Jones Lang LaSalle Incorporated (JLL) Gained from Broad-Based Strength Across the Business
Baron Capital, an investment management company, released its Q4 2025 letter for its “Baron Real Estate Income Fund”. A copy of the letter can be downloaded here. In 2025, the Fund appreciated 3.74% (Institutional Shares), exceeding the 1.68% gain for the MSCI US REIT Index (the REIT Index). In Q4 2025, the Fund declined modestly by 0.40%, outperforming the Index’s 1.99% decline. In contrast to the substantial double-digit growth delivered in 2023 and 2024, the Fund’s modest performance in 2025 can be attributed to a variety of factors, such as stronger relative growth in several sectors outside of real estate, ongoing interest rate headwinds, and specific REIT subcategory headwinds. As of December 31, 2025, the Fund’s net assets are as follows: REITs (71.2%), non-REIT real estate companies (25.0%), and cash and cash equivalents (3.8%). Also, the Fund currently has investments in 13 REIT categories. Heading into 2026, the Firm is optimistic about the prospects for the stock market and the Baron Real Estate Income Fund. Please review the Fund’s top five holdings to gain insights into their key selections for 2025.
In its fourth-quarter 2025 investor letter, Baron Real Estate Income Fund highlighted Jones Lang LaSalle Incorporated (NYSE:JLL). Jones Lang LaSalle Incorporated (NYSE:JLL) is a leading commercial real estate services and investment management company. On April 1, 2026, Jones Lang LaSalle Incorporated (NYSE:JLL) closed at $305.75 per share. One-month return of Jones Lang LaSalle Incorporated (NYSE:JLL) was -1.17%, and its shares gained 31.79% over the past 52 weeks. Jones Lang LaSalle Incorporated (NYSE:JLL) has a market capitalization of $14.43 billion.
Baron Real Estate Income Fund stated the following regarding Jones Lang LaSalle Incorporated (NYSE:JLL) in its fourth quarter 2025 investor letter:
“Leading commercial real estate service company, Jones Lang LaSalle Incorporated (NYSE:JLL), contributed positively to performance during the fourth quarter, aided by the company’s strong third quarter financial report, coupled with broad-based strength across the business. We expect the company to continue benefiting from structural and secular tailwinds: the outsourcing of commercial real estate, the institutionalization of commercial real estate, and opportunities to increase market share in a highly fragmented market. Looking forward, we continue to believe we are in the early days of a rebound in commercial real estate sales and leasing activity. We believe Jones Lang may generate annual earnings per share growth of mid- to high teens in the next few years, and the company is being valued at a discounted multiple of less than 17 times our estimate for next year’s earnings versus 22 times for its closest peer, for comparable growth.”
