In this article, we will take a detailed look at the Goldman Sachs REIT Stocks: Top 12 Stock Picks.
Real estate investment trusts (REITs) are companies that own, operate, or finance income-producing properties. They provide investors with access to real estate markets without requiring direct property ownership. As of 2022, Allied Market Research valued the global REIT market at approximately $2.6 trillion, projecting it to accelerate at a 5.1% CAGR to $4.2 trillion by 2032. In the U.S., REITs hold over $4 trillion in gross assets, with publicly traded REITs accounting for $2.5 trillion. However, industry revenue has grown at a modest 0.9% CAGR over the past five years, reaching an estimated $243.7 billion in 2025.
The early part of 2025 has presented challenges for the global REIT market. According to PGIM Investments’ analysis, the market traded “roughly flat” for the first quarter of 2025. PGIM identified “investor concerns around the increase in the 10-year Treasury bond market” and tariff impacts on global economic growth as key factors. Despite these headwinds, the US REIT market outperformed the S&P 500 during the quarter, with REITs gaining 0.7% while the S&P 500 declined by 4.3%. As trade tensions escalate, PGIM’s analysts see potential opportunities, noting that “history has shown that REITs are positioned relatively well in a higher-tariff or tariff-war environment.”
This cautious optimism is echoed by Don Mullen, CEO of Pretium, a real estate investment firm with $57 billion in assets under management. Speaking on the Goldman Sachs Exchanges podcast, Mullen highlighted a long-term housing supply-demand imbalance in the U.S. market, describing it as a “massive demographic imbalance between housing volume and prospective homeowners and renters.” He emphasized that the U.S. will likely face a housing shortage through at least 2040, which could support pricing and occupancy levels for well-positioned REITs focused on residential sectors.
This environment creates opportunities for selective investment strategies focused on REITs with strong operational fundamentals and strategic positioning within their respective property sectors. With this backdrop, this article presents Goldman Sachs’ top 12 REIT stock picks.
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Our Methodology
To identify Goldman Sachs’ top 12 REIT stock picks, we analyzed the firm’s Q1 2025 13F SEC filings to extract all real estate investment trust holdings. Additionally, we examined hedge fund sentiment by analyzing the number of hedge funds invested in each REIT as of the first quarter of 2025. The final selection represents the top 12 REITs ranked by Goldman Sachs’ position size. This list is in ascending order.
Why are we interested in the stocks that hedge funds pile into? The reason is simple: our research has shown that we can outperform the market by imitating the top stock picks of the best hedge funds. Our quarterly newsletter’s strategy selects 14 small-cap and large-cap stocks every quarter and has returned 373.4% since May 2014, beating its benchmark by 218 percentage points (see more details here).
Goldman Sachs REIT Stocks: Top 12 Stock Picks
12. Lamar Advertising Company (NASDAQ:LAMR)
Goldman Sachs Stake as of Q1 2025: $22,739,184
Number of Hedge Funds Holding: 45
Lamar Advertising Company (NASDAQ:LAMR) is one of Goldman Sachs’ top REIT stock picks. On July 8, TD Cowen reaffirmed its “Buy” rating on Lamar stock. The firm maintained a price target of $145.00 on the shares, an 18% upside from the market price at the time of the report. TD Cowen’s decision came shortly after Lamar closed the acquisition of Verde Outdoor.
Lamar’s acquisition of Verde Outdoor was a cashless transaction. The deal added over 1,500 billboard faces, including 80 digital displays, to Lamar’s portfolio across 10 states. The transaction was structured as the first-ever Umbrella Partnership Real Estate Investment Trust (UPREIT) transaction in the billboard industry. TD Cowen noted that this structure allows Lamar to issue partnership units on a tax-deferred basis.
The firm also stated that the cashless nature of the transaction preserved Lamar’s financial capacity for additional merger and acquisition activity in the second half of 2025. TD Cowen highlighted that the Verde acquisition reinforced its thesis that fiscal year 2025 would be a “breakout year” for billboard acquisitions in the outdoor advertising sector.
Lamar Advertising Company (NASDAQ:LAMR) is one of the largest outdoor advertising REITs in North America. The company boasts over 360,000 displays across the U.S. and Canada. Headquartered in Baton Rouge, Louisiana, the company generates revenue by leasing billboards, transit, and logo signage to a diverse mix of advertisers.
11. Regency Centers Corporation (NASDAQ:REG)
Goldman Sachs Stake as of Q1 2025: $71,106,777
Number of Hedge Funds Holding: 29
Regency Centers Corporation (NASDAQ:REG) is one of Goldman Sachs’ top REIT stock picks. On July 2, Barclays initiated coverage on Regency with an Equal Weight rating. Along with the rating, Barclays set a price target of $77 for the stock.
From Barclays’s view, Regency has a strong portfolio of grocery-anchored shopping centers, which are typically resilient due to their focus on necessity-based retail. The firm noted Regency’s strategic positioning in high-quality suburban markets with strong demographics, which contributes to stable cash flows and tenant demand. It also highlighted the company’s “healthy balance sheet” and disciplined capital allocation, which provide financial flexibility for growth and acquisitions.
The analysts emphasized Regency’s “defensive positioning” within the REIT sector, noting that its focus on grocery-anchored centers makes it less susceptible to economic downturns compared to other retail REITs. On top of that, Barclays stated that Regency exhibits “strong property performance.” The evidence of this, in the firm’s view, is Regency’s operational efficiency, with a reported 94.7% leased occupancy rate across its portfolio as of the first quarter of 2025.
Regency Centers Corporation (NASDAQ:REG) is a retail-focused REIT that owns and operates over 480 open-air shopping centers concentrated in affluent, high-traffic suburban markets. Roughly 80% of its portfolio is anchored by leading grocery chains, including Kroger and Publix, which provide consistent foot traffic and resilient cash flows.
10. Kimco Realty Corporation (NYSE:KIM)
Goldman Sachs Stake as of Q1 2025: $95,534,115
Number of Hedge Funds Holding: 27
Kimco Realty Corporation (NYSE:KIM) is one of Goldman Sachs’ top REIT stock picks. Barclays initiated coverage of retail REITs on July 2 and rated Kimco Realty (NYSE:KIM) Overweight, citing its attractive valuation and strong positioning in the grocery-anchored shopping center space. As a large-cap, diversified landlord, Kimco offers investors a lower-cost way to tap into the defensive retail theme, with expected FFO growth of around 5% next year and a modest discount to peers.
The brokerage noted that while some investors are overpaying for perceived stability in similar portfolios, Kimco stands out with better risk-reward potential in an environment facing slower economic growth. Barclays emphasized its preference for retail REITs with solid balance sheets and improving free cash flow, positioning Kimco as a favorable pick amid sector headwinds.
Kimco Realty Corporation (NYSE:KIM), founded in 1973 by Milton Cooper and Martin S. Kimmel, is a real estate investment trust that owns, develops, and manages open-air shopping centers. Headquartered in Jericho, New York, the company specializes in acquiring and operating grocery-anchored retail properties across the United States.
9. Boston Properties, Inc. (NYSE:BXP)
Goldman Sachs Stake as of Q1 2025: $134,461,198
Number of Hedge Funds Holding: 30
Boston Properties Inc. (NYSE:BXP) is one of Goldman Sachs’ top REIT stock picks. On June 23, BMO Capital reiterated its Outperform rating for BXP, a $12.7 billion office REIT, and raised its price target to $86. The firm pointed to the company’s strategic portfolio shift toward upscale developments and selective asset sales, while trimming its exposure to suburban properties—moves that support premium rental growth.
Boston Properties is focusing its development in East Coast markets and leveraging its assets to align with emerging trends in artificial intelligence. BMO’s insights stem from recent investor meetings with the REIT’s executive team in the UK and Europe, highlighting continued confidence in the firm’s long-term positioning.
Boston Properties Inc. (NYSE:BXP) is a real estate investment trust (REIT) focused on developing, acquiring, and managing Class A commercial properties. Headquartered in Boston, the company operates across key U.S. markets including Boston, New York, San Francisco, and Washington, D.C.
