Baron Real Estate Income Fund (BRIIX)

Invitation Homes, Inc. (INVH) is the largest single-family home rental and management company in the U.S., with over 80,000 homes across 13 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.

American Tower Corp. (AMT) is the largest independent wireless tower operator worldwide, with more than 180,000 towers in 20 countries on five continents.
Increasing demand for wireless data coverage is driving leasing activity by wireless carriers with mobile data growing 30% to 40% 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. In addition, we believe American Tower will continue to acquire tower portfolios opportunistically.

Rexford Industrial Realty, Inc. (REXR) is a real estate investment trust (REIT) that owns a $1 billion (and growing) industrial portfolio primarily in Southern California. 
Rexford is a high growth industrial REIT run by an entrepreneurial management team. The $4.5 billion portfolio is concentrated in Southern California infill markets, which have strong demand/supply fundamentals and high barriers to entry. We think the company has the ability to grow cash flow at a double-digit annual rate through organic means and acquisitions in a highly fragmented market. We believe Rexford has superior growth prospects relative to its peers and trades at a reasonable valuation.

Equity Residential (EQR) is the largest U.S. apartment REIT, with over 75,000 units and a portfolio valued at over $30 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, helped by an improving economy and a still bottoming homeownership rate. Following a period of decelerating rent growth driven by elevated new construction levels, we think Equity Residential is poised to begin to see stabilizing rent growth. 

AvalonBay Communities (AVB) is a REIT that owns, develops, redevelops, acquires and manages over 70,000 high-quality apartment communities valued at $32 billion in high-barrier-to-entry U.S. coastal markets. AvalonBay was formed in 1998 through the merger of Avalon Properties and Bay Apartment Communities.
After a few years of elevated deliveries, a more favorable supply/demand outlook for the U.S. apartment sector should lead to improved rent growth over the next few years, in our view. AvalonBay is a best-in-class apartment REIT, with a high-quality portfolio, a healthy balance sheet, and a seasoned management team. We believe the company will improve cash flow through rent growth on its core portfolio and accretive external growth activities, including development, redevelopment, and acquisitions.

Prologis, Inc. (PLD) is the world's largest industrial REIT, with a $40 billion global portfolio. 
In our view, industrial real estate has attractive fundamentals, with organic growth that is among the highest across all real estate asset types. Strengthening demand, driven by the growth of e-commerce (2/3rds of retail growth), 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.

Simon Property Group, Inc. (SPG) is the largest U.S. REIT, with a $120 billion portfolio consisting of malls (65%) and outlets (35%).
In our view, Simon's size and balance sheet strength ensure it will be a dominant force in the U.S. mall business, where scale matters, and in the outlet business (50% market share). Simon has unparalleled access to a variety of capital sources and a distinct cost-of-capital advantage in raising unsecured debt and equity. In our opinion, the executive team, led by David Simon, is deep and talented. Simon continues to invest domestically and abroad. We believe the stock price is attractive, trading at a discount to our estimate of the company's net asset value.

Public Storage Incorporated (PSA) is the largest self-storage operator with a $43 billion portfolio.  The company is structured as a REIT.
Public Storage is a blue chip company within the self-storage industry with, we believe, an excellent platform, proven management team, and pristine balance sheet. The self-storage industry is an attractive long-term business owing to its relatively high, less cyclical long-term growth prospects, low capital intensity, and high returns on capital. Self-storage fundamentals remain exceptionally strong. Management expects to compound cash flow per share at a high single digit rate, and valuation screens are attractive, in our view.

Brookfield Infrastructure Partners L.P. (BIP) is one of the largest owners and operators of diversified global infrastructure businesses, including utilities, transport, energy, and data infrastructure.
Brookfield Infrastructure owns high-quality assets with contracted and growing cash flows. The company has a stable and increasing dividend yield and ample opportunity to enhance cash flow through embedded contracted increases, given the significant capital required to maintain and expand critical infrastructure, supplemented by acquisitions. We believe the company has a proven management team and can sustainably earn 12% to 15% equity returns and grow organic cash flow by 6% to 9% annually.

Boyd Gaming Corporation (BYD) is a gaming operator with 29 properties in Nevada, Pennsylvania, Illinois, Indiana, Iowa, Kansas, Louisiana, Ohio, Missouri, and Mississippi. The Las Vegas market (Locals and Downtown) contributes 35% of Boyd’s EBITDA, while other regional assets account for 65%.
The company successfully modified its cost structure during the COVID-19-related shutdown, which has allowed it to reopen in a more cost-efficient way with a more targeted marketing approach. These cost cuts have helped significantly to improve margins and free cash flow, which it is using to pay down debt, improve its balance sheet, and invest in improvements at its casinos.  It continues to see a new, higher end customer at its local casinos, which is helping revenue rebound.  Its 5% stake in online sports betting company FanDuel should add further value over time.