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e're taking a closer look at Prologis, Inc. (NYSE:PLD) in the context of top real estate stocks to buy according to billionaires. CBRE Investment Management predicts that global listed real estate will outperform broad equities and offer a differentiated total return compared to private markets by 2025. The firm sees a new upcycle emerging, characterized by accelerating organic earnings due to improved supply/demand dynamics across various sectors and abundant capital access supporting potential acquisitions.

    This cycle is believed to have begun in Q4 2023 with the recognition of a pause in rate hikes. CBRE Investment Management notes that listed real estate has historically performed well during periods of range-bound long-term yields, such as between 2001-2007 when US 10-year bonds yielded around 4-5% and listed real estate delivered double-digit average returns.

    The investment firm expects earnings to accelerate into 2025 across the real estate sectors, with a projected 5% growth rate globally – roughly double that of 2024 levels. Private-pay senior housing is expected to continue capitalizing on strong demographics, while data center growth accelerates with generative AI. Cell towers are also recovering from customer churn and retail and net leases have been performing well due to supply/demand and prevailing capital costs.

    CBRE Investment Management believes the total return opportunity for REITs remains compelling, driven by a ~4% dividend yield that's competitive with private real estate income and continues to grow based on conservative payout levels. As central bank target rates moderate and long-term yields remain range-bound, the firm expects listed real estate to thrive.