Is it a Good Time to Take Profits in Your Extra Space (EXR) Position?
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 Extra Space Storage Inc. (NYSE:EXR) and explained its insights for the company. Founded in 1977, Extra Space Storage Inc. (NYSE:EXR) is a Cottonwood Heights, Utah-based real estate investment trust company with a $24.5 billion market capitalization. Extra Space Storage Inc. (NYSE:EXR) delivered a -23.56% return since the beginning of the year, while its 12-month returns are down by -32.14%. The stock closed at $112.50 per share on October 18, 2023.
Here is what Baron Real Estate Income Fund has to say about Extra Space Storage Inc. (NYSE:EXR) in its Q3 2023 investor letter:
"In the third quarter, we reduced our exposure to self-storage REIT Extra Space Storage Inc. (NYSE:EXR) because we expect growth may continue to moderate in 2023. Long term, there is a lot to like about self-storage businesses. Monthly leases provide an opportunity for landlords to increase rents and combat inflation. Self-storage facilities do not tend to require significant ongoing capital expenditures. Elevated construction costs are constraining new construction. Should economic growth continue to decelerate and perhaps lead to a recession, self-storage business fundamentals have historically held up well during economic downturns. We also believe there is a wall of capital from private equity companies that are interested in acquiring self-storage real estate should valuations in the public market become attractive relative to other opportunities."
A real estate broker discussing options with a customer using digital maps and virtual reality. Editorial photo for a financial news article. 8k. --ar 16:9
Our calculations show that Extra Space Storage Inc. (NYSE:EXR) failed to obtain a mark on our list of the 30 Most Popular Stocks Among Hedge Funds. Extra Space Storage Inc. (NYSE:EXR) was in 27 hedge fund portfolios at the end of the second quarter of 2023, compared to 23 funds in the previous quarter. Extra Space Storage Inc. (NYSE:EXR) delivered a -23.38% return in the past 3 months. You can find other investor letters from hedge funds and prominent investors on our hedge fund investor letters Q3 2023 page.
Suggested Articles:
Disclosure: None. This article is originally published at Insider Monkey.
