5 Most Undervalued REIT Stocks To Buy According To Analysts

In this article, we discuss 5 most undervalued REIT stocks to buy. If you want to read our discussion on the REIT industry, head directly to 12 Most Undervalued REIT Stocks To Buy According To Analysts. 

5. Essential Properties Realty Trust, Inc. (NYSE:EPRT)

Number of Hedge Fund Holders: 19

Average Upside Potential: 11.14%

PE Ratio as of March 5: 19.96

Average Analyst Price Target: $27.73

Essential Properties Realty Trust, Inc. (NYSE:EPRT) ranks 5th on our list of the most undervalued stocks in the REIT sector. It is a real estate company focused on acquiring, owning, and managing single-tenant properties across the United States. On February 14, Essential Properties Realty Trust, Inc. (NYSE:EPRT) posted a Q4 FFO of $0.42, missing market estimates by $0.02. The revenue increased 24.8% year-over-year to $97.73 million, exceeding Wall Street consensus by $3.26 million. 

According to Insider Monkey’s fourth quarter database, 19 hedge funds were long Essential Properties Realty Trust, Inc. (NYSE:EPRT), compared to 23 funds in the prior quarter. Jeffrey Furber’s AEW Capital Management is the biggest stakeholder of the company, with 1.60 million shares worth over $41 million. 

4. Apartment Income REIT Corp. (NYSE:AIRC)

Number of Hedge Fund Holders: 20

Average Upside Potential: 16.82%

PE Ratio as of March 5: 7.22

Average Analyst Price Target: $36.45

Apartment Income REIT Corp. (NYSE:AIRC) is a publicly traded real estate investment trust that self-administers its portfolio. The company owns multiple communities and apartment homes across the United States. Apartment Income REIT Corp. (NYSE:AIRC) is one of the most undervalued stocks to invest in. On January 31, the company declared a quarterly dividend of $0.45 per share, in line with previous. The dividend was distributed on February 27. 

According to Insider Monkey’s fourth quarter database, 20 hedge funds were long Apartment Income REIT Corp. (NYSE:AIRC), compared to 18 funds in the prior quarter. Israel Englander’s Millennium Management is the leading stakeholder of the company, with 1.79 million shares worth over $62 million. 

3. Gaming and Leisure Properties, Inc. (NASDAQ:GLPI)

Number of Hedge Fund Holders: 22

Average Upside Potential: 16.3%

PE Ratio as of March 5: 16.24

Average Analyst Price Target: $53.46

Gaming and Leisure Properties, Inc. (NASDAQ:GLPI) ranks 3rd on our list of the most undervalued stocks in the REIT space. The company is involved in acquiring, financing, and owning real estate properties for lease to gaming operators. On February 28, Gaming and Leisure Properties, Inc. (NASDAQ:GLPI) declared a $0.76 per share quarterly dividend, a 4.1% increase from its prior dividend of $0.73. The dividend is payable on March 29, to shareholders on record as of March 15. 

According to Insider Monkey’s fourth quarter database, 22 hedge funds were bullish on Gaming and Leisure Properties, Inc. (NASDAQ:GLPI), compared to 17 funds in the last quarter. Ken Griffin’s Citadel Investment Group is the biggest stakeholder of the company, with 3.91 million shares worth $193 million. 

Baron Real Estate Fund made the following comment about Gaming and Leisure Properties, Inc. (NASDAQ:GLPI) in its first quarter 2023 investor letter:

“In the most recent quarter, we significantly reduced our investments in the following companies due to expectations of near-term business headwinds and modest growth prospects, elevated valuations, and our view of superior investment opportunities for other real estate-related companies:

Gaming and Leisure Properties, Inc. (NASDAQ:GLPI) is a triple net REIT that owns a portfolio of 59 geographically diversified casino gaming and related facilities in the U.S.”

2. Urban Edge Properties (NYSE:UE)

Number of Hedge Fund Holders: 23

Average Upside Potential: 15.10%

PE Ratio as of March 5: 8.09

Average Analyst Price Target: $19.75

Urban Edge Properties (NYSE:UE) is a real estate investment trust with a primary focus on owning, managing, acquiring, developing, and redeveloping retail real estate in urban communities. Urban Edge Properties (NYSE:UE) is one of the most undervalued stocks to monitor. On February 14, the company reported a Q4 FFO as adjusted per diluted common share of $0.31 and a revenue of $116.5 million, up 14.7% on a year-over-year basis. 

According to Insider Monkey’s fourth quarter database, 23 hedge funds were bullish on Urban Edge Properties (NYSE:UE), compared to 19 funds in the prior quarter. Dmitry Balyasny’s Balyasny Asset Management is the largest stakeholder of the company, with 1.4 million shares valued at $26.3 million. 

1. VICI Properties Inc. (NYSE:VICI)

Number of Hedge Fund Holders: 44

Average Upside Potential: 22.20%

PE Ratio as of March 5: 11.91

Average Analyst Price Target: $36.05

VICI Properties Inc. (NYSE:VICI) is an experiential real estate investment trust that possesses one of the largest portfolios of premier gaming, hospitality, and entertainment destinations, including renowned facilities like Caesars Palace Las Vegas, MGM Grand, and the Venetian Resort Las Vegas. VICI Properties Inc. (NYSE:VICI) is one of the most undervalued stocks to buy. On February 22, the company reported a Q4 FFO of $0.72 and a revenue of $931.9 million, outperforming Wall Street estimates by $0.09 and $10.77 million, respectively. 

According to Insider Monkey’s fourth quarter database, 44 hedge funds were long VICI Properties Inc. (NYSE:VICI), compared to 33 funds in the earlier quarter. Ken Griffin’s Citadel Investment Group is the largest stakeholder of the company, with 8.4 million shares worth $269 million. 

Here is what Baron Real Estate Income Fund has to say about VICI Properties Inc. (NYSE:VICI) in its Q2 2023 investor letter:

“We have slightly decreased our already modest exposure to the triple net gaming REIT VICI Properties Inc. (NYSE:VICI), an owner of quality gaming, hospitality, and entertainment properties. The company pays a 6% dividend that is well covered, has a strong track record of making accretive acquisitions, and has additional opportunities for growth in the years ahead.”

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