Here’s Why You Should Consider Investing in Equity Residential (EQR)

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 Equity Residential (NYSE:EQR) and explained its insights for the company. Founded in 1969, Equity Residential (NYSE:EQR) is a Chicago, Illinois-based real estate investment trust company with a $28.4 billion market capitalization. Equity Residential (NYSE:EQR) delivered a -19.41% return since the beginning of the year, while its 12-month returns are down by -10.82%. The stock closed at $72.93 per share on September 15, 2022.

Here is what Baron Real Estate Income Fund has to say about Equity Residential (NYSE:EQR) in its Q2 2022 investor letter:

“The Fund’s multi-family REITs–Equity Residential (NYSE:EQR) has been generating strong occupancy, rent, and cash flow growth. We expect in-place rents, which remain below market rents, to be a source of ongoing strong cash flow growth in the near term. Equity Residentialis the largest U.S. apartment REIT and maintains a strong and liquid balance sheet. The company is currently valued at a 25% discount to net asset value and a 5.2% capitalization rate.”


Our calculations show that Equity Residential (NYSE:EQR) fell short and didn’t make it on our list of the 30 Most Popular Stocks Among Hedge Funds. Equity Residential (NYSE:EQR) was in 34 hedge fund portfolios at the end of the second quarter of 2022, compared to 34 funds in the previous quarter. Equity Residential (NYSE:EQR) delivered a 6.10% return in the past 3 months.

In May 2022, we published an article that includes Equity Residential (NYSE:EQR) in 10 Best Real Estate Stocks to Buy in 2022 According to Eduardo Abush’s Waterfront Capital Partners. 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.