Adelante Capital Management LLC recently filed their 13F report for the second quarter of 2022, which ended on 2022-06-30.
The 13F report details which stocks were in a guru’s equity portfolio at the end of the quarter, though investors should note that these filings are limited in scope, containing only a snapshot of long positions in U.S.-listed stocks and American depository receipts as of the quarter’s end. They are not required to include international holdings, short positions or other types of investments. Still, even this limited filing can provide valuable information.
Adelante Capital Management LLC is an investment management firm based out of Oakland, California. The company was originally established in 1995 and has grown to have additional locations in Wayne, New Port Beach, and New York City. Adelante Capital Management sees itself as an “employee- and minority-owned SEC-registered REIT and real estate investment advisor dedicated to investing in optimally-valued, publicly-traded commercial real estate securities.” The company conducts its research internally, utilizing a fundamental methodology to make its investment decisions. The company focuses on the public equity markets on a global scale, allocating its assets primarily in real estate securities with a bottom up and top down approach. Adelante Capital Management invests over 90% of its total assets in the real estate sector and also invests in the utilities and telecommunications, consumer discretionary, information technology, and health care sectors, among others, to a lesser degree, in order of decreasing allocation. The company holds its allocations for just over 14 quarters on average and holds its top 10 allocations for 16.8 quarters on average. Adelante Capital Management, in the most recent quarter, has had a turnover rate of approximately 4.9%. The company manages over $2.3 billion in total assets under management spread across 190 total accounts, all of which are discretionary accounts. Adelante Capital Management’s total number of accounts has been declining in recent years, but its total assets under management, despite volatility, has increased from its $1.7 billion mark back in 2010. The company mainly caters to high net worth individuals, which alone makes up three quarters of its client base, although the client with the highest attributed assets are pension and profit sharing plans, which makes up over half of the firm’s total managed assets. Adelante Capital Management offers three core portfolios: its domestic real estate, global real estate, and income real estate strategies.
As of the latest 13F report, the guru’s equity portfolio contained 43 stocks valued at a total of $1.66Bil. The top holdings were PLD(11.30%), EQIX(7.91%), and EQR(5.92%).
According to GuruFocus data, these were Adelante Capital Management LLC’s top five trades of the quarter.
Digital Realty Trust Inc
The guru established a new position worth 177,364 shares in NYSE:DLR, giving the stock a 1.39% weight in the equity portfolio. Shares traded for an average price of $138.18 during the quarter.
On 08/17/2022, Digital Realty Trust Inc traded for a price of $133.5 per share and a market cap of $38.66Bil. The stock has returned -13.70% over the past year.
GuruFocus gives the company a financial strength rating of 4 out of 10 and a profitability rating of 8 out of 10.
In terms of valuation, Digital Realty Trust Inc has a price-earnings ratio of 29.50, a price-book ratio of 2.33, a price-earnings-to-growth (PEG) ratio of 5.46, a EV-to-Ebitda ratio of 17.19 and a price-sales ratio of 8.49.
The price-to-GF Value ratio is 0.90, earning the stock a GF Value rank of 9.
Switch Inc
The guru sold out of their 766,777-share investment in NYSE:SWCH. Previously, the stock had a 1.17% weight in the equity portfolio. Shares traded for an average price of $32.29 during the quarter.
On 08/17/2022, Switch Inc traded for a price of $34.005 per share and a market cap of $5.33Bil. The stock has returned 43.58% over the past year.
GuruFocus gives the company a financial strength rating of 3 out of 10 and a profitability rating of 6 out of 10.
In terms of valuation, Switch Inc has a price-earnings ratio of 22.41, a price-book ratio of 6.89, a EV-to-Ebitda ratio of 11.15 and a price-sales ratio of 8.53.
The price-to-GF Value ratio is 1.72, earning the stock a GF Value rank of 1.
Public Storage
During the quarter, Adelante Capital Management LLC bought 50,938 shares of NYSE:PSA for a total holding of 303,345. The trade had a 0.96% impact on the equity portfolio. During the quarter, the stock traded for an average price of $346.93.
On 08/17/2022, Public Storage traded for a price of $350.335 per share and a market cap of $62.00Bil. The stock has returned 17.69% over the past year.
GuruFocus gives the company a financial strength rating of 6 out of 10 and a profitability rating of 9 out of 10.
In terms of valuation, Public Storage has a price-earnings ratio of 30.09, a price-book ratio of 11.04, a price-earnings-to-growth (PEG) ratio of 5.57, a EV-to-Ebitda ratio of 22.43 and a price-sales ratio of 16.27.
The price-to-GF Value ratio is 1.09, earning the stock a GF Value rank of 5.
Ventas Inc
During the quarter, Adelante Capital Management LLC bought 226,515 shares of NYSE:VTR for a total holding of 927,102. The trade had a 0.7% impact on the equity portfolio. During the quarter, the stock traded for an average price of $56.08.
On 08/17/2022, Ventas Inc traded for a price of $50.16 per share and a market cap of $20.04Bil. The stock has returned -7.62% over the past year.
GuruFocus gives the company a financial strength rating of 3 out of 10 and a profitability rating of 7 out of 10.
In terms of valuation, Ventas Inc has a price-earnings ratio of 1002.77, a price-book ratio of 1.90, a EV-to-Ebitda ratio of 19.35 and a price-sales ratio of 4.95.
The price-to-GF Value ratio is 0.92, earning the stock a GF Value rank of 7.
Jones Lang LaSalle Inc
Adelante Capital Management LLC reduced their investment in NYSE:JLL by 52,039 shares. The trade had a 0.62% impact on the equity portfolio. During the quarter, the stock traded for an average price of $199.97.
On 08/17/2022, Jones Lang LaSalle Inc traded for a price of $183.51 per share and a market cap of $8.94Bil. The stock has returned -23.76% over the past year.
GuruFocus gives the company a financial strength rating of 6 out of 10 and a profitability rating of 8 out of 10.
In terms of valuation, Jones Lang LaSalle Inc has a price-earnings ratio of 9.57, a price-book ratio of 1.52, a price-earnings-to-growth (PEG) ratio of 1.00, a EV-to-Ebitda ratio of 7.39 and a price-sales ratio of 0.46.
The price-to-GF Value ratio is 1.01, earning the stock a GF Value rank of 6.
Please note, the numbers and facts quoted are as of the writing of this article and may not factor in the latest trading data or company announcements.
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