The following is a list of the most undervalued REITs, when comparing the current price against the average analyst target price (used as a proxy for fair value).

Yes, this is a crude way to find undervalued companies, but the goal here is to give you a starting point for your own analysis.

All data sourced from Finviz.

*click for expanded image*

** 1. Digital Realty Trust Inc. (NYSE:DLR):** REIT - Industrial Industry. Market cap of $4.39B. Monday's closing price $48.52 vs. target price of $64.29 (implies a discount of 24.53%). Short float at 20.64%, which implies a short ratio of 11.21 days. The stock has gained 4.16% over the last year.

** 2. Brandywine Realty Trust (NYSE:BDN):** REIT - Diversified Industry. Market cap of $1.43B. Monday's closing price $10.64 vs. target price of $13.05 (implies discount of 18.47%). Short float at 2.45%, which implies a short ratio of 2.05 days. The stock has gained 3.91% over the last year.

** 3. Douglas Emmett Inc (NYSE:DEI):** REIT - Diversified Industry. Market cap of $2.B. Monday's closing price $16.22 vs. target price of $19.36 (implies discount of 16.22%). Short float at 11.74%, which implies a short ratio of 9.08 days. The stock has gained 17.62% over the last year.

** 4. Cogdell Spencer Inc. (NYSE:CSA):** REIT - Healthcare Facilities Industry. Market cap of $303.75M. Monday's closing price $5.99 vs. target price of $7.13 (implies discount of 15.99%). Short float at 2.38%, which implies a short ratio of 4.03 days. The stock has gained 13.66% over the last year.

** 5. Corporate Office Properties Trust (NYSE:OFC):** REIT - Office Industry. Market cap of $2.06B. Monday's closing price $34.60 vs. target price of $40.3 (implies discount of 14.14%). Short float at 6.53%, which implies a short ratio of 4.81 days. The stock has lost -2.01% over the last year.

* 6. Redwood Trust Inc. (NYSE:RWT):* REIT - Diversified Industry. Market cap of $1.18B. Monday's closing price $15.10 vs. target price of $17.36 (implies discount of 13.02%). Short float at 5.36%, which implies a short ratio of 7.82 days. The stock has gained 14.48% over the last year.

** 7. Strategic Hotels & Resorts, Inc. (NYSE:BEE):** REIT - Hotel/Motel Industry. Market cap of $750.5M. Monday's closing price $4.96 vs. target price of $5.69 (implies discount of 12.83%). Short float at 3.15%, which implies a short ratio of 3.08 days. The stock has gained 144.33% over the last year.

** 8. Pebblebrook Hotel Trust (NYSE:PEB):** REIT - Hotel/Motel Industry. Market cap of $800.99M. Monday's closing price $20.08 vs. target price of $23.0 (implies discount of 12.7%). Short float at 3.63%, which implies a short ratio of 6.57 days. The stock has lost -6.56% over the last year.

** 9. Cousins Properties Inc. (NYSE:CUZ):** REIT - Diversified Industry. Market cap of $797.44M. Monday's closing price $7.77 vs. target price of $8.86 (implies discount of 12.3%). Short float at 4.73%, which implies a short ratio of 6.33 days. The stock has gained 3.19% over the last year.

** 10. Sunstone Hotel Investors Inc. (NYSE:SHO):** REIT - Hotel/Motel Industry. Market cap of $982.14M. Monday's closing price $9.97 vs. target price of $11.34 (implies discount of 12.08%). Short float at 5.24%, which implies a short ratio of 3.26 days. The stock has gained 18.13% over the last year.

** 11. PS Business Parks Inc. (NYSE:PSB):** REIT - Retail Industry. Market cap of $1.36B. Monday's closing price $55.39 vs. target price of $62.86 (implies discount of 11.88%). Short float at 2.39%, which implies a short ratio of 4.31 days. The stock has gained 15.9% over the last year.

** 12. Senior Housing Properties Trust (NYSE:SNH):** REIT - Residential Industry. Market cap of $2.68B. Monday's closing price $21.06 vs. target price of $23.86 (implies discount of 11.74%). Short float at 1.84%, which implies a short ratio of 1.9 days. The stock has gained 0.53% over the last year.

** 13. Associated Estates Realty Corp. (NYSE:AEC):** REIT - Residential Industry. Market cap of $611.03M. Monday's closing price $14.77 vs. target price of $16.72 (implies discount of 11.66%). Short float at 3.23%, which implies a short ratio of 2.47 days. The stock has gained 47.26% over the last year.

** 14. Nationwide Health Properties Inc. (NYSE:NHP):** REIT - Healthcare Facilities Industry. Market cap of $4.35B. Monday's closing price $34.49 vs. target price of $39.0 (implies discount of 11.56%). Short float at 2.21%, which implies a short ratio of 2.68 days. The stock has gained 5.8% over the last year.

** 15. Healthcare Realty Trust Inc. (NYSE:HR):** REIT - Healthcare Facilities Industry. Market cap of $1.32B. Monday's closing price $20.54 vs. target price of $23.15 (implies discount of 11.27%). Short float at 6.42%, which implies a short ratio of 9.24 days.

**Disclosure: **I have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours.