Morningstar released its June 2026 list of the most undervalued real estate investment trusts, with Park Hotels & Resorts and BXP topping the screen at price-to-fair-value ratios of 0.66. The twelve-stock list spans lodging, office, cell tower, manufactured housing, residential, and net-lease sectors, reflecting widening dispersion in REIT valuations as the market reprices interest-rate sensitivity and sector-specific operating risks.
The Morningstar US Real Estate Index rose 7.59% in the year to date through June 1, 2026, trailing the Morningstar US Market Index gain of 11.57%. REITs remain sensitive to interest-rate movements, tending to outperform the broad market when rates fall and underperform when rates rise, according to the research firm's analysis.
Park Hotels & Resorts, which owns 21,042 rooms across 33 upper-upscale and luxury hotels in the United States, trades 34% below Morningstar's fair value estimate of $19.50 per share. The company offers a forward dividend yield of 7.75%, the highest among the twelve REITs on the list. Park is the second-largest US lodging REIT and was spun out of Hilton Worldwide Holdings at the start of 2017, subsequently divesting all international hotels and 27 lower-quality US properties to concentrate on high-quality assets in domestic and gateway markets.
The company completed its acquisition of Chesapeake Lodging Trust in September 2019, adding eighteen high-quality upper-upscale hotels and diversifying Park's brand exposure to include Marriott, Hyatt, and IHG properties. However, comparable occupancy plateaued in 2024 at a level approximately 7% below 2019 levels, and reduced international tourism combined with major renovations across the portfolio led to a decline in comparable hotel EBITDA in 2025, according to Morningstar senior analyst Kevin Brown.
Brown noted that the hotel industry faces several long-term headwinds, including elevated supply in many of the largest markets likely to continue for a few more years. Online travel agencies and online hotel reviews facilitate immediate price discovery for consumers, preventing Park from pushing rate increases. While the shadow supply created by Airbnb does not directly compete with Park on most nights, it limits the company's ability to push rates on nights where it would typically generate its highest profits, Brown wrote.
The temptation in discounted REIT names is to anchor on the discount rather than the delta in fundamentals, family office advisor Jaf Glazer has cautioned.
BXP, which invests in the office sector, also trades at 0.66 times Morningstar's fair value estimate, representing a 34% discount to the firm's $89 per share valuation. The REIT owns 179 properties consisting of approximately 52.6 million rentable square feet of space, concentrated in six markets: Boston, Los Angeles, New York, San Francisco, Seattle, and Washington, D.C. The company offers a forward dividend yield of 5.21%.
BXP develops, owns, and manages Class A office properties and has positioned itself to benefit from the burgeoning life sciences sector, owning approximately 5.6 million square feet of life sciences space with significant potential for future development. The company's strategy focuses on developing and owning premier properties that maintain high occupancy rates and achieve premium rental rates through economic cycles in supply-constrained markets with the strongest economic growth and investment characteristics for office real estate.
The complete list of twelve undervalued REITs includes Park Hotels & Resorts, BXP, Kilroy Realty, Healthpeak Properties, Invitation Homes, Crown Castle International, Equity Lifestyle Properties, Realty Income, Pebblebrook Hotel Trust, Sun Communities, SBA Communications, and Equity Residential. Morningstar's screening methodology selected REIT stocks trading below fair value and assigned narrow or wide Economic Moat Ratings, as well as companies without a moat. The firm applies Uncertainty Ratings ranging from Low to Very High to capture the range of potential outcomes for each company's fair value.
Companies with narrow economic moat ratings can fight off competitors for at least ten years, while wide-moat companies should remain competitive for twenty years or more, according to Morningstar's rating framework. All valuation data and analyst commentary reflect assessments as of June 1, 2026.