Headwinds that we did not fully appreciate included significantly higher financing costs (20%-plus exposure to floating rate debt), upcoming debt maturities, continued payment shortfalls from a key tenant in India, and foreign exchange headwinds. Tags: Based on research by Green Street Advisors, recent occupancy rates for several real estate categories compare favorably relative to prior periods. We may revisit Simon in the future. What are College Likely Letters and How We will continue to closely monitor business developments and will adjust the Funds exposure accordingly. We also believe there is a wall of capital from private equity companies that is interested in acquiring self-storage real estate should valuations in the public market become attractive relative to other opportunities. All rights reserved, Inside the Yale Admissions Office Podcast, Advice on Putting Together Your Application, Advice for First-Generation College Applicants. 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. But I urge you, do not try to figure out what an admissions officer may want to hear. While we modestly reduced our position towards the end of the first quarter, we believe the companys senior housing operations will continue to inflect positively in the years to come given the favorable supply/demand backdrop and increasing growth of the 80-plus-year-old population. 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. Admissions Officer Moira joins Hannah and Mark to They discuss what each decision means (and doesnt mean) about an individual, the applicant pool, and what comes next. At the right level for you. Unlike the period during the GFC, the banking system today is well-capitalized and has ample liquidity. The rapid transition to a world of computer screen meetings and conferencing should also benefit data centers due to the need to store a greater library of data to conduct and support these virtual online meetings. Global sales of electric vehicles hit 10 million in 2022 and are set to reach 14 million this year, according to a report from the International Energy Agency. We expect Brookfield Infrastructures earnings (funds from operations) to grow by more than 10%, yet its shares are valued at only 10.8 times earnings. Transcript, In the process of putting together their applications, students make countless choices. Real estate companies that we consider best-in-class are rarely valued at discounted prices, but now is one of those rare occasions. Transcript. Demand conditions for rental homes are attractive due to the sharp decline in home affordability; the propensity to rent in order to avoid mortgage down payments, avoid higher monthly mortgage costs, and maintain flexibility; and the stronger demand for home rentals in suburbs rather than apartment rentals in cities. Transcript, The second installment in an occasional miniseries. While knowing about his application status at Yale has helped with some of his nerves, its also been beneficial to his work ethic, Trustin says. An Ode to the Y: A Primer on BYU's Beloved Symbol on The problem is not as widespread. Our real estate team continues to work hard to take advantage of the sell now and ask questions later mentality that has been pressuring several public real estate stocks by purchasing best-in-class real estate companies at highly discounted valuations. Wireless Tower REITs (4.5%): In the first quarter, we decreased our investments in wireless tower REITs due to our expectation that growth would moderate in 2023 and perhaps the next few years due to higher financing costs, upcoming debt maturities, wireless carrier decommissioning, international headwinds (in Latin America and India), and foreign exchange headwinds. REITs, for example, have leverage ratios (net debt divided by cash flow) of only 5.5 times, on average, versus a peak of more than 8.5 times during 2008-2009. We continue our comprehensive research, speaking to a broad swath of real estate companies - both owned and not owned - in many cases a few times each quarter to make sure our research remains current and informed. In our opinion, the issues that weighed on REIT performance during the GFC are not in place today. She is a senior in Trumbull College majoring in American history. The office of undergraduate admissions will read through more than 50,000 applications to decide the class of 2026. At Yale, opting to apply through early action does not give an applicant any advantage, but the officers explain why an early program may be the right choice for some students at some colleges. We believe similar opportunities to purchase discounted real estate shares have surfaced more recently in 2022 and 2023. Performance listed in the above table is net of annual operating expenses. Read on to learn more. The consistent increases in applications are a positive sign that our pivot to a virtual outreach strategy has been successful, Dunn told the News. Throughout the whirlwind month, admissions officers, current students, faculty, and campus partners make countless connections with newly admitted students and their families. For example, industrial real estate occupancy is currently 96%, on average, versus 88% in 2009. The valuations of several REITs and non-REIT real estate companies are cheap. 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. Core infrastructure investments include utilities, data centers, wireless towers, energy, and transportation (ports and rails). CBRE also compared the coming debt-funding gap to that of the GFC. Equity Residential and AvalonBay Communities, Inc. were both detractors in the quarter amid a worsening economic backdrop, continued layoff announcements in high-paying jobs, tightening lending conditions, lingering bad debt trends into 2023, and potential supply pressure in certain markets. 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. Rejected From Your Favorite Colleges? Please. Yale Likely Letter/Call! Application Deadlines - Enrollment Services Is a commercial real estate crisis on the horizon? As of March 31, 2023, secular growth real estate companies represented approximately 39% of the Funds net assets. 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. A complete list of colleges that offer these letters does not currently exist, and compiling one would be difficult, as data is often sparse or unreliable. Early action and early decision applicants enjoy higher acceptance rates Regular decision applications were due on Jan. 2. Today, real estate is in a good place relative to prior economic slowdowns and recessions. Earnings multiples (Funds from Operations) declined from 24 times earnings at the beginning of 2021 to 19 times earnings as of March 31, 2023. In the most recent quarter, we acquired additional shares of Brookfield Corporation, a leading global owner and operator of real assets. At this stage, we believe the near-term and long-term prospects for real estate in the public markets are compelling. As we peer ahead to the balance of 2023 and to 2024, we continue to believe the set up for REITs is attractive. Transcript, Every application to Yale includes three letters of recommendation two from classroom teachers and one from a counselor. 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. The shares of the Funds holdings in industrial REITs - Prologis, Inc., EastGroup Properties, Inc., and Rexford Industrial Realty, Inc. - performed well in the first three months of 2023 following strong quarterly business results. Therefore, they want to notify the student very early in the admissions process that, assuming the student maintains the same academic performance, admission will be granted.Another senior, Pam, was also shocked by her phone call from Yale. We believe the banking system is resilient and sound. Portfolio holdings are subject to change. As of 3/31/2023, the Morningstar Real Estate Category consisted of 257, 233, and 209 share classes for the 1-, 3-, and 5-year periods. Please refer to Is a commercial real estate crisis on the horizon? later in this letter for our more complete thoughts on this topic. We have structured the Fund to capitalize on compelling investment themes. The Overall Morningstar Rating for a managed product is derived from a weighted average of the performance figures associated with its three-, five-, and 10-year (if applicable). Neither Morningstar nor its content providers are responsible for any damages or losses arising from any use of this information. Management maintains a strong and liquid balance sheet with staggered debt maturities. In the last few years, a large portion of commercial real estate was financed with historically low interest rates, which contributed to a rise in commercial real estate property values. I, and our team, remain fully committed to doing our best to deliver outstanding long-term results, and I proudly continue as a major shareholder, alongside you. Other prestigious liberal arts colleges and colleges like Duke, Stanford, and University of Chicago also send likely letters. Reasons for the stocks decline include a disappointing full-year 2023 growth outlook, emerging concerns regarding the health of some of its customers, and elevated leverage that may necessitate an equity financing in 2023. Prologis has an unmatched global platform, strong competitive advantages (scale, data, and technology), and attractive embedded growth prospects. Morningstar calculates the Morningstar Real Estate Category Average performance and rankings using its Fractional Weighting methodology. The percentage of members of the class whose parents went to Princeton (legacies) fell to 10% for the Class of 2025. This episode is an update to Episode 6: Essays: The Little Stuff, originally released in summer 2020. Baron Capital, Inc. is a broker-dealer registered with the SEC and member of the Financial Industry Regulatory Authority, Inc. (FINRA). However, those who excel in certain disciplines for which a college actively recruits can potentially be awarded the letters as well. Brookfields financial and operating capabilities are, at times, the tie breaker that results in the company being chosen to participate in complex transactions across multiple geographies that require a heavy operating component. Commercial real estate business prospects (expectations for occupancy, rent, and cash-flow growth), though slowing, are still expected to be positive in most cases. As such, the relative valuation of REITs versus bonds did not improve to the same degree as the absolute valuation improvement. The record number of applications means that competition is intense to get into Yale. CollegeXpress has helped me tackle college expenses, which will allow me to put more of my time and effort into my studies without the need of worrying as much about finances. ZENG: What did it mean to be Asian-American as an elite athlete? Past performance is no guarantee of future results, Annualized for periods ended March 31, 2023. 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 our judgment, characteristics of a best-in-class real estate company are: Our view is that special best-in-class real estate companies should generate superior returns over the long term. Stream Likely Letters by YaleUniversity - SoundCloud Between 2023 and 2025, CBRE forecasts that the debt refinancing gap will be almost entirely limited to office owners. Historically, certain real estate businesses have had the ability to raise prices to provide inflation protection. I am very against the concept of worrying, he said. Admissions Officers Hannah and Mark share the complex and dynamic work happening inside the Yale Office of Undergraduate Admissions. Ivy League Acceptance Rates 2022: What You're Up Some office building borrowers may default on the loan and. Transcript, The highly selective admissions process can be daunting and feel discouraging, especially for students who fear that some aspect of their personal circumstances will put them at a disadvantage. 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). 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). We believe the odds of a banking crisis and a deep recession are low. Regarding the Funds investment in Digital Realty Trust, Inc. (DLR), we believe the companys valuation is compelling following the 43% correction in its share price in 2022 and modest decline in the first three months of 2023. Since 2000, there have been seven years when REITs declined (not including 2022). For about the first week after I received the call, I was entirely bewildered, he said. The dearth of new real estate construction compares favorably versus past real estate cycles when the overbuilding of commercial and residential real estate contributed to a deterioration in real estate business prospects. Electric vehicles are on track to capture nearly one-fifth of the global market this year, according to a new report detailing the explosive growth of plug-in cars. CRE is a highly diverse sector that includes one troubled sub-sector in offices (about 15% of the market), but also apartments, hospitals, warehouses, data centers, nursing homes, retail, and more. The company has a four-year supply of land that it purchased prior to the large increase in home prices during COVID-19 - so management believes impairment risk is minimal and book value is secure. college admission Its also a way to boost yield.. Yale 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. We do not agree with this view. This stands in stark contrast to the U.S. housing collapse that contributed to the GFC. The shares are valued at a small premium to REITs, despite superior and more durable cash-flow growth prospects. Notably, in six of the seven down years, REITs rebounded with positive performance the following year. We believe its valuation is unsustainably cheap and we remain bullish about Brookfields long-term prospects. In this mini-episode, the offices director of recruitment explains why some regular decision applicants receive a likely letter and addresses some common misconceptions. In [Yales] case, I got a likely letter because I was a very strong STEM applicant, Pam said. In this mini-episode, the offices director of recruitment explains why some regular decision applicants receive a likely letter and addresses some common misconceptions. Welltower largely owns and operates senior housing and medical office buildings in the U.S. and internationally. Transcript, Many applicants have an evaluative interview with a Yale student or alum as part of the application process. AvalonBay and Equity Residential are blue-chip apartment landlords with apartment assets generally located in high barrier-to-entry markets with strong long-term demographic growth potential. Yale received 50,022 applications to join the Universitys class of 2026, the most in the schools history. This occurred in the 1980s and precipitated the recession in the 1990s and a severe correction in real estate occupancy and rents. Some leases include annual fixed upward lease rent escalators. The director of admissions specifically mentioned this and invited me to YES [Yale Engineering and Science] weekend for engineering and science admitted students., Trustin, also a member of MITES, said his college interview went extremely well, and he made sure to write his essays about topics he was passionate aboutregardless of whether they were perhaps conventional topics. If youre wondering whether a particular institution offers likely letters, a Google search may suffice. Is this happening to you frequently? Expectations for construction activity are modest due to elevated land, material, and labor costs and expectations for a slowdown in economic growth. You may obtain them from the Funds distributor, Baron Capital, Inc., by calling 1-800-99BARON or visiting www.BaronFunds.com. Admissions officer Marty joins the podcast to square off against Hannah in a spirited competition to identify terms that admissions and financial aid officers aid use in their daily work. However, the University is required to release that data as part of the Common Data Set initiative. The company should continue to be a beneficiary of strong demand from budget-conscious home buyers such as retirees and millennials and negligible new inventory due to high development barriers. Your current browser isn't compatible with SoundCloud. Now, months earlier than I expected, I completed that goal. Ever since the March 2023 collapse of Silicon Valley Bank, Signature Bank, and Credit Suisse, news reports predicting an impending commercial real estate crisis have been rampant. Management should be able to invest capital in assets underpinned by stable cash flow at an attractive cost basis. According to Preqin Pro, more than $400 billion of capital has been raised by private equity sources to invest in real estate. 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 In other words, CollegeXpress has been like a guide for me as a future college student. 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. WebIf preliminary plans had gone through, all three of the universitys initials would have adorned the mountain, not just the Y. The officers share insights on how financial aid applications are reviewed and advice on estimating your cost before applying. For performance information current to the most recent month end, visit www.BaronFunds.com or call 1-800-99BARON. These apartment REITs were recently valued at 6.5% capitalization rates and at 25% to 30% discounts to net asset value. Ivy League schools In the most recent quarter, we exited our investment in Simon Property Group, Inc. (SPG), the largest U.S. mall and outlet REIT, and re-allocated the capital to investment opportunities that we believe will offer superior growth and return potential. Although our offices will close at 6:00 PM, the application will still be available online through 11:59 PM (Mountain Time). Hannah and Mark talk with Dara, the director Yales interviewing program, about how interviews work and what applicants can expect. (preview: in our opinion, no! If the macroeconomic environment worsens, we expect business results to be resilient. Toll Brothers, Inc. is a leading luxury homebuilder in the U.S. with capable management and a large, valuable owned land real estate portfolio. The Baron Real Estate Income Fund received 4 Stars, 5 Stars, and 5 Stars, respectively. The Morningstar Ratings are based on the Morningstar Risk-Adjusted Return measures. Don't worry about it. Doing what you like. Admissions Officers Julian and John join as guests to discuss their strategies for reading and rating files. Login or sign up to be automatically entered into our next $10,000 scholarship giveaway, Eastern Washington University I truly appreciate the CollegeXpress communications and use them to keep my high school seniors informed about their opportunities! Peer institutions like Harvard, Yale and Columbia saw historically low acceptance rates of 3.4%, 4.62%, and 3.7%respectively. Factors that weighed on the companys share price performance include: (i) concerns that a more challenged economic and capital markets environment could lead to distress for some of the companys biotechnology and health care tenants; (ii) the possibility of tenant defaults; and (iii) the possibility that competitive supply will increase from the conversion of traditional office buildings to life science buildings. While none of these choices will make or break an application, the officers explain why certain choices are more or less beneficial during the review process. Which, of course, was much more systemic at the time.. As such, we suspect the Fed is near the end of its interest rate hiking cycle. While the company is enjoying strong bookings from its smaller enterprise customers, a much-improved pricing environment, and limited new supply in key markets, it was unable to convert its attractive top-line growth to cash-flow per share growth given higher interest rates, foreign exchange headwinds, and financings. In 2008, you had bad assets and people did not know if the assets were very valuable or valueless. This amount equates to more than $1.3 trillion of total real estate purchasing capacity, assuming typical 70% financing. 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. We do not believe that a commercial real estate crisis is on the horizon. Sadly, only a small group of those students will end up getting in, and the truth is that most students who are waitlisted will ultimately receive a rejection letter. However, there are also students who are waitlisted and then go onto enroll at Yale and achieve great things. When do Yale waitlist decisions come out? Alexandria is a best-in-class company with several competitive advantages including an irreplaceable life science office portfolio concentrated in the premier life science markets in the U.S. and deep customer relationships. Despite managements expectation to grow its cash flow by approximately 10% in 2023, far in excess of most REITs, the shares are valued at a significant discount to most REITs, and the company currently pays a 5% dividend. In the last few months, there have been several sensationalized news articles and television reports predicting a forthcoming commercial real estate crisis. History of the letter "Y" on Y Mountain, Provo, Utah 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 We believe several best-in-class public REITs and non-REIT real estate-related companies are on sale relative to history and relative to private real estate alternatives. Several prestigious colleges, including Ivy League schools likeHarvard UniversityandDartmouth College, have reported sending likely letters in past years, many of them for top athletes. Many prestigious schools send "likely letters" to their most coveted students to entice them to enroll. 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. applying early When Do Yales Decisions Come Out? | AdmissionSight Hannah and Mark discuss how admissions officers try to gauge what an applicant would add to and take from the Yale experience. They are, in our view, a highly talented group of executives who are astute allocators of capital and excellent operators of businesses. WebThe Yale Admissions Office sends likely letters only to those applicants who have received an early review and who we believe are exceptionally strong as scholars, She previously edited for WKND and wrote about admissions, financial aid & alumni. Prologis has an unmatched global platform, strong competitive advantages (scale, data, and technology), and attractive embedded growth prospects. They share strategies for learning about schools, maximizing academic and extracurricular opportunities, and keeping the process in perspective. The information contained herein: (1) is proprietary to Morningstar and/or its content providers; (2) may not be copied or distributed; and (3) is not warranted to be accurate, complete or timely. That was actually the case at Yale. Morningstar ranked Baron Real Estate Income Fund Institutional Share Class in the 74th, 17th, and 2nd percentiles for the 1-, 3-, and 5-year periods, respectively. Director of transfer admissions Marisa shares advice for transfer applicants especially those enrolled in community colleges and director of Eli Whitney admissions Patricia shares insights for nontraditional students especially US military veterans. Enterprise value (EV) is a measure of a companys total value, often used as a more comprehensive alternative to equity market capitalization. The likelihood of a widespread commercial real estate crisis is low. The housing crash of 2008 was triggered by cheap credit, lax lending standards, extreme use of leverage, and overbuilding. Transcript, Every admissions decision is made by a committee composed of five members of the Yale community. Listen and subscribe on Apple Podcasts, Spotify,SoundCloud, Stitcher, Android Podcasts, and Google Podcasts. What Is a Likely Letter in College Admissions? - ThoughtCo 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. Regarding the possibility of real estate loan defaults, our view is that it will be mostly isolated to a manageable portion of class B and C office real estate and many lenders will choose to work with their borrowers to modify loan terms rather than. Life Science REITs (0.5%): Though we remain bullish on the long-term prospects for Alexandria Real Estate Equities, Inc. (ARE), the life science industry leader and sole publicly traded life science pure play REIT, we decreased our investment in the company in the most recent quarter due to: (i) concerns that a more challenged economic and capital markets environment could lead to distress for some of the companys biotechnology and health care tenants; (ii) the possibility of tenant defaults; and (iii) the possibility that competitive supply will increase from the conversion of traditional office buildings to life science buildings. 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.

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