In this article, we will take a look at the 11 Best Real Estate Stocks to Invest In.
One of the worst downturns in decades continues to plague the US home sector. According to figures from the National Association of Realtors, sales of existing homes dropped by a third from 2021 to almost 4 million in 2024, a nearly 30-year low. In such an environment, companies that make money from the home-buying process are attempting to maximize profits from the relatively small number of transactions.
Moreover, the broader market was thrown into another frenzy following the recent interest rate cut by the Federal Reserve. Due to their reliance on debt to finance real estate development and acquisitions, REITs are especially vulnerable to changes in interest rates. Lower rates contribute to a more favorable environment for REIT performance by reducing borrowing costs, raising valuations, and increasing investor demand for yields.
In response to mounting concerns about the U.S. labor market, the central bank dropped its benchmark rate by a quarter point on September 17 and said it would cut it twice more this year, as predicted by market analysts.
The futures market had factored in the likelihood that the Fed would lower its benchmark interest rate at future policy meetings this year and into 2026 before the rate decrease. However, compared to the market’s expectations, the Fed’s most recent predictions indicate a less aggressive path of rate cuts.
Photo by Owen Lystrup on Unsplash
Our Methodology
For our list of the best real estate stocks to invest in, we started with a list of stocks pulled from ETFs, stock screeners, and web rankings. We then utilized Insider Monkey’s Q2 2025 database to discover the best stocks held by hedge funds. The list is organized in ascending order of hedge fund sentiment around each stock.
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).
11. Realty Income Corporation (NYSE:O)
Number of Hedge Fund Holders: 27
Realty Income Corporation (NYSE:O) ranks among the best real estate stocks to invest in. Following the announcement of a dual-tranche senior notes issuance, Stifel reiterated a Buy rating for Realty Income Corporation (NYSE:O) with a price target of $68 on September 26. The company priced a $800 million senior unsecured note issuance in two equivalent tranches: $400 million of 3.95% senior unsecured notes maturing in 2029 and $400 million of 4.50% senior unsecured notes maturing in 2033.
Stifel analyst Simon Yarmak estimates that the 2029 notes have an effective yield to maturity of 4.143%, while the 2033 notes offer an effective yield to maturity of 4.685%.
Realty Income Corporation (NYSE:O) is a real estate investment trust that invests in free-standing, single-tenant commercial properties in the United States, Spain, and the United Kingdom under NNN leases.
10. Gaming and Leisure Properties, Inc. (NASDAQ:GLPI)
Number of Hedge Fund Holders: 33
Gaming and Leisure Properties, Inc. (NASDAQ:GLPI) ranks among the best real estate stocks to invest in. JMP Securities reaffirmed its Market Outperform rating and $55 price target for Gaming and Leisure Properties, Inc. (NASDAQ:GLPI) on September 17, highlighting the company’s robust forward commitment pipeline and cautious balance sheet management.
Bally’s recently announced a credit facility adjustment, which the firm noted had opened the door for an expected sale-leaseback deal with Gaming and Leisure Properties, Inc. (NASDAQ:GLPI). Bally’s expansion plans and leverage reduction could be partially funded by this deal, which would also enable GLPI to acquire another high-quality asset with a dependable tenant.
JMP Securities noted that GLPI’s portfolio continues to perform well, with long-term, resilient, cycle-tested cash flows, and that its low-leveraged balance sheet offers significant room for future expansion.
Gaming and Leisure Properties, Inc. (NASDAQ:GLPI) is a real estate investment trust that focuses on purchasing, financing, and owning real estate properties leased to gambling operators.
9. SBA Communications Corporation (NASDAQ:SBAC)
Number of Hedge Fund Holders: 41
SBA Communications Corporation (NASDAQ:SBAC) ranks among the best real estate stocks to invest in. On September 17, KeyBanc maintained its Overweight rating on SBA Communications Corporation (NASDAQ:SBAC) and increased its price target from $280 to $325. The raise is a substantial upward adjustment, indicating that KeyBanc believes the telecom infrastructure provider has further upside potential in spite of some sector challenges.
SBA Communications Corporation (NASDAQ:SBAC)’s leasing environment presents difficulties, according to KeyBanc, which specifically mentioned the AT&T/DISH spectrum agreement as a concern that would affect the company’s future growth trajectory.
The firm also admitted that incremental DISH churn makes it difficult to support its premise that SBA will return to mid-single-digit AFFO (Adjusted Funds From Operations) per share growth by 2027. Instead, that growth milestone is now anticipated in 2028.
SBA Communications Corporation (NASDAQ:SBAC) is a Real Estate Investment Trust with wireless infrastructure interests in several locations, including the United States, Canada, Central America, South America, and South Africa.
8. Ventas, Inc. (NYSE:VTR)
Number of Hedge Fund Holders: 43
Ventas, Inc. (NYSE:VTR) ranks among the best real estate stocks to invest in. On September 19, UBS began coverage of Ventas, Inc. (NYSE:VTR) with a $73 price target and a Neutral rating. The bank stated that the shares of the healthcare REIT were already appropriately priced into Ventas’s strong senior housing operating portfolio (SHOP), same-store net operating income, and adjusted funds from operations (AFFO) growth trajectory.
Although Ventas, Inc. (NYSE:VTR) will continue to profit from the “unprecedented senior housing backdrop,” UBS pointed out that a number of variables, including its reduced operating exposure in comparison to rivals, seem to limit additional gain.
With Ventas, Inc. (NYSE:VTR) trading at a premium next-twelve-months FFO multiple of 18x compared to its five-year average of 16x, UBS anticipates that the company’s AFFO growth would somewhat slow from 9.5% in 2025 to 8.8% in 2026.
Ventas, Inc. (NYSE:VTR) is a healthcare-focused REIT with a portfolio of roughly 1,400 properties in the United States, Canada, and the United Kingdom, comprising senior living communities, medical office buildings, and life science facilities.
7. Iron Mountain Incorporated (NYSE:IRM)
Number of Hedge Fund Holders: 47
Iron Mountain Incorporated (NYSE:IRM) ranks among the best real estate stocks to invest in. On September 22, Jefferies issued a Buy rating for Iron Mountain Incorporated (NYSE:IRM), with a price target of $120. Jonathan Petersen, an analyst at Jefferies, emphasized Iron Mountain’s strategic shift, which has sped its expansion in asset lifecycle management, digital solutions, and data centers.
According to Jefferies, the growth categories are expected to generate almost 44% of Iron Mountain’s revenue by 2029, expanding at a rate of almost 25% annually. Project Matterhorn, which began in 2021, has accelerated Iron Mountain’s growth operations, allowing the company to meet its 2026 Adjusted EBITDA and AFFO targets one year earlier by means of a solutions-based sales approach, while its existing storage operations remain robust with stable volumes and CPI+ rent growth.
Iron Mountain Incorporated (NYSE:IRM) offers storage and information management solutions. Its operations are separated into three business segments: Global Records & Information Management, Global Data Center, and Corporate & Other Business.
6. Digital Realty Trust, Inc. (NYSE:DLR)
Number of Hedge Fund Holders: 47
Digital Realty Trust, Inc. (NYSE:DLR) ranks among the best real estate stocks to invest in. At the Global Communications Infrastructure Conference on September 17, Digital Realty Trust, Inc. (NYSE:DLR) gave a presentation outlining its growth prospects and strategic plans. CFO Matt Mercier and RBC analyst John Acker led the conversation, which acknowledged issues including power limitations in important regions while highlighting the strong demand generated by AI.
By growing into Charlotte and Atlanta and efficiently managing supply chain lead times, the company is tackling power shortages. Singapore and Japan have land and power limits, while France and Frankfurt enjoy favorable development conditions.
According to Digital Realty Trust, Inc. (NYSE:DLR), FFO per share will rise by 6.5% in 2025 compared to the baseline growth rate of 5%. The company now has $850 million in backlog, with major expansions scheduled for 2025–2027.
Digital Realty Trust, Inc. (NYSE:DLR) is a real estate investment trust that invests in carrier-neutral data centers and offers colocation and peering services. It specializes in the ownership, acquisition, development, and administration of technology-related real estate.
5. Crown Castle Inc. (NYSE:CCI)
Number of Hedge Fund Holders: 49
Crown Castle Inc. (NYSE:CCI) ranks among the best real estate stocks to invest in. On September 22, Wolfe raised Crown Castle Inc. (NYSE:CCI) International’s rating from Peer Perform to Outperform, stating that the stock is more appealing due to broader real estate headwinds and that worries about satellite competition and tenant contracts have little effect on the tower operator.
Additionally, the analysts claimed that worries that towers would be replaced by low-orbit satellites are exaggerated, pointing out that satellites “would have a difficult time handling data in scale, and as such are only appropriate for low-density areas.”
The firm anticipates that Crown Castle Inc. (NYSE:CCI) will streamline its operations and reduce debt when it sells its fiber and small cell operations in 2026.
Crown Castle Inc. (NYSE:CCI) is a major player in the real estate investment trust (REIT) sector, with a sizable portfolio that comprises over 40,000 cell towers.
4. Welltower Inc. (NYSE:WELL)
Number of Hedge Fund Holders: 56
Welltower Inc. (NYSE:WELL) ranks among the best real estate stocks to invest in. On September 23, KeyBanc maintained its Overweight rating on Welltower Inc. (NYSE:WELL) and increased its price target from $150 to $200. The firm pointed to Welltower’s favorable position to profit from long-term fundamental tailwinds in the senior housing market.
According to KeyBanc, the company’s operating momentum remains strong, which could result in further upward revisions to its 2025 forecast. The firm stated that it expects continued margin expansion for Welltower’s operations in 2026, combined with stable-to-improving RevPOR (revenue per occupied room) growth.
KeyBanc also identified new investments as drivers of earnings accretion, which could help Welltower Inc. (NYSE:WELL) maintain its above-average NFFO (normalized funds from operations) growth. This expansion is fueled by Welltower’s access to cheap capital and below-average leverage.
Welltower Inc. (NYSE:WELL) is a Toledo, Ohio-based real estate investment trust that focuses on healthcare real estate. It owns infrastructure that services the senior housing, post-acute care, and medical office divisions of the healthcare sector.
3. CoStar Group, Inc. (NASDAQ:CSGP)
Number of Hedge Fund Holders: 59
CoStar Group, Inc. (NASDAQ:CSGP) ranks among the best real estate stocks to invest in. Following robust traffic growth on the company’s residential platform, Goldman Sachs reaffirmed its Buy rating and $105 price target for CoStar Group, Inc. (NASDAQ:CSGP) on September 22.
With favorable implications for residential revenue growth, the firm noted that online traffic at CoStar’s residential website, Homes.com, surged in recent months and hit a new one-year high. After declining by an average of 20% in the first quarter and 5% in the second, monthly unique visitors increased by 3% and 9% year-over-year in July and August, respectively.
Additionally, Goldman Sachs said that in June, July, and August, CoStar’s Apartments.com network outperformed Zillow Rentals year-over-year, indicating improved competitive posture and faster organic revenue growth in the second half of 2025 compared to the first half.
CoStar Group, Inc. (NASDAQ:CSGP) provides information, analytics, and digital marketplace services.
2. Equinix, Inc. (NASDAQ:EQIX)
Number of Hedge Fund Holders: 66
Equinix, Inc. (NASDAQ:EQIX) ranks among the best real estate stocks to invest in. On September 25, Equinix, Inc. (NASDAQ:EQIX) hosted its inaugural AI Summit and announced the debut of its distributed AI infrastructure. The company presented three key elements: Fabric Intelligence software, a global AI Solutions Lab, and an AI-ready infrastructure.
Through the AI Solutions Lab, businesses may test and create AI solutions by gaining access to Equinix’s partner ecosystem, which consists of over 2,000 AI vendors. Meanwhile, Fabric Intelligence, slated for deployment in the first quarter of 2026, would augment Equinix Fabric with real-time automation for AI workloads.
Additionally, the company revealed plans to make the GroqCloud platform accessible to businesses in the first quarter of 2026, giving them private access to inference platforms via its network.
Equinix, Inc. (NASDAQ:EQIX) is an American multinational company based in Redwood City, California, that specializes in Internet connectivity and data centers.
1. American Tower Corporation (NYSE:AMT)
Number of Hedge Fund Holders: 70
American Tower Corporation (NYSE:AMT) ranks among the best real estate stocks to invest in. On September 23, American Tower Corporation (NYSE:AMT) declared that both it and AT&T Mexico had come to an agreement on tower rent payments in Mexico. The company case filing claims that because of an ongoing legal disagreement between the two parties, AT&T Mexico, which contributed around $300 million of American Tower’s tenant revenue in 2024, has been withholding tower rent payments since the start of 2025.
AT&T Mexico will start monthly payments for the bulk of its outstanding tower fees and remit payment of the majority of the withheld tower rents under the new agreement announced on September 22.
Based in Boston, Massachusetts, American Tower Corporation (NYSE:AMT) is a real estate investment trust that specializes in data centers and telecommunications. The company, which has over 221,000 properties globally, is essential to the development of fiber-optic networks that link 5G small cell sites to the internet.
While we acknowledge the potential of AMT 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 AMT and that has 100x upside potential, check out our report about this cheapest AI stock.
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