Buy-rated and sell-rated stocks within the Real Estate sector - Citi

Citi Research analysts listed their top buy-rated and sell-rated stocks within the real estate sector (NYSEARCA:XLRE).

Analysts rate the sector as market weight.

“Valuation indicators are compelling, but the fundamental set up continues to face challenges in 2024,” wrote Strategist Scott Chronert.

From the fourth quarter outperformance, the first quarter of this year has seen underperformance within the stocks.

In addition, the interest rate environment affects the sector. “Although we are intrigued with the sector’s absolute performance set up headed into an expected mid-year Fed rate cut, the path to relative outperformance is less clear to us,” he said.

These are the top buy-rated stocks, ranked by their estimated total return (or ETR):

• Apartment Income REIT Corp. (AIRC) - ETR: 37%
• VICI Properties Inc. (VICI) - ETR: 37%
• Gaming and Leisure Properties Inc. (GLPI) - ETR: 35%
• SBA Communications Corp. (SBAC) - ETR: 35%
• Crown Castle Inc. (CCI) - ETR: 31%
• Equinix Inc. (EQIX) - ETR: 27%
• American Tower Corp. (AMT) - ETR: 25%

And these are the sell-rated stocks, according to Citi:

• SL Green Realty Corp. (SLG) - ETR: -37%
• Vornado Realty Trust (VNO) - ETR: -19%
• Brandywine Realty Trust (BDN) - ETR: -17%