Baron Funds, an investment management company, released its “Baron Real Estate Income Fund” fourth quarter 2022 investor letter. A copy of the same can be downloaded here. In the fourth quarter, the fund rose 2.10% (Institutional Shares) compared to a 4.90% return for the MSCI US REIT Index (the “REIT Index”). For 2022, the fund declined 27.47% underperforming the benchmark which declined 25.37%. In addition, please check the fund’s top five holdings to know its best picks in 2022.
Baron Real Estate Income Fund highlighted stocks like Alexandria Real Estate Equities, Inc. (NYSE:ARE) in the fourth quarter 2022 investor letter. Alexandria Real Estate Equities, Inc. (NYSE:ARE) is a real estate investment trust that owns, operates, and develops life science, agrotechnology, and technology campuses. On March 13, 2023, Alexandria Real Estate Equities, Inc. (NYSE:ARE) stock closed at $126.12 per share. One-month return of Alexandria Real Estate Equities, Inc. (NYSE:ARE) was -23.60%, and its shares lost 33.89% of their value over the last 52 weeks. Alexandria Real Estate Equities, Inc. (NYSE:ARE) has a market capitalization of $21.83 billion.
Baron Real Estate Income Fund made the following comment about Alexandria Real Estate Equities, Inc. (NYSE:ARE) in its Q4 2022 investor letter:
“Alexandria Real Estate Equities, Inc. (NYSE:ARE) is the leading landlord and developer for the life science industry. 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’s shares declined 33% in 2022 and are now valued at a 5.8% implied capitalization rate versus recent life science real estate transactions that have been valued in the 4% to 5% capitalization range. Alexandria’s real estate is attractively valued at approximately $600 per square foot versus private market transactions for life science real estate in the $1,000 to $1,500 per square foot range.
We are bullish on the long-term prospects for Alexandria Real Estate Equities, Inc., the life science industry leader and sole publicly traded life science pure play REIT. The company has acquired and developed an irreplaceable life science portfolio and has significant tenant relationships. Chairman and co-founder Joel Marcus has assembled a deep and experienced management team. Alexandria has been benefiting from an increase in funding for health care drug development, which has been contributing to demand for life science buildings that continues to exceed supply, resulting in strong business fundamentals in key geographic markets.”
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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, 29 hedge fund portfolios held Alexandria Real Estate Equities, Inc. (NYSE:ARE) at the end of the fourth quarter which was 32 in the previous quarter.
We discussed Alexandria Real Estate Equities, Inc. (NYSE:ARE) in another article and shared the list of most valuable real estate companies in the world. In addition, please check out our hedge fund investor letters Q4 2022 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.
