Baron Funds, an investment management company, released its “Baron Real Estate Income Fund” second-quarter 2025 investor letter. A copy of the letter can be downloaded here. The fund decreased 0.23% (Institutional Shares) in the quarter compared to a 1.46% decline for the MSCI US REIT Index (the REIT Index). Since its inception on December 29, 2017, through June 30, 2025, the Fund achieved a cumulative return of 87.02%, more than double the 35.45% return of the REIT Index. In addition, please check the fund’s top five holdings to know its best picks in 2025.
In its second-quarter 2025 investor letter, Baron Real Estate Income Fund highlighted stocks such as Iron Mountain Incorporated (NYSE:IRM). Iron Mountain Incorporated (NYSE:IRM) provides storage and information management solutions. The one-month return of Iron Mountain Incorporated (NYSE:IRM) was 8.00%, and its shares lost 17.03% of their value over the last 52 weeks. On August 8, 2025, Iron Mountain Incorporated (NYSE:IRM) stock closed at $90.16 per share, with a market capitalization of $26.629 billion.
Baron Real Estate Income Fund stated the following regarding Iron Mountain Incorporated (NYSE:IRM) in its second quarter 2025 investor letter:
“In the second quarter, we acquired shares of Iron Mountain Incorporated (NYSE:IRM) at what we believe was a compelling valuation level. Iron Mountain offers records storage management along with an evolving fast-growing data center segment. We have met with CFO Barry Hytinen and remain encouraged by the company’s prospects to grow overall cash flow by approximately 10% and by high single digits on a per share basis over the next several years. Growth is underpinned by predictable and stable growth in its core records management business while outsized growth is driven by its data center business, which has visibility to more than the triple operational capacity from today’s in place base.
