Based on the aggregated intelligence of 180,000-plus investors participating in Motley Fool CAPS, the Fool's free investing community, the 10 stocks below are the highest rated in the REIT industry.

CAPS contains more than just the crowd's opinions. The votes of CAPS' best-performing members, known as All-Stars, count more in shaping each company's rating than do the picks of their poorer-performing peers. That way, investors can intelligently use members' collective wisdom to make better decisions.

The highest-rated REIT is...
Looking at the aggregate data, we see that our community rates Whitestone REIT (AMEX: WSR) above the rest, and for good reason. As CAPS player foolishstocker wrote in May:

Great management team, rock solid monthly dividend. Lots of growth prospects. Unlike most REITs that selling their assets, since 2008, Whitestone actually buys assets in basement bargain prices. They just bought a commercial center for $3M, at this price it's like getting the center for free, with enough cash in hands to keep on purchasing. The stock is simply hidden from Wall Street. I expect this to be a 10-bagger once it is discovered and volumes will ramp up.

Here are the rest of the 10 highest-rated companies in the industry, along with their CAPS rating:



CAPS Rating (out of 5)

Market Cap (in millions)

1 Whitestone REIT ***** $128
2 New York Mortgage Trust ***** $78
3 National Health Investors (NYSE: NHI) ***** $1,205
4 One Liberty Properties ***** $230
5 Starwood Property Trust (NYSE: STWD) ***** $1,752
6 CoreSite Realty ***** $335
7 Government Properties Income Trust (NYSE: GOV) ***** $1,050
8 Retail Opportunity Investments (Nasdaq: ROIC) ***** $483
9 Health Care REIT (NYSE: HCN) ***** $8,945
10 RAIT Financial Trust (NYSE: RAS) ***** $210

Source: Motley Fool CAPS as of Nov. 7, 2011.

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