Does Digital Realty Trust (DLR) Have a Compelling Valuation?

Baron Funds, an investment management company, released its “Baron Real Estate Income Fund” fourth quarter 2022 investor letter. A copy of the same can be downloaded here. In the fourth quarter, the fund rose 2.10% (Institutional Shares) compared to a 4.90% return for the MSCI US REIT Index (the “REIT Index”). For 2022, the fund declined 27.47% underperforming the benchmark which declined 25.37%. In addition, please check the fund’s top five holdings to know its best picks in 2022.

Baron Real Estate Income Fund highlighted stocks like Digital Realty Trust, Inc. (NYSE:DLR) in the fourth quarter 2022 investor letter. Digital Realty Trust, Inc. (NYSE:DLR) is an enterprise and service provider that delivers the full spectrum of data center, colocation, and interconnection solutions. On March 13, 2023, Digital Realty Trust, Inc. (NYSE:DLR) stock closed at $105.93 per share. One-month return of Digital Realty Trust, Inc. (NYSE:DLR) was -7.20%, and its shares lost 22.52% of their value over the last 52 weeks. Digital Realty Trust, Inc. (NYSE:DLR) has a market capitalization of $31.508 billion.

Baron Real Estate Income Fund made the following comment about Digital Realty Trust, Inc. (NYSE:DLR) in its Q4 2022 investor letter:

“Recently, we re-acquired shares in Digital Realty Trust, Inc. (NYSE:DLR). We believe the company’s valuation is highly compelling following the 43% correction in its share price in 2022. We would note, however, that we are closely monitoring the company because business execution and quarterly results have disappointed at various points in the last few years. We have limited the Fund’s exposure to the company with this in mind.”

Digital Realty Trust, Inc. (NYSE:DLR) is not on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 30 hedge fund portfolios held Digital Realty Trust, Inc. (NYSE:DLR) at the end of the fourth quarter which was 29 in the previous quarter.

We discussed Digital Realty Trust, Inc. (NYSE:DLR) in another article and shared the list of most valuable real estate companies in the world. In addition, please check out our hedge fund investor letters Q4 2022 page for more investor letters from hedge funds and other leading investors.

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Disclosure: None. This article is originally published at Insider Monkey.