Here’s Why You Should Consider Investing in AvalonBay (AVB)

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 Q2 2023 investor letter, Baron Real Estate Income Fund mentioned AvalonBay Communities, Inc. (NYSE:AVB) and explained its insights for the company. Founded in 1978, AvalonBay Communities, Inc. (NYSE:AVB) is a Hopewell, Virginia-based real estate investment trust company with a $24.5 billion market capitalization. AvalonBay Communities, Inc. (NYSE:AVB) delivered a 7.14% return since the beginning of the year, while its 12-month returns are up by 0.59%. The stock closed at $173.05 per share on October 19, 2023.

Here is what Baron Real Estate Income Fund has to say about AvalonBay Communities, Inc. (NYSE:AVB) in its Q2 2023 investor letter:

“In the third quarter, we maintained our exposure to apartment REIT AvalonBay Communities, Inc. (NYSE:AVB). We believe public valuations remain discounted relative to the private market. Tenant demand remains healthy and rent growth has modestly improved since the first quarter of 2023. Rental apartments continue to benefit from the current homeownership affordability challenges. Multi-family REITs provide partial inflation protection to offset rising costs due to leases that can be reset at higher rents, in some cases, annually. We continue to closely monitor new supply deliveries and job losses in key geographic markets.”

Leonardo da/Shutterstock.com

Our calculations show that AvalonBay Communities, Inc. (NYSE:AVB) failed to obtain a mark on our list of the 30 Most Popular Stocks Among Hedge Funds. AvalonBay Communities, Inc. (NYSE:AVB) was in 27 hedge fund portfolios at the end of the second quarter of 2023, compared to 28 funds in the previous quarter. AvalonBay Communities, Inc. (NYSE:AVB) delivered a -12.06% return in the past 3 months.

We also discussed AvalonBay Communities, Inc. (NYSE:AVB) in another article. You can find other investor letters from hedge funds and prominent investors on our hedge fund investor letters Q3 2023 page.

Suggested Articles:

• 20 Most Eco-Friendly Cities in the World
• 10 Best Airline Stocks To Buy According To Wall Street Analysts
• 12 Best Stocks to Buy and Hold According to Bill Gates’ Portfolio

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