Is it a Good Time to Trim Your CubeSmart (CUBE) Stake?
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 CubeSmart (NYSE:CUBE) and explained its insights for the company. Founded in 2004, CubeSmart (NYSE:CUBE) is a Malvern, Pennsylvania-based self-administered and self-managed real estate company with a $8.1 billion market capitalization. CubeSmart (NYSE:CUBE) delivered a -10.14% return since the beginning of the year, while its 12-month returns are down by -6.30%. The stock closed at $36.17 per share on October 19, 2023.
Here is what Baron Real Estate Income Fund has to say about CubeSmart (NYSE:CUBE) in its Q3 2023 investor letter:
"In the third quarter, we reduced our exposure to self-storage REIT CubeSmart (NYSE:CUBE) 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."
An executive in a suit examining a real estate loan contract, reflecting the commitment to financial services. Editorial photo for a financial news article. 8k. --ar 16:9
Our calculations show that CubeSmart (NYSE:CUBE) failed to obtain a mark on our list of the 30 Most Popular Stocks Among Hedge Funds. CubeSmart (NYSE:CUBE) was in 19 hedge fund portfolios at the end of the second quarter of 2023, compared to 20 funds in the previous quarter. CubeSmart (NYSE:CUBE) delivered a -19.21% return in the past 3 months.
We also discussed CubeSmart (NYSE:CUBE) 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.
