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Home›Debt›3 great real estate stocks to buy now

3 great real estate stocks to buy now

By Joe Clayton
March 11, 2021
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Although the stock market has done incredibly well since its March crash at the start of the COVID-19 pandemic, there are still some exciting opportunities. And one place you can find it is in the real estate industry.

On this December 14 crazy live music video, Fool.com contributor Matt Frankel, CFP, and Focus on industry host Jason Moser discusses three REITs that could thrive in the post-pandemic world that investors might want to put on their radar.

Matthew Frankel: Matt, I need a REIT to park $6,000 of my money. What is the best positioned REIT right now in the city, a strong buy in your opinion?

Jason Moser: No pressure, Matt, when it comes to six grand.

Frankel: Well, I don’t want to give personal financial advice. I’m not going to tell you what to do with your six grand. I’m sorry to disappoint you. Although I like your handle there.

Moser: You can certainly refer to the REITs we were talking about towards the end of today’s show.

Frankel: Sure. I can tell you a few that are on my list. I already mentioned Apartments in Central America (NYSE: MAA) on today’s show, which is a Sun Belt-focused apartment REIT. I think they have a lot to gain from the trend towards remote working as people move. Especially young people, many want to live in cities, but they don’t want to pay the prices of San Francisco or New York. So apartment complexes in places like Atlanta, Charlotte, as I mentioned, could have a lot to gain. I like this one. Other really well positioned REITs right now, love it Digital real estate (NYSE: DLR), which I have already spoken about several times on the show. They have backed off recently. They took advantage of the stay-at-home trend and its surge as people worked from home. As news of the vaccine came out, they backed off a bit. So I like Digital Realty on withdrawal. There are a few. I mentioned state of the empire (NYSE: ESRT) Already on this show. After the redo vaccine, Empire State is actually my biggest stock right now. It was pinterest, but now that Empire State, they’re up about 60% in the last two weeks, but there’s still a long way to go in my opinion. People say the Empire State Building is not going to close. I think it’s a great REIT to watch. In fact, they just announced that they were suspending their dividend. They are continuing with the suspension of dividends until the first half of 2021, which at first glance seems like a bad decision, but they have simultaneously authorized a $500 million buyback plan. The market capitalization of the company is only two billion dollars. It’s not a big business. They’re still buying back stocks aggressively, which I think, if you think it’s that undervalued, is a good reason to put your dividend on hold in favor of a buyback. It’s one that I really like. Like I said, my personal biggest stock in my portfolio, not personal financial advice, but there are three for you to dig into and see which, if any, best suits your needs.

This article represents the opinion of the author, who may disagree with the “official” recommendation position of a high-end advice service Motley Fool. We are heterogeneous! Challenging an investing thesis — even one of our own — helps us all think critically about investing and make decisions that help us become smarter, happier, and wealthier.

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