Baron Funds, an investment management firm, released its “Baron Real Estate Income Fund” third quarter 2023 investor letter, a copy of which can be downloaded here. In the first nine months of 2023, the Fund has increased 1.20%, outperforming the REIT Index, which declined 2.89%. As of September 30, 2023, the Fund has maintained its top 3% ranking among all real estate funds for its 5-year performance period. Spare some time to check the fund’s top 5 holdings to know more about their top bets for 2023.
In its Q3 2023 investor letter, Baron Real Estate Income Fund mentioned Public Storage (NYSE:PSA) and explained its insights for the company. Founded in 1972, Public Storage (NYSE:PSA) is a Glendale, California-based international self-storage company with a $45.5 billion market capitalization. Public Storage (NYSE:PSA) delivered a -7.74% return since the beginning of the year, while its 12-month returns are down by -11.80%. The stock closed at $258.50 per share on October 19, 2023.
Here is what Baron Real Estate Income Fund has to say about Public Storage (NYSE:PSA) in its Q3 2023 investor letter:
“We recently trimmed our investment in Public Storage, a REIT that is the world’s largest owner, operator, and developer of self-storage facilities, due to expectations that rent and overall cash-flow growth may continue to moderate.
Public Storage’s nearly 2,500 self-storage facilities across the U.S. serve more than one million customers. The company has achieved the #1 market position in 14 of its top 15 markets. Despite our near-term caution, we are optimistic about the company’s long-term prospects due to our expectations for strong occupancy, limited new supply, the resumption of solid long-term organic cash-flow growth, and the potential for M&A due to its well-capitalized and low-leveraged balance sheet and its ability to increase rents monthly to offset inflation headwinds. We believe Public Storage’s shares are currently valued at a discount to private market self-storage values.”
A row of self-storage units in a self-storage complex, showing the affordability and security offered by the company. Editorial photo for a financial news article. 8k. –ar 16:9
Our calculations show that Public Storage (NYSE:PSA) failed to obtain a mark on our list of the 30 Most Popular Stocks Among Hedge Funds. Public Storage (NYSE:PSA) was in 27 hedge fund portfolios at the end of the second quarter of 2023, compared to 32 funds in the previous quarter. Public Storage (NYSE:PSA) delivered a -10.56% return in the past 3 months.
We also discussed Public Storage (NYSE:PSA) in another article. You can find other investor letters from hedge funds and prominent investors on our hedge fund investor letters Q3 2023 page.
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Disclosure: None. This article is originally published at Insider Monkey.
