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 EastGroup Properties, Inc. (NYSE:EGP) and explained its insights for the company. Founded in 1969, EastGroup Properties, Inc. (NYSE:EGP) is a Jackson, Mississippi-based real estate investment trust company with a $7.2 billion market capitalization. EastGroup Properties, Inc. (NYSE:EGP) delivered a 7.36% return since the beginning of the year, while its 12-month returns are up by 12.14%. The stock closed at $158.96 per share on October 19, 2023.
Here is what Baron Real Estate Income Fund has to say about EastGroup Properties, Inc. (NYSE:EGP) in its Q3 2023 investor letter:
“Though we expect rent growth to moderate from its frenzied pace of the last few years, we remain optimistic about the long-term prospects for industrial REITs. With industrial vacancies at less than 4%, new supply expected to moderate in 2024, rents on in-place leases more than 50% below market, and multi-faceted demand drivers including the ongoing growth in e-commerce and companies seeking to improve inventory supply-chain resiliency by carrying more inventory (shift from just in time to just in case inventory), we believe our investments in industrial warehouse REITs like EastGroup Properties, Inc. have compelling multi-year cash-flow growth runways.”
A Real Estate Investment Trust (REIT) property manager inspecting a newly acquired apartment complex. Editorial photo for a financial news article. 8k. –ar 16:9
Our calculations show that EastGroup Properties, Inc. (NYSE:EGP) failed to obtain a mark on our list of the 30 Most Popular Stocks Among Hedge Funds. EastGroup Properties, Inc. (NYSE:EGP) was in 17 hedge fund portfolios at the end of the second quarter of 2023, compared to 16 funds in the previous quarter. EastGroup Properties, Inc. (NYSE:EGP) delivered a -13.38% return in the past 3 months.
We also discussed EastGroup Properties, Inc. (NYSE:EGP) 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.
