Baron Funds, an investment management company, released its “Baron Real Estate Fund” first quarter 2023 investor letter. A copy of the same can be downloaded here. In the first quarter, the fund rose 7.07% (Institutional Shares) compared to a 2.39% return for the MSCI US REIT Index (the “REIT Index”) and a 4.73% return for the MSCI USA IMI Extended Real Estate Index (the “MSCI Real Estate Index”). The firm is optimistic about the prospects for the stock market, public real estate securities, and the fund. In addition, please check the fund’s top five holdings to know its best picks in 2023.
Baron Real Estate Fund highlighted stocks like Alexandria Real Estate Equities, Inc. (NYSE:ARE) in the first quarter 2023 investor letter. Alexandria Real Estate Equities, Inc. (NYSE:ARE) is a life science REIT. On June 26, 2023, Alexandria Real Estate Equities, Inc. (NYSE:ARE) stock closed at $114.51 per share. One-month return of Alexandria Real Estate Equities, Inc. (NYSE:ARE) was 1.78%, and its shares lost 20.75% of their value over the last 52 weeks. Alexandria Real Estate Equities, Inc. (NYSE:ARE) has a market capitalization of $19.812 billion.
Baron Real Estate Fund made the following comment about Alexandria Real Estate Equities, Inc. (NYSE:ARE) in its first quarter 2023 investor letter:
“Alexandria Real Estate Equities, Inc. (NYSE:ARE) is the leading landlord and developer for the life science industry. Alexandria is a best-in-class company with several competitive advantages including an irreplaceable life science office portfolio concentrated in the premier life science markets in the U.S. and deep customer relationships.
Alexandria is valued at a 6.4% implied capitalization rate versus recent life science real estate transactions that have been valued in the 4% to 5% range. Alexandria’s real estate is attractively valued at approximately $500 per square foot versus private market transactions for life science real estate in the $1,000 to $1,500 per square foot range.
The shares of Alexandria Real Estate Equities, Inc., the only pure-play publicly traded landlord and developer to the life science industry, declined in the first quarter of 2023, alongside most traditional office REITs…” (Click here to read the full text)
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Alexandria Real Estate Equities, Inc. (NYSE:ARE) is not on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 33 hedge fund portfolios held Alexandria Real Estate Equities, Inc. (NYSE:ARE) at the end of first quarter 2023 which was 29 in the previous quarter.
We discussed Alexandria Real Estate Equities, Inc. (NYSE:ARE) in another article and shared the list of best commercial real estate stocks to buy according to hedge funds. In addition, please check out our hedge fund investor letters Q1 2023 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.
