Baron Real Estate Fund

Welltower Inc. (WELL) is a leading health care real estate investment trust focused on senior housing, operating primarily through the seniors housing operating and triple-net lease models across the U.S., Canada, and the United Kingdom.
Welltower Inc. (WELL) has substantial opportunity for cyclical recovery and continued secular growth in its senior housing business through occupancy and rent growth, and we are optimistic about its prospects. The company also benefits from its proven ability to recycle capital at attractive rates of return, a premier health care platform, partnerships with top-tier operators, and a well-respected management team focused solely on creating value on a per-share basis.

CBRE Group, Inc. (CBRE) is the world's largest commercial real estate services and investment firm, providing leasing, capital markets, property and facilities management, project management, and real estate investment management to occupiers and investors globally.
CBRE Group, Inc. (CBRE) will, we believe, gain meaningfully from the long-term recovery in the commercial real estate industry. Its leasing and investment sales units have high incremental margins, and we believe its profitability will improve with healthier end markets. We also believe the market underappreciates the value associated with CBRE’s property management unit given its growing, highly recurring revenue stream and open-ended growth prospects. CBRE is also one of the world’s leading managers of real estate assets.

Equinix, Inc. (EQIX) is the world's largest data center real estate investment trust, operating a globally interconnected platform of carrier-neutral colocation facilities serving cloud providers, network operators, and enterprises with colocation, interconnection, and edge infrastructure services.
Equinix, Inc. (EQIX) benefits from several long-term secular trends, including increasing internet traffic, IT outsourcing, cloud computing, AI, and mobility. As data and customer needs become more global, Equinix should be able to leverage its leading global data center platform. We believe Equinix can continue to grow through new data center development, rent increases, and the addition of value-added services supplemented by accretive acquisitions that increase market penetration and reach.

Toll Brothers, Inc. (TOL) is a leading luxury homebuilder in the U.S., designing and building single-family and attached homes in affluent suburban and urban markets, serving move-up, active adult, and city living buyers across more than 60 markets.
Toll Brothers, Inc. (TOL) is a differentiated homebuilder with a niche focus on high-end homes and an excellent management team. New single-family construction activity remains below the level needed to meet current and pent-up demand after more than a decade of underbuilding, supporting continued growth over the medium term. We believe Toll Brothers is well positioned to benefit from housing growth through its sizable land bank, healthy balance sheet, and market share gains against smaller players.

Prologis, Inc. (PLD) is the world's largest owner and developer of industrial logistics real estate, operating a global portfolio of warehouses, distribution centers, and data center sites leased to e-commerce operators, retailers, and third-party logistics providers.
Prologis, Inc. (PLD) operates in industrial real estate, where, in our view, fundamentals remain attractive, and the sector should deliver among the strongest organic growth across real estate asset classes over the next several years. Stabilizing demand—driven by e-commerce growth, inventory building, and the need for infill locations to support last-mile delivery—should help absorb a sharp decline in new supply. We believe Prologis is well positioned to benefit from these favorable fundamentals, supported by its strong assets, markets, management team, and balance sheet.

The Macerich Company (MAC) is a real estate investment trust owning high-quality enclosed regional shopping malls in densely populated markets across the U.S., leased to anchors, specialty tenants, and experiential operators.
The Macerich Company (MAC) should benefit from favorable real estate fundamentals for high-quality, well-located retail properties, with tenant demand exceeding available space and generating rent growth. The recent appointment of a new CEO to lead Macerich through a multiyear business transformation should help simplify the company’s portfolio, reduce debt, and improve growth prospects. We believe the stock is undervalued and a successful conversion will result in a higher valuation multiple over time.

Meritage Homes Corporation (MTH) is a leading U.S. homebuilder focused on the entry-level and first move-up segments, building energy-efficient single-family homes in high-growth Sun Belt markets across the southern and western U.S. 
Meritage Homes Corporation (MTH) is well positioned to benefit as new single-family construction activity remains below the level needed to meet current and pent-up demand after more than a decade of underbuilding, supporting continued growth over the medium term. We believe Meritage is well positioned to benefit through its sizable land bank, healthy balance sheet, market share gains vs. smaller builders, and attractive valuation.

Hilton Worldwide Holdings Inc. (HLT) is one of the world's largest hotel companies, franchising and managing a portfolio of brands across luxury, full-service, focused-service, and extended-stay segments, earning royalty and management fees from a global system of more than 8,000 properties.
Hilton Worldwide Holdings Inc. (HLT), following its 2017 separation into three companies, emerged as a largely asset-light, fee-based business, with 90% of management fees tied to top-line revenues. We believe Hilton has a long runway to grow its fee base, supported by a pipeline of 460,000 rooms, 180 million loyalty members, and industry-leading brands. The company’s substantial cash flow supports consistent capital returns through share repurchases and a modest dividend.

Brookfield Corporation (BN) is a leading global alternative asset manager and owner-operator, investing in real estate, infrastructure, renewable power, and private equity, with a growing insurance business that provides long-duration capital to deploy alongside its managed funds.
Brookfield Corporation (BN) has a stake in listed companies—including Brookfield Infrastructure, Business Partners, Renewable Partners, and recently spun-off Brookfield Asset Management—worth $33 per share. We see another $16 per share in unlisted investments and $8 per share in carried interest generated for a total of $50 per share, based solely on current, in-place earnings. We think the company will profit from growth in alternative asset management, given its superior track record, highly respected CEO, global reach, scale, and diverse product offerings.

AAON, Inc. (AAON) manufactures premium, semi-custom commercial rooftop HVAC equipment through its AAON Oklahoma segment and highly technical data center cooling solutions—both airside and liquid—through its BasX segment, serving commercial buildings and hyperscale and colocation data centers.
AAON, Inc. (AAON) is a differentiated, best-in-class provider of premium HVAC products, targeting the North American light commercial market, and data center cooling solutions through its BasX subsidiary. The company is a leader in providing premium, semi-custom equipment with products that are more energy efficient, have longer life spans, and are better customized than peers to fit customers' needs. BasX has distinguished itself with the ability to customize cooling solutions that are more durable and energy efficient for hyperscalers and the most demanding customers.