Sectors & IndustriesReal EstateREIT - Diversified

Best Diversified REIT Stocks to Buy Now (2023)

Top diversified reit stocks in 2023 ranked by overall Zen Score. See the best diversified reit stocks to buy now, according to analyst forecasts for the reit - diversified industry.

According to Zen Score, the 3 best diversified reit stocks to buy right now are:

Istar (NYSE:STAR) is the top diversified reit stock with a Zen Score of 53, which is 28 points higher than the diversified reit industry average of 25. It passed 18 out of 38 due diligence checks and has strong fundamentals. Istar has seen its stock lose -69.4% over the past year, underperforming other diversified reit stocks by -42 percentage points.

Istar has an average 1 year price target of $21.00, an upside of 188.46% from Istar's current stock price of $7.28.

Istar stock has a consensus Buy recommendation according to Wall Street analysts. Of the 1 analyst covering Istar, 0% have issued a Strong Buy rating, 100% have issued a Buy, 0% have issued a hold, while 0% have issued a Sell rating, and 0% have issued a Strong Sell.

Spirit Realty Capital (NYSE:SRC) is the second best diversified reit stock with a Zen Score of 47, which is 22 points higher than the diversified reit industry average of 25. It passed 18 out of 38 due diligence checks and has strong fundamentals. Spirit Realty Capital has seen its stock lose -14.07% over the past year, overperforming other diversified reit stocks by 13 percentage points.

Spirit Realty Capital has an average 1 year price target of $44.00, an upside of 13.31% from Spirit Realty Capital's current stock price of $38.83.

Spirit Realty Capital stock has a consensus Buy recommendation according to Wall Street analysts. Of the 10 analysts covering Spirit Realty Capital, 10% have issued a Strong Buy rating, 30% have issued a Buy, 60% have issued a hold, while 0% have issued a Sell rating, and 0% have issued a Strong Sell.

Safehold (NYSE:SAFE) is the third best diversified reit stock with a Zen Score of 44, which is 19 points higher than the diversified reit industry average of 25. It passed 16 out of 38 due diligence checks and has strong fundamentals. Safehold has seen its stock lose -47.28% over the past year, underperforming other diversified reit stocks by -20 percentage points.

Safehold has an average 1 year price target of $55.00, an upside of 85.81% from Safehold's current stock price of $29.60.

Safehold stock has a consensus Buy recommendation according to Wall Street analysts. Of the 4 analysts covering Safehold, 50% have issued a Strong Buy rating, 0% have issued a Buy, 50% have issued a hold, while 0% have issued a Sell rating, and 0% have issued a Strong Sell.

Out of 21 diversified reit stocks that have issued dividends in the past year, the 3 diversified reit stocks with the highest dividend yields are:

Istar (NYSE:STAR) has an annual dividend yield of 34.26%, which is 27 percentage points higher than the diversified reit industry average of 7.56%. Istar's dividend payout is stable, having never dropped by more than 10% in the last 10 years. Istar's dividend has shown consistent growth over the last 10 years.

Istar's dividend payout ratio of 53.2% indicates that its high dividend yield is sustainable for the long-term.

Nexpoint Real Estate Finance (NYSE:NREF) has an annual dividend yield of 13.77%, which is 6 percentage points higher than the diversified reit industry average of 7.56%.

Nexpoint Real Estate Finance's dividend payout ratio of 98.8% indicates that its high dividend yield might not be sustainable for the long-term.

Brightspire Capital (NYSE:BRSP) has an annual dividend yield of 12.97%, which is 5 percentage points higher than the diversified reit industry average of 7.56%. Brightspire Capital's dividend payout is not stable, having dropped more than 10% one times in the last 10 years. Brightspire Capital's dividend has shown consistent growth over the last 10 years.

Brightspire Capital's dividend payout ratio of 225.7% indicates that its high dividend yield might not be sustainable for the long-term.

Diversified reit stocks were up 0.39% in the last day, and down -1.04% over the last week.

We couldn't find a catalyst for why diversified reit stocks are up.

Based on WallStreetZen's Valuation Score, the 3 most undervalued diversified reit stocks right now are:

Spirit Realty Capital (NYSE:SRC) is the most undervalued diversified reit stock based on WallStreetZen's Valuation Score. Spirit Realty Capital has a valuation score of 71, which is 44 points higher than the diversified reit industry average of 27. It passed 5 out of 7 valuation due diligence checks.

Spirit Realty Capital's stock has dropped -14.07% in the past year. It has overperformed other stocks in the diversified reit industry by 13 percentage points.

Istar (NYSE:STAR) is the second most undervalued diversified reit stock based on WallStreetZen's Valuation Score. Istar has a valuation score of 71, which is 44 points higher than the diversified reit industry average of 27. It passed 5 out of 7 valuation due diligence checks.

Istar's stock has dropped -69.4% in the past year. It has underperformed other stocks in the diversified reit industry by -42 percentage points.

Armada Hoffler Properties (NYSE:AHH) is the third most undervalued diversified reit stock based on WallStreetZen's Valuation Score. Armada Hoffler Properties has a valuation score of 43, which is 16 points higher than the diversified reit industry average of 27. It passed 3 out of 7 valuation due diligence checks.

Armada Hoffler Properties's stock has dropped -21.27% in the past year. It has overperformed other stocks in the diversified reit industry by 6 percentage points.