What Makes Welltower (WELL) an Attractive Investment?

Fund Performance - Baron Health Care Fund rose 13.10% in Q4 2025, outperforming the Russell 3000 Health Care Index which gained 11.92% and the Russell 3000 Index which gained 2.40% [1] - For the full year, the Fund returned 10.28%, while the benchmarks returned 14.56% and 17.15% respectively [1] - Strong stock selection in biotechnology contributed to the Fund's relative gains in the quarter [1] Investment Strategy - The Fund seeks to invest in businesses with secular growth opportunities, a sustainable competitive edge, and strong management [1] - The healthcare sector is viewed as a strong area in the U.S. economy, offering attractive investment opportunities with positive momentum heading into 2026 [1] Welltower Inc. Overview - Welltower Inc. (NYSE:WELL) is a healthcare REIT focusing on rental housing for aging seniors, with a market capitalization of $131.13 billion [2] - As of February 5, 2026, Welltower's stock closed at $191.06 per share, with a one-month return of 2.68% and a twelve-month increase of 33.99% [2] Welltower Inc. Investment Rationale - Welltower is positioned to benefit from favorable trends in the senior housing industry, particularly the supply/demand imbalance [3] - The over 80 population is expected to grow at a 4% to 5% CAGR over the next five years, contrasting with annual growth below 2% post-2008 financial crisis [3] - There is limited new supply of senior housing due to unattractive developer economics and lengthy project timelines [3] - Opportunities exist for improved operating margins and occupancy through enhanced asset management and data analytics [3] - Management has implemented an "all in" compensation program, reflecting confidence in shareholder value creation over the next decade [3]