Baron
Baron Real Estate Strategy
US Large-cap Real Estate
Dec 2024 → Jun 2026
Our archive holds 7 letters from this strategy, behind 30 investment theses and positions in 33 companies. Every quote below is copied verbatim from the letter it came from.
7 letters in 3 years — follow all of Baron for every strategy.
What it bought and sold
Following a 40% increase in the shares of Equinix, Inc. , a leading global operator of data centers, we trimmed the Strategy's large position in the company but remain bullish about the company’s long-term business prospects.
we trimmed our position and reallocated capital to companies where we have a higher degree of visibility and lower exogenous risks such as the current geopolitical environment.
Following the announcement of Berkshire Hathaway’s agreement to acquire Taylor Morrison Home Corporation , a leading national homebuilder, we exited the Strategy's investment in the company.
We participated in the IPO of Blackstone Digital Infrastructure Trust Inc. , a newly listed Blackstone-sponsored vehicle focused on acquiring stabilized, fully leased data centers underpinned by long-term non-cancellable leases to the world’s largest hyperscalers in primary data center markets.
During the quarter, we initiated a position in Meritage Homes Corporation , the fifth-largest homebuilder in the U.S., with operations across the West, Central, and East regions.
We recently trimmed the Fund’s investment in Wynn Resorts, Limited , a global luxury owner and operator of integrated resorts (hotels and casino resorts), in part due to the delay in the opening of its new UAE resort.
Given severe multiple compression across the sector with all alternative managers being painted with a broad brush and extreme investor negativity, we took advantage of the volatility to reinitiate a position in the company at what we deemed to be highly compelling valuation levels.
Top net sales for the quarter Quarter End Market Cap or Market Cap When Sold ($B) Net Amount Sold ($M) Wynn Resorts, Limited 10.1 51.6 Equinix, Inc. 102.8 42.7 Taylor Morrison Home Corporation 6.7 38.7 Ventas, Inc. 43.2 35.4 Prologis, Inc. 129.5 34.9
We recently began acquiring shares in Procore Technologies, Inc. , a provider of software solutions to the construction industry, and will elaborate on this company in future investor letters.
Also held
- Brookfield Asset Management Ltd.
- Hilton Worldwide Holdings Inc.
- PulteGroup, Inc.
- Prologis, Inc.
- The Macerich Company
- SiteOne Landscape Supply, Inc.
- The Home Depot, Inc.
- Caesars Entertainment, Inc.
- Lowe's Companies, Inc.
- Hyatt Hotels Corporation
- Toll Brothers, Inc.
- Brookfield Corporation
- Welltower Inc.
- AAON, Inc.
Its investment theses
- Meritage Homes CorporationJun 2026Meritage Homes Corporation is a large U.S. homebuilder with substantial long-term growth, margin expansion, and valuation upside potential.
- SiteOne Landscape Supply, Inc.Jun 2026SiteOne Landscape Supply, Inc. is the leading North American wholesale landscape distributor with margin expansion, consolidation, and organic growth upside.
- Jones Lang LaSalle IncorporatedJun 2026Jones Lang LaSalle Incorporated is a global commercial real estate services firm with earnings growth potential and attractive valuation.
- Cushman & Wakefield Ltd.Jun 2026Cushman & Wakefield Ltd. is a commercial real estate services firm with market share upside, earnings growth, and a discounted valuation.
- Wynn Resorts, LimitedJun 2026Wynn Resorts, Limited is a hotel and gaming company with a discounted valuation and growth potential from its UAE resort opening.
- Red Rock Resorts, Inc.Jun 2026Red Rock Resorts, Inc. is a gaming growth company in Las Vegas Locals with portfolio expansion potential and an attractive valuation.
- Airbnb, Inc.Jun 2026Airbnb, Inc. is a global asset-light travel platform with strong free cash flow, limited AI disruption risk, and a low valuation.
- Blackstone Digital Infrastructure Trust Inc.Jun 2026Blackstone Digital Infrastructure Trust Inc. acquires stabilized data centers backed by long-term leases and a strong Blackstone sourcing platform.
- Brookfield CorporationJun 2026Brookfield Corporation is a global owner-operator of real assets with scale, market share potential, and a valuation below estimated liquidation value.
- AAON, Inc.Jun 2026AAON, Inc. is a cooling and HVAC solutions provider whose BasX data center business is growing rapidly and positioned to compound above peers.