High interest rates and a looming recession could make 2023 a challenging year for commercial real estate. Though inflation seems to be easing, it still is nowhere near the Fed’s comfort level. All these factors could result in weakening fundamentals and a higher cost of capital for the real estate industry. Amid such a backdrop, let’s take a look at the five best and worst performing real estate stocks in Q4 2022.

Five Best Performing Real Estate Stocks In Q4 2022

We have used the fourth quarter return data of real estate stocks from finviz.com to develop this list of the five best and worst performing real estate stocks in Q4 2022. We have only considered large-cap real estate stocks for our list of the five best and worst performing real estate stocks in Q4 2022. Here are the five best performing real estate stocks in Q4 2022:

5. Kimco Realty (15%)

Kimco Realty Corp (NYSE:KIM) shares are up by over 4% year to date bringing their 12-month return to -9%. As of this writing, Kimco Realty shares are trading at around $22.10 with a 52-week range of $17.71 to $26.57, giving the company a market capitalization of more than $13.6 billion. The company posted revenue of more than $1.3 billion in 2021, up from over $1 billion in 2020.

4. Equinix (15%)

Equinix Inc (NASDAQ:EQIX) shares are up by over 11% year to date bringing their 12-month return to over 3%. As of this writing, Equinix shares are trading at around $729 with a 52-week range of $494.89 to $776.35, giving the company a market capitalization of more than $66 billion. Equinix posted revenue of more than $6.6 billion in 2021, up from over $6 billion in 2020.

3. Regency Centers (16%)

Regency Centers Corp (NASDAQ:REG) shares are up by almost 6% year to date bringing their 12-month return to -7%. As of this writing, Regency Centers shares are trading at around $65.90 with a 52-week range of $51.97 to $73.41, giving the company a market capitalization of more than $11.3 billion. The company posted revenue of more than $1.1 billion in 2021, up from over $1 billion in 2020.

2. Gaming & Leisure Properties (18%)

Gaming and Leisure Properties Inc (NASDAQ:GLPI) shares are up by almost 2% year to date bringing their 12-month return to over 20%. As of this writing, Gaming & Leisure Properties shares are trading at around $52.80 with a 52-week range of $41.97 to $53.91, giving the company a market capitalization of more than $13 billion. The company posted revenue of more than $1.2 billion in 2021, up from over $1.1 billion in 2020.

1. Simon Property Group (31%)

Simon Property Group Inc (NYSE:SPG) shares are up by almost 8% year to date bringing their 12-month return to -14%. As of this writing, Simon Property Group shares are trading at around $127 with a 52-week range of $86.02 to $149.98, giving the company a market capitalization of more than $46.8 billion. The company posted revenue of more than $5.1 billion in 2021, up from over $4.5 billion in 2020.

Five Worst Performing Real Estate Stocks In Q4 2022

Here are the five worst performing real estate stocks in Q4 2022:

5. Equity Residential (-12%)

Equity Residential (NYSE:EQR) shares are up by over 5% year to date bringing their 12-month return to almost -30%. As of this writing, Equity Residential shares are trading at around $62.40 with a 52-week range of $57.38 to $94.32, giving the company a market capitalization of more than $24.2 billion. The company posted revenue of more than $2.4 billion in 2021, down from over $2.5 billion in 2020.

4. Invitation Homes (-12%)

Invitation Homes Inc (NYSE:INVH) shares are up by over 8% year to date bringing their 12-month return to almost -23%. As of this writing, Invitation Homes shares are trading at around $32.30 with a 52-week range of $28.52 to $44.36, giving the company a market capitalization of more than $19.6 billion. The company posted revenue of more than $1.8 billion in 2021, up from over $1.7 billion in 2020.

3. Avalonbay Communities (-12%)

AvalonBay Communities Inc (NYSE:AVB) shares are up by over 7% year to date bringing their 12-month return to almost -29%. As of this writing, Avalonbay Communities shares are trading at around $173 with a 52-week range of $157.69 to $259.05, giving the company a market capitalization of more than $24 billion. The company posted revenue of more than $2.3 billion in 2021, up from over $2.2 billion in 2020.

2. Essex Property Trust (-13%)

Essex Property Trust Inc (NYSE:ESS) shares are up by almost 3% year to date bringing their 12-month return to -34%. As of this writing, Essex Property Trust shares are trading at around $217 with a 52-week range of $205.24 to $363.36, giving the company a market capitalization of more than $14.5 billion. The company posted revenue of more than $1.4 billion in 2021, down from over $1.5 billion in 2020.

1. Extra Space Storage (-15%)

Extra Space Storage Inc (NYSE:EXR) shares are up by over 6% year to date bringing their 12-month return to almost -21%. As of this writing, Extra Space Storage shares are trading at around $156 with a 52-week range of $139.97 to $222.36, giving the company a market capitalization of more than $21.4 billion. The company posted revenue of more than $1.5 billion in 2021, up from over $1.4 billion in 2020.

This article originally appeared on ValueWalk

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