In this article, we will be looking at the 5 best REIT dividend stocks according to hedge funds. If you want to see our detailed analysis on the REIT industry, you can go directly to the 10 Best REIT Dividend Stocks According to Hedge Funds.
5. Weyerhaeuser Company (NYSE: WY)
Number of Hedge Fund Holders: 38
Dividend Yield: 2%
Weyerhaeuser Company (NYSE: WY) is one of the largest private owners of timberlands in the world, controlling roughly 11 million acres of timberlands in the US and managing additional property under long-term licenses in Canada. The company ranks 5th on our list of the best REIT dividend stocks according to hedge funds.
This July, Goldman Sachs initiated coverage of Weyerhaeuser Company (NYSE: WY) shares with a Buy rating and a $40 price target. Analyst Susan Maklari commented that Weyerhaeuser Company (NYSE: WY) is a unique option in the timberland assets sector, and can prove to be an effective offset to deflation because of its defensive profile.
In the first quarter of 2021, had an FFO of $0.91, surpassing the previous quarter’s $048 FFO. The company’s revenue was $2.51 billion, up 45.02% year over year and also surpassing the previous quarter’s $2.06 billion revenue. Weyerhaeuser Company (NYSE: WY) has also gained about 28.56% in the past year.
By the end of the first quarter of 2021, 38 hedge funds out of the 866 tracked by Insider Monkey held stakes in Weyerhaeuser Company (NYSE: WY) worth roughly $641 million. This is compared to 40 hedge funds in the previous quarter with stakes worth approximately $614 million.
4. Prologis, Inc. (NYSE: PLD)
Number of Hedge Fund Holders: 39
Dividend Yield: 2.1%
Prologis, Inc. (NYSE: PLD) is a leading company in the logistics real estate sector, focusing on high-barrier, high-growth markets. It ranks 4th on our list of the best REIT dividend stocks according to hedge funds.
This July, in light of Prologis, Inc.’s (NYSE: PLD) positive Q2 reports, Wells Fargo analyst Blain Heck commented that the company’s shares would outperform peers. Heck has retained his Overweight rating on Prologis, Inc. (NYSE: PLD) shares.
In the second quarter of 2021, Prologis, Inc. (NYSE: PLD) had an FFO of $1.01, beating estimates by $0.02. The company’s revenue was $1.01 billion, up 7.45% year over year but missing estimates by $10.04 million. Prologis, Inc. (NYSE: PLD) has also gained about 26.35% in the past 6 months and 32.01% year to date.
By the end of the first quarter of 2021, 36 hedge funds out of the 866 tracked by Insider Monkey held stakes in Prologis, Inc. (NYSE: PLD) worth roughly $771 million. This is compared to 36 hedge funds in the previous quarter with stakes worth approximately $655 million.
Third Avenue Management, an investment management firm, mentioned Prologis, Inc. (NYSE: PLD) in its first-quarter 2020 investor letter. Here’s what they said:
“Prologis, Inc. (a U.S.-based real estate investment trust that is the largest owner of modern logistic facilities with a platform that expands more than 950 million square feet of space in 19 countries globally) completing $2.0 billion USD of debt placements at a weighted average interest rate of 0.9% with an average term of more than 13 years. In the process, the company has further solidified one of the most compelling capital structures in the real estate industry with a prudent loan-to-value ratio of approximately 25% that is primarily comprised of fixed-rate debt at an average cost of 1.8% for a term that exceeds 10 years. As a result, the long-tenured management at Prologis (including one of the true leaders in the real estate space CEO Hamid Moghadam) have set up the company for what could be a very rewarding period ahead as incremental rental income and asset management fees seem likely to accrue disproportionately to shareholders on the “bottom-line” with its interest costs locked-in.”
3. AvalonBay Communities, Inc. (NYSE: AVB)
Number of Hedge Fund Holders: 40
Dividend Yield: 3.1%
AvalonBay Communities, Inc. (NYSE: AVB) has direct or indirect ownership interests in about 291 apartment communities consisting of 86,025 apartments in 11 states and the District of Columbia. The company ranks 3rd on our list of the best REIT dividend stocks according to hedge funds.
This July, KeyBanc analyst Austin Wurschmidt raised the price target on AvalonBay Communities, Inc. (NYSE: AVB) shares from $200 to $236, keeping an Overweight rating on the stock.
In the first quarter of 2021, AvalonBay Communities, Inc. (NYSE: AVB) had an FFO of $1.95, in line with estimates. The company’s revenue was $550.26 million, beating estimates by $5.26 million. AvalonBay Communities, Inc. (NYSE: AVB) has also gained about 34.5% in the past 6 months and 43.5% year to date.
By the end of the first quarter of 2021, 40 hedge funds out of the 866 tracked by Insider Monkey held stakes in AvalonBay Communities, Inc. (NYSE: AVB) worth roughly $630 million. This is compared to 32 hedge funds in the previous quarter with stakes worth approximately $864 million.
2. Crown Castle International Corp. (REIT) (NYSE: CCI)
Number of Hedge Fund Holders: 43
Dividend Yield: 2.7%
Crown Castle International Corp. (REIT) (NYSE: CCI) owns and leases over 40,000 cell towers and roughly 80,000 route miles of fiber supporting small cells and fiber solutions in major US markets. The company ranks 2nd on our list of the best REIT dividend stocks according to hedge funds.
This July, Crown Castle International Corp.’s (REIT) (NYSE: CCI) price target was raised at KeyBanc from $207 to $224, with analyst Brandon Nispel keeping an Overweight rating on the shares.
In the first quarter of 2021, Crown Castle International Corp. (REIT) (NYSE: CCI) had an FFO of $1.20, missing estimates by $0.25. The company’s revenue was $1.49 billion, up 4.5% year over year and missing estimates by $15.14 million. Crown Castle International Corp. (REIT) (NYSE: CCI) has also gained about 27.01% in the past 6 months and 30.34% year to date.
By the end of the first quarter of 2021, 43 hedge funds out of the 866 tracked by Insider Monkey held stakes in Crown Castle International Corp. (REIT) (NYSE: CCI) worth roughly $1.99 billion. This is compared to 40 hedge funds in the previous quarter with stakes worth approximately $2.07 billion.
1. American Tower Corporation (REIT) (NYSE: AMT)
Number of Hedge Fund Holders: 58
Dividend Yield: 1.9%
American Tower Corporation (REIT) (NYSE: AMT) is one of the world’s largest REITs and a leading independent owner and developer of multitenant communications real estate. The company ranks 1st on our list of the best REIT dividend stocks according to hedge funds.
KeyBanc analyst Brandon Nispel raised the price target on American Tower Corporation (REIT) (NYSE: AMT) shares from $285 to $302 this July, keeping an Overweight rating on the stock.
In the first quarter of 2021, American Tower Corporation (REIT) (NYSE: AMT) had an FFO of $2.48, beating estimates by $0.18. The company’s revenue was $2.16 billion, up 8.3% year over year and beating estimates by $2.92 million. American Tower Corporation (REIT) (NYSE: AMT) has also gained about 26.08% in the past 6 months and 27.91% year to date.
By the end of the first quarter of 2021, 58 hedge funds out of the 866 tracked by Insider Monkey held stakes in American Tower Corporation (REIT) (NYSE: AMT) worth roughly $4.59 billion. This is compared to 61 hedge funds in the previous quarter with stakes worth approximately $4.72 billion.
Richie Capital Group LLC, an equity-focused investment management firm, mentioned American Tower Corporation (REIT) (NYSE: AMT) in its fourth-quarter 2020 investor letter. Here’s what they said:
“American Tower (AMT – Down 9.15%) – The largest operator of wireless towers has faced challenges in the form of customer churn at one of their largest customers: Sprint/T-Mobile. However, the company remains well positioned as carriers domestically and internationally transition to 5G which will require a densification of their networks.”
You can also take a peek at 10 Best Real Estate Stocks To Buy Now and 10 Best American Dividend Stocks to Invest In.
