In this article we discuss the top 5 REIT stocks under $10 that are currently very attractive . If you want to read our comprehensive analysis of the real estate industry, go directly to the Top 10 REIT Stocks Under $10.
5. Annaly Capital Management, Inc. (NYSE: NLY)
Number of Hedge Fund Holders: 21
Annaly Capital Management, Inc (NYSE: NLY) is a REIT that acquires and finances commercial and residential assets. The company has delivered sustainable yields to its investors for more than 20 years and aims to continue delivering attractive returns. It has $14 billion in fixed capital. 21 hedge funds had a stake in Annaly Capital Management in Q4 2020.
- Annaly Capital signed a definitive deal to sell its commercial real estate assets to Asset Management L.P. for $2.33 billion.
- The sale highlights the company’s focus towards sustainability. It plans to use some of the proceeds from the sale to pay off some of the properties acquired through financing.
- The company’s board of directors appointed Eric A. Reeves as the new managing director and head of Duchossois Capital Management’s private capital investments. He will also be TDG’s Chief Administrative Officer, secretary, and general counsel.
- Annaly Capital announced a dividend of $0.22 per common share for Q1 2021.
- Annaly Capital revealed that it is one of the 380 companies that have investments spread out across 11 sectors that were part of the 2021 Bloomberg Gender-Equality Index (“GEI”).
4. DiamondRock Hospitality Company (NYSE: DRH)
Number of Hedge Fund Holders: 13
DiamondRock Hospitality Company (NYSE: DRH) operates a REIT with a robust hospitality portfolio consisting of 31 high-end hotels and resorts that collectively have over 10,000 rooms. The REIT’s goal is to provide above-average returns to shareholders. 13 investors had a stake in the company in Q4 2020.
- DRH announced a dividend of $0.515625 per share for its Series A preferred shares.
- The company announced a $208.3 million net loss equivalent to a -$1.04 net loss per diluted share.
- Its 2020 revenue decreased by 75.2% compared to the revenue reported in the previous year.
- DRH’s portfolio delivered 90.51% returns in 2020.
3. American Finance Trust (NASDAQ: AFIN)
Number of Hedge Fund Holders: 8
American Finance Trust (NASDAQ: AFIN) is a company that runs a REIT under the same name. It has a diverse portfolio in multiple segments, including retail properties, lifestyle centers, and power companies. It mainly deals with customers in New York. One of its latest reports revealed that it registered an increase in rental collection for the third consecutive quarter throughout its portfolio.
8 hedge fund investors had a stake in American Finance Trust in Q4 2020 led by Arrowstreet Capital which owned 565,882 shares in AFN.
- The company revealed that it managed to collect 99% of the expected cash rent in Q1 2021. This was particularly the case for its single-tenant properties.
- The increase in rent collections was because of the recovery from the impact of the coronavirus pandemic.
- AFN affirmed its commitment to paying out quarterly dividends to its investors. This commitment and its robust portfolio favor it running as one of the top 10 REIT stocks under $10.
- The company’s annual dividend rate is $1.875 per share, equivalent to $0.46875 per share every quarter.
2. Colony Credit Real Estate, Inc. (NYSE: CLNC)
Number of Hedge Fund Holders: 10
Colony Credit Real Estate, Inc. (NYSE: CLNC) is a company whose approach in the real estate industry includes developing and acquiring real estate property. It also finances the development of property, as well as managing a vast portfolio that consists of net leased properties, as well as CRE debt investments.
10 hedge funds had a stake in Colony Credit in Q4 2020 led by Nut Tree Capital which had just over 6 million shares in Colony Credit.
- Colony Credit recently revealed that its internal managing firm and subsidiary known as CLNC Manager, LLC signed a definitive deal to end its management agreement. The deal will allow Colony Credit to internalize its operating and management functions. The agreement will cause a reshuffling of the company’s board of directors. The board, which consists of five individuals, will be headed by independent chairperson Catherine D. Rice. Colony Credit CEO Michael J. Mazzei will be one of the board members.
- Frank V. Saracino recently became the company’s new Treasurer and Chief Financial Officer.
Colony Credit is one of the top 10 best REIT stocks under $10 that investors should keep an eye on.
1. Colony Capital, Inc. (NYSE: CLNY)
Number of Hedge Fund Holders: 21
Colony Capital, Inc. (NYSE: CLNY) is an investment company that operates a REIT whose portfolio consists of properties in hot segments in the real estate industry. The company’s portfolio consists of real estate property worth $52 billion. It is also well-diversified considering that $30 billion worth of its portfolio is real estate investments in the digital space courtesy of its digital infrastructure called Digital Colony.
21 hedge funds had a stake in Colony Capital in Q4 2020, and Oaktree Capital Management had the highest stake at 10.6 million shares.
- Colony Capital revealed in one of its latest announcements that it monetized a significant proportion of its equity and debt portfolio. The company sold 74% controlling interest in two prime office properties in the middle of Dublin. The shares were sold to Blackstone Property Partners Europe Holdings for $351 million.
- Colony also generated $102 million after selling its stake in Burlington Plaza.
- Colony finalized the sale of its remaining stake in six of the properties in its hospitality industry portfolio. They were sold to Highgate, and the sale represents the company’s decision to exit the hospitality segment. The sale will give Colony Capital more flexibility in its debt management activities.
- The developments, including the selling of stake in various assets, highlight the company’s efforts to maintain a portfolio that adapts to recent market changes. This strategy aims to maintain healthy returns to investors, and it makes Colony one of the top 10 REIT stocks for investors.
You can also take a peek at 10 Best Small-Cap Stocks to Buy Now and 15 Biggest Cloud Companies.
