favorable momentum, analysts observed, citing a senior housing operator’s improving operational performance. In light of positive developments, analysts still point to unresolved issues tied to PACS Group, Omega Healthcare’s fifth-largest operator. The group is facing scrutiny over potential billing violations, which could pose risks for the company. Analysts believe the matter may take years to resolve, though rent flows are likely to continue in the interim.
According to analysts, the issues surrounding PACS Group may encourage Omega Healthcare Investors, Inc. (NYSE:OHI) to adopt a strategic acquisition plan focused on accelerating FFO growth and minimizing exposure to the troubled operator, thereby reducing overall risk.
Omega Healthcare is a real estate investment trust that supports the long-term healthcare sector by funding skilled nursing and assisted living facilities in the United States and the United Kingdom.
9. COPT Defense Properties (NYSE:CDP)
Number of Hedge Fund Holders: 22
P/E Ratio as of June 19: 22.89
COPT Defense Properties (NYSE:CDP) is one of the most undervalued stocks. On June 10, Truist maintained a Hold rating on CDP and raised the price target from $29 to $30. With a robust 4.31% yield, the company has consistently paid dividends for the past 34 years, indicating its commitment to shareholder returns. The target price update reflects a refined valuation approach that involves discounted cash flow analysis along with forecasted net asset value.
Analysts reported that COPT Defense Properties (NYSE:CDP) is advancing three developments set to launch in 2025, with more projects on deck for 2026 and 2027. The $308 million active portfolio is 62% pre-leased, with 30% of the costs already invested.
Occupancy at COPT Defense is forecasted to dip slightly to 91.9% by the end of 2025, compared to 92.3% in the first quarter. The firm also projects a low single-digit positive increase in GAAP rental spreads.
Analysts indicate that COPT Defense Properties (NYSE:CDP) is unlikely to engage in any mergers, acquisitions, or property disposals in 2025. However, they are factoring in a $400 million unsecured note issuance for the fourth quarter.
COPT Defense, a self-managed REIT, focuses on the ownership, operation, and development of mission-critical real estate assets located near or within major US Government defense installations.
8. Whitestone REIT (NYSE:WSR)
Number of Hedge Fund Holders: 23
P/E Ratio as of June 19: 20.33
Whitestone REIT (NYSE:WSR) is one of the most undervalued stocks. On June 18, JMP Securities maintained a Market Outperform rating on WSR with a $16 price target, driven by the company’s latest Texas acquisition.
The firm sees Whitestone’s new asset purchase as a strategic move that bolsters its presence in a market with solid fundamentals. The deal aligns with its focus on high-traffic tenants, steady income streams, and mark-to-market opportunities.
Whitestone’s real estate portfolio currently includes 57 properties concentrated in the Texas and Arizona markets, which JMP mentioned for their robust demographic growth trajectories. The analysts highlight that the company has regularly shown better-than-average performance from these properties.
JMP praised Whitestone REIT (NYSE:WSR)’s focused expansion in primary markets and its efforts to upgrade asset quality. The firm noted that proceeds from selling underperforming assets at favorable margins are reinvested into higher-return opportunities, driving immediate earnings upside.
Analysts pointed out that Whitestone’s stock is priced below 12 times its expected 2025 FFO, around two times less than the average for similar REITs. JMP says this is unfair, since Whitestone is growing faster, has better market coverage, and is lowering its debt. Its current ratio of 2.65 shows it has more than enough liquid assets to cover short-term needs.
Whitestone REIT (NYSE:WSR) is a community-centric REIT specializing in the acquisition, development, and management of open-air retail centers across high growth US markets, including Phoenix, Austin, Dallas-Fort Worth, Houston, and San Antonio.
7. Ryman Hospitality Properties, Inc. (NYSE:RHP)
Number of Hedge Fund Holders: 25
P/E Ratio as of June 19: 20.88
Ryman Hospitality Properties, Inc. (NYSE:RHP) is one of the most undervalued stocks. On June 10, the company confirmed the completion of its acquisition of the JW Marriott Phoenix Desert Ridge Resort & Spa in Phoenix, Arizona, for nearly $865 million, following its earlier disclosure of the transaction.
Mark Fioravanti, President and Chief Executive Officer of Ryman Hospitality Properties, commented:
“I want to thank the Ryman team and the sellers, Trinity Investments, for their collaboration in executing an efficient and successful closing. We are excited to begin integrating this premier resort into our differentiated, group-focused portfolio, and we look forward to pursuing compelling value creation opportunities at this beautiful property and across our one-of-a-kind portfolio.”
The JW Marriott Desert Ridge sits on about 402 acres in Arizona’s Sonoran Desert and is one of the largest resorts in the Phoenix/Scottsdale area. It includes 950 guest rooms, with 81 suites, and around 243,000 square feet of space for meetings and events. The resort features a 28,000 square foot spa (REVIVE Spa), seven restaurants and bars, a large water area with slides and a lazy river, and two golf courses designed by Nick Faldo and Arnold Palmer. Recently, the property underwent nearly $100 million in upgrades, including renovated rooms and suites, an improved lobby, better water attractions, and updated dining areas.
Ryman Hospitality Properties, Inc. (NYSE:RHP) is a hospitality-focused REIT specializing in upscale convention center resorts, including five of the seven largest non-gaming convention hotels in the United States.
6. Gaming and Leisure Properties, Inc. (NASDAQ:GLPI)
Number of Hedge Fund Holders: 26
P/E Ratio as of June 19: 16.39
Gaming and Leisure Properties, Inc. (NASDAQ:GLPI) is one of the most undervalued stocks. On June 5, Stifel analysts maintained a Buy rating on GLPI, assigning a price target of $57.50. The company’s projected 2025 spending includes $130 million for the Juliette project, a move analysts say will likely yield more visible results later in the year.
Moreover, analysts clarified that Aurora project’s capital requirements will not affect GLPI’s 2025 performance, as they are slated for 2026 planning. The analysts also highlighted the Lincoln asset and Chicago project milestones as important elements shaping the company’s outlook.
Gaming and Leisure remains confident in its management of the Lincoln asset but does not expect prioritizing it in the short term. These projects are being monitored within the context of the company’s growth framework.
Analysts’ continued Buy rating and target price reflect a bullish stance on Gaming and Leisure’s short and long-term opportunities. Investors also remain interested, driven by the firm’s well-positioned growth strategies and project execution.
GLPI is a real estate investment trust that specializes in acquiring, financing, and owning real estate assets leased to gaming operators.
5. Host Hotels & Resorts, Inc. (NASDAQ:HST)
Number of Hedge Fund Holders: 32
P/E Ratio as of June 19: 16.56
Host Hotels & Resorts, Inc. (NASDAQ:HST) is one of the most undervalued stocks. On June 5, Stifel maintained a Buy rating on HST with a price target of $15.47. The company’s 7.11% dividend yield enhances its investment appeal. Analysts noted that the multifamily space delivered quarterly results that largely met anticipated benchmarks.
Analysts flagged early signs of improvement in the downtown San Francisco, particularly the Downtown and Peninsula submarkets, historically among the slowest to recover since the pandemic.
Analysts observed that multifamily transaction activity is rising, lending credibility to their positive outlook. The continued attention on the sector highlights ongoing interest in its recovery and performance trends.
Stifel’s Buy recommendation on Host Hotels & Resorts, Inc. (NASDAQ:HST) indicates confidence in its growth trajectory, and the $15.47 price target implies room for higher valuation.
Host Hotels & Resorts, Inc. (NASDAQ:HST) is one of the largest lodging-focused REITs, with a portfolio comprising luxury and upper-upscale properties across domestic and international markets.
4. Equity Residential (NYSE:EQR)
Number of Hedge Fund Holders: 36
P/E Ratio as of June 19: 26.25
Equity Residential (NYSE:EQR) is one of the most undervalued stocks. On June 5, Stifel maintained a Buy rating on EQR with a price target of $69.01. The analysts highlighted that Q2 fundamentals for most lodging REITs are tracking in line with, or modestly surpassing, initial expectations.
The analysts noted a modest downward revision in RevPAR (revenue per available room) forecasts for 2025 and 2026 by STR. However, Q2 performance has been positively influenced by higher leisure travel, due in part to the Easter holiday shift, as well as continued strength in group demand. The company’s robust financial health is also demonstrated by its 33-year history of dividend payouts.
It was additionally noted that weaker inbound international and government travel offset the growth in part. However, the analysts remained optimistic towards Equity Residential. Despite evolving market trends, Equity Residential (NYSE:EQR) exhibits strategic agility, bolstering analysts’ confidence in its continued success and future prospects.
Equity Residential (NYSE:EQR) focuses on the acquisition, development, and management of high-quality residential properties in urban centers for long-term renters.
3. Public Storage (NYSE:PSA)
Number of Hedge Fund Holders: 42
P/E Ratio as of June 19: 28.95
Public Storage (NYSE:PSA) is one of the most undervalued stocks. On June 13, JPMorgan reiterated an Overweight rating on PSA, setting a price target of $324. The firm’s evaluation of Public Storage indicates confidence in its strategic market position and solid financial outcomes.
The company’s performance reflects stability in the real estate sector, supported by a business model reliant on short-term leases that permit dynamic pricing rather than conventional commercial real estate frameworks.
JPMorgan’s price target reflects its valuation of Public Storage’s future potential, informed by projected earnings growth, operational effectiveness, and broader trends in the self-storage market.
Public Storage (NYSE:PSA) is a real estate investment trust specializing in the acquisition, development, ownership, and operation of self-storage facilities.
2. Simon Property Group, Inc. (NYSE:SPG)
Number of Hedge Fund Holders: 47
P/E Ratio as of June 19: 24.96
Simon Property Group, Inc. (NYSE:SPG) is one of the most undervalued stocks. On June 17, Citi trimmed its price target on SPG from $185 to $170 while reiterating a Neutral rating on the stock.
The company adjusted its 2025 funds from operations (FFO) estimate downward to $12.21 from the previous $12.52, adding the impact of Q1 results that included one-time expenses and investment losses of $0.28 per share. Similarly, Citi revised its 2025 core FFO forecast to $12.49, a slight decrease from $12.52, mainly driven by more conservative projections for net operating income.
The updated price target implies a valuation multiple of approximately 14x the expected 2025 core FFO, down from the earlier multiple of around 15x. Citi attributed this multiple compression to increased uncertainty regarding potential tariff impacts and the overall creditworthiness of tenants.
This adjustment in price target stems from Simon’s recent earnings performance and denotes a conservative outlook on the retail property market amid broader economic headwinds.
Simon Property Group, Inc. (NYSE:SPG) is a self-managed and self-administered REIT specializing in the ownership, development, and operation of premier retail and mixed-use properties, including malls, outlets, and international destinations.
1. Prologis, Inc. (NYSE:PLD)
Number of Hedge Fund Holders: 55
P/E Ratio as of June 19: 26.19
Prologis, Inc. (NYSE:PLD) is one of the most undervalued stocks. Prologis recently indicated its intention to file redevelopment plans later this year for the Caltrain railyards located at Fourth and King Street. The REIT is proposing a seven-million-square-foot mixed-use project that could accommodate between 1,500 and 4,000 residential units.
As reported by the San Francisco Business Times, if fully executed, the development would represent one of the most significant housing initiatives near a major transit corridor in San Francisco.
The Business Times noted that the variability in potential housing units offers Prologis the agility to align the project with future demand. Although formal approvals are unlikely before 2027, planning commissioners are already highlighting the importance of affordability.
Prologis Vice President Genevieve Cadwalader commented that residential development will be a focal element in the transformation of the railyards into a high-density, transit-oriented urban district. This project holds the potential to be San Francisco’s second most densely developed transit-centric neighborhood, following the Transbay district.
Prologis, Inc. (NYSE:PLD) is a global REIT focused on high-barrier, high-growth markets in 20 countries. Prologis leases modern logistics facilities to a diverse base of customers across two major categories – business-to-business and retail/online fulfillment.
While we acknowledge the potential of PLD to grow, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and have limited downside risk. If you are looking for an AI stock that is more promising than PLD and that has 100x upside potential, 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.
Disclosure: None. Insider Monkey focuses on uncovering the best investment ideas of hedge funds and insiders. Please subscribe to our free daily e-newsletter to get the latest investment ideas from hedge funds’ investor letters by entering your email below.
