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 Prologis, Inc. (NYSE:PLD) in the first quarter 2023 investor letter. Prologis, Inc. (NYSE:PLD) is a logistics real estate company. On June 26, 2023, Prologis, Inc. (NYSE:PLD) stock closed at $119.01 per share. One-month return of Prologis, Inc. (NYSE:PLD) was -4.26%, and its shares gained 0.04% of their value over the last 52 weeks. Prologis, Inc. (NYSE:PLD) has a market capitalization of $109.902 billion.
Baron Real Estate Fund made the following comment about Prologis, Inc. (NYSE:PLD) in its first quarter 2023 investor letter:
“Industrial REITs that we expect to benefit from ongoing robust warehouse demand and increased rents fueled by the growth in e-commerce and the buildout of logistics’ supply chains. Examples: Prologis, Inc. (NYSE:PLD), Rexford Industrial Realty, Inc., EastGroup Properties, Inc., and Terreno Realty Corporation.
Prologis, Inc. is the world’s largest industrial REIT. The company owns a high-quality real estate portfolio that is concentrated in major global trade markets and large population centers across the Americas, Europe, and Asia. Prologis has an unmatched global platform, strong competitive advantages (scale, data, and technology), and attractive embedded growth prospects. The company is the only industrial REIT with an ‘A’ credit rating.
Following a decline in its shares of more than 30% in 2022, we believe Prologis’ current implied capitalization rate of 4.2% is compelling given that the company’s rents on its in-place leases are more than 65% below current market rents, thus providing a strong runway for growth in the next three to five years.
Following strong quarterly results, the shares of Prologis, Inc., the world’s largest industrial REIT, performed well in the first quarter of 2023. The company owns a high-quality real estate portfolio that is concentrated in major global trade markets and large population centers across the Americas, Europe, and Asia. Prologis has an unmatched global platform, strong competitive advantages (scale, data, and technology), and attractive embedded growth prospects. The company is the only industrial REIT with an ‘A’ credit rating.”
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Prologis, Inc. (NYSE:PLD) is not on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 51 hedge fund portfolios held Prologis, Inc. (NYSE:PLD) at the end of first quarter 2023 which was 55 in the previous quarter.
We discussed Prologis, Inc. (NYSE:PLD) in another article and shared the list of best stocks to buy and hold for 3 years. 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.
