Real estate stocks have been lagging the market, but here is one corner in particular where Janus Henderson sees an underappreciated opportunity. Overall, real estate stocks have started to rebound, with the S & P 500 real estate sector rallying 10% over the past month. However, it is one of the worst-performing sectors in the index year to date, up about 5% compared to the S & P 's 19% gain through Thursday.
"In our view, supply/demand fundamentals are more favorable in the Sun Belt and Midwest markets today as compared with coastal markets, especially California," he said. California is the largest industrial market in the U.S., he added. One of his largest industrial overweights is EastGroup Properties , which has exposure to the Sun Belt. The company, which has a dividend yield of 2.69%, owns smaller building sizes.