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The Forward P/E Ratio is a great way to see what companies may potentially be undervalued or overvalued. The forward P/E Ratio gives a picture of what the investment community’s expectations are relative to future forecasted earnings. If earnings are expected to grow in the future, then the Forward P/E Ratio will be lower than the current P/E Ratio.

We ran a screen for real estate stocks that appear cheap with a low Forward P/E Ratio (X<10). From this narrowed pool we then screened for firms with a low-to-moderate Debt/Equity Ratio (X<.4)

The list is ranked from highest lowest by the Forward P/E Ratio.

1. Jones Lang LaSalle, Inc.(NYSE:JLL)

Sector

Real Estate

Industry

Real Estate Services

Market Cap

$2,660M

Beta

1.88

The company is a real estate and investment management business. The firm's Forward P/E is 9.78. The firm's Debt/Equity Ratio is 0.27. The short interest is 1.00% as of 08/15/2011.

2. IRSA Investments and Representatives (NYSE:IRS)

Sector

Real Estate

Industry

Real Estate - General

Market Cap

$644M

Beta

1.67

The Company has a variety of real estate operations in Argentina. The firm’s Forward P/E is 9.68. The firm’s Debt/Equity Ratio is 0.75. The short interest is N/A as of 08/15/2011.

3. HFF, Inc. (NYSE:HF)

Sector

Real Estate

Industry

Real Estate Services

Market Cap

$381M

Beta

2.41

The Company provides commercial real estate and capital markets services in the US. The firm’s Forward P/E is 9.62. The firm’s Debt/Equity Ratio is 0.00. The short interest is 3.70% as of 08/15/2011.

4. Getty Realty Corporation (NYSE:GTY)

Sector

Real Estate

Industry

REIT - Retail

Market Cap

$552M

Beta

0.78

The company is a Real Estate Investment Trust that owns and leases retail motor fuel convenience store properties along with petroleum distribution terminals. The firm’s Forward P/E is 8.22. The firm’s Debt/Equity Ratio is 0.43. The short interest is 10.80% as of 08/15/2011.

5. Annaly Capital Management, Inc (NYSE:NLY)

Sector

Real Estate

Industry

REIT - Diversified

Market Cap

17,492M

Beta

0.24

The Company owns and manages a portfolio of real estate derivative instruments. The firm’s Debt/Equity Ratio is 0.04. The short interest is 4.00% as of 08/15/2011.

6. Brookfield Office Properties (NYSE:BPO)

Sector

Real Estate

Industry

Real Estate Services

Market Cap

$8,145M

Beta

1.97

The company owns and operates commercial properties In North America. The firm’s Forward P/E is 6.02. The firm’s Debt/Equity Ratio is 0.76. The short interest is N/A as of 08/15/2011.

We hope this list helps as investors do their own due diligence on real estate stocks that appear cheap.

Source: 6 Cheap, Unloved Real Estate Stocks With Little Debt