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Baron Real Estate Income Fund

Symbol BRIIXCUSIP: 06828M736
Symbol BRIIXCUSIP: 06828M736
SCT
Sector

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$16.40

Daily Change $0.07 (0.43%)
As of 10/09/2024

Net Assets

$145.81 M

As of 09/30/2024

Morningstar Rating™

As of 09/30/2024

Morningstar Medalist Rating™

medal Logo

SILVER

Inception date

12/29/2017

Prices & Performance

PricesAs of 10/09/2024

NAVDaily Change ($)Daily Change (%)MTDQTDYTD
$16.40$0.070.43%-1.68%-1.68%14.30%
NAV$16.40
Daily Change ($)$0.07
Daily Change (%)0.43%
MTD-1.68%
QTD-1.68%
YTD14.30%

PerformanceAs of 09/30/2024

Portfolio or IndexQTD1YTD11 Year3 Years5 YearsSince Inception 12/29/2017
BRIIX - Baron Real Estate Income Fund - I16.25%16.25%32.69%3.22%10.41%9.76%
MSCI US REIT Index15.79%14.82%32.74%3.73%4.24%5.74%
S&P 500 Index5.89%22.08%36.35%11.91%15.98%13.98%

Performance InformationAs of 06/30/2024

Performance statistics3 Years5 YearsSince Inception
Standard Deviation (%)19.8918.6818.35
Sharpe Ratio-0.280.340.30
Alpha (%)-1.575.984.38
Beta0.910.830.85
R-Squared (%)95.1987.9586.65
Tracking Error (%)4.757.477.37
Information Ratio-0.290.780.55
Upside Capture (%)87.2998.6596.51
Downside Capture (%)92.4679.3581.66
Source: FactSet SPAR. Except for Standard Deviation and Sharpe Ratio, the performance based characteristics above were calculated relative to the Fund's benchmark.

Risk & Return06/30/2019 - 06/30/2024

1 Source: FactSet SPAR.

Portfolio Holdings & Characteristics

HoldingsAs of 09/30/2024

HoldingSector% of Net Assets
Equinix, Inc.
Equinix, Inc. (EQIX) is a network neutral operator of 260 data centers across 70 metro areas and 33 countries in North America, Europe, and Asia-Pacific. It provides highly reliable facilities and offers low latency interconnection to and among business partners, networks, and cloud service providers.
Equinix 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 also 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.
Real Estate9.6%
Welltower Inc.
Welltower Inc. (WELL) is a $45 billion diversified health care owner and manager of senior housing, including assisted and independent living. Core to its strategy is to partner with top-tier operators and health systems while providing operators access to its proprietary data analytics platform.
We are optimistic about the prospects for Welltower given the substantial opportunity for cyclical recovery and continued secular growth in its senior housing business through occupancy and rent growth. The company also benefits from its proven ability to recycle capital at attractive rates of returns, premier health care platform, partnerships with top-tier operators, and well-respected management team focused solely on creating value on a per-share basis.
Real Estate8.5%
Vornado Realty Trust
Vornado Realty Trust (VNO) is a $30 billion REIT that owns and operates a diversified portfolio of office and retail buildings, mostly in New York.
We believe Vornado is trading at a highly discounted valuation relative to its liquidation value. In addition, Vornado has several of sources of embedded value in its portfolio that we believe offer additional upside potential. These sources include the improvement in the NYC office portfolio as office workers return, the bottoming of the NYC retail portfolio, and the development of the Penn District. Management appears open to pursuing paths to simplify and improve shareholder returns.
Real Estate5.7%
Digital Realty Trust, Inc.
Digital Realty Trust, Inc. (DLR) is a leading global provider of large-scale data center services to enterprises, cloud providers, and network operators. The company has 310 data centers in over 50 metro areas around the globe, with 51% of revenue in North America and the remainder in other regions worldwide.
Digital Realty enjoys strong growth prospects driven by cloud adoption, IT/data center outsourcing, and emerging AI applications. With a recurring revenue model, a sticky customer base with long-term leases, scale advantages, and a strong management team, we think Digital Realty is well positioned to take share. It offers a comprehensive suite of services through its acquisitions of Telx Group (network dense interconnection provider), Equicity (eight European assets), DuPont Fabros (U.S.-based wholesale operator), Ascenty (Brazil-based operator), and InterXion (Europe).
Real Estate5.2%
GDS Holdings Limited
GDS Holdings Limited (GDS) is a market-leading China-based operator of data centers with over 50 data centers, five Tier 1 markets, and approximately 450,000 square meters in service. More than 50% of its revenue comes from top Chinese internet companies.
We believe that, as the preferred provider to Alibaba and Tencent, as well as many other large emerging technology companies, GDS is poised to benefit from the explosive growth in cloud computing in China. Cloud adoption is still in the early stages in China, and GDS is capturing more than its fair share of incremental deployments due to its proven track record and carrier-neutral value proposition.
Information Technology5.0%
Ventas, Inc.
Ventas, Inc. (VTR) is a REIT that owns a $35 billion portfolio of 1,300 properties across senior housing, medical office, hospitals, and life sciences properties. 
We believe Ventas' well-located portfolio is poised to benefit from strong organic growth. In particular, we believe Ventas' senior housing properties are cyclically depressed due to COVID-19-related idiosyncratic reasons. We believe occupancy has bottomed and is primed to rebound substantially, as senior housing is a needs-based product with strong demographic forces around the forthcoming "silver wave" demand. In addition, construction activity in the sector remains subdued and should set up the company for favorable growth.
Real Estate4.6%
The Macerich Company
The Macerich Company
Real Estate4.3%
Prologis, Inc.
Prologis, Inc. (PLD) is the world's largest industrial REIT, with a $100 billion global portfolio. 
In our view, industrial real estate has attractive fundamentals, with organic growth among the highest across all real estate asset types. Strengthening demand, driven by the growth of e-commerce, inventory building, and the need for infill locations to service "last mile" delivery, continues to absorb elevated supply deliveries. Given Prologis's assets, markets, management, and balance sheet, we believe the company is well positioned to continue benefiting from this favorable fundamental backdrop.
Real Estate3.6%
Equity Residential
Equity Residential (EQR) is the largest U.S. apartment REIT, with over 75,000 units and a portfolio valued at over $35 billion, focused largely on coastal markets such as New York City, Washington, D.C., Los Angeles, Boston, and San Francisco.
Equity Residential is a blue-chip apartment REIT, with high-quality assets in markets with high barriers to entry, a proven management team, a state-of-the-art operating platform, and a strong balance sheet. Tenant demand for apartments remains strong, driven by low housing inventories and changing demographics. Following a period of decelerating rent growth driven by elevated new construction levels, we think Equity Residential should begin to see stabilizing rent growth.
Real Estate3.5%
American Tower Corporation
American Tower Corporation (AMT) is the largest independent wireless tower operator worldwide, with more than 240,000 towers in 20 countries on five continents.
Increasing demand for wireless data coverage is driving leasing activity by wireless carriers, with mobile data growing more than 25% per year. Since zoning for new towers in the U.S. is difficult to obtain, leasing on an existing tower (tenant colocation) or modifying existing equipment (amendment) is typically the best option. American Tower has been expanding internationally as well. We expect new tenants and higher colocation activity to drive strong organic cash flow growth. We believe American Tower will continue to acquire tower portfolios opportunistically.
Real Estate3.1%
Total
Total
53.1%
Top Ten Fund Holdings based on net assets. Portfolio holdings may change over time.
Portfolio holdings are subject to change. Current and future portfolio holdings are subject to risk.

Contributors / DetractorsQuarterly as of 06/30/2024

Top ContributorsAverage WeightContribution
Welltower Inc.8.40%1.06%
Equity Residential8.79%0.94%
AvalonBay Communities, Inc.7.18%0.92%
GDS Holdings Limited1.78%0.59%
Digital Realty Trust, Inc.5.12%0.37%
Source: FactSet PA.

GICS Sector BreakdownAs of 09/30/2024

Sector

Real Estate

80.1%

Financials

7.1%

Consumer Discretionary

6.2%

Information Technology

5.0%

Cash & Cash Equivalents

1.6%

Sub-Industry

09/30/2024
Health Care REITs 15.60%
Data Center REITs 14.70%
Retail REITs 11.90%
Industrial REITs 10.30%
Multi-Family Residential REITs 8.40%
Asset Management & Custody Banks7.10%
Office REITs 5.70%
Internet Services & Infrastructure5.00%
Single-Family Residential REITs 4.40%
Hotel & Resort REITs 4.20%
Homebuilding3.40%
Telecom Tower REITs 3.10%
Other Specialized REITs 1.80%
Home Improvement Retail1.50%
Hotels, Resorts & Cruise Lines1.30%
0369121518
Health Care REITs 15.60%
Data Center REITs 14.70%
Retail REITs 11.90%
Industrial REITs 10.30%
Multi-Family Residential REITs 8.40%
Asset Management & Custody Banks7.10%
Office REITs 5.70%
Internet Services & Infrastructure5.00%
Single-Family Residential REITs 4.40%
Hotel & Resort REITs 4.20%
Homebuilding3.40%
Telecom Tower REITs 3.10%
Other Specialized REITs 1.80%
Home Improvement Retail1.50%
Hotels, Resorts & Cruise Lines1.30%
0369121518

Portfolio CharacteristicsAs of 06/30/2024

DescriptionBaron Real Estate Income FundMSCI US REIT Index
Inception DateDecember 29, 2017
Net Assets$145.81 million
# of Issuers / % of Net Assets32 / 97.3%
Turnover (3 Year Average)144.57%
Active Share59.3%
Median Market Cap$18.82 billion$3.06 billion
Weighted Average Market Cap$41.83 billion$36.26 billion
Gross Expense Ratio0.96%
Net Expense Ratio0.80%
Current Expense Ratio Date12/31/2023
Dividend Yield1.72%
EPS Growth (3-5 year forecast)8.5%5.3%
Price/Earnings Ratio (trailing 12-month)30.631.5
Price/Book Ratio1.91.8
Price/Sales Ratio4.46.7
The Net Assets include all share classes combined.
Price/Book Ratio and Price/Sales Ratio are calculated using the Weighted Harmonic Average. Source: FactSet PA. Internal valuation metrics may differ.

Distributions

Record DateEx DatePayable DateIncomeReturn of CapitalShort-Term Capital GainLong-Term Capital GainTotalRe-Invest NAVCalendar-Year Return
09/23/202409/24/202409/25/2024$0.0481$0.0000$0.0000$0.0000$0.0481$16.79
06/24/202406/25/202406/26/2024$0.0569$0.0000$0.0000$0.0000$0.0569$14.14
03/25/202403/26/202403/27/2024$0.0588$0.0000$0.0000$0.0000$0.0588$14.28
03/25/202403/26/202403/27/2024$0.0232$0.0000$0.0000$0.0000$0.0232$14.28
12/20/202312/21/202312/22/2023$0.0449$0.0000$0.0000$0.0000$0.0449$14.4215.51%
For estimated distributions, visit the Tax Center