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Baron Real Estate Income Fund
Symbol BRIIXCUSIP: 06828M736
Symbol BRIIXCUSIP: 06828M736
SCT
SectorNav
$14.39
Daily Change $0.13 (0.91%)
As of 06/28/2024
As of 06/28/2024
Net Assets
$150.14 M
As of 03/31/2024
Morningstar Rating™
As of 03/31/2024
Morningstar Medalist Rating™
SILVER
Inception date
12/29/2017
Prices & Performance
PricesAs of 06/28/2024
NAV | Daily Change ($) | Daily Change (%) | MTD | QTD | YTD |
---|---|---|---|---|---|
$14.39 | $0.13 | 0.91% | 2.03% | -1.92% | 0.01% |
NAV | $14.39 |
---|---|
Daily Change ($) | $0.13 |
Daily Change (%) | 0.91% |
MTD | 2.03% |
QTD | -1.92% |
YTD | 0.01% |
PerformanceAs of 03/31/2024
YTD1 | 1 Year | 3 Years | 5 Years | Since Inception 12/29/2017 | |
---|---|---|---|---|---|
BRIIX - Baron Real Estate Income Fund - I | 1.96% | 12.46% | 0.95% | 9.41% | 8.29% |
MSCI US REIT Index | -0.62% | 8.96% | 2.84% | 2.93% | 3.78% |
Performance InformationAs of 03/31/2024
3 Years | 5 Years | Since Inception | |
---|---|---|---|
Standard Deviation (%) | 19.54 | 18.37 | 18.37 |
Sharpe Ratio | -0.09 | 0.40 | 0.34 |
Alpha (%) | -1.65 | 6.71 | 4.87 |
Beta | 0.90 | 0.82 | 0.84 |
R-Squared (%) | 94.96 | 86.44 | 86.32 |
Tracking Error (%) | 4.88 | 7.74 | 7.49 |
Information Ratio | -0.39 | 0.84 | 0.60 |
Upside Capture (%) | 85.98 | 98.48 | 97.07 |
Downside Capture (%) | 91.35 | 75.84 | 80.52 |
Source: FactSet SPAR. Except for Standard Deviation and Sharpe Ratio, the performance based characteristics above were calculated relative to the Fund's benchmark.
Risk & Return03/31/2019 - 03/31/2024
1 Source: FactSet SPAR.
Portfolio Holdings & Characteristics
HoldingsAs of 05/31/2024
Holding | Sector | % of Net Assets | |
---|---|---|---|
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 Estate | 9.3% | |
American Tower Corporation American Tower Corp. (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 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 continued strong organic cash flow growth. We believe American Tower will continue to acquire tower portfolios opportunistically. | Real Estate | 8.9% | |
Welltower Inc. Welltower Inc. (WELL) is a $45 billion diversified health care owner, primarily in senior housing (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 coupled with the company's 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 Estate | 8.9% | |
AvalonBay Communities, Inc. AvalonBay Communities, Inc. (AVB) is a REIT that owns, develops, redevelops, acquires, and manages over 80,000 high-quality apartment communities valued at more than $40 billion in high-barrier-to-entry U.S. coastal markets. AvalonBay is a best-in-class apartment REIT, with a high-quality portfolio, a healthy balance sheet, and a seasoned management team. While near-term comparable fundamentals may remain challenged after outsized growth years, we believe the company will drive cash flow growth longer term through rent growth on its core portfolio and accretive external growth activities (development and acquisitions). | Real Estate | 7.7% | |
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. We believe Equinix benefits from several key 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 Estate | 6.2% | |
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 Estate | 5.7% | |
Invitation Homes, Inc. Invitation Homes, Inc. (INVH) is the largest single-family home rental and management company in the U.S., with over 85,000 homes across 16 markets and nine states. Invitation Homes owns single-family rental homes in high density and premier markets in the U.S. The company maintains internal repair and maintenance teams, allowing ample opportunity to reduce turn/leasing times and associated costs while driving outsized rent growth against a backdrop of housing undersupply in the U.S. As the largest operator in the sector, Invitation Homes continues to look for opportunities to scale its platform in existing markets by acquiring homes and partnering with builders to off-take newly built homes. | Real Estate | 4.8% | |
American Homes 4 Rent American Homes 4 Rent (AMH) is one of two publicly traded single-family home rental operators. The company owns over 58,000 rental homes across 22 states, with an average monthly rent of approximately $2,000 and average size of 2,000 square feet. We believe American Homes 4 Rent is well positioned for growth through M&A and "build to rent" development in a fragmented industry, given its superior balance sheet and operating platform. Partnerships with homebuilders to acquire new homes and additional rental units against a backdrop of housing undersupply could also drive growth. The company is working on expense optimization by reducing turnover and leasing time and costs. | Real Estate | 4.8% | |
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 Estate | 4.8% | |
Healthpeak Properties, Inc. Healthpeak Properties, Inc. | Real Estate | 3.1% | |
Total Total | 64.3% |
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.
Portfolio holdings are subject to change. Current and future portfolio holdings are subject to risk.
Contributors / DetractorsQuarterly as of 03/31/2024
Top Contributors | Average Weight | Contribution |
---|---|---|
Toll Brothers, Inc. | 4.00% | 1.00% |
Wynn Resorts, Limited | 4.38% | 0.54% |
Simon Property Group, Inc. | 4.13% | 0.45% |
Equinix, Inc. | 9.00% | 0.32% |
Welltower Inc. | 7.40% | 0.32% |
Source: FactSet PA.
GICS Sector BreakdownAs of 05/31/2024
Portfolio Characteristics
Real Estate
79.9%
Consumer Discretionary
9.7%
Financials
4.1%
Cash & Cash Equivalents
3.4%
Information Technology
1.9%
Utilities
1.0%
Sub-Industry
05/31/2024Multi-Family Residential REITs 18.30%
Health Care REITs 13.80%
Data Center REITs 11.90%
Single-Family Residential REITs 11.40%
Telecom Tower REITs 8.90%
Industrial REITs 7.00%
Homebuilding5.40%
Hotel & Resort REITs 4.30%
Retail REITs 4.20%
Asset Management & Custody Banks4.10%
Casinos & Gaming2.00%
Internet Services & Infrastructure1.90%
Hotels, Resorts & Cruise Lines1.30%
Renewable Electricity1.00%
Home Improvement Retail1.00%
048121620
Multi-Family Residential REITs 18.30%
Health Care REITs 13.80%
Data Center REITs 11.90%
Single-Family Residential REITs 11.40%
Telecom Tower REITs 8.90%
Industrial REITs 7.00%
Homebuilding5.40%
Hotel & Resort REITs 4.30%
Retail REITs 4.20%
Asset Management & Custody Banks4.10%
Casinos & Gaming2.00%
Internet Services & Infrastructure1.90%
Hotels, Resorts & Cruise Lines1.30%
Renewable Electricity1.00%
Home Improvement Retail1.00%
048121620
Portfolio CharacteristicsAs of 03/31/2024
Baron Real Estate Income Fund | MSCI US REIT Index | |
---|---|---|
Inception Date | December 29, 2017 | |
Net Assets | $150.14 million | |
# of Issuers / % of Net Assets | 35 / 97.4% | |
Turnover (3 Year Average) | 129.53% | |
Active Share | 53.1% | |
Median Market Cap | $17.36 billion | $3.18 billion |
Weighted Average Market Cap | $46.29 billion | $38.49 billion |
Dividend Yield | 1.74% | |
Gross Expense Ratio | 0.96% | |
Net Expense Ratio | 0.80% | |
Dividend Yield | 1.91% | |
EPS Growth (3-5 year forecast) | 5.7% | 4.2% |
Price/Earnings Ratio (trailing 12-month) | 28.6 | 29.5 |
Price/Book Ratio | 1.8 | 1.7 |
Price/Sales Ratio | 3.8 | 6.7 |
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.
Price/Book Ratio and Price/Sales Ratio are calculated using the Weighted Harmonic Average. Source: FactSet PA. Internal valuation metrics may differ.
Distributions
Record Date | Ex Date | Payable Date | Income | Return of Capital | Short-Term Capital Gain | Long-Term Capital Gain | Total | Re-Invest NAV | Calendar-Year Return |
---|---|---|---|---|---|---|---|---|---|
06/24/2024 | 06/25/2024 | 06/26/2024 | $0.0569 | $0.0000 | $0.0000 | $0.0000 | $0.0569 | ||
03/25/2024 | 03/26/2024 | 03/27/2024 | $0.0588 | $0.0000 | $0.0000 | $0.0000 | $0.0588 | $14.28 | |
03/25/2024 | 03/26/2024 | 03/27/2024 | $0.0232 | $0.0000 | $0.0000 | $0.0000 | $0.0232 | $14.28 | |
12/20/2023 | 12/21/2023 | 12/22/2023 | $0.0449 | $0.0000 | $0.0000 | $0.0000 | $0.0449 | $14.42 | |
09/25/2023 | 09/26/2023 | 09/27/2023 | $0.0638 | $0.0000 | $0.0000 | $0.0000 | $0.0638 | $12.71 |
For estimated distributions, visit the Tax Center