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Investing.com - Morgan Stanley (NYSE:MS) has updated its Top US REIT Picks for the second half of 2025, adding four new selections while maintaining three existing picks, according to a recent analyst report. The selections come at a time when investors are seeking quality REITs with strong fundamentals and sustainable dividend yields.
The investment bank’s previous REIT selections achieved a modest 3.0% gain year-to-date, primarily driven by strong performances from Welltower (NYSE:WELL) and Sun Communities (NYSE:SUI). The refreshed list now includes Broadstone Net Lease (NYSE:BNL), Boston Properties (NYSE:BXP), Digital Realty Trust (NYSE:DLR), and Equity LifeStyle Properties (NYSE:ELS) as new additions, while retaining Omega Healthcare Investors (NYSE:OHI), Regency Centers (NYSE:NASDAQ:REG), and Welltower. According to InvestingPro data, BXP currently offers an attractive 5.7% dividend yield and has maintained dividend payments for 29 consecutive years, making it a potentially compelling income investment. Get access to detailed analysis and 6 additional ProTips for BXP with an InvestingPro subscription.
Morgan Stanley highlighted specific rationales for each selection, noting BNL as its top small-cap, high-yield pick, while BXP was chosen for its strong leasing momentum driven by New York City activity. With a market capitalization of nearly $12 billion and a current ratio of 1.17, BXP shows solid financial health. InvestingPro analysis suggests the stock is currently undervalued, with analysts projecting profitability for this year. DLR replaces Equinix (NASDAQ:EQIX) as the firm’s preferred data center stock due to record leasing activity, and ELS replaces SUI following the latter’s year-to-date outperformance.
The firm maintained OHI for its well-diversified skilled nursing facility portfolio, REG for its robust balance sheet and above-peer average FFO growth, and WELL for its advantaged senior housing portfolio and strong capital position. Discover comprehensive analysis and Fair Value estimates for all these REITs and 1,400+ other stocks with a Pro Research Report, available exclusively on InvestingPro.
In a separate note last week, Morgan Stanley also discussed Amazon’s (NASDAQ:AMZN) logistics expansion plans, noting the e-commerce giant is looking to expand with just 12% excess capacity, including investments in AI and automation, and a shift toward higher ownership of logistics assets for new facilities.
In other recent news, Boston Properties has been the focus of several analyst updates. BMO Capital reiterated its Outperform rating and raised its price target to $86.00, noting the company’s strategic shift towards upscale developments and premium rental rates. Meanwhile, JPMorgan upgraded Boston Properties from Underweight to Neutral, increasing the price target to $78.00 due to improving leasing activity and occupancy levels. Citi maintained a Neutral rating with a $70.00 price target, highlighting Boston Properties’ potential for near-term upside and progress in leasing efforts, particularly in New York City.
Evercore ISI also maintained an Outperform rating, keeping the price target at $75.00, and emphasized the company’s robust leasing demand and ongoing development projects. On the other hand, Truist Securities adjusted its price target from $75.00 to $71.00, maintaining a Hold rating due to anticipated tenant move-outs impacting future funds from operations. Despite challenges, Truist anticipates a return to positive FFO growth by 2026. These developments reflect Boston Properties’ ongoing efforts to navigate the evolving office real estate landscape.
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