Broker names 3 ASX real estate stocks to buy

Three smiling corporate people examine a model of a new building complex.

If you are looking for exposure to the real estate sector, then read on!

That’s because Bell Potter has just named a number of ASX real estate stocks as buys.

Here’s what it is recommending to clients:

Abacus Storage King (ASX: ASK)

Bell Potter has initiated coverage on this storage company’s shares with a buy rating and $1.70 price target. This implies potential upside of approximately 10% for investors from current levels. In addition, the broker is expecting a 4.1% dividend yield in FY 2026.

Commenting on its initiation at buy, the broker said:

We initiate coverage of ASK with a Buy recommendation and a $1.70 target price. We forecast FY26e DPU of 6.2c (in line with guidance, VA consensus) and a 3yr EPS CAGR of +3.8%. While near term EPS growth is modest, the investment case is anchored in NTA compounding and convergence of listed market pricing toward private-market cap rates, with expected +8.2% 3yr NTA growth CAGR providing a clear benchmark for share price performance over time.

Centuria Industrial REIT (ASX: CIP)

Another ASX real estate stock that Bell Potter is bullish on is Centuria Industrial REIT.

Bell Potter has a buy rating and $3.75 price target on its shares. This suggests that upside of 15% is possible for investors between now and this time next year. In addition, a 5.1% dividend yield is expected in FY 2026.

Although its shares have outperformed recently, the broker notes that they are still trading at a discount to peers. It said:

Stock has outperformed +7% vs. +0% XPJ last 6m, but still trades at a -15% discount to NTA within a desirable real estate sub-sector where we see asset value upside.

DigiCo Infrastructure REIT (ASX: DGT)

Finally, this data centre operator could be an ASX real estate stock to buy according to Bell Potter.

This morning, the broker has upgraded its shares to a buy rating with a $3.25 price target. This implies potential upside of 25% for investors over the next 12 months. Bell Potter also expects a 4.6% dividend yield in FY 2026, bringing the total potential return to almost 30%.

The broker highlights that its shares have been underperforming materially over the past six months. It thinks this is a buying opportunity, it said:

Stock has been a key underperformer across the REIT sector last 6m (-17% vs. -3% XPJ), but yet there is now more certainty on leasing / FFO in FY26+ post guidance update. Addressing high gearing and delivering milestones are catalysts for re-rating.

The post Broker names 3 ASX real estate stocks to buy appeared first on The Motley Fool Australia.

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Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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