Performance in the real estate sector generally tracks the economic cycle. During periods of high growth and inflation, real estate investments usually post strong returns. However, during an economic bust, these investments tend to underperform. Ascendas India Trust and OUE Commercial Real Estate Investment Trust are real estate stocks on my list that are potentially undervalued, which means their current share prices are trading well-below what the companies are actually worth. Investors can profit from the difference by investing in these cyclical stocks as the current market prices should eventually move towards their true values. If capital gains are what you’re after in your next investment, I’ve put together a list of undervalued stocks you may be interested in, based on the latest financial data from each company.

Ascendas India Trust (SGX:CY6U)

Ascendas India Trust (“a-iTrust” or the “Trust”) was listed in August 2007 as the first Indian property trust in Asia. The company was established in 2004 and has a market cap of SGD SGD1.03B, putting it in the small-cap stocks category.

CY6U’s shares are now floating at around -77% under its actual worth of $4.32, at a price tag of S$1.00, based on its expected future cash flows. The mismatch signals a potential chance to invest in CY6U at a discounted price. Furthermore, CY6U’s PE ratio is currently around 6.83x while its Real Estate peer level trades at, 9.8x indicating that relative to its competitors, CY6U can be bought at a cheaper price right now. CY6U is also a financially healthy company, with current assets covering liabilities in the near term and over the long run.

Interested in Ascendas India Trust? Find out more here.

OUE Commercial Real Estate Investment Trust (SGX:TS0U)

OUE C-REIT is a Singapore real estate investment trust listed on the Main Board of Singapore Exchange Securities Trading Limited. OUE Commercial Real Estate Investment Trust was founded in 2013 and with the company’s market cap sitting at SGD SGD1.10B, it falls under the small-cap category.

TS0U’s stock is now floating at around -55% under its actual value of $1.58, at a price of S$0.71, based on its expected future cash flows. The mismatch signals a potential chance to invest in TS0U at a discounted price. Also, TS0U’s PE ratio is currently around 8.14x compared to its REITs peer level of, 15.1x suggesting that relative to its competitors, you can buy TS0U for a cheaper price. TS0U is also in great financial shape, with short-term assets covering liabilities in the near future as well as in the long run.