In this article, we discuss 5 best commercial real estate stocks to buy according to hedge funds. If you want to read our detailed discussion on the real estate market, check out 10 Best Commercial Real Estate Stocks To Buy According To Hedge Funds.
5. Jones Lang LaSalle Incorporated (NYSE:JLL)
Number of Hedge Fund Holders: 28
Jones Lang LaSalle Incorporated (NYSE:JLL) a London-based company in the commercial real estate services sector, offering a range of services including investment management, asset management, real estate development, advisory, consulting, leasing, and property management. It is one of the best commercial real estate stocks to watch.
On March 15, analyst Andrew Rosivach from Wolfe Research upgraded Jones Lang LaSalle Incorporated (NYSE:JLL) to Outperform from Peer Perform, with a price target of $218. According to the analyst’s research note, the company’s cost savings and plans to resume share repurchases were highlighted as positive factors in its earnings report. Despite JLL’s relative multiple experiencing a decline, the firm’s cost savings have helped maintain earnings estimates at a steady level. Currently, Jones Lang LaSalle Incorporated (NYSE:JLL) shares are trading at a multiple of 10.6 times the expected 2023 earnings, representing a 39% discount compared to Wolfe Research’s coverage average. This discount has increased from a historical average of approximately 18%, as mentioned by the firm.
According to Insider Monkey’s first quarter database, Jones Lang LaSalle Incorporated (NYSE:JLL) was part of 28 hedge fund portfolios, compared to 26 in the prior quarter. David Blood and Al Gore’s Generation Investment Management is the biggest stakeholder of the company, with 4.3 million shares worth $637.6 million.
Ariel Appreciation Fund made the following comment about Jones Lang LaSalle Incorporated (NYSE:JLL) in its Q1 2023 investor letter:
“Also in the quarter, we initiated a position in long-time Ariel holding Jones Lang LaSalle Incorporated (NYSE:JLL), also known as JLL, which is a leading professional services firm that specializes in real estate and investment management. A slowdown in leasing, advisory and investment sales due to rapidly rising interest rates and inflationary pressures presented us an attractive entry point in the name. The company generates strong fee revenues on its annuity businesses, prudently manages expenditures, returns excess capital to shareholders through share repurchases and has provided a three-year strategic outlook with strong 2025 financial targets. Although the first half of 2023 will likely be choppy given macro-uncertainty, company leadership is highly confident about the medium- and longer-term revenue outlook for both transactional and recurring revenue streams, alongside its efforts to streamline operations and increase efficiencies to generate higher profit over time.”
