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.
