Is Ventas (VTR) a Smart Long-Term Buy?
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 Ventas, Inc. (NYSE:VTR) and explained its insights for the company. Founded in 1998, Ventas, Inc. (NYSE:VTR) is a Chicago, Illinois-based real estate investment trust company with a $16.8 billion market capitalization. Ventas, Inc. (NYSE:VTR) delivered a -7.15% return since the beginning of the year, while its 12-month returns are up by 11.73%. The stock closed at $41.83 per share on October 19, 2023.
Here is what Baron Real Estate Income Fund has to say about Ventas, Inc. (NYSE:VTR) in its Q3 2023 investor letter:
"We remain optimistic about our health care REIT investment in Ventas, Inc. (NYSE:VTR). Health care real estate fundamentals are improving (rent increases and occupancy gains) against a backdrop of muted supply growth in the next two to three years due to increasing financing and construction costs and supply-chain challenges. The long-term demand outlook is favorable, driven in part by an aging population, which is expected to accelerate in the years ahead. Despite our optimism for long-term prospects for health care real estate, we are closely monitoring near-term expense headwinds combined with a slower-than-expected recovery in leasing and occupancy.
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Our calculations show that Ventas, Inc. (NYSE:VTR) failed to obtain a mark on our list of the 30 Most Popular Stocks Among Hedge Funds. Ventas, Inc. (NYSE:VTR) was in 27 hedge fund portfolios at the end of the second quarter of 2023, compared to 20 funds in the previous quarter. Ventas, Inc. (NYSE:VTR) delivered a -15.82% return in the past 3 months.
We also discussed Ventas, Inc. (NYSE:VTR) 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.
