Baron Funds, an investment management company, released its “Baron Real Estate Fund” second quarter 2023 investor letter. A copy of the same can be downloaded here. In the first half of 2023, the fund rose 15.00% (Institutional Shares) compared to a 4.78% return for the MSCI US REIT Index (the “REIT Index”) and a 12.11% return for the MSCI USA IMI Extended Real Estate Index (the “MSCI Real Estate Index”). The fund rose 7.41%, modestly outperforming the indexes in the second quarter, which returned 2.34% and 7.04%, respectively, in the same period. In addition, please check the fund’s top five holdings to know its best picks in 2023.
Baron Real Estate Fund highlighted stocks like Rexford Industrial Realty, Inc. (NYSE:REXR) in the second quarter 2023 investor letter. Rexford Industrial Realty, Inc. (NYSE:REXR) is a real estate investment trust focusing on industrial properties. On July 25, 2023, Rexford Industrial Realty, Inc. (NYSE:REXR) stock closed at $55.70 per share. One-month return of Rexford Industrial Realty, Inc. (NYSE:REXR) was 8.47%, and its shares lost 10.74% of their value over the last 52 weeks. Rexford Industrial Realty, Inc. (NYSE:REXR) has a market capitalization of $11.811 billion.
Baron Real Estate Fund made the following comment about Rexford Industrial Realty, Inc. (NYSE:REXR) in its second quarter 2023 investor letter:
“Following solid share price performance in the first three months of 2023, the shares of Rexford Industrial Realty, Inc. (NYSE:REXR), a high-growth REIT that owns a $12 billion portfolio of infill industrial real estate properties concentrated in Southern California, declined in the second quarter primarily due to concerns that demand and rent growth are moderating in Southern California.
Since the beginning of 2020 through March 31, 2023, rents in Rexford’s markets have increased more than 100%! Though we do expect rent growth to moderate from its frenzied pace of the last few years, we remain optimistic about the long-term prospects for Rexford and the Fund’s other industrial REIT holdings Prologis, Inc., EastGroup Properties, Inc., and Terreno Realty Corporation.
With industrial vacancies at less than 4%, new supply expected to moderate in 2024, rents on in-place leases at more than 50% below market rents, and multi-faceted demand drivers including the ongoing growth in e-commerce and companies’ seeking to improve inventory supply-chain resiliency, we believe the Fund’s industrial REIT investments are uniquely positioned and have compelling multi-year cash-flow growth runways…” (Click here to read the full text)
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Rexford Industrial Realty, Inc. (NYSE:REXR) is not on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 22 hedge fund portfolios held Rexford Industrial Realty, Inc. (NYSE:REXR) at the end of first quarter which was 23 in the previous quarter.
We discussed Rexford Industrial Realty, Inc. (NYSE:REXR) in another article and shared the list of high growth real estate stocks that are profitable. In addition, please check out our hedge fund investor letters Q2 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.
