Seven top companies are recommended While all are rated Buy at BofA Securities, it is important to remember that no single analyst report should be used as a sole basis for any buying or selling decision.
Shopping Centers
Kimco Realty Corp. (NYSE: KIM) makes sense for investors who are more conservative. This top REIT has specialized in shopping center acquisitions, development and management. It owns and operates the nation’s largest portfolio of neighborhood and community shopping centers with interests in the company-owned interests in 430 U.S. shopping centers comprising 75 million square feet of leasable space, primarily concentrated in the top major metropolitan markets.
Kimco Realty stock investors receive a 3.43% distribution. The BofA Securities price target is $30, and the consensus target is $27.65. The shares closed on Monday at $23.35.
Office Buildings
With employees finally returning to work, Corporate Office Properties Trust (NYSE: OFC) is a solid contrarian play in the sector. It owns, manages, leases, develops and selectively acquires office and data center properties. Most of its portfolio is in locations that support the U.S. government and its contractors, most of whom are engaged in national security, defense and information technology activities servicing what it believes are growing, durable, priority missions.
The company also owns a portfolio of office properties located in select urban and urbanlike submarkets in the Greater Washington/Baltimore region with durable Class-A office fundamentals and characteristics. As of December 31, 2020, it derived 87% of its core portfolio annualized rental revenue from Defense/IT locations and 13% from regional office properties.
As of the same date and including 17 properties owned through unconsolidated joint ventures, the company’s core portfolio of 179 office and data center shell properties encompassed 20.8 million square feet and was 95.0% leased. It also owned one wholesale data center with a critical load of 19.25 megawatts that was 86.7% leased.
Investors receive a 4.28% distribution. The BofA Securities price objective on Corporate Office Properties Trust stock is $34. The consensus target is $31.64, and shares ended Monday trading at $25.70.
Self-Storage
This giant self-storage leader Public Storage Inc. (NYSE: PSA) has been a go-to REIT stock for investors for years. It is a fully integrated, self-administered and self-managed REIT that primarily acquires, develops, owns and operates self-storage facilities.
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