This Day On The Street
Continue to site
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here

5 REITs to Rally on Home Sales (Corrected)

(This article, originally published Dec. 7, 2011, has been corrected to remove a reference to unconfirmed plans for investments by Alexandria Real Estate Equities. TheStreet regrets the error.)

NEW YORK ( TheStreet) -- U.S. commercial real estate is expected to stabilize and perform better going forward. Cautiously optimistic about the modest economic growth and job creation, Lawrence Yun, chief economist of National Association of Realtor, predicts that the overall drop in vacancy rates, softer leasing and concessions could continue to make it into a tenant's market.

Fitch Ratings has affirmed a stable outlook for multifamily, office, industrial and retail REITS in 2012, and has assigned a positive outlook for health care REITs.

Pending Home Sales Index rose 10.4% in Oct. to 93.3 from 84.5 in the prior month. Regionally, pending home sales increased in the midwest by 24.1%, northeast by 17.7%, and in the south by 8.6% in October. New home sales are likely to top 5 million in November from 4.97 million in October, according to the median forecast of analysts surveyed by Bloomberg.

Related: 5 Heavily Shorted REITs That Could Pop

The Mortgage Bankers Association's research shows that loans issued in the three months from July to September 2011 in the commercial and multifamily market rose by 98%, vs. the same period in 2010.

Analysts estimate that these five REITs have potential upsides ranging from 9% to 19%, based on latest quarterly results. Among analysts covering these stocks, an average of 72% have buy recommendations, according to data provided by Bloomberg.

The stocks are listed in ascending order of upside potential.

1 of 6

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!
ARE $92.88 0.00%
DEI $28.90 0.00%
HT $6.39 0.00%
SPG $188.26 0.00%
TWO $10.67 0.00%


DOW 17,826.30 -279.47 -1.54%
S&P 500 2,081.18 -23.81 -1.13%
NASDAQ 4,931.8150 -75.9760 -1.52%

Partners Compare Online Brokers

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs