Douglas Emmett, Inc. (NYSE:DEI) is a REIT that owns a portfolio of high-quality office and multi-family assets in Western Los Angeles and Honolulu. A rise in the 10-year interest rate, which made Douglas Emmett’s dividend yield look relatively less attractive, drove weak performance in the quarter. We retain conviction because Douglas Emmett owns a portfolio of high-quality assets we believe are underappreciated at the current stock price.
From Ron Baron (Trades, Portfolio)'s third-quarter Baron Partners Fund shareholder letter.
