Baron
Baron Real Estate Income Strategy
US Large-cap Real Estate
Dec 2024 → Sep 2026
Our archive holds 8 letters from this strategy, behind 47 investment theses and positions in 49 companies. Every quote below is copied verbatim from the letter it came from.
8 letters in 3 years · follow all of Baron for every strategy.
Performance
as of Sep 30, 2026 · net of fees · USD · Institutional Shares
- YTD+4.8%index +9.5%
- 1Y+4.4%index +7.3%
- 3Y · /yr+13.4%index +11.4%
- 5Y · /yr+3.8%index +3.1%
- Inception · /yr+8.6%index +4.9%
Index: MSCI US REIT Index
| YTD | 1Y | 3Yper year | 5Yper year | Since inceptionper year | |
|---|---|---|---|---|---|
| Baron Real Estate Income Strategy | +4.8% | +4.4% | +13.4% | +3.8% | +8.6% |
| MSCI US REIT Index | +9.5% | +7.3% | +11.4% | +3.1% | +4.9% |
Since inception: Since Inception (12/29/2017)
Disclaimer
These figures are copied from the manager’s latest letter, as of Sep 30, 2026. They were extracted automatically, have not been verified by HF Best Ideas and may contain errors. They cover a single share class, in the currency and fee basis stated above; other share classes and your own returns will differ. This is not investment advice, nor an offer to buy or sell any fund. Past performance does not predict future returns.
Read full disclosures →What it bought and sold
We added to our position in Digital Realty Trust, Inc. during the quarter.
In the second quarter, we reacquired shares of BXP, Inc. (formerly known as Boston Properties),
- TrimmedBlackstone Digital Infrastructure Trust Inc.Sep 2026
We also trimmed the Fund's position in Blackstone Digital Infrastructure Trust Inc.
Currently, the Fund maintains a position in American Tower Corporation.
In 2026, we re-initiated positions in Public Storage and CubeSmart.
We remain constructive on the Fund’s industrial REIT holdings, Prologis, Inc., EastGroup Properties, Inc., and our most recent addition, First Industrial Realty Trust, Inc.
In the most recent quarter, we exited the Fund's investments in Alexandria Real Estate Equities, Inc.,
We initiated a position in AAON, Inc., following a disappointing second quarter earnings result.
In 2026, the Fund re-initiated a position in Pebblebrook Hotel Trust,
In the most recent quarter, we exited the Fund's investments in Alexandria Real Estate Equities, Inc., a life science REIT focused on collaborative office and laboratory campuses for biotechnology and pharmaceutical tenants, and Weyerhaeuser Company, a timber REIT and one of the largest private owners of timberlands in North America.
We remain constructive on the Fund’s industrial REIT holdings, Prologis, Inc., EastGroup Properties, Inc., and our most recent addition, First Industrial Realty Trust, Inc.
In 2026, we re-initiated positions in Public Storage and CubeSmart.
- New positionCurbline Properties Corp.Jun 2026
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.
- AddedCurbline Properties Corp.Jun 2026
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.
- New positionBlackstone Digital Infrastructure Trust Inc.Jun 2026
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
Also held
- Essex Property Trust, Inc.
- The Macerich Company
- Equinix, Inc.
- Extra Space Storage Inc.
- Hyatt Hotels Corporation
- Welltower Inc.
- Host Hotels & Resorts, Inc.
- Meritage Homes Corporation
- UDR, Inc.
- Vail Resorts, Inc.
- Vivmark Residential
- American Healthcare REIT, Inc.
- Brookfield Infrastructure Corporation
- Janus Living, Inc.
- Curbline Properties Corp.
- EastGroup Properties, Inc.
- Simon Property Group, Inc.
- American Homes 4 Rent
- Red Rock Resorts, Inc.
- Terreno Realty Corporation
- Marriott Vacations Worldwide Corporation
- EQUINIX, Inc.
- Weyerhaeuser Company
- Wyndham Hotels & Resorts, Inc.
- Iron Mountain Incorporated
- The Home Depot, Inc.
- Fortune Brands Innovations, Inc.
- CRH public limited company
- Prologis, Inc.
Its investment theses
- AAON, Inc.Sep 2026AAON, Inc. is an HVAC equipment maker with strong data-center-driven growth, improving margins, and a depressed valuation that could re-rate on better execution.
- Terreno Realty CorporationSep 2026Terreno Realty Corporation owns coastal industrial properties and benefits from accelerating demand, tightening supply, rent growth, and accretive capital deployment.
- Meritage Homes CorporationSep 2026Meritage Homes Corporation is a homebuilder with a depressed valuation, book value compounding potential, and a long-term housing growth runway.
- The Macerich CompanySep 2026The Macerich Company is a mall REIT with strong leasing fundamentals, an engaged management team, and upside from debt reduction and FFO growth.
- Digital Realty Trust, Inc.Sep 2026Digital Realty Trust, Inc. is a global data center owner benefiting from AI-driven demand, favorable supply-demand conditions, and durable double-digit earnings growth.
- American Tower CorporationSep 2026American Tower Corporation is a communications infrastructure leader with long-duration cash flows, high switching costs, and compelling valuation-driven upside.
- Ventas, Inc.Sep 2026Ventas, Inc. is a diversified healthcare real estate operator with robust fundamentals, external growth opportunities, and attractive earnings growth.
- Host Hotels & Resorts, Inc.Sep 2026Host Hotels & Resorts, Inc. owns premier lodging assets with strong growth potential, a solid balance sheet, and compelling valuation.
- Blackstone Digital Infrastructure Trust Inc.Sep 2026Blackstone Digital Infrastructure Trust Inc. has a first-mover advantage in stabilized data centers and could benefit from external growth and multiple expansion.
- American Homes 4 RentSep 2026American Homes 4 Rent is supported by housing undersupply, affordability gaps, demographic demand, and a discount to NAV.