Despite our expectation for ongoing stock and bond market volatility, we remain optimistic about the full-year prospects for the stock market, public real estate securities, and the Fund, and bullish looking out two to three years. We prioritize real estate companies that have this two-pronged return profile because they have the potential to generate better returns. Brookfield is well positioned to increase its market share of the growing pool of alternative assets. Equinix is currently valued at only 20.5 times 2024 estimated cash flow versus private market data center transactions that have occurred at 25 to 30 times cash flow. (Source: Citi Research). Portfolio holdings are subject to change. 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. This limited inventory combined with strong demand is leading to robust rent growth. 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.. Topics include seemingly taboo essay choices, the activities list, teacher recommendations, and when to contact your admissions officer. Rejected From Your Favorite Colleges? We believe the Funds approach to investing in REITs and non-REIT real estate-related companies will shine even brighter in the years ahead. Below is a table showing how REITs and other real estate-related companies have often outperformed the broader market coming out of market downturns. (Source: Green Street Advisors). Transcript, For their thirtieth episode, Hannah and Mark revisit the application reading process detailed in episode 1. The record-breaking pool includes the 7,313 early action applications prospective students sent to New Haven in December. 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). Hannah, Mark, and Jill review and debunk six more persistent myths about the admissions process. Transcript, Every admissions decision is made by a committee composed of five members of the Yale community. Examples include the Funds investments in self-storage, apartment, single-family home rental, manufactured housing, and hotel real estate companies. She is a senior in Trumbull College majoring in American history. 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. At times, some of our non-REIT holdings may present superior growth, dividend, valuation, and share price appreciation potential than many REITs. As shares have become more attractively valued with growth headwinds better understood and a potential monetization event of its India business, we have been looking opportunistically to re-acquire shares given the compelling absolute and relative multi-year growth prospects that are highly visible and supported by long-term customer contracts. Transcript, After every application has been read and has gone through an area committee, theres one final step before decisions are released. We would note, however, that we continue to closely monitor the company because business execution and quarterly results have disappointed at various points in the last few years. They include: Brookfield Corporation, Brookfield Renewable Corporation (BEPC), Brookfield Infrastructure Corporation (BIPC), Brookfield Asset Management Ltd. (BAM, BAM:CA), Toll Brothers, Inc. (TOL), and Cellnex Telecom, S.A. (OTCPK:CLNXF, OTCPK:CLLNY). However, financing costs increased sharply last year. Real estate debt profiles - the amount of debt relative to cash flow, the mix of fixed versus floating rate debt, annual debt maturity schedules - are in most cases manageable. A few observations regarding the composition of the Fund include: Number of holdings: We have decreased the number of REITs and non-REIT real estate-related companies held in the Fund from a peak of 42 companies on June 30, 2021, to 29 companies on March 31, 2023. Editor's Note: The summary bullets for this article were chosen by Seeking Alpha editors. * Individual weights may not sum to the displayed total due to rounding. The office of undergraduate admissions will read through more than 50,000 applications to decide the class of 2026. Which, of course, was much more systemic at the time.. Unsuccessful essays miss that opportunity. Moving on to the next level has been a dream of my mine since I was just a young kid, and the support and help CollegeXpress has given me will help me further my education. It is valued at an implied capitalization rate of 6% versus private market transactions in the 5% range. Brookfields ownership interests in four publicly listed Brookfield companies (Brookfield Asset Management, Brookfield Infrastructure Corporation, Brookfield Renewable Corporation, and Brookfield Business Partners (BBU)) are currently valued in the public market at $32 per share or the same public price as the public share price for the entire company. Last year, international applicants also accounted for the majority of the historic rise in applications. Our enduring enthusiasm for Brookfields long-term prospects is due to four key considerations: Top net sales for the quarter ended March 31, 2023. COVID-19 accelerated digital transformation priorities for many organizations, and we believe that Equinix is poised to continue to benefit from: i) organic growth through new bookings and pricing power (the majority of incremental bookings are from existing customers); ii) growth of high-margin cross connect revenue; and iii) continued geographic expansion through development and select M&A. Lastly, Digital Realty is dependent on larger-scale bookings, which can be episodic in nature. 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. The investment return and principal value of an investment will fluctuate; an investors shares, when redeemed, may be worth more or less than their original cost The Adviser reimburses certain Fund expenses pursuant to a contract expiring on August 29, 2033, unless renewed for another 11-year term and the Funds transfer agency expenses may be reduced by expense offsets from an unaffiliated transfer agent, without which performance would have been lower. Morningstar calculates the Morningstar Real Estate Category Average performance and rankings using its Fractional Weighting methodology. Hannah and Mark share some of the strategy behind Yales yield efforts and reveal an exciting plan for their next episode. Health Care REITs (9.3%): We are optimistic about our health care REIT investments in Welltower Inc. (WELL) and Ventas, Inc. (VTR). Transcript, The second installment in an occasional miniseries. We believe the favorable arbitrage between public and private real estate valuations bodes well for the return prospects of public real estate companies in the next few years. But I urge you, do not try to figure out what an admissions officer may want to hear. 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. Cheney, WA, Ohio University Lubbock, TX, Canisius College Stanford released its regular decision admissions results at 4 p.m. Wednesday, after a notable increase in applications resulted in a week-long delay. We believe that real estate merger and acquisition activity will re-emerge when the debt markets stabilize, and economic prospects improve. Based on research by Green Street Advisors, recent occupancy rates for several real estate categories compare favorably relative to prior periods. The views expressed in this report reflect those of the respective portfolio managers only through the end of the period stated in this report. 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! Sun Communities and Equity Lifestyle Properties have strong long-term cash flow growth prospects and low capital expenditure needs. According to CBRE, the sharp rise in interest rates and more restrictive lending conditions may result in a debt-funding gap for certain real estate borrowers when refinancing debt. [Blackstone] is targeting publicly traded real estate investment trusts (REITs), which are trading at discounts.. Jordan Fitzgerald Trustin certainly knew that much. In other words, CollegeXpress has been like a guide for me as a future college student. Yale has been known to send out just about 120 likely letters per year at most. But when do those letters come out? Per Ivy League regulations, colleges are able to send out likely letters between October 1st and March 15th. Enterprise value (EV) is a measure of a companys total value, often used as a more comprehensive alternative to equity market capitalization. Many public REITs are currently valued at significant discounts to replacement cost and estimates of net asset value. Historically, certain real estate businesses have had the ability to raise prices to provide inflation protection. 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. 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. 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. Equinix is a REIT and the premier global operator of network-dense, carrier-neutral colocation data centers. WebLikely Letters by YaleUniversity published on 2021-03-31T13:56:01Z Admissions officer Ashleigh joins Hannah and Mark to talk about likely letters a recruiting tool the Transcript, As part of the whole-person review process, the Yale Admissions Committee consider each applicants engagement with extracurricular activities pursuits and commitments outside of typical academic work. Ventas, Inc. was a detractor from performance during the quarter. It is calculated based on a Morningstar Risk-Adjusted Return measure that accounts for variation in a managed products monthly excess performance, placing more emphasis on downward variations and rewarding consistent performance. Prologis owns a high-quality real estate portfolio that is concentrated in major global trade markets and large population centers across the Americas, Europe, and Asia. In an article entitled Likely letters part of Yale admit strategy written by Despite our optimism for long-term prospects for health care real estate, we are closely monitoring near-term elevated expense headwinds combined with a slower-than-expected recovery in leasing and occupancy. The Baron Real Estate Income Fund received 4 Stars, 5 Stars, and 5 Stars, respectively. It was announced on Friday morning that Yale-NUS College will be merging with the University Scholars Programme offered by the National University of Singapore, precipitating the closure of Yale-NUS by 2025. At its public market implied valuation of only $450,000 per apartment, its shares are valued at more than a 25% discount to private market values. Looking for more information about college admission? Tags: February 24, 2023. Much more highly capitalized. If you have an ad-blocker enabled you may be blocked from proceeding. We believe the correction in real estate share prices in 2022 and the ongoing share price weakness for several real estate companies in the first three months of 2023 have created several compelling investment opportunities. WebAs of 3/31/2023, the Morningstar Ratings were based on 233, 209, and 233 share classes for the 3-year, 5-year, and Overall periods, respectively. You may obtain them from the Funds distributor, Baron Capital, Inc., by calling 1-800-99BARON or visiting www.BaronFunds.com. Non-REIT Real Estate Companies (14.1%): We emphasize REITs but have the flexibility to invest in non-REIT real estate companies. Other colleges have seen skyrocketing application numbers and correspondingly plummeting acceptance rates amid a switch to test-optional admissions as a result of the pandemic. Transcript, In the process of putting together their applications, students make countless choices. The weights are: 100% three-year rating for 36-59 months of total returns, 60% five-year rating/ 40% three-year rating for 60-119 months of total returns, and 50% 10-year rating/30% five-year rating/20% three-year rating for 120 or more months of total returns. At its recent price, the company pays a modest dividend of 1.5%. As of March 31, 2023, secular growth real estate companies represented approximately 39% of the Funds net assets. We do not agree with this view. Transcript, Part 2 of 3. Dean of Undergraduate Admissions and Financial Aid Jeremiah Quinlan joins to discuss updates to the selection process, sharing what changed and what stayed the same during the Admissions Committees first meetings to select applicants to the Yale Class of 2025. In the first quarter, we acquired shares in Toll Brothers, Inc., the leading luxury homebuilder in the U.S.
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