These are Mizuho’s top real estate picks for August. They also offer attractive yields
Mizuho has named two real estate stocks as its top picks in the sector for August. The firm sees more upside ahead for Cousins Properties and Phillips Edison & Company , both real estate investment trusts. They also offer solid yields of 4.34% and 3.24%, respectively. REITs in general have been outperforming the broader market this year. The FTSE Nareit All Equity REITs Index gained 17.7% through July 31, compared to a 10.5% gain for the Dow Jones U.S. Total Stock Market Index, according to industry group Nareit . Mizuho breaks down its top picks into two REIT areas: Healthcare/Industrial/Office and Retail/Housing/Triple Net. Cousins Properties Cousins Properties, a Sunbelt-focused office REIT, stands out in the first area, according to Mizuho analyst Vikram Malhotra. The company develops, owns and manages 20 million square feet of office property in Atlanta, Austin, Charlotte, Dallas, Nashville, Tampa and Phoenix. Cousins recently reported a beat on both the top and bottom lines. Its funds from operations for the second quarter came in at 75 cents per share, 1 cent above the FactSet consensus estimate. Revenue was $268.5 million, topping the $263.5 million expected from analysts. The company also raised the lower end of its full-year FFO guidance. CUZ YTD mountain Cousins Properties year to date While shares have gained roughly 16% so far this year, there is still room to move higher, Malhotra said in a recent note. “The upcoming catalysts for CUZ are 1) Fundamental recovery in Sunbelt markets — concerns around office demand should ease as Austin and Atlanta show improving absorption, leasing momentum, and reduced supply risk 2) Lower execution risk — supported by strong 2Q leasing, a ~1mm sq. ft. pipeline and cash rent spreads of +12% 1H26,” Malhotra wrote. Another catalyst is the company’s balance sheet flexibility, which should enable selective external growth through non-core asset sales and opportunistic acquisitions, he added. Malhotra’s $33 price target on the stock implies 12% upside from Wednesday’s close. Phillips Edison & Company Phillips Edison’s portfolio consists of 330 shopping centers, most of which are anchored by grocery stores. The REIT also recently posted favorable results for its second quarter. Core FFO was 69 cents per share, 1 cent above the consensus estimate, according to FactSet data. Revenue came in at $189.6 million, beating the $187.5 million anticipated by analysts. Phillips Edison also raised its guidance for full-year core FFO. Analyst Haendel St. Juste believes the company should see above-average FFO growth for 2026/2027 and outperform the shopping center subsector. PECO YTD mountain Phillips Edison & Company year to date Catalysts include earnings growth driven by capital deployment and continued leasing demand in a limited supply environment, he said. “We note that PECO has limited exposure to watchlist tenants, and the sector’s highest percent leased occupancy (97.5%),” he wrote. “Any tenant bankruptcies may offer an attractive opportunity to relet space at higher rent spreads.” St. Juste’s $43 price target suggests 7% upside from Wednesday’s close. The stock is already up nearly 14% year to date.
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