8. W. P. Carey Inc. (NYSE:WPC)
Number of Hedge Fund Holders: 33
W. P. Carey Inc. (NYSE:WPC) ranks among the best real estate and realty stocks to invest in according to hedge funds. On June 18, Citizens reaffirmed its Market Perform on W. P. Carey Inc. (NYSE:WPC), as the real estate investment trust handles the bankruptcy case of Hellweg, its 18th largest client and a European home renovation retail store.
Hellweg was generally among W. P. Carey’s top three tenants, but the company’s expansion into the industrial market, along with the tenant’s decreasing financial health, prompted a lease restructure and asset sales, resulting in rent reductions.
Citizens claimed that W. P. Carey’s asset management capabilities allow the company to mitigate the effects of the bankruptcy. Even with the filing, management reiterated guidance, noting that the tenant is good on rental payments through May, with bank guarantees covering three more months of rent. W. P. Carey Inc. (NYSE:WPC) has filled up roughly half of its outstanding Hellweg exposure, and the outlook includes some credit loss assumptions.
W. P. Carey Inc. (NYSE:WPC) is a Maryland-based net lease REIT and one of the largest, with a diversified portfolio of high-quality commercial real estate. Incorporated in 1973, the company has 1,682 net lease properties.
7. Public Storage (NYSE:PSA)
Number of Hedge Fund Holders: 39
Public Storage (NYSE:PSA) ranks among the best real estate and realty stocks to invest in according to hedge funds. On June 22, UBS restated its Neutral rating on Public Storage (NYSE:PSA), with a $314 price objective. Given present-day sluggish demand circumstances, the firm anticipates that the company’s non-same-store pool will be the key growth catalyst in the near future.
UBS stated that if Public Storage (NYSE:PSA) is unable to improve its external expansion in NSA markets, the integration could be a significant undertaking with limited potential for upside. The firm cited prior REIT mergers as evidence that integration initiatives do not necessarily succeed.
Moreover, on June 23, Public Storage (NYSE:PSA) stated that its operating partners, Public Storage OP and Public Storage Operating Company, had decided to acquire Public Storage Canada for about $1.2 billion (CAD1.67 billion).
The acquisition is projected to broaden Public Storage’s network into major Canadian markets while also creating sustainable internal and external development potential.
Public Storage (NYSE:PSA) is a REIT that primarily acquires, develops, owns, and operates self-storage facilities.
