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Best Real Estate Stocks Right Now

These 5 real estate stocks have demonstrated qualities worthy of your consideration as you plan for your entry into the real estate market.

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Public Storage (NYSE: PSA)

Public Storage is an industrial REIT with membership in the S&P 500. With over 158 million net rentable square feet, it claims to be the world’s largest landlord. Public Storage is a buyer, developer and operator of self-storage facilities. Presently, it has thousands of facilities in 38 states and 7 countries. Also, it is a 3rd-party manager of storage facilities.

In Public Storage’s 4th quarter earnings report for 2019, it posted a $10.3 million net operating income. It credited the earnings boost to a 0.07 million increase in Same Storage facilities and a $9.6 million increase in non-same store facilities. At the end of last year, Public Storage’s FFO was $10.58 per share.

222.01 -0.16 (-0.07%)
Volume 0.00K Market Cap 38.81B
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155.37 - 240.75
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Simon Property Group (NYSE: SPG)

Simon Property Group is a real estate trust with active ownership in dining, entertainment, shopping and mixed-use destinations. It owns properties in North America, Europe and Asia. Millions of people gather at its locations — resulting in billions of dollars in annual sales.

The real estate company generates income from leasing space in properties developed into office space, regional malls, community lifestyle centers, hotels and residential properties. For the first 9 months of 2019, Simon Property Group reported a FFO of $5.15 per share.

88.79 0 (0%)
Volume 0.00K Market Cap 29.14B
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42.25 - 151.59
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American Tower (NYSE: AMT)

American Tower Corporation is among the largest REITs in the world. It is the top independent owner of multitenant communications real estate. This company provides wireless communications infrastructure in 19 countries and 5 continents.

This company has a portfolio of approximately 180,000 communications sites — 41,000 of them are in the U.S.  American Tower’s 2019 4th quarter reported a year-long AFFO of $7.90 per share.

228.03 0.1 (0.04%)
Volume 0.00K Market Cap 101.29B
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174.32 - 272.2
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CoStar Gr (NASDAQ: CSGP)

CoStar Group is one of the largest commercial real estate data and analytics providers. The combination of tools and resources that CoStar provides helps its customers take informed investment decisions. The company has a dedicated research center that analyzes over 390 markets and certifies more than $1.5 trillion in transactions every year.

The real estate stock has a market cap of $33 billion and an EPS of $8.12. It trades over 23,000 shares per day. CoStar generated revenue of $1.3 billion in 2019.

869.91 0 (0%)
Volume 0.00K Market Cap 34.29B
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500.24 - 939
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AvalonBay Communities (NYSE: AVB)

AvalonBay Communities Inc. is an equity REIT company that focuses on acquiring, developing and managing apartments in some of the best U.S. markets. The real estate company is committed to delivering outsized, risk-adjusted returns to its shareholders. Its projects are characterized by high wage sectors, housing affordability and a vibrant quality of life.

The REIT stock has a market cap of $20.8 billion and has an EPS of $5.60. It has an annual dividend yield of $6.36 per share. AvalonBay trades more than 208,000 per day and generated revenue of $2.3 billion in 2019.

173.18 0 (0%)
Volume 0.00K Market Cap 24.18B
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118.17 - 229.4
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Biggest Real Estate Stock Movers of the Day

Watching the movers lists can help you find prospective real estate stocks to invest in. Also, you can get a sense of the factors that influence stock prices

The data provided below is intended for educational purposes only, we have included the session dates for your reference.

Premarket Real Estate Stocks
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Market Real Estate Stocks
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After Hours Real Estate Stocks
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Buying shares in real estate companies can give you the same benefits as investing in real property. You could be earning passive income from rental revenue and capital gains without hammering a nail. 

Real estate stocks give you exposure to companies that develop and manage commercial, residential and industrial properties. These companies share a piece of the action with you through publicly-traded real estate investment trusts (REITs). 

Like any other stock, you trade REITs in the open market. These real estate stocks provide a low-cost way of sharing in real estate revenue and gains. There are other stocks that provide exposure to the real estate market. Nevertheless, the publicly-traded REITs category dominates real estate stocks.

The following list of top real estate stocks reflects this.  

Overview: Real Estate Stocks

As a means of including the average investor into the lucrative real estate market, the U.S. Congress passed the Real Estate Investment Act in 1960. The bill’s sponsors wanted to duplicate the success of the mutual fund industry as a way of attracting capital to the real estate industry. So, they used the mutual fund equity structure to design a mutual fund for real estate. This became a means for people without much investment capital to benefit from the real estate market.

Although REITs had been around for over 30 years, these funds did not become popular until the credit crunch hit in 1992 or so. The hotel industry, in particular, turned to REITs as a source of financing when the banks turned them away. Residential and industrial divisions soon followed the commercial real estate industry. By the end of 2001, REITs had become the No.1 institutional source of real estate capital with equity of $146 billion — or 39% of capital sources. 

By law, REITs must distribute 90% of net income to the shareholders in the form of dividends. The dividend revenue comes from rental income and capital gains. Publicly traded REITs typically have higher dividend yields than other equity investments. Since you can easily trade REITs, you can tap in into this reliable real estate income source without losing your investment’s liquidity. 

Best Online Brokers for Real Estate Stock

Online brokers can simplify the process of trading real estate stocks. You’ll be able to thoroughly research your investment options, make smooth trade and keep track of your portfolio in one central space. 

Commissions
$0
Account Minimum
$0
Get started securely through Webull’s website
Commissions
$0
Account Minimum
$0
1 Minute Review

Webull, founded in 2017, is a mobile app-based brokerage that features commission-free stock and exchange-traded fund (ETF) trading. It’s regulated by the Securities and Exchange Commission (SEC) and the Financial Industry Regulatory Authority (FINRA).

Webull offers active traders technical indicators, economic calendars, ratings from research agencies, margin trading and short-selling. Webull’s trading platform is designed for intermediate and experienced traders, although beginning traders can also benefit.

Webull is widely considered one of the best Robinhood alternatives.

Best For
  • Active traders
  • Intermediate traders
  • Advanced traders
Pros
  • Commission-free trading in over 5,000 different stocks and ETFs
  • No account maintenance fees or software platform fees
  • No charges to open and maintain an account
  • Leverage of 4:1 on margin trades made the same day and leverage of 2:1 on trades held overnight
  • Intuitive trading platform with technical and fundamental analysis tools
Cons
  • Does not support trading in mutual funds, bonds or OTC stocks
Commissions
$0
Account Minimum
$0
Get started securely through TradeStation’s website
Commissions
$0
Account Minimum
$0
1 Minute Review

TradeStation is for advanced traders who need a comprehensive platform. The brokerage offers an impressive range of investable assets as frequent and professional traders appreciate its wide range of analysis tools. TradeStation’s app is also equally effective, offering full platform capabilities.

Best For
  • Advanced traders
  • Options and futures traders
  • Active stock traders
Pros
  • Comprehensive trading platform and professional-grade tools
  • Wide range of tradable securities
  • Fully-operational mobile app
Cons
  • Confusing pricing structure to leave new traders with a weak understanding of what they pay
  • Cluttered layout to make navigating TradeStation’s platform more difficult than it should be
Commissions
$0 $6.95 for OTC Stocks
Account Minimum
$0
Get started securely through TD Ameritrade’s website
Commissions
$0 $6.95 for OTC Stocks
Account Minimum
$0
1 Minute Review

This publicly listed discount broker, which is in existence for over four decades, is service-intensive, offering intuitive and powerful investment tools. Especially, with equity investing, a flat fee is charged, with the firm claiming that it charges no trade minimum, no data fees, and no platform fees. Though it is pricier than many other discount brokers, what tilts the scales in its favor is its well-rounded service offerings and the quality and value it offers its clients.

Best For
  • Novice investors
  • Retirement savers
  • Day traders
Pros
  • World-class trading platforms
  • Detailed research reports and Education Center
  • Assets ranging from stocks and ETFs to derivatives like futures and options
Cons
  • Thinkorswim can be overwhelming to inexperienced traders
  • Derivatives trading more costly than some competitors
  • Expensive margin rates

Features to Look for in Real Estate Stock

  • Earnings growth: The key earnings indicator of real estate stocks is the funds from operations (FFOs). You calculate the FFO by subtracting the gains from the sales of property from the net income and adding depreciation and amortization. The FFO per share is your dividend yield. Ideally, a company should show a gradual increase in this metric. You can find a real estate company’s FFO history in the quarterly income report on the company’s website. The 4th quarter report also has year-end totals.
  • Management team: A good management team is imperative to the consistent operation of a real estate company. Poor management can result in cost overruns and sluggish rental income. In the company’s income report, you can use the cash flow summary to get some insight into the management’s operating, investing and financing activities. While you are on the company’s website, take a look at the executive profiles. 
  • Diversification: Before you decide to buy a real estate company’s stock, take a look at its basket of properties. Are the properties in the same area?  Does the company provide only one or two services? Be careful. Real Estate companies with a narrow reach may lack diversification, leaving them subject to the same risk factors such as hurricanes, service specific restrictions or local strife. 

Significance of Investing in Real Estate Stocks

Real estate stocks in the form of REITs present an investment opportunity for you to earn better-than-average income without assuming much risk or losing liquidity from your investment capital. The 5 real estate stocks we have highlighted are an elite group in this sector. 

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