We also expect its 3.5% dividend to be higher in the year ahead. The public market is currently ascribing zero value to Brookfields non-public investments, which we believe are also worth at least $32 per share. The officers share insights on how financial aid applications are reviewed and advice on estimating your cost before applying. Hannah and Mark talk with Dara, the director Yales interviewing program, about how interviews work and what applicants can expect. Ventas, Inc. was a detractor from performance during the quarter. Yale received 50,022 applications to join the Universitys class of 2026, the most in the schools history. Brookfields management team, who in our opinion, is credible and conservative, believes the company is worth $74/share today - more than double its recent price of only $32/share! Admissions officer Reed joins Hannah and Mark to answer questions and address topics that listeners have sent to the Inside the Yale Admissions Office email account. Is a commercial real estate crisis on the horizon? Hannah and Mark share some of the ineffective choices that regularly appear in essays and discuss why each choice doesnt work to the students benefit. At the right level for you. Of the University of Pennyslvanias 37,267 applicants in 2015, only 3,697 were admitted, and only 400 received a likely letter, according to The Daily Pennsylvanian. The likely letter often functions as a marketing tool and a way for Ivy Leagues and similar institutions to compete with one another for what they believe are the best The worst year on record for REIT performance was in 2008, a period marked by the GFC when the REIT Index declined 37%. VICI Properties Inc. is a triple net REIT that owns a large and high-quality portfolio of market-leading gaming, hospitality, and entertainment properties. Since replacement costs tend to rise with inflation, real estate is often viewed as a partial hedge against inflation and a good store of value. Transcript, Podcast listeners have continued to send fantastic questions and topic suggestions to the Inside the Yale Admissions Office email account. Risks: In addition to general market conditions, the value of the Fund will be affected by the strength of the real estate markets as well as by interest rate fluctuations, credit risk, environmental issues and economic conditions. college admission We continue to believe the correction in REITs and non-REIT real estate share prices in 2022 and the ongoing weakness for some companies in the first three months of 2023, have created several compelling investment opportunities. Yale received 50,022 applications to join the Universitys class of 2026, the most in the schools history. Transcript, The second installment in an occasional miniseries. Equinix is a REIT and the premier global operator of network-dense, carrier-neutral colocation data centers. They have attractive dividend yields in the 5% to 6% range that are well covered, accretive acquisition growth opportunities, and are, in our opinion, attractively valued. We prioritize real estate companies that have this two-pronged return profile because they have the potential to generate better returns. As we peer ahead to the balance of 2023 and to 2024, we continue to believe the set up for REITs is attractive. Even if you don't get into your dream school, live your life without abandon, to its fullest, while helping the world and humanity as much as possible. Valuations and return prospects are attractive. We would note, however, that Prologis remains the largest position in the Fund, and we remain optimistic about the companys prospects. Manufactured Housing REITs (2.0%): We remain bullish regarding the prospects for our investments in manufactured housing REITs Sun Communities, Inc. (SUI) and Equity Lifestyle Properties, Inc. (ELS). Likely Letters Several of the best real estate purchases we made in the last 17 years have occurred during periods of financial and real estate market distress when real estate stocks correctly sharply, in many cases, with little regard to value - during the Global Financial Crisis (GFC) of 2007 to 2009 and the early days of COVID-19 from March to May of 2020. Though we are mindful of key risks to the equity and real estate market outlook, we are optimistic about the near-term and long-term prospects for public real estate. CollegeXpress helped me by providing me with many scholarship opportunities and information about universities I want to attend. Application Deadlines - Enrollment Services With industry vacancies estimated at less than 4% and rents on in-place leases at more than 50% below market rents, we believe the Funds investments in industrial warehouse REITs Prologis, Inc. (PLD), Rexford Industrial Realty, Inc. (REXR), EastGroup Properties, Inc. (EGP), Terreno Realty Corporation (TRNO), and First Industrial Realty Trust, Inc. (FR) have compelling multi-year cash-flow growth runways. Admissions officer Deb joins Hannah and Mark to respond to listener inquiries about the honors section of the application, twins, home-schooled applicants, reapplying, and balancing priorities in senior year. Yale Likely Letter/Call! Prologis has an unmatched global platform, strong competitive advantages (scale, data, and technology), and attractive embedded growth prospects. Jordan Fitzgerald Jon Gray, President of Blackstone Inc. (BX), one of the largest and most respected real estate investors in the world, said the following on the companys quarterly earnings call in the summer of 2022: The best opportunities today are clearly in the public markets on the screen and thats where were spending a lot of time.. Despite that, the admissions committee at Yale still admitted a typical number of students during its early and regular decision processes for the 2020-21 application cycle. Interestingly, this decision led to the 2025 graduating class to become the largest class in Yale history since just after the second world war. At times, some of our non-REIT holdings may present superior growth, dividend, valuation, and share price appreciation potential than many REITs. WebEvery application to Yale includes three letters of recommendation two from classroom teachers and one from a counselor. EVs to Capture One-Fifth of Global Market This Year It notifies the school's top choice prospects in the regular applicant pool that an acceptance letter is likely to be coming in the future. Should long-term interest rates begin to decline and credit spreads compress, REIT return prospects may also benefit from an improvement in valuations as valuation multiples expand (e.g., capitalization rates compress). This report does not constitute an offer to sell or a solicitation of any offer to buy securities of Baron Real Estate Income Fund by anyone in any jurisdiction where it would be unlawful under the laws of that jurisdiction to make such an offer or solicitation. For examples of attractively valued REITs and non-REIT real estate-related companies, please refer to Examples of best-in-class REITs and non-REIT real estate companies that are attractively valued later in this letter. Entering text into the input field will update the search result below, Baron Real Estate Income Fund Adv (BRIFX). The Fund may not achieve its objectives. Most of the debt coming due in the next few years was originated with good lending standards and no big oversupply of real estate. Simons size and access to capital are distinct advantages in the retail real estate industry. It was an admission representative from Yale, and they were calling to inform Trustin that he would likely be admitted to the prestigious school. Note that this statement represents the managers opinion and is not based on a third-party ranking. The 25% decline in the REIT Index in 2022 is the 2nd worst year of REIT performance since the dawn of public REITs more than 30 years ago in 1991. It was a nice surprise for both Trustin and Pamand others who have received likely letters from Columbia University in the past few weeksbut on the whole, its a mostly understated phenomenon. Data Center REITs (8.9%): We remain bullish on the prospects for data center REITs such as Equinix, Inc. (EQIX) because we believe demand prospects are improving (e.g., bookings of new leases and rent pricing), construction is moderating due to higher costs, and valuations are discounted relative to recent data center acquisitions. Brookfield Renewable Corporation is one of the worlds leading owner and operators of clean and renewable energy solutions with 90% of the companys cash flow contracted under at least 10-year contracts with the majority having inflation protection characteristics. Expectations for construction activity are modest due to elevated land, material, and labor costs and expectations for a slowdown in economic growth. College and University Directory Data provided by the Integrated Postsecondary Education Data System (IPEDS) from National Center for Education Statistics (NCES). Please refer to Is a commercial real estate crisis on the horizon? later in this letter for our more complete thoughts on this topic. Portfolio holdings are subject to change. We continue to believe that 2023 may ultimately emerge as a mirror image of 2022 in that many of the headwinds of 2022 reverse course (e.g., multi-decade high inflation and rising interest rates) and become tailwinds in 2023, thereby contributing to solid full-year returns. Invitation Homes, Inc. is the largest institutional owner of single-family rental homes concentrated across high-growth markets and in-fill neighborhoods with access to good schools, transportation corridors, and robust employment opportunities. Hannah and Mark explain the differences among these programs and share insights on how the Yale admissions office approaches its single-choice early action program. Even if it is just a recruiting tool, Trustin was still ecstatic to hear back from a college so soonand admits the likely letter has made him consider Yale more highly. In the most recent quarter, we exited our investment in SBA Communications Corp. (SBAC), a global wireless cell tower REIT that owns a portfolio of wireless tower sites heavily concentrated in the U.S. We had been shareholders of SBA, in part due to our high respect for CEO Jeff Stoops who we have known for well over a decade. In our opinion, the likelihood of systemic risk to the economy from certain commercial real estate challenges is low. Athens, OH, The University of Chicago Current and future portfolio holdings are subject to risk. Brookfield Corporation is a leading global owner and operator of real assets such as real estate and infrastructure. Portfolio rents are more than 50% below current market rents, occupancy percentages are more than 95% on average, and expectations for new construction activity are modest. Transcript, As COVID-19 causes massive disruptions around the world, Hannah and Mark discuss how the Yale Admissions Office has adapted and will continue adapting to new realities for applicants, admitted students, and prospective students. CBRE also compared the coming debt-funding gap to that of the GFC. Admissions officer Ashleigh joins Hannah and Mark to talk about likely letters a recruiting tool the admissions office uses with a small group of applicants each year. In a March 2023 report, Green Street Advisors, a highly regarded third-party real estate research firm, said the following regarding the relative valuations of public REITs versus private real estate: Listed REITs trade at a sizable discount to the private market.. (Source: Citi Research). As of March 31, 2023, the Funds net assets were invested as follows: REITs (82.8%), non-REIT real estate companies (14.1%), and cash (3.1%). Peer institutions like Harvard, Yale and Columbia saw historically low acceptance rates of 3.4%, 4.62%, and 3.7%respectively. Single-Family Rental REITs (3.7%): We remain optimistic about the Funds investments in single-family rental REITs Invitation Homes Inc. (INVH) and American Homes 4 Rent (AMH). An acceptance through a likely letter, though without the formality of an official acceptance letter, can function as a stress-reliever after the pressure of submitting college applications. We agree with the perspective of Bridgewater Associates, LP, a highly respected money manager founded by Ray Dalio, who said the following on March 30, 2023: We dont think commercial real estate (CRE) is a systematic risk, in large part because the sector lacks the problems that existed in (mostly residential) real estate in the late 2000s: bad lending standards, lots of leverage, and a supply glut following a construction boom. For performance information current to the most recent month end, visit www.BaronFunds.com or call 1-800-99BARON. For each, they discus why the myth is inaccurate while revealing the small kernel of truth at its core. The company has superior long-term cash-flow growth prospects and lower capital expenditure needs than several other REIT categories. Led by CEO David Simon, its management team has a long track record of solid capital allocation decisions while managing its portfolio especially well. Regular decision applications were due on Jan. 2.