Here’s Why Baron Real Estate Fund is Excited about BXP’s (BXP) Prospects

Baron Funds, an investment management company, released its “Baron Real Estate Fund” second-quarter 2025 investor letter. A copy of the letter can be downloaded here. The fund rose 3.61% (Institutional Shares) in the quarter compared to a 1.46% decline for the MSCI US REIT Index (the REIT Index) and a 6.13% gain for the MSCI USA IMI Extended Real Estate Index (the MSCI Real Estate 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 Fund highlighted stocks such as BXP, Inc. (NYSE:BXP). BXP, Inc. (NYSE:BXP) is a traded developer, owner, and manager of premier workplaces. The one-month return of BXP, Inc. (NYSE:BXP) was -6.12%, and its shares lost 3.45% of their value over the last 52 weeks. On August 1, 2025, BXP, Inc. (NYSE:BXP) stock closed at $64.62 per share, with a market capitalization of $11.424 billion.

Baron Real Estate Fund stated the following regarding BXP, Inc. (NYSE:BXP) in its second quarter 2025 investor letter:

“During the quarter we acquired shares of BXP, Inc. (NYSE:BXP) (formerly known as Boston Properties), a blue-chip office REIT that owns a portfolio of premier office properties concentrated in coastal U.S. markets including Boston, New York City, San Francisco, Washington, DC, Los Angeles, and Seattle. We are excited about BXP’s prospects for several reasons:

1. Blue-chip company, with an irreplaceable portfolio in markets with high barriers to entry, a proven development track record, a strong balance sheet, and an excellent management team. 2. Strong fundamental backdrop for high-quality office properties in select markets. Generally, return-to-work and a pick-up in lease decision-making has led to improved leasing velocity across many office markets, particularly for high-quality properties that are benefitting from a “flight to quality.” At the same time, the supply picture for many office markets is favorable over the next several years given a dearth of new construction deliveries. We believe this backdrop can support improved rent growth in many markets over the next several years…” (Click here to read the full text)

A bird’s eye view of a Class A office building, reflecting the height of modern architecture.

BXP, Inc. (NYSE:BXP) is not on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 30 hedge fund portfolios held BXP, Inc. (NYSE:BXP) at the end of the first quarter which was 27 in the previous quarter. While we acknowledge the risk and potential of BXP, Inc. (NYSE:BXP) as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. If you are looking for an AI stock that is more promising than BXP, INC. (NYSE:BXP) and that has 10,000% upside potential, check out our report about this cheapest AI stock.

In another article, we covered BXP, Inc. (NYSE:BXP) and shared the top stock picks from Goldman Sachs REIT stocks. In addition, please check out our hedge fund investor letters Q2 2025 page for more investor letters from hedge funds and other leading investors.

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Disclosure: None. This article is originally published at Insider Monkey.