5 Best Real Estate Stocks To Buy

In this article, we discuss 5 best real estate stocks to buy. If you want to read our discussion on the real estate industry, head over to Real Estate Investing For Beginners: 11 Best Stocks To Buy. 

5. DigitalBridge Group, Inc. (NYSE:DBRG)

Number of Hedge Fund Holders: 31

DigitalBridge Group, Inc. (NYSE:DBRG) is an infrastructure investment firm that specializes in digital infrastructure assets, offering services to institutional investors. The company focuses on investments in data centers, cell towers, fiber networks, small cells, and edge infrastructure. DigitalBridge Group, Inc. (NYSE:DBRG) ranks 5th on our list of stocks pertaining to real estate investing for beginners. 

On February 20, DigitalBridge Group, Inc. (NYSE:DBRG) reported a Q4 non-GAAP EPS of $0.10 and a revenue of $350.31 million, outperforming Wall Street estimates by $0.14 and $179.39 million, respectively. Revenue for the quarter increased 29.2% on a year-over-year basis. 

According to Insider Monkey’s fourth quarter database, 31 hedge funds were long DigitalBridge Group, Inc. (NYSE:DBRG), compared to 21 funds in the prior quarter. Charles Akre’s Akre Capital Management is the largest stakeholder of the company, with 4.40 million shares worth $77.2 million. 

Ave Maria Focused Fund made the following comment about DigitalBridge Group, Inc. (NYSE:DBRG) in its Q3 2023 investor letter:

“DigitalBridge Group, Inc. (NYSE:DBRG) started its life with particularly complicated financials as the two data center businesses it owned directly obfuscated the economics of its asset management business. However, DigitalBridge plans to divest enough of their ownership in these two businesses that they will no longer be required to consolidate them in their reported financials. Consequently, its reported financials will be much simpler to analyze and reflect the profile of a pure-play alternative asset manager. DigitalBridge differentiates itself by focusing exclusively on digital infrastructure, an asset class that institutional allocators are severely under allocated to. DigitalBridge is actively fundraising for its third flagship investment fund. With an expected 11-year fund life, this fund could generate fees for the company and its investors for a long time.

We are confident that these three alternative investment managers will grow their respective businesses substantially over the next five years. This should provide ample growth in their stock prices and, consequently, the Fund’s positions in them.”