W
e recently compiled a list of the 10 best real estate and realty stocks to buy according to hedge funds, with American Tower Corporation (NYSE:AMT) standing out among them. The election of President Trump has sparked concerns about the housing market's future, particularly regarding immigration and regulations.
Trump plans to reduce illegal immigration, which could lead to a labor shortage in new homebuilding, as up to a third of residential construction employment consists of foreign-born workers. Additionally, he aims to cut regulations that add costs to new homes, but economists believe this won't solve the entire housing crisis or meet his goal of cutting home prices in half.
Mortgage rates have surged since Trump's victory, rising by almost 1% since September, despite two rate cuts by the Fed. Economists predict a further increase due to Trump's economic agenda, which includes reducing tax rates and imposing tariffs on foreign goods, leading to higher inflation and government debt.
Doug Bauer, CEO of Tri Pointe Homes, sees lower corporate taxes and eased regulations for banks as positives, but notes that the core issue remains supply. Ivy Zelman agrees, stating that cities and municipalities could partner with local builders to utilize land in rural areas to address affordability issues.
Our methodology involves using a stock screener to identify relevant companies with high market caps, then shortlisting the top 10 stocks with the highest number of hedge fund holders. American Tower Corporation (NYSE:AMT) ranks first on our list, with 73 hedge fund holders.
American Tower Corporation is one of the largest global real estate investment trusts, founded in 1995 as an American Radio subsidiary. The company offers services and solutions to deploy and support wireless networks across six continents. Its performance is driven by the exponential growth in mobile data consumption, backed by strong underlying demand for its portfolio of communications assets.
AMT has planned to reduce its exposure to emerging markets and focus on incremental investments in developed economies. In September, it closed the sale of operations in India to Data Infrastructure Trust. For the third quarter of 2024, AMT's total revenue grew by less than 0.1%, while net income and adjusted EBITDA declined.
American Tower Corporation is a leading independent owner, operator, and developer of multi-tenant communications real estate, with a solid portfolio of over 148,000 communications sites and a highly interconnected footprint of US data center facilities.
