In this article, we discuss the 5 best REIT stocks to buy right now. If you want to read our comprehensive analysis of REIT stocks, their history, performance, and outlook for future growth, go directly to 11 Best REIT Stocks To Buy Right Now.
5. Digital Realty Trust, Inc. (NYSE:DLR)
Number of Hedge Fund Holders: 26
Digital Realty Trust, Inc. (NYSE:DLR) is a real estate investment trust which owns data centers across the United States, serving mega-companies such as Meta Platforms, IBM, JPMorgan Chase, Oracle, and Verizon. Given the large costs associated with changing data center service providers, Digital Realty Trust, Inc. (NYSE:DLR) also boasts an impressive customer retention rate and is set to benefit as digital transformation around the world boosts data center spending. The firm has also invested in expanding its operations beyond the United States, with ventures in India, Nigeria, and Europe.
On February 18, Wells Fargo analyst Eric Luebchow kept an ‘Overweight’ rating on Digital Realty Trust, Inc. (NYSE:DLR), noting that the firm’s fourth-quarter earnings reflected broader industry trends such as record demand and a modestly improving pricing environment despite higher operating costs. He expects the firm’s FFO per share to improve in 2023 and beyond to 7% plus, given, there are no further mergers and acquisitions. Digital Realty Trust, Inc. (NYSE:DLR) posted a revenue of $1.11 billion in Q4 2021, beating consensus estimates by $6.78 million and showing an increase of 4.57% year-on-year.
As of the fourth quarter, 26 out of 924 elite hedge funds tracked by Insider Monkey held positions in Digital Realty Trust, Inc. (NYSE:DLR) with a combined worth of $409 million. In comparison, 28 hedge funds were bullish on the company shares a quarter ago. The top shareholder of the firm during the fourth quarter was Holocene Advisors, which held roughly 816,000 shares worth $144.35 million.