Equity Residential (EQR)

Multi-family REIT. Operates in only a handful of select coastal markets, increasingly in US Sun Belt. Very large market cap. High-quality management and portfolio. 

Space has struggled since a lot of new supply came on. Through Covid a lot of people moved, and then it settled down. Very low pricing power in the space.

Doesn't see a lot of appreciation. Stock's cheap. Implied cap rate is in low-mid 6% range. You're paid to wait, but he wouldn't enter till later 2026 or into 2027.

This has gone through significant transactions over the last 2 years, going from the “everything” Reit in apartments, to really focusing on the coastal market. He prefers Camden Property Trust (CPT-N). The US apartment REITs have been flat, and there is a bit of concern that people will be buying houses instead of renting. This is fine for a Hold, but he wouldn’t hold your breath thinking it is going to leap up to new highs.

(Top Pick Jul 7/16, Down 1.68%) She had been buying more. It benefits as interest rates move around. This stock can easily go up double digits going forward.

An old line traditional residential real estate equity trust. It had a stumble recently so it is a buying opportunity. 2.93% yield.