5 Best Real Estate Stocks to Buy Now

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

Number of Hedge Fund Holders: 45

Simon Property Group, Inc. (NYSE:SPG) is an Indianapolis, Indiana-based REIT that owns, operates, and leases shopping malls and community and lifestyle centers.

Craig Mailman at Citi opened a “30-day positive Catalyst Watch” on Simon Property Group, Inc. (NYSE:SPG) before its Q3 2022 earnings. The Street anticipates the company to report revenue and FFO per share of $1.27 billion and $1.54, respectively. Mailman thinks that Simon Property Group, Inc.’s (NYSE:SPG) valuation can attract generalist investors as it is trading at a discount compared to its historical levels and the broader REIT sector. The analyst also thinks that Simon Property Group, Inc.’s (NYSE:SPG) forward dividend yield of 6.9% as of October 28 is well-covered.

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

“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.”