Undiscovered Gems in United States To Explore February 2025

As we step into February 2025, the U.S. real estate market presents an intriguing landscape for investors seeking undervalued opportunities. Despite the challenges faced by the REIT sector in recent years, several REITs have emerged as attractive investment prospects due to their discounted valuations and strong fundamentals. In this article, we will explore seven undervalued REITs that have the potential to generate significant returns for investors in the long term.



1. Park Hotels & Resorts (PK)
- Fair Value Estimate: $26.50
- Forward Dividend Yield: 5.68%
- Park Hotels & Resorts owns upper-upscale and luxury hotels, with 26,373 rooms across 41 hotels in the United States. The company has a strategic focus on high-quality assets in domestic gateway markets and has sold many of its lower-quality U.S. hotels to focus on growth opportunities. With a 53% discount to its fair value estimate, Park Hotels & Resorts presents an attractive entry point for investors seeking exposure to the lodging sector.

2. Macerich (MAC)
- Fair Value Estimate: $25.00
- Forward Dividend Yield: 6.21%
- Macerich is a regional mall REIT that has successfully repositioned its portfolio over the past decade, focusing on Class A regional malls. The company has sold over $4 billion in lower-quality assets and recycled the capital into acquiring new Class A malls, redeveloping its own portfolio, and buying out its partners' shares in the unconsolidated portfolio. With a 6.21% forward dividend yield and a 29% discount to its fair value estimate, Macerich is an attractive option for investors seeking exposure to the retail sector.

3. Kilroy Realty (KRC)
- Fair Value Estimate: $35.00
- Forward Dividend Yield: 3.25%
- Kilroy Realty is a West Coast-focused office REIT with a high-quality portfolio of Class A office properties. The company has a strong balance sheet and a history of dividend growth. With a 3.25% forward dividend yield and a 29% discount to its fair value estimate, Kilroy Realty is an attractive option for investors seeking exposure to the office sector.

4. Ventas (VTR)
- Fair Value Estimate: $75.00
- Forward Dividend Yield: 3.00%
- Ventas is a healthcare REIT with a diversified portfolio of properties, including senior housing, skilled nursing, and medical office buildings. The company has a strong balance sheet and a history of dividend growth. With a 3.00% forward dividend yield and a 22.6% upside potential from its Jan. 8 close, Ventas is an attractive option for investors seeking exposure to the healthcare sector.



5. BXP (BXP)
- Fair Value Estimate: $150.00
- Forward Dividend Yield: 5.60%
- BXP is a leading global provider of logistics, distribution, and industrial real estate. The company has a diversified portfolio of properties across the Americas, Europe, and Asia. With a 5.60% forward dividend yield and a 29.3% upside potential from its Jan. 8 close, BXP is an attractive option for investors seeking exposure to the industrial sector.

6. SBA Communications (SBAC)
- Fair Value Estimate: $150.00
- Forward Dividend Yield: 1.90%
- SBA Communications is a leading provider of wireless infrastructure, with a portfolio of towers and small cells. The company has a strong balance sheet and a history of dividend growth. With a 1.90% forward dividend yield and a 35.2% upside potential from its Jan. 8 close, SBA Communications is an attractive option for investors seeking exposure to the telecommunications sector.

7. Weyerhaeuser (WY)
- Fair Value Estimate: $45.00
- Forward Dividend Yield: 2.80%
- Weyerhaeuser is a leading global forest products company with a diversified portfolio of timberlands and manufacturing facilities. The company has a strong balance sheet and a history of dividend growth. With a 2.80% forward dividend yield and a 24.9% upside potential from its Jan. 8 close, Weyerhaeuser is an attractive option for investors seeking exposure to the forest products sector.

In conclusion, the U.S. real estate market in February 2025 presents an attractive landscape for investors seeking undervalued REITs. By considering the specific criteria outlined in this article, investors can identify promising opportunities in various sectors, such as lodging, retail, office, healthcare, industrial, telecommunications, and forest products. As the economy continues to stabilize and the gap between public and private real estate valuations narrows, REITs are well-positioned to capitalize on favorable market conditions and deliver strong returns for investors in the long term.