Is Netstreit (NTST) a Smart Long-Term Investment?

Baron Funds, an asset management company, released its “Baron Real Estate Income Fund” second quarter 2022 investor letter. A copy of the same can be downloaded here. Baron Real Estate Income Fund (the “Fund”) declined 18.43% (Institutional Shares) in the second quarter of 2022, modestly underperforming its primary benchmark, the MSCI US REIT Index (the “REIT Index”), which declined 17.16%. Go over the fund’s top 5 positions to have a glimpse of its finest picks for 2022.

In its Q2 2022 investor letter, Baron Real Estate Income Fund mentioned NETSTREIT Corp. (NYSE:NTST) and explained its insights for the company. Founded in 2019, NETSTREIT Corp. (NYSE:NTST) is a Dallas, Texas-based real estate investment trust company with a $1.0 billion market capitalization. NETSTREIT Corp. (NYSE:NTST) delivered a -14.85% return since the beginning of the year, while its 12-month returns are down by -20.15%. The stock closed at $19.50 per share on September 16, 2022.

Here is what Baron Real Estate Income Fund has to say about NETSTREIT Corp. (NYSE:NTST) in its Q2 2022 investor letter:

“We have recently begun to acquire shares in Netstreit Corp. (NYSE:NTST), a triple net REIT that acquires, owns, and manages a diversified portfolio of single tenant, net lease retail commercial real estate with high credit quality tenants. We have a favorable view of management and its plan to continue to grow the company rapidly through accretive acquisitions. We remain mindful of the rising interest rate environment and the possibility that higher debt costs and lower equity prices could negatively impact the ability for net lease REITs to invest in an accretive fashion.”

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Our calculations show that NETSTREIT Corp. (NYSE:NTST) fell short and didn’t make it on our list of the 30 Most Popular Stocks Among Hedge Funds. NETSTREIT Corp. (NYSE:NTST) was in 13 hedge fund portfolios at the end of the second quarter of 2022, compared to 12 funds in the previous quarter. NETSTREIT Corp. (NYSE:NTST) delivered a 2.09% return in the past 3 months.

In July 2021, we published an article that includes NETSTREIT Corp. (NYSE:NTST) in 5 Best Dividend Stocks to Buy According to John Khoury’s Long Pond Capital. You can find other investor letters from hedge funds and prominent investors on our hedge fund investor letters 2022 Q2 page.

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