W
e're taking a closer look at Digital Realty Trust, Inc. (NYSE:DLR) in the context of our previous article on the 10 Best REIT Stocks to Buy According to Billionaires. Despite a strong start to the spring housing season, home buyers are facing high costs and economic concerns, leading to a sluggish response from buyers. The recent announcement of new Trump tariffs has resulted in a sell-off and a sharp drop in mortgage rates, with homeowners and buyers seizing the opportunity. However, Realtor.com suggests that tariffs often translate into higher costs for consumers, which could impact home construction costs.

    Realtor.com Senior Economist Joel Berner notes that the US faces a supply gap of nearly 4 million homes, making it crucial to build more units. However, the implementation of these tariffs will make construction more costly, potentially pricing out buyers who are already undersupplied at lower price points. Another concern is that tariffs could keep inflation higher for longer, leading the Federal Reserve to reverse or reduce future policy rate cuts and keeping mortgage rates higher.

    To compile our list of top REIT stocks, we used Insider Monkey's database of billionaire stock holdings. We shortlisted prominent REIT stocks using a stock screener and ETFs, then selected the top 10 based on the highest number of billionaire investors as of Q4 2024. For stocks with the same number of billionaire holdings, we ranked them by total value of billionaire holdings.

    We're interested in these stocks because our research has shown that imitating the top stock picks of the best hedge funds can outperform the market. Our quarterly newsletter's strategy selects 14 small-cap and large-cap stocks every quarter and has returned 373.4% since May 2014, beating its benchmark by 218 percentage points.