Baron Capital US Real Estate Fund

Jones Lang LaSalle Incorporated (JLL) is one of the world's largest providers of commercial real estate transaction, consulting, and investment management services through a network of more than 100 offices worldwide.
Jones Lang has a leading brand, sophisticated technology, global platform, deep bench of talent, and a solid balance sheet. Its scale and platform provide a strong moat. In our view, Jones Lang will benefit from eventual stabilization in interest rates and the economy, which should lead to improvement across business lines, particularly in leasing and capital markets. We think the company can grow EPS at a double-digit CAGR over the next few years, driven by a cyclical recovery, secular tailwinds, market share gains, operating leverage, acquisitions, and share buybacks.

Welltower Inc. (WELL) is a $70 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.

Brookfield Corporation (BN) is one of the world's largest alternative asset managers, with $1 trillion in assets under management (AUM) and more than $500 billion in fee-generating AUM. It owns stakes in several publicly listed affiliates as well as other unlisted investments.
Brookfield Corporation's stake in listed companies, including Brookfield Infrastructure, Business Partners, Renewable Partners, and recently spun off Brookfield Asset Management, is worth $45 per share. We see another $25 per share in unlisted investments and $10 per share in carried interest generated for a total of $80 per share, well above the stock's current price. 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.

CBRE Group, Inc. (CBRE) is a top commercial real estate services company with the leading market share in all of its major businesses.
We believe CBRE will 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.

Toll Brothers, Inc. (TOL) is a leading high-end, luxury homebuilder that caters to move-up, empty-nester, active-adult, age-qualified, and second-home buyers in 19 states in the U.S.
New single-family home construction activity in the U.S. remains below the levels needed to meet current and pent-up demand following a decade of underbuilding. We expect single-family home construction activity to continue over the medium term. In our view, Toll Brothers is a differentiated homebuilder with a niche focus on high-end homes and an excellent management team. We think 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.

Equinix, Inc. (EQIX) is a network-neutral operator of 270 data centers across 76 metro areas and 36 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 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.

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 over the next several years, with organic growth among the highest across all real estate asset types. Stabilizing demand—driven by the growth of e-commerce, inventory building, and the need for infill locations to service last-mile delivery—should help absorb a sharp decline in new supply deliveries. We believe Prologis is well positioned to benefit from this favorable fundamental backdrop, supported by its strong assets, markets, management, and balance sheet.

Wynn Resorts, Limited (WYNN) is a leading casino company, with assets in Macau and Las Vegas, two of the largest gaming markets in the world. The company also owns the Encore Boston Harbor casino and is developing a new casino in the UAE, which it will manage while owning 40% of the resort.
In the short to medium term, we think several catalysts could drive the stock higher, including improving trends in Macau as the region recovers from the pandemic, continued strength in Las Vegas supported by Wynn's new convention space, and operational improvements at Encore Boston Harbor. Longer term, we think improved infrastructure and easing visa requirements should boost growth in Macau. All of these catalysts combined with the UAE development should lead to enhanced cash flow that Wynn can use to pay down debt and improve its financial position.

CRH public limited company is the largest building materials company in North America and Europe. It supplies aggregates, cement, asphalt, and concrete for construction projects including roads, highways, bridges, and buildings, as well as products for critical utility infrastructure and outdoor living.
CRH is a high-quality construction materials business with a consistent record of double-digit earnings growth, driven by exposure to attractive, geographically diversified markets in the U.S. and Europe, a vertically integrated model, and operational excellence that has delivered 11 consecutive years of margin expansion. Following its recent relisting on the NYSE, which shifted its investor base toward the U.S., we believe CRH remains in the middle of a valuation re-rating with further upside potential from current levels.

CoStar Group, Inc. (CSGP) is the leading provider of information and marketing services to the commercial real estate industry.
CoStar has built a proprietary database through data collection over a 20-year period, creating high barriers to entry. We think CoStar's suite should grow at mid-teens rates, and we believe its Loopnet marketing platform can grow even faster. The company's Apartments.com platform is the dominant multi-family internet listing service and should grow revenue by more than 20%. CoStar is starting to expand into residential, creating additional significant growth opportunities. Strong cash generation and a solid balance sheet also provide meaningful M&A optionality.

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