Baron
Baron Real Estate Income Strategy
US Large-cap Real Estate
Dec 2024 → Jun 2026
Our archive holds 7 letters from this strategy, behind 43 investment theses and positions in 43 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
In the second quarter, we acquired shares in Curbline Properties Corp., a shopping center REIT that owns a portfolio exclusively concentrated on convenience properties located on the curbline of well-tracked intersections and vehicular corridors in highly desirable markets.
In the second quarter, we reacquired shares in BXP, Inc. (formerly known as Boston Properties), a blue-chip office REIT that owns a portfolio of premier office properties in coastal U.S. markets including Boston, New York City, San Francisco, Washington, D.C., Los Angeles, and Seattle, following a share price correction in the first quarter.
In the second quarter of 2026, we increased exposure to multi-family REITs Equity Residential, Essex Property Trust, Inc., and UDR, Inc.
In the second quarter of 2026, we increased exposure to multi-family REITs Equity Residential, Essex Property Trust, Inc., and UDR, Inc.
Top net sales for the quarter Quarter End Market Cap or Market Cap When Sold ($B) Net Amount Sold ($M) Ventas, Inc. 40.8 15.0 Essential Properties Realty Trust, Inc. 6.5 8.9 American Healthcare REIT, Inc. 8.8 6.3 Wynn Resorts, Limited 10.1 6.1 Digital Realty Trust, Inc. 64.2 6.0
We exited the Strategy’s position in Essential Properties Realty Trust, Inc. and reallocated to the proceeds to other REITs that we believe may offer superior return potential.
In the second quarter of 2026, we increased exposure to multi-family REITs Equity Residential, Essex Property Trust, Inc., and UDR, Inc.
In the second quarter, we acquired shares in Curbline Properties Corp., a shopping center REIT that owns a portfolio exclusively concentrated on convenience properties located on the curbline of well-tracked intersections and vehicular corridors in highly desirable markets.
While we continue to see evidence of the building AI wave in China through significant bookings growth and see material under-appreciated value in GDS' stake in its spun-out international subsidiary (DayOne), we trimmed our position and reallocated capital to ideas where we have a higher degree of visibility and lower exogenous risks such as the current geopolitical environment.
In the second quarter, we repositioned our triple net REIT exposure by exiting Essential Properties Realty Trust, Inc. and Agree Realty Corporation and purchasing Blackstone Digital Infrastructure Trust Inc.
In the second quarter, we repositioned our triple net REIT exposure by exiting Essential Properties Realty Trust, Inc. and Agree Realty Corporation and purchasing Blackstone Digital Infrastructure Trust Inc.
Top net sales for the quarter Quarter End Market Cap or Market Cap When Sold ($B) Net Amount Sold ($M) Ventas, Inc. 40.8 15.0 Essential Properties Realty Trust, Inc. 6.5 8.9 American Healthcare REIT, Inc. 8.8 6.3 Wynn Resorts, Limited 10.1 6.1 Digital Realty Trust, Inc. 64.2 6.0
In the second quarter, we acquired shares in Alexandria Real Estate Equities, Inc. , a REIT that owns a portfolio of life science office properties concentrated in Boston, San Diego, San Francisco, Seattle, New York, and North Carolina.
In 2026, the Strategy re-initiated a position in Pebblebrook Hotel Trust , a leading owner of 44 luxury and upper-upscale lifestyle hotels across 13 urban and resort markets.
In the second quarter, we acquired shares in Alexandria Real Estate Equities, Inc. , a REIT that owns a portfolio of life science office properties concentrated in Boston, San Diego, San Francisco, Seattle, New York, and North Carolina.
Top net sales for the quarter Net Amount Sold ($M) Ventas, Inc. 15.0 Essential Properties Realty Trust, Inc. 8.9 American Healthcare REIT, Inc. 6.3 Wynn Resorts, Limited 6.1 Digital Realty Trust, Inc. 6.0
We trimmed our position and reallocated capital into other ideas discussed earlier.
Top net sales for the quarter Quarter End Market Cap or Market Cap When Sold ($B) Net Amount Sold ($M) Ventas, Inc. 40.8 15.0 Essential Properties Realty Trust, Inc. 6.5 8.9 American Healthcare REIT, Inc. 8.8 6.3 Wynn Resorts, Limited 10.1 6.1 Digital Realty Trust, Inc. 64.2 6.0
Top net sales for the quarter Quarter End Market Cap or Market Cap When Sold ($B) Net Amount Sold ($M) Ventas, Inc. 40.8 15.0 Essential Properties Realty Trust, Inc. 6.5 8.9 American Healthcare REIT, Inc. 8.8 6.3 Wynn Resorts, Limited 10.1 6.1 Digital Realty Trust, Inc. 64.2 6.0
Also held
- Welltower Inc.
- Brookfield Infrastructure Corporation
- EQUINIX, Inc.
- Meritage Homes Corporation
- Simon Property Group, Inc.
- The Macerich Company
- Terreno Realty Corporation
- Weyerhaeuser Company
- Marriott Vacations Worldwide Corporation
- Wyndham Hotels & Resorts, Inc.
- Iron Mountain Incorporated
- Equinix, Inc.
- The Home Depot, Inc.
- Fortune Brands Innovations, Inc.
- Host Hotels & Resorts, Inc.
- CRH public limited company
- Vail Resorts, Inc.
- EastGroup Properties, Inc.
- Prologis, Inc.
- Janus Living, Inc.
Its investment theses
- Equinix, Inc.Jun 2026Equinix, Inc. benefits from long-term data center demand, tight supply, and structural growth from cloud and AI.
- Digital Realty Trust, Inc.Jun 2026Digital Realty Trust, Inc. is supported by strong data center fundamentals and secular demand from cloud and AI.
- Equity ResidentialJun 2026Equity Residential is backed by improving multifamily fundamentals, favorable supply-demand dynamics, and attractive relative valuations.
- Essex Property Trust, Inc.Jun 2026Essex Property Trust, Inc. is supported by improving apartment fundamentals, limited supply, and attractive public-market valuations.
- UDR, Inc.Jun 2026UDR, Inc. is favored for its exposure to a recovering multifamily market with supportive supply and valuation dynamics.
- Alexandria Real Estate Equities, Inc.Jun 2026Alexandria Real Estate Equities, Inc. owns premier life science office assets and is expected to benefit from stabilizing fundamentals and capital recycling into buybacks.
- Welltower Inc.Jun 2026Welltower Inc. is favored for its senior housing exposure, improving operating fundamentals, demographic tailwinds, and cost-of-capital-driven acquisition opportunities.
- The Macerich CompanyJun 2026The Macerich Company is favored for strong mall fundamentals, attractive valuations, and value-creation initiatives by management.
- Janus Living, Inc.Jun 2026Janus Living, Inc. is favored as a senior housing operator benefiting from improving fundamentals and long-term demographic tailwinds.
- Public StorageJun 2026Public Storage is seen as an attractive self-storage business with inflation protection, low capital intensity, and improving growth prospects.