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.
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.
6. Host Hotels & Resorts, Inc. (NASDAQ:HST)
Number of Hedge Fund Holders: 41
Host Hotels & Resorts, Inc. (NASDAQ:HST) 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. (NASDAQ:HST) 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. (NASDAQ:HST) 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. (NASDAQ:HST) 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. (NASDAQ:HST) is a self-managed and self-administered real estate investment trust that owns hotel property.
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