Is it Worthy to Invest in Digital Realty Trust (DLR)?

Baron Funds, an asset management company, released its “Baron Real Estate Income Fund” second quarter 2022 investor letter. A copy of the same can be downloaded here. Baron Real Estate Income Fund (the “Fund”) declined 18.43% (Institutional Shares) in the second quarter of 2022, modestly underperforming its primary benchmark, the MSCI US REIT Index (the “REIT Index”), which declined 17.16%. Go over the fund’s top 5 positions to have a glimpse of its finest picks for 2022.

In its Q2 2022 investor letter, Baron Real Estate Income Fund mentioned Digital Realty Trust, Inc. (NYSE:DLR) and explained its insights for the company. Founded in 2001, Digital Realty Trust, Inc. (NYSE:DLR) is a San Francisco, California-based real estate investment trust company with a $32.9 billion market capitalization. Digital Realty Trust, Inc. (NYSE:DLR) delivered a -36.63% return since the beginning of the year, while its 12-month returns are down by -28.52%. The stock closed at $112.08 per share on September 16, 2022.

Here is what Baron Real Estate Income Fund has to say about Digital Realty Trust, Inc. (NYSE:DLR) in its Q2 2022 investor letter:

“Digital Realty Trust, Inc. is a premier global data center REIT with more than 290 data centers and more than 4,000 customers. It maintains an investment grade balance sheet. The company is currently valued at only 20 times cash flow (EBITDA) versus several recent private data center transactions that were completed at 25 times to 30 times cash flow.”

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Our calculations show that Digital Realty Trust, Inc. (NYSE:DLR) fell short and didn’t make it on our list of the 30 Most Popular Stocks Among Hedge Funds. Digital Realty Trust, Inc. (NYSE:DLR) was in 33 hedge fund portfolios at the end of the second quarter of 2022, compared to 31 funds in the previous quarter. Digital Realty Trust, Inc. (NYSE:DLR) delivered a -11.87% return in the past 3 months.

In September 2022, we also shared another hedge fund’s views on Digital Realty Trust, Inc. (NYSE:DLR) in another article. You can find other investor letters from hedge funds and prominent investors on our hedge fund investor letters 2022 Q2 page.

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