5 Best Real Estate Stocks To Buy Now

3. Simon Property Group, Inc. (NYSE:SPG)

Number of Hedge Fund Holders: 45

Simon Property Group, Inc. (NYSE:SPG) is an Indiana-based REIT that owns community and lifestyle centers, outlet centers, and shopping malls. The company has the distinction of being the biggest owner of shopping malls across the US, with a presence in Europe and Asia as well.

Simon Property Group, Inc. (NYSE:SPG) stock is trading at an FFO yield of over 11% based on 2022 guidance, with a payout ratio that stands at 54% as of September 26. This reflects that the company’s strong forward dividend yield of over 7.7% is secured. Simon Property Group, Inc. (NYSE:SPG) owns 231 properties with a cumulative area of 186 million square feet. The company finished the most recent quarter with a cash balance of around $1 billion on its balance sheet and has a credit line of $7 billion at its disposal. Analysts think Simon Property Group, Inc. (NYSE:SPG) has bright future prospects, justifying its inclusion in our list of the 12 best real estate stocks to buy now.

Here’s what Baron Funds said about Simon Property Group, Inc. (NYSE:SPG) in its Q1 2022 investor letter:

“Following a share price gain of more than 97% in 2021, we recently trimmed the Fund’s holdings in Simon Property Group, Inc. (NYSE:SPG), the largest and premier mall operator in the U.S. Though we are also tempered by the expectation for modest earnings growth in 2022, we remain optimistic about the company’s long-term prospects. Simon owns A-quality malls in A-quality geographic locations. We expect Simon to benefit from the ongoing economic recovery and believe management is well positioned to acquire real estate assets given its strong balance sheet and low cost of capital.”

Simon Property Group, Inc. (NYSE:SPG) was held by 45 hedge funds at the end of Q2 2022.