In this article, we will take a look at the Top 10 Real Estate and Realty Stocks to Invest In According to Hedge Funds.
Despite persistently high financing conditions and growing geopolitical uncertainties, commercial real estate markets maintained stability in the first quarter of 2026. According to UBS’ June edition of the Real Estate Outlook, debt availability improved significantly during the quarter, climbing 52% from the previous year as lenders strategically increased originations.
Several property categories saw increased activity, with senior housing leading the way as investors sought more exposure to sectors with strong demographic tailwinds.
While US businesses are embracing AI, they are still renting office space for their human employees. After declining in the March quarter due to concerns that AI may eliminate white-collar jobs in finance and law, office property stocks are up 35% in the June quarter, as reported by Barron’s on June 24. Investors were further encouraged when New York-oriented real estate investment trusts posted solid first-quarter results.
Speaking on the market’s performance, Evercore ISI analyst Steve Sakway stated the following:
“I wouldn’t say that we’re fully out of the woods, but the leasing environment has definitely felt better over the last three to six months.”
With that backdrop, let’s look at the top 10 real estate and realty stocks to invest in according to hedge funds.
Our Methodology
To compile this list, we used the Finviz screener to shortlist companies engaged in real estate development, real estate services, and residential construction. We limited our final selection to companies that have recently reported noteworthy developments likely to impact investor sentiment. Lastly, we shortlisted the stocks most widely held by hedge funds and ranked them in ascending order by this indicator.
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. Insider Monkey’s quarterly newsletter’s strategy selects 14 small-cap and large-cap stocks every quarter and has returned 599.2% since May 2014, beating its benchmark by 372 percentage points (see more details here).
10. Kimco Realty Corporation (NYSE:KIM)
Number of Hedge Fund Holders: 30
Kimco Realty Corporation (NYSE:KIM) ranks among the best real estate and realty stocks to invest in according to hedge funds. On June 22, Wolfe Research raised Kimco Realty Corporation (NYSE:KIM) to Outperform from Peerperform and set a $28 price target on the company’s shares. The upgrade came as the firm highlighted robust fundamentals and reduced refinancing constraints from past low-interest Weingarten loans.
In addition, on June 11, Stifel increased its price target on Kimco Realty Corporation (NYSE:KIM) to $28 from $25.75, while keeping a Buy rating on the company’s shares. The firm made the move after Kimco Realty Corporation (NYSE:KIM) announced it had priced an issue of exchangeable senior unsecured notes due 2031 with a principal amount of $525 million.
The notes have an annual interest rate of 3.50% and are payable semi-annually. Early buyers were given the option to purchase an extra $75 million in principal amount of notes. Kimco estimates net proceeds of $513.5 million, or $587 million, provided the first buyers’ option is completely utilized.
Kimco Realty Corporation (NYSE:KIM) is a real estate investment trust (REIT) that owns and operates open-air, grocery-anchored shopping centers and mixed-use properties across the United States.
9. Realty Income Corporation (NYSE:O)
Number of Hedge Fund Holders: 32
Realty Income Corporation (NYSE:O) ranks among the best real estate and realty stocks to invest in according to hedge funds. On June 18, Scotiabank reduced its price objective for Realty Income Corporation (NYSE:O) to $67 from $72, maintaining an Outperform rating on the stock. Coming off a solid start to the year, the firm believes REIT valuations are less attractive.
Scotiabank altered its subsector stance to align with its “relative valuation-versus-growth framework.” The firm stays most hopeful about seniors housing and has upgraded its rating on self-storage and net leasing to Overweight from Marketweight.
Meanwhile, on June 1, Jefferies assumed coverage of Realty Income Corporation (NYSE:O) with a Buy rating and a price target of $69, a decrease from $75. Analyst Joe Dickstein acknowledged investor concerns that the company’s size has made consistent adjusted funds from operations per share growth substantially more difficult to achieve.
Additionally, the analyst looked at whether increasing complexity from structured investments, private equity, and Europe is a long-term value generator or an operational distraction. Jefferies believes these levers will help improve adjusted funds from operations per share growth.
Realty Income Corporation (NYSE:O) is a real estate investment trust focused on acquiring, owning, and managing freestanding commercial properties. These properties are leased under long-term net lease agreements to a diversified group of tenants, including investment-grade, investment-grade-equivalent, and other operators.
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