Top 10 Real Estate and Realty Stocks to Invest In According to Hedge Funds

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 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 to $28 from $25.75, while keeping a Buy rating on the company’s shares. The firm made the move after Kimco Realty Corporation 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 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 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 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 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.

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., 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. has filled up roughly half of its outstanding Hellweg exposure, and the outlook includes some credit loss assumptions.

W. P. Carey Inc. 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, 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 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 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 is a REIT that primarily acquires, develops, owns, and operates self-storage facilities.

6. Host Hotels & Resorts, Inc. (NASDAQ:HST)

Number of Hedge Fund Holders: 41

Host Hotels & Resorts, Inc. ranks among the best real estate and realty stocks to invest in according to hedge funds. On June 17, Argus boosted its price target for Host Hotels & Resorts, Inc. to $27 from $20, keeping a Buy rating on the company’s shares. Marie Ferguson, an Argus analyst, predicts that the World Cup will increase revenue per available room by as much as 60 basis points.

The REIT announced that adjusted funds from operations increased by 4.7% in the first quarter of 2026 to $0.67 per share, compared with $0.64 in the first quarter of 2025. Host Hotels & Resorts, Inc. also reported earnings per share of $0.72, considerably higher than the expected $0.35, and revenue of $1.65 billion, exceeding the forecast of $1.61 billion.

Additionally, on June 10, Ladenburg increased its price target for Host Hotels & Resorts, Inc. to $28 from $25 and maintained a Buy rating on the stock. According to Ladenburg, the company’s RevPAR increase has been higher than expected, though projections remain modest.

Host Hotels & Resorts, Inc. is a self-managed and self-administered real estate investment trust that owns hotel property.

5. Mid-America Apartment Communities, Inc. (NYSE:MAA)

Number of Hedge Fund Holders: 47

Mid-America Apartment Communities, Inc. (NYSE:MAA) ranks among the best real estate and realty stocks to invest in according to hedge funds. Citizens maintained a Market Outperform rating and a price target for Mid-America Apartment Communities, Inc. on June 10, noting better lease traction and operational efforts. According to analyst Aaron Hecht, new rental rates in May 2026 were 210 basis points higher than in the first quarter of 2026, while renewals climbed 140 basis points.

In May, the company used dispositions to buy back $50 million worth of shares, pushing the total amount of retired stock to $123 million year-to-date, roughly 1% of shares outstanding.

According to Citizens, Mid-America Apartment Communities, Inc. focuses primarily on development rather than acquisition, underwriting to 6% yields on existing rents and beginning work at its recently acquired Kansas City site.

As part of its ReiMAAgine strategy, the company is testing its ReiMAAgined Operating Platform, which uses centralization and AI to minimize staffing requirements and turnover while enhancing leasing and resident happiness.

Mid-America Apartment Communities, Inc. is a multifamily REIT focused on the ownership, development, redevelopment, acquisition, and management of apartment communities across the Southeast, Southwest, and Mid-Atlantic regions of the United States.

4. Prologis, Inc. (NYSE:PLD)

Number of Hedge Fund Holders: 58

Prologis, Inc. (NYSE:PLD) ranks among the best real estate and realty stocks to invest in according to hedge funds. On June 17, Raymond James renewed coverage of Prologis, Inc., rating the shares at Market Perform. Analyst David Rodgers mentioned the company’s development into data centers as a growth catalyst in his assessment.

The firm stated that Prologis, Inc. has a stronger industrial lease pipeline and a solid integrated mark-to-market. Raymond James believes that increased demand from global capital partners will support continuing organic expansion.

In addition, Prologis, Inc. announced its £12.6 billion ($16.62 billion) buyout offer for Britain’s Segro on June 24. After the warehouse landlord rejected the initial offer, Prologis, Inc. took the offer public in an attempt to increase pressure on the board to participate.

According to Prologis, Inc., Segro, which is listed on the FTSE 100, has been trading at a consistent discount to its net asset value and is facing obstacles that keep it from realizing the potential of its development and data center pipeline.

​Prologis, Inc. is a leading global real estate investment trust focused primarily on logistics and industrial properties, owning, operating, and developing approximately 1.3 billion square feet of facilities across 20 countries on four continents.

3. CoStar Group Inc. (NASDAQ:CSGP)

Number of Hedge Fund Holders: 62

CoStar Group Inc. (NASDAQ:CSGP) ranks among the best real estate and realty stocks to invest in according to hedge funds. On June 4, Benchmark began coverage of CoStar Group Inc. with a Buy rating and a $45 price target. According to analyst Michael Rindos, the stock had plummeted by roughly 50% year-to-date due to worries about the sluggish housing economy, aggressive expenditure at Homes.com, and buzz from activist investors.

The firm thinks the stock has reached its lowest point and is ready to climb again. In the second half of 2026, the residential segment’s AEBITDA is predicted to turn upbeat, while margins are anticipated to grow into 2027.

Additionally, on May 29, CoStar Group Inc. announced that it had reached an agreement to pay $800 million in cash for Zonda, a supplier of homebuilder software and new house development data.

The deal comprises NewHomeSource and Livabl, two online new house marketplaces in the US and Canada. These platforms display listings from residential builders and offer floor plans, virtual tours, prices, and community information for newly built properties.

CoStar Group Inc. provides online real estate marketplaces, information, and analytics for the commercial and residential property markets.

2. Equinix Inc. (NASDAQ:EQIX)

Number of Hedge Fund Holders: 65

Equinix Inc. (NASDAQ:EQIX) ranks among the best real estate and realty stocks to invest in according to hedge funds. Following meetings at the Nareit REITweek conference, Stifel reiterated its Buy rating and $1,250 price target for Equinix Inc. on June 4. The firm stated it is still optimistic about Equinix’s capacity to profit from a faster AI infrastructure cycle. Stifel also stated that enterprise engagement is rising as deployments transition from trials to distributed systems.

According to Stifel, the shift satisfies the need for latency-sensitive operations that benefit Equinix’s sprawling, interconnection-rich architecture. The company continues to operate on an unrestricted development pipeline, aided by utility ties and supply chain management.

In addition, on June 14, Equinix Inc. revealed a broader partnership with Cisco and NVIDIA to implement AI infrastructure throughout its data center network. By offering standardized AI factory designs and deployment automation services, the company will allow clients to use the Cisco Secure AI Factory with NVIDIA throughout its global data centers.

Equinix Inc. is a digital infrastructure company. Its platform, Equinix, combines a global footprint of International Business Exchange and xScale data centers, along with interconnection solutions, digital offerings, business & digital ecosystems, and consulting & support services.

1. CBRE Group Inc. (NYSE:CBRE)

Number of Hedge Fund Holders: 65

CBRE Group Inc. (NYSE:CBRE) ranks among the best real estate and realty stocks to invest in according to hedge funds. On June 17, UBS restated its Buy rating and $185 price target for CBRE Group Inc. shares following an investor meeting that included CBRE’s CEO, Bob Sulentic, COO Vikram Kohli, and CFO Emma Giamartino. The meeting addressed AI’s potential as a driver of competitive intelligence advantages and efficiency, as well as the booming data center industry.

UBS feels the climate in the second quarter was consistent with CBRE’s predictions. The firm highlighted that valuations have increased dramatically this year.

In addition, on June 23, CBRE Group Inc. signed an updated 364-day senior unsecured revolving credit arrangement that provides a $1 billion credit facility to its subsidiary CBRE Services, Inc. The new deal, which matures on June 22, is handled by Wells Fargo and supported by assurances from CBRE Group Inc. and certain US companies, bolstering the company’s short-term financing strategy.

CBRE Group Inc. provides commercial real estate services and investment solutions in the United States, the United Kingdom, and internationally.

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