In this article, we will list the Top 5 Undervalued REIT Stocks to Buy Now. Please visit Top 10 Undervalued REIT Stocks to Buy Now if you would like to see the extended list and the methodology behind it.
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. (NYSE:STWD) 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.
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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. (NYSE:STWD) 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. (NYSE: SAFE) 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. (NYSE:SAFE) 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. (NYSE:MRP) 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. (NYSE:MRP) 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. (NYSE:VICI) 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. (NYSE:VICI) 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. (NYSE:VICI) 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 (NYSE:RITM) 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. (NYSE:RITM) 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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