Five of the Best Real Estate Stocks to Buy and Hold Heading into 2024
Real estate may be one of the hottest investment opportunities heading into 2024. For one, according to the National Association of Realtors (NAR), home prices could rise by 2.6% in 2024, as noted by CNBC. Two,“NAR expects mortgage rates to drop closer to 6% in 2024. This will further stoke demand and keep prices elevated throughout the year,” they added. That could serve as a solid catalyst for companies like La Rosa Holdings (NASDAQ: LRHC), eXp World Holdings (NASDAQ: EXPI), CBRE Group (NYSE: CBRE), FRP Holdings (NASDAQ: FRPH), and Realty Income (NYSE: O). In addition, real estate companies, like La Rosa Holdings are already seeing substantial growth thanks to growing interest in real estate.
In addition, as noted by Business Insider,“The wait for lower rates may soon be over. The latest economic data, including October's Consumer Price Index report, show that inflation is slowing and the economy is cooling. Mortgage rates have already inched down somewhat in response.”
La Rosa Holdings Corp. (NASDAQ: LRHC) Seeing Strong Revenue Growth
La Rosa Holdings Corp., a holding company for five agent-centric, technology-integrated, cloud-based, multi-service real estate segments, today provided a business update and announced its financial results for the third quarter ended September 30, 2023.
Q3 2023 Highlights and Subsequent Events
- Total revenue increased 11% year-over-year to $6.8 million for Q3 2023
Entered into strategic referral partnership with Janover, an AI-enabled B2B fintech marketplace connecting commercial property borrowers and lenders
Launched a proprietary artificial intelligence technology system 'JAEME' to support real estate agents
- Acquired two of its real estate brokerage franchisees with combined revenues in excess of $20.7 million in 2022
- Completed an IPO on October 12, 2023, raising gross proceeds of $5.0 million and commenced trading on the Nasdaq Stock Market
Joe La Rosa, CEO of the Company, commented,“We believe that the last couple of months have been transformative for the Company. We achieved a major milestone by completing an IPO onto the Nasdaq Stock Market and raising gross proceeds of $5 million. I am also pleased to report that revenues increased 11% to $6.8 million for the third quarter of 2023 over the same period last year. We recently acquired a controlling interest in two of our franchisees, both located in Florida. Not only do the acquisitions expand our footprint in Florida, but we expect that they will also increase our top line revenue by over 75%.
“We believe that we have consistently been at the forefront of innovation in the real estate industry. We have a unique brokerage model which is agent centric with 100% commissions. This agent-centric commission model enables our sales agents to obtain higher net commissions than they would otherwise receive from many of our competitors in our local markets. Moreover, we provide our brokers with training and support, including our proprietary AI technology system, JAEME, that drives marketing, efficiency, and sales. We believe the support that we provide to our agents at a minimal cost to them is one of the best offered in the industry.
“We continue to explore ways to grow our revenue streams for both our brokers and the Company. Towards that end, we recently signed a referral partnership agreement with Janover. We expect that their expansive network of banks and first-in-class AI enabled fintech platform will help drive referrals to our brokers. We believe that we have built a highly scalable business model with several recurring revenue streams, and wenow have a strong balance sheet after completing the IPO. Our goal is to deliver long-term shareholder value by driving exponential growth that will allow us to capitalize on the changing agency model trends occurring in the industry,” concluded Mr. La Rosa.
Other related developments from around the markets include:
eXp World Holdings announced financial results for the third quarter .“During the third quarter, we continued to focus on agent-centric innovation that drove meaningful results, as we once again increased eXp's agent Net Promoter Score (aNPS) while extending our market share gains,” said Glenn Sanford, Founder, Chairman and CEO of eXp World Holdings.“In a slower market environment where every transaction counts, eXp's agents in the U.S. significantly outperformed the market during the third quarter. This outstanding performance speaks to the differentiated nature of eXp's platform and the power of our unique, success-oriented culture. Moving forward, we see many opportunities to further iterate on our agent-centric value proposition with programs like Boost, Accelerate, Thrive, and eXp exclusives and partnerships with Opendoor and the HomeRiver Group. Internationally, we recently announced a partnership with HomeHunter Global. All of this ultimately empowers our agents to spend more of their time on revenue-generating opportunities. We continue to believe that our investments in agent success are the key to driving superior growth over the long term.”
CBRE Group reported financial results for the third quarter .“Commercial real estate capital markets remained under significant pressure in the third quarter. As a result, we experienced a sustained slowdown in property sales and debt financing activity, which drove the decline in core earnings-per-share. This decline was exacerbated by delays in harvesting development assets which we will sell when market conditions improve,” said Bob Sulentic, president and chief executive officer of CBRE.“Over the last several quarters, we have detailed the increased importance of our resilient and secularly favored businesses. These businesses saw continued solid growth in the third quarter, led by Global Workplace Solutions.”
FRP Holdings Inc. just reported that net income for the third quarter of 2023 was $1,259,000 or $.13 per share versus $480,000 or $.05 per share in the same period last year. The third quarter of 2023 was impacted by the following items: Operating profit increased $1,047,000 compared to the same quarter last year due to improved revenues in all four segments. Interest income increased $1,512,000 due primarily to an increase in interest earned on cash equivalents ($1,118,000) and increased income from our lending ventures ($349,000). Interest expense increased $378,000 compared to the same quarter last year due to less capitalized interest. We capitalized less interest because of fewer in-house and joint venture projects under development this quarter compared to last year. Equity in loss of Joint Ventures increased $1,035,000 primarily due to increased losses during lease up at The Verge ($856,000).
Realty Income announced that it has declared the 641st consecutive common stock monthly dividend . The dividend amount of $0.256 per share, representing an annualized amount of $3.072 per share, is payable on December 15, 2023 to stockholders of record as of December 1, 2023. The ex-dividend date for December's dividend is November 30, 2023.
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