5 Best Real Estate Stocks To Buy Now

4. CBRE Group, Inc. (NYSE:CBRE)

Number of Hedge Fund Holders: 42

CBRE Group, Inc. (NYSE:CBRE) is a Dallas, Texas-based provider of commercial real estate services globally. The company has a presence in over 100 countries through its 500 offices and a headcount of over 105,000 employees.

Despite the currency headwinds faced due to its global operations, CBRE Group, Inc.’s (NYSE:CBRE) Q2 2022 results revealed that all three business segments reported double-digit growth in revenue compared to the same period last year. Meanwhile, the core EPS for the period was the highest ever in the company’s history. Furthermore, CBRE Group, Inc. (NYSE:CBRE) has a high variable cost structure as 90% of the total costs are connected to revenue and are flexible. Experts believe that the current stock price has all the macroeconomic uncertainty priced in.

Here’s what Vulcan Value Partners said about CBRE Group, Inc. (NYSE:CBRE) in its Q2 2022 investor letter:

“We purchased CBRE Group Inc. (NYSE:CBRE) and Jones Lang LaSalle (NYSE:JLL) during the quarter, both of which have been successful investments for us in the past. CBRE and Jones Lang LaSalle are two of the largest commercial real estate services companies offering comprehensive real estate services globally. The companies serve real estate investors and corporate occupiers of real estate by providing leasing, brokerage, M&A and investment advisory, as well as property and facility management services.

To complement their core offerings, they also have large global real estate investment management businesses with steady recurring fees. The industry is highly fragmented. Industry consolidation has been occurring for decades, and we believe CBRE and Jones Lang LaSalle will continue to take market share. Both companies’ revenues are diversified by geography, asset class and service lines.

Additionally, CBRE and Jones Lang LaSalle have inherently variable cost structures. Neither company owns any real estate, which provides the flexibility to adjust costs when the macro environment becomes less favorable. The combination of declining share prices and stable values provided an opportunity to purchase two outstanding companies at a discount to their intrinsic values.”