Is it Still Safe to Invest in Alexandria Real Estate Equities (ARE)?

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 Alexandria Real Estate Equities, Inc. (NYSE:ARE) and explained its insights for the company. Founded in 1994, Alexandria Real Estate Equities, Inc. (NYSE:ARE) is a Pasadena, California-based real estate investment trust company with a $16.3 billion market capitalization. Alexandria Real Estate Equities, Inc. (NYSE:ARE) delivered a -34.98% return since the beginning of the year, while its 12-month returns are down by -26.71%. The stock closed at $94.72 per share on October 19, 2023.

Here is what Baron Real Estate Income Fund has to say about Alexandria Real Estate Equities, Inc. (NYSE:ARE) in its Q3 2023 investor letter:

“Alexandria Real Estate Equities, Inc. (ARE) is the life science industry leader and sole publicly traded life science pure-play REIT. At its current discounted valuation, we believe concerns about competitive supply and distress for some of the company’s biotechnology and health care tenants are overblown and sufficiently discounted in the company’s valuation. We believe the management team has assembled a desirable real estate portfolio, enjoys a leading market share position in its geographic markets, and has solid expectations for long-term demand-driven growth.”

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Our calculations show that Alexandria Real Estate Equities, Inc. (NYSE:ARE) failed to obtain a mark on our list of the 30 Most Popular Stocks Among Hedge Funds. Alexandria Real Estate Equities, Inc. (NYSE:ARE) was in 33 hedge fund portfolios at the end of the second quarter of 2023, compared to 33 funds in the previous quarter. Alexandria Real Estate Equities, Inc. (NYSE:ARE) delivered a -21.88% return in the past 3 months.

We also discussed Alexandria Real Estate Equities, Inc. (NYSE:ARE) 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.