Shares of Hudson Pacific Properties are up an impressive 16% thus far in 2016, but the California-based REIT is not done being golden, said Mark Halle, senior portfolio manager of the Prudential Global Real Estate Fund . ‘They really cater to the technology and telecom market in L.A., Seattle and San Francisco,’ said Halle. ‘They have a well-seasoned management team and an excellent balance sheet.’ Halle added that Hudson’s portfolio is 90% leased with rents way below market prices. As these rents roll over, Halle said Hudson will see ‘10% to 15% upticks in its rental portfolio.’ The Prudential Global Real Estate Fund is up 7.7% thus far in 2016, according to Morningstar. The $3.5 billion fund has returned an average of 3.7% annually over the past ten years, outpacing 60% percent of its rivals in Morningstar’s global real estate category. The trailing 12 month yield for the fund is 1.4%, according to Morningstar. General Growth Properties , up 16%, is another one of Halle’s top picks. And while many mall-owners are struggling, especially as anchor tenants fall by the wayside, Halle said General Growth’s portfolio will continue to shine because of its high quality tenants. ‘They have good assets in good markets and they have done an excellent job in taking back space from some big anchors and releasing it at higher rates,’ said Halle. Staying in the retail REIT arena, Halle said Federal Realty , up 13.5% year-to-date, will continue to shine because of the embedded value in its portfolio. ‘You are buying today for the next three years projects which are coming online which are virtually not reflected in the stock price today,’ said Halle. Finally, Halle is a fan of Sun Communities , up 13% year-to-date, saying the manufactured housing community player is a great place to be as baby boomers age. ‘The average tenure of people on these sites is about 13 years, you can’t pick up your home and move it easily, it costs about $10,000 so people stay and they have great rental growth,’ said Halle.
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