In this article, we will take a look at the most profitable real estate stocks right now.
The real estate sector is among the most prominent wealth-building asset classes. In an environment characterized by fluctuating demand, political challenges, evolving interest rates, and inflationary pressures, it is crucial to identify sectors less exposed to these risks.
On March 23, Forbes published “Housing Market Predictions For 2026: When Will Home Prices Drop?” highlighting that buyers have more options and purchasing power, thanks to lagging home price growth, slightly rising inventory, and lower mortgage rate assumptions. Despite these benefits, several potential buyers are still opting to wait.
The publication further states that housing experts are predicting gradual home price growth, with a slight drop in mortgage rates in 2026. Markets with increasing supply and robust local economies are expected to offer the most prospects for buyers early in 2027.
At its March 2026 meeting, the Federal Open Market Committee (FOMC) voted to keep rates unchanged at a target range of 3.5%-3.75%. According to Jerome Powell, the Federal Reserve Chair, the economy “has been expanding at a solid pace,” but tensions in the Middle East have shaped inflation trends. The article cites J.P. Morgan, forecasting home prices to remain flat this year, “with a slight improvement in demand likely offsetting any increased supply.”
In light of this, we have compiled a list of the most profitable real estate stocks right now.
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Our methodology
For this article, we used the Stock Analysis screener to filter for real estate sector stocks with market capitalizations exceeding $2 billion that reported operating and net profit margins exceeding 20%. From this pool, we selected the top 14 stocks with the highest trailing twelve-month (TTM) net income that have recently reported noteworthy developments likely to impact investor sentiment. These are then ranked in ascending order by net income.
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).
14. W. P. Carey Inc. (NYSE:WPC)
On March 26, Citizens reaffirmed a Market Perform rating on W. P. Carey Inc. (NYSE:WPC), while raising its estimates. The firm highlighted that the company has remained active from a capital markets standpoint since the beginning of the year. This positions it well to sustain a rapid pace of deployment. According to Citizens, the company’s shares trade at a slight premium to the net-lease REIT sector, at 13 times 2026 projected adjusted funds from operations per share, implying a fair valuation.
Earlier on March 17, Raymond James upgraded W. P. Carey Inc. (NYSE:WPC) to Outperform from Market Perform and set a $76 price target. The firm noted that the company’s Q4 results were in line with expectations and issued 2026 adjusted funds from operations guidance modestly above consensus forecasts.
Raymond James believes W. P. Carey Inc. (NYSE:WPC) could surpass the investment target, stating that it appears conservative after a record 2025 when the company completed $2.1 billion in investments. From appealing investment spreads to an attractive cost of capital, the firm cited strong reasons for a bullish stance.
W. P. Carey Inc. (NYSE:WPC) is a Maryland-based net lease REIT and one of the largest, with a diversified portfolio of high-quality commercial real estate. Incorporated in 1973, the company has 1,682 net lease properties.
13. Regency Centers Corporation (NASDAQ:REG)
On March 24, Scotiabank raised its price target on Regency Centers Corporation (NASDAQ:REG) to $82 from $76 and reiterated its Sector Perform rating. This is a part of the price target readjustment in the U.S. Retail REITs space.
During the presentation at Citi’s Miami Global Property CEO Conference 2026, Regency Centers Corporation (NASDAQ:REG) highlighted its strong operating momentum and strategic growth. Although risks like changing tenant demands and technological influences exist, the company remains focused on solid financial performance and development opportunities.
On the operational front, Regency Centers Corporation (NASDAQ:REG) is expanding its development pipeline with top tenants, while emphasizing enterprise intelligence. The company anticipates this pipeline to substantially contribute to earnings in 2026 and onwards. The company aims to power data analytics and AI to enhance efficiency and decision-making. As stated by CEO Lisa Palmer,
“Taken together, our portfolio quality, the value creation platform, balance sheet strength, and experienced team position us to deliver durable growth through any and all cycles.”
Regency Centers Corporation (NASDAQ:REG) is a Florida-based, fully integrated real estate company and self-administered and self-managed REIT. Founded in 1963, the company owns and operates income-producing retail real estate mainly located in suburban trade regions.
