Top 10 Undervalued REIT Stocks to Buy Now

In this article, we will look at the Top 10 Undervalued REIT Stocks to Buy Now.

Real estate investment trusts (REITs) are making a comeback and outperforming the broader market. The Morningstar US Real Estate Index is up about 8% for the year. This outpaces the S&P 500, which is up about 4% over the same period.

The strong performance stems from renewed interest in real estate investment opportunities driven by the high income yields on offer. Signs that the US Federal Reserve could pause further interest rate hikes amid inflation concerns stemming from skyrocketing energy prices are also working in favor of real estate investments.

Real estate investment trusts also benefit from gains in the data center and Healthcare sectors. However, office REITs are under pressure due to remote work. Retail segments are also affected by the heightened focus on e-commerce.

Data from CoStar shows that investments in non-traded REITs have experienced significant gains as more capital flows out of private credit.

“We’re starting to see signs. Fundraising for real estate is starting to increase. It’s slower, but beginning to rise. Redemptions on the real estate side have subsided. There is now a rotation of capital,” said Kevin Gannon, chairman and CEO of Stanger.

Hard assets like real estate are increasingly offering a compelling way to diversify investment portfolios, and counter heightened volatility in the stock market due to economic pressure from tariffs and the Iran war. According to Blackstone, data centers, industrials, and multifamily REITs are among the segments well poised to benefit amid the uncertainties.

“Blackstone saw its first positive BREIT fund flows in February in four years. Private credit funds far exceed CRE debt funds—trillions versus billions—so shifts from private credit could significantly impact CRE funds.”

Our Methodology

To compile a list of the Top Undervalued REIT Stocks to Buy Now, we used the Finviz screener to screen for the Top-listed US REITs. We trimmed the list by focusing on REITs with a forward P/E ratio of less than 15 and a positive upside potential as of April 29. Next, we focused on the stocks favored by institutional investors. Data for the hedge fund sentiment surrounding each stock was taken from Insider Monkey’s Q4 2025 database. Finally, we ranked the stocks in ascending order based on their upside potential.

Why are we interested in the stocks that hedge funds pile into? The reason is simple: our research shows 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 498.7% since May 2014, beating its benchmark by 303 percentage points (see more details here).

Top Undervalued REIT Stocks to Buy Now

10. Annaly Capital Management, Inc. (NYSE:NLY)

Stock Upside Potential: 5.56%

Forward P/E: 7.09

Number of Hedge Fund Holders: 30

Annaly Capital Management (NYSE:NLY) is one of the top undervalued REIT stocks to buy now. On April 24, BofA Securities reiterated a Neutral rating on Annaly Capital Management and lowered the price target to $23 from $23.50.

According to the research firm, the risk-reward profile for the stock remains balanced, thus the neutral rating. In addition, it touted its solid core earnings per share of $0.76, up 3% quarter over quarter and above the forecast of $0.73. According to BofA, the better-than-expected earnings stemmed from stronger spread income and higher TBA dollar roll income, offset by lower fees and higher operating expenses.

Amid the earnings beat, revenue fell short of expectations at $452.69 million, compared with the $592.03 million expected. Annaly Capital Management boasts an impressive economic return of 1.5%, which is better than its peers. The company has also raised significant capital to support growth and maintain strong liquidity levels.

Annaly Capital Management, Inc. is a leading diversified capital manager and mortgage real estate investment trust (REIT) that primarily invests in and finances residential and commercial mortgage-backed securities (MBS). It generates income by leveraging capital to invest in agency-backed securities, residential loans, and servicing rights, with a focus on providing shareholder returns through dividends.

9. Arbor Realty Trust Inc. (NYSE:ABR)

Stock Upside Potential: 5.59%

Forward P/E: 14.38

Number of Hedge Fund Holders: 20

Arbor Realty Trust Inc. (NYSE:ABR) is one of the top undervalued REIT stocks to buy now. On April 2, Citizens reiterated a Market Outperform rating on Arbor Realty Trust Inc.. However, it lowered its price target to $11 from $12.

The new price target reflects expected 2026 total dividends of $1.20, with the required yield adjusted to 10.9% from 10%. The stock currently yields 16%, and Citizens remains confident in the company’s ability to deliver a total return of 62%, including a cash yield of 16% and price appreciation of 46.5%.

The projections come amid confidence in the company’s multi-family origination and servicing business. Arbor Realty Trust remains focused on resolving non-performing loans. The company is also selling real estate-owned assets as it seeks to free up significant capital to redeploy in the core business. Effective management of non-performing assets was the catalyst for improvements in net interest margins.

Arbor Realty Trust Inc. is a real estate investment trust (REIT) and direct lender specializing in financing multifamily, single-family rental, and commercial real estate assets. As a major bridge lender, the company focuses on providing structured financial solutions, including bridge, permanent, mezzanine, and preferred equity financing.

8. Dynex Capital, Inc. (NYSE:DX)

Stock Upside Potential: 10.08%

Forward P/E: 10.41

Number of Hedge Fund Holders: 35

Dynex Capital, Inc. (NYSE:DX) is one of the top undervalued REIT stocks to buy now. On April 28, 2026, Dynex Capital, Inc. amended its at-the-market equity distribution agreement, adding Goldman Sachs and Morgan Stanley as sales agents. The move expands the company’s capacity and flexibility for future equity raises under Rule 415, with customary fees and commissions.

On April 21, Dynex Capital, Inc. board approved the repurchase of up to $300 million of common stock and up to $50 million in preferred stock. The share repurchase program comes on the heels of the board approving a $0.17-per-share dividend payable on May 1.

Additionally, the company delivered mixed first-quarter results, starting the year in a position of strength and building on the momentum after an outstanding 2025. The company posted a loss of $0.41 per share, compared with the expected $0.31 per share. Revenue was a bright spot, coming in at $79.25 million and beating consensus estimates by 9.36%.

Total economic return for the quarter was $0.34, as the company’s capital base increased by $442 million. Interest income continued to increase, driven by capital deployed to Agency MBS purchases over the quarter.

Dynex Capital, Inc. is an internally managed mortgage real estate investment trust (mREIT) that invests in residential and commercial mortgage-backed securities (MBS) guaranteed by U.S. government-sponsored entities. They generate income by leveraging investments in these high-quality Agency MBS, aiming to provide consistent dividends to shareholders.

7. Ellington Financial Inc. (NYSE:EFC)

Stock Upside Potential: 10.65%

Forward P/E: 11.20

Number of Hedge Fund Holders: 18

Ellington Financial Inc. (NYSE:EFC) is one of the top undervalued REIT stocks to buy now. On April 2, Citizens reiterated a Market Outperform rating on Ellington Financial Inc. and a $14 price target. The price target translates to 1.04x the current reported book value.

The positive stance is in response to the company’s strong performance record, which justifies its premium valuation relative to other Hybrid/Credit MREIT peers. Additionally, the research firm has touted the company’s book value stability and outperformance amid challenging market conditions.

As of March 31, Ellington Financial had an estimated book value per share of $13.56. The estimate includes the effect of a $0.13 per-share monthly dividend, paid in April. On the other hand, Citizen estimates that the Hybrid/Credit MREIT peer medians are 0.74x book value and 13.2% dividend yield. The board has already approved a $ 0.13-per-share common stock dividend, payable on May 29 to shareholders of record as of April 30.

Ellington Financial Inc. is a specialty finance company and mortgage real estate investment trust (REIT) that acquires and manages a diverse portfolio of financial assets, including residential/commercial mortgage-backed securities (MBS), mortgage loans, consumer loans, and corporate debt. It focuses on generating risk-adjusted returns by investing in niche, underserved markets and utilizing hedging strategies.

6. Gaming and Leisure Properties, Inc. (NASDAQ:GLPI)

Stock Upside Potential: 11.20%

Forward P/E: 14.51

Number of Hedge Fund Holders: 44

Gaming and Leisure Properties, Inc. (NASDAQ:GLPI) is one of the top undervalued REIT stocks to buy now. On April 23, it posted record first-quarter results, confirming growth in its core business.

Total revenue in the quarter was up 6.3% year over year to $420 million, as adjusted Funds From Operations increased 9.2% to $297.1 million. Net income in the quarter increased to $239.4 million from $170.4 million in the same quarter a year ago. Gaming & Leisure Properties delivered an annualized dividend per share of $3.12, up from $3.04 a year ago.

During the first quarter, Gaming & Leisure Properties completed two key transactions worth $727 million. It acquired Bally’s Lincoln real estate assets and the land associated with The Cordish Companies Live! Casino & Hotel Virginia. With the acquisitions, the REIT has added premier assets that are accretive to AFFO per share.

Gaming and Leisure Properties, Inc. is a real estate investment trust (REIT) that acquires, owns, and manages gaming and entertainment properties, such as casinos and racetracks. It leases these assets back to operators under long-term, triple-net leases, primarily in regional gaming markets across the U.S.

5. Starwood Property Trust Inc. (NYSE:STWD)

Stock Upside Potential: 12.08%

Forward P/E: 9.74

Number of Hedge Fund Holders: 29

Starwood Property Trust Inc. (NYSE:STWD) is one of the top undervalued REIT stocks to buy now. On April 16, JPMorgan reiterated an Overweight rating on Starwood Property Trust Inc. but lowered the price target to $19 from $20.

The price target cut is part of a broader sector adjustment. The investment bank has adjusted its mortgage real estate investment trust group amid an uncertain macroeconomic environment. According to JPMorgan, higher rates are a persistent headwind rather than a new challenge for the sector.

Earlier, BofA Securities also cut its price target of the stock to $19 from $20 and reiterated a Neutral rating. The price target cut followed a decent quarter and concerns about dilution stemming from the FIP acquisition. There were also concerns that excess liquidity continues to weigh on near-term earnings. Nevertheless, the research firm touted origination volume across Starwood Property Trust’s lending segments that remain solid. In addition, capital deployment at FIP is increasing.

Starwood Property Trust Inc. is a diversified finance company that operates as a leading commercial real estate lender, originator, and investor. It focuses on originating, acquiring, and managing commercial mortgage loans, mezzanine loans, and preferred equity, while also investing in property, infrastructure, and affordable housing.

4. Safehold Inc. (NYSE:SAFE)

Stock Upside Potential: 12.78%

Forward P/E: 9.39

Number of Hedge Fund Holders: 18

Safehold Inc. (NYSE:SAFE) is one of the top undervalued REIT stocks to buy now. Safehold Inc. reported first-quarter 2026 results on April 30, delivering revenue of $110.9 million, up 13% year-over-year and well above analyst expectations of $96.26 million. Despite this strong top-line growth, diluted earnings per share came in at $0.40, missing the $0.44 consensus estimate due to transitional challenges from the Park Hotels portfolio.

The ground lease specialist continued to expand its portfolio, originating $68 million in new transactions during the quarter. Safehold also reported a robust pipeline of $255 million in non-binding letters of intent across 14 ground leases in seven markets, including two new ones. The company’s portfolio now totals 165 properties with a gross book value of $7.1 billion, or $9.5 billion when including estimated unrealized capital appreciation. Multifamily assets have grown to represent 63% of the portfolio by count, reflecting a strategic pivot toward this sector.

Net income attributable to common shareholders declined slightly to $28.9 million, down 2% year-over-year, largely due to the Park Hotels’ impact. Safehold maintains a conservative capital structure with $5.0 billion in total debt, investment-grade ratings from Moody’s, S&P, and Fitch, and no corporate maturities until 2029. Liquidity remains strong at $1.1 billion in cash and credit availability, supplemented by $400 million in joint venture capital. The company also repurchased 236,000 shares at a discount to book value, signaling confidence in long-term fundamentals.

Safehold Inc. is a REIT specializing in modern ground leases. It provides long-term, cost-efficient capital to owners of commercial buildings. By acquiring land under properties, Safehold helps owners in top U.S. markets maximize asset value, reduce transaction friction, and lower capital costs.

3. Millrose Properties, Inc. (NYSE:MRP)

Stock Upside Potential: 13.93%

Forward P/E: 12.59

Number of Hedge Fund Holders: 39

Millrose Properties Inc. (NYSE:MRP) is one of the top undervalued REIT stocks to buy now. On March 27, Millrose Properties Inc. amended a credit facility with JPMorgan Chase Bank, adding a $500 million term loan.

With the amendment, the company’s credit facility increases to $1.835 billion by combining the new term loan with a $1.335 billion unsecured revolving credit commitment. Borrowing under the credit facility carries an Adjusted Term SOFR plus a margin from 2% to 2.5%. Millrose Properties plans to use the proceeds from the credit agreement for general corporate purposes. Part of the funds will also be used to refinance existing indebtedness.

The company has rewarded investors with a $0.76 dividend per share, totaling $126.2 million. The dividend offering translated to an annual yield of 10.62%. The ability to return capital to shareholders in volatile markets affirmed the strength and durability of the company’s core business.

Millrose Properties, Inc. is a public land banking REIT that provides capital to residential homebuilders through its Homesite Option Purchase Platform (HOPP’R). It acquires and develops residential land, allowing homebuilders to secure control of homesites through option agreements rather than purchasing land directly, supporting a “land-light” strategy.

2. VICI Properties Inc. (NYSE:VICI)

Stock Upside Potential: 14.14%

Forward P/E: 9.88

Number of Hedge Fund Holders: 52

VICI Properties Inc. (NYSE:VICI) is one of the top undervalued REIT stocks to buy now. On April 29, VICI Properties Inc. reported solid Q1 2026 results driven by stronger partner relationships.

Revenue in the quarter was up 3.5% year over year to $1 billion, as net income attributable to shareholders increased 60.5% to $872.4 million. Earnings per share were up 58.7% to $0.82. Adjusted Funds attributable to shareholders increased 5.7% to $650.9 million and 4.5% on a per share basis to $0.61.

During the quarter, the company expanded its relationship with Cain and Eldridge Industries by providing a $1.5 billion Mezzanine loan. It also reached a $144.4 million deal to acquire the real estate assets of Deerfoot Inn & Casino. VICI Properties Inc. exited the quarter with $480.2 million in cash and cash equivalents. The company also raised its AFFO guidance for the year to $2,665 million to $2,695 million, or $2.44 to $2.47 per diluted share.

VICI Properties Inc. is an S&P 500 experiential REIT. It owns and acquires gaming, hospitality, and entertainment destinations, including major Las Vegas assets like Caesars Palace and the MGM Grand. The company uses a triple-net lease model, where tenants cover property taxes, insurance, and maintenance. This assures high-yield, predictable rental income.

1. Rithm Capital Corp. (NYSE:RITM)

Stock Upside Potential: 42.77%

Forward P/E: 4.38

Number of Hedge Fund Holders: 39

Rithm Capital Corp (NYSE:RITM) is one of the top undervalued REIT stocks to buy now. On April 28, Rithm Capital Corp delivered strong first-quarter results despite a challenging, volatile market environment.

Net income in the quarter increased to $67.8 million or $0.12 per diluted share compared to $53.1 million or $0.09 a share in the fourth quarter. However, earnings available for distribution dropped to $289.6 million or $0.51 per diluted common share, compared to $418 million or $0.74 per diluted share in the fourth quarter.

During the quarter, the company completed four non-qualified mortgage securitizations totaling $2 billion. It also acquired $140 million in home improvement loans, bringing the total purchased to date under the Investment portfolio to $667 million.

Rithm Capital Corp also recorded $1.6 billion in origination volume, an 80% year-over-year increase. Assets under management on the alternative asset management platform increased to $59 billion as of March 31, up from $35 billion at the same period last year, driven by the acquisition of Crestline.

Rithm Capital Corp. is a global alternative asset manager and real estate investment trust (REIT) focused on residential/commercial real estate, mortgage servicing rights (MSRs), and credit-related businesses. Through subsidiaries such as Newrez and Genesis Capital, it operates a vertically integrated model encompassing mortgage origination, servicing, and transitional lending.

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