Three real estate stocks that might make waves in 2021

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Three real estate stocks that might make waves in 2021

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 Three real estate stocks that might make waves in 2021

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Summary

  • The US real estate sector was resilient for most of 2020, aided by positive buyer sentiment and favorable fiscal and monetary policies.
  • Brookfield Property Partners’ parent firm, Brookfield Asset Management proposes to acquire the former’s limited partnership units for US$5.9 billion.
  • Simon Property Group likely to have a healthy 2021 aided by strategic investments made in recognized retail brands at attractive valuations.
  • A leading real estate developer Comstock Holding signed a 10-year lease with bb.q Chicken.

The US housing market demonstrated extraordinary resilience amid the global pandemic. While the first quarter of CY2020 was challenging for the real estate sector, headwinds such as record-low interest rates and strong buyer sentiments led to a change in fortunes for the industry. Remarkably, 2020 ended as one of the best years for the residential real estate space.

The real estate sector plays a crucial role in an economy’s growth, as illustrated by the strong role the resurgence in the housing market played in the US economic recovery. Experts believe that the housing market will remain competitive in 2021, which could be a positive sign for the overall economy.

On that note, let us discuss three real estate companies that could have a solid 2021.

Brookfield Property Partners LP

Brookfield Property Partners LP (NASDAQ:BPY, TSX: BPY.UN) is one of the world’s premier real estate companies with approximately US$88 billion in total assets. The Company manages iconic properties in major global markets. BPY’s portfolio comprises office, logistics, hospitality, and retail, among others.

At the start of the year, investors were in for a surprise with BPY’s parent, Brookfield Asset Management Inc. proposing to purchase the Company’s limited partnership units for US$5.9 billion. BPY and Brookfield Property REIT Inc (NASDAQ:BPYU) jointly acknowledged the receipt of a non-binding proposal from Brookfield Asset Management Inc.

The market reacted positively to the news with BPY shares gaining nearly 18% in January alone.

Copyright © 2020 Kalkine Media Pty Ltd.

On 17 February 2021, BPY closed the day’s trade at US$17.89, down by 0.56%.

Simon Property

American commercial real estate player Simon Property Group Inc (NASDAQ:SPG) has the ownership of premier dining, entertainment, shopping, as well as mixed-use destinations. Simon’s properties in Asia, Europe, and North America offer community gathering and generate billions in sales yearly.

On 8 February 2021, Simon Property Group Inc (NASDAQ:SPG) updated the market with its results for the fourth quarter and full year ended on 31 December 2020.

With the unprecedented operating environment over the past year, Simon Property generated over US$2.3 billion in operating cash flow during the year.

Key highlights from Q4 and FY2020 results:

  • During the period, Simon Property made strategic investments in broadly recognized retail brands at attractive valuations.
  • The Company opened two new international shopping destinations and expanded two others.
  • In December 2020, Simon Property acquired an 80% ownership interest in Michigan-based The Taubman Realty Group.
  • Net proceeds from the public offering completed during the fourth quarter were almost US$1.56 billion.
  • The Company paid its fourth quarter 2020 dividend in cash of US$1.30 per share, on 22 January 2021.

Copyright © 2020 Kalkine Media Pty Ltd.

David Simon, Chairman, CEO and President of Simon Property commented:

On 17 February 2021, SPG shares closed the day’s trade at US$108.23, down by 1.59%.

Comstock Holding Companies

Comstock Holding Companies (NASDAQ:CHCI) is a leading real estate developer which has constructed and managed several thousand residential units. Several local governments have selected Comstock as the major developer of municipally-owned properties.

On 25 January 2021, Comstock Holding revealed that bb.q Chicken had signed a 10-year lease in Ashburn, Va. With an expansion plan in the North American markets, bb.q Chicken plans to get its signature menu to Loudoun Station this year.

bb.q stands for best of the best quality and serves more than 20 signature chicken dishes that are deep-fried in olive oil and representative of South Korean sweet & spicy flavor pairings.

Timothy J. Steffan, EVP/Asset Management and Development for Comstock commented:

On 17 February 2021, CHCI shares last traded at US$6.18, down by 1.75%.

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