5 Best Real Estate Stocks to Buy in 2022 According to Eduardo Abush’s Waterfront Capital Partners

4. Sun Communities, Inc. (NYSE:SUI)

Waterfront Capital Partners’ Stake Value: $85,956,000
Percentage of Waterfront Capital Partners’ 13F Portfolio: 5.35%
Number of Hedge Fund Holders: 36

Sun Communities, Inc. (NYSE:SUI) specializes in property management. In Q1 2022, Waterfront Capital Partners increased its stake in Sun Communities, Inc. (NYSE:SUI) by 20% to $85.96 million, representing 5.35% of its 13F portfolio.

At the end of the first quarter of 2022, 36 hedge funds tracked by Insider Monkey held stakes worth over $798.82 million in Sun Communities, Inc. (NYSE:SUI). In comparison, 37 hedge funds held positions in the company in the preceding quarter. Among these hedge funds, Echo Street Capital Management was Sun Communities, Inc. (NYSE:SUI)’s largest shareholder in Q1, owning shares worth over $221.73 million.

Sun Communities, Inc. (NYSE:SUI), which owns prefabricated housing communities, RV resorts, marinas, and holiday parks, has purchased approximately $6 billion in assets since 2019, according to Truist analyst Anthony Hau, expanding the company’s entire potential market and allowing for outsized growth at a reasonable price. Therefore, on May 10, the analyst reiterated a Buy rating on Sun Communities, Inc. (NYSE:SUI) and a price target of $185.

ClearBridge Investments, an investment management firm, in its Q3 2021 investor letter, mentioned Sun Communities, Inc. (NYSE:SUI) and discussed its stance on the firm. Here is what the fund said:

“Our commitment to constantly improve the risk/reward of the portfolio kept us active during the third quarter in repositioning to capitalize on opportunities we have previously sourced and derisked. We initiated a position in Sun Communities, a U.S. real estate investment trust (REIT) that specializes in investing in manufactured housing communities, recreational vehicle (RV) resorts and marinas. As the economy works through housing supply constraints, Sun’s manufactured housing communities are increasingly appealing to younger, lower income populations in prime growth locations through the Sun Belt. Additionally, Sun’s expanded RV park offerings have seen healthy demand from increasing numbers of retiring baby boomers purchasing RVs as well as greater numbers of road trips in the wake of COVID-19.”