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10 Real Estate Stocks to Buy Now According to John Khoury’s Long Pond Capital

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·7 min read
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  • ARE
  • PSA-PM
  • EQR
  • JBGS
  • ELS
  • CPT
  • STAG
  • FOR

In this article, we discuss the 10 real estate stocks to buy now according to John Khoury's Long Pond Capital based on Q3 holdings of the fund. If you want to skip our detailed analysis of Khoury's history, investment philosophy, and hedge fund performance, go directly to the 5 Real Estate Stocks to Buy Now According to John Khoury's Long Pond Capital.

Mr. John P. Khoury manages the investment portfolio of Long Pond Capital. John Khoury, who controls more than 75% of Long Pond Capital, is also the majority shareholder of the fund. Mr. Khoury formerly worked at Wesley Capital Management LLC as a Managing Member. He earned his bachelor's degree from the University of Pennsylvania's Wharton School.

Long Pond implements a long/short fundamental value investing approach, employing a thorough, bottom-up research process to find asymmetries in downside-protected assets that it believes the public markets have misinterpreted.

The hedge fund's 13F public stock portfolio was valued at $2.73 billion in the third quarter of 2021. The top ten holdings of Long Pond Capital presently account for 54.29% of the portfolio. John Khoury has made new purchases in 11 stocks and reduced holdings in 10 stocks in the third quarter of 2021.

Public Storage (NYSE:PSA), Alexandria Real Estate Equities, Inc. (NYSE:ARE), and Equity Residential (NYSE:EQR) were among the top holdings in John Khoury's Long Pond Capital portfolio at the end of the third quarter of 2021.

Public Storage (NYSE:PSA) is the latest addition in John Khoury's hedge fund portfolio, as Long Pond Capital bought 75,750 shares of the company, worth $22.51 million. In October, Berenberg analyst Carl Keegan initiated a bullish coverage of Public Storage with a “Hold” rating and gave a price target of $321.

10 Real Estate Stocks to Buy Now According to John Khoury's Long Pond Capital
10 Real Estate Stocks to Buy Now According to John Khoury's Long Pond Capital

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Equity Residential (NYSE:EQR) is another large-cap stock in Long Pond Capital’s portfolio, in which the fund has reduced its stake by 5%. The hedge fund owns 1.96 million shares of the company worth $158.67 million.

Another newly added stock to the portfolio was Alexandria Real Estate Equities, Inc. (NYSE:ARE), where John Khoury purchased 117,500 shares. The company is getting positive attention from market analysts. In October, BTIG analyst Thomas Catherwood raised his price target on Alexandria Real Estate to $233 from $187 and maintained a “Buy” rating on the shares.

With this background in mind, let’s start our list of 10 real estate stocks to buy now according to John Khoury's Long Pond Capital. We used Khoury's 13F portfolio for Q3 2021 for this analysis.

Real Estate Stocks to Buy Now According to John Khoury's Long Pond Capital

10. Camden Property Trust (NYSE:CPT)

Long Pond Capital Stake Value: $69,777,000

Percentage of Long Pond Capital’s 13F Portfolio: 2.55%

Number of Hedge Fund Holders: 23

Camden Property Trust (NYSE:CPT) is a publicly-traded real estate investment trust based in the United States that invests in apartment buildings. On November 22, Wells Fargo analyst Tamara Fique increased her price target on Camden Property to $180 from $160 and reiterated an “Overweight” rating on the shares.

The company posted earnings for the third quarter in October, reporting revenue of $294.13 million, up 10.7% year-on-year, beating market expectations by $8.78 million. Out of the hedge funds being tracked by Insider Monkey, Citadel Investment Group is a leading shareholder in Camden Property Trust, with 518,501 shares worth more than $76.46 million.

At the end of the third quarter of 2021, 23 hedge funds in the database of Insider Monkey held stakes worth $419.86 million in Camden Property Trust, up from 21 in the preceding quarter worth $440.98 million.

Just like Public Storage (NYSE:PSA), Alexandria Real Estate Equities, Inc. (NYSE:ARE), and Equity Residential (NYSE:EQR), Camden Property Trust (NYSE:CPT) is one of the real estate stocks to buy now according to John Khoury's Long Pond Capital.

9. Equity LifeStyle Properties, Inc. (NYSE:ELS)

Long Pond Capital Stake Value: $83,297,000

Percentage of Long Pond Capital’s 13F Portfolio: 3.04%

Number of Hedge Fund Holders: 25

Equity LifeStyle Properties, Inc. (NYSE:ELS) is a real estate investment trust specializing in the ownership and management of lifestyle properties such as prefabricated homes and recreational vehicle communities. In October, the company declared a quarterly dividend of $0.3625 per share, in line with the previous.

Equity LifeStyle Properties, Inc. reported third-quarter earnings in October, with an actual FFO of $0.65, beating analysts' consensus estimates by $0.02. The revenue for the company was $332.9 million, exceeding forecasted revenue by $46.81 million.

Of the exclusive hedge funds tracked by Insider Monkey, 25 held stakes amounting to $462.10 million in Equity LifeStyle Properties, Inc. in the third quarter of 2021. Noam Gottesman’s GLG Partners is the largest stakeholder in the company, with 1.48 million shares worth $115.63 million.

8. Forestar Group Inc. (NYSE:FOR)

Long Pond Capital Stake Value: $87,223,000

Percentage of Long Pond Capital’s 13F Portfolio: 3.19%

Number of Hedge Fund Holders: 12

Forestar Group Inc. (NYSE:FOR), situated in Arlington, Texas, is a developer of residential lots. The most significant stakeholder in the company is John Khoury’s Long Pond Capital, holding 4.68 million shares valued at $87.22 million.

Forestar Group Inc. announced third-quarter earnings on November 4. The EPS for the company was $0.89, beating estimates by $0.17. Similarly, the actual revenue of $418.7 million also surpassed analysts’ estimations by $15.22 million.

In the third quarter of 2021, 12 hedge funds tracked by Insider Monkey held stakes in Forestar Group Inc., worth $107.71 million, down from 14 in the previous quarter.

7. STAG Industrial, Inc. (NYSE:STAG)

Long Pond Capital Stake Value: $87,998,000

Percentage of Long Pond Capital’s 13F Portfolio: 3.22%

Number of Hedge Fund Holders: 17

STAG Industrial, Inc. (NYSE:STAG) is a real estate investment trust focused on purchasing, owning, and running single-tenant industrial properties throughout the United States.

In November, RBC Capital analyst Michael Carroll increased his price target on STAG Industrial to $50 from $46 and reiterated an “Outperform” rating on the shares. In Q3, STAG Industrial, Inc. posted an FFO of $0.53, beating the consensus by $0.02. The company also reported revenue of $142.11 million, up 21.2% year-over-year.

John Khoury’s Long Pond Capital increased its hold in STAG Industrial, Inc. by 68% in the third quarter, with 2.24 million shares of the company worth $88 million. Overall, 17 hedge funds in Insider Monkey’s database of 867 funds are bullish on the company.

6. JBG SMITH Properties (NYSE:JBGS)

Long Pond Capital Stake Value: $96,724,000

Percentage of Long Pond Capital’s 13F Portfolio: 3.53%

Number of Hedge Fund Holders: 15

JBG SMITH Properties (NYSE:JBGS), situated in Bethesda, Maryland, is a publicly listed real estate investment trust. In November, the company posted earnings results for the third quarter, reporting revenue of $157.02 million, up 4% Y/Y.

The hedge fund chaired by John Khoury holds close to 3.27 million shares in JBG SMITH Properties worth over $96.72 million. It is the second-largest holding of the hedge fund. Long Pond Capital's stake in the company shares increased by 583% in the third quarter of 2021.

In October, JBG SMITH Properties declared a quarterly dividend of $0.225 per share, in line with the previous. The company has seen a decrease in hedge fund sentiment recently. JBG SMITH was in 15 hedge funds’ portfolios in the third quarter of 2021, compared to 17 in the preceding quarter.

JBG SMITH Properties (NYSE:JBGS) joins John Khoury's Long Pond Capital top real estate stock picks, with the others being Public Storage (NYSE:PSA), Alexandria Real Estate Equities, Inc. (NYSE:ARE), and Equity Residential (NYSE:EQR).

Click to continue reading and see 5 Real Estate Stocks to Buy Now According to John Khoury's Long Pond Capital.

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Disclosure: None. 10 Real Estate Stocks to Buy Now According to John Khoury's Long Pond Capital is originally published on Insider Monkey.