| ANNUALIZED SINCE INCEPTION | QUARTERLY | YTD |
|---|---|---|
| 7.1% | -1.8% | 11.3% |
| 2025 | 2024 |
|---|---|
| 11.3% | 14.1% |
The Third Avenue Real Estate Value Fund generated an 11.61% return in 2025, outperforming its benchmark while maintaining focus on well-capitalized real estate enterprises trading at discounts to Net Asset Value. The quarter featured exceptional resource conversion activity with over one-third of portfolio companies engaging in value-surfacing initiatives including National Storage REIT's privatization, Rayonier's merger with PotlatchDeltic, and Brookfield's strategic partnerships. The Fund initiated a position in FirstService Corporation, a conservatively capitalized real estate services company trading at attractive multiples despite strong fundamentals. Portfolio allocation remains concentrated in U.S. residential real estate (40.3%) and North American commercial platforms (27.5%) with international exposure (27.6%) in developed markets. Fund Management believes listed real estate is positioned for a multi-year period of outperformance similar to the early 2000s, driven by compelling valuations relative to broader equities and expected capital flow reversals from private to public real estate vehicles.
The Fund targets well-capitalized real estate enterprises trading at significant discounts to Net Asset Value, focusing on strategic platforms with prospects for resource conversion activities including privatizations, mergers, and special dividends to surface value over time.
Fund Management believes the next five years could end up being analogous to the early 2000s when compelling valuations for listed real estate led to a multi-year period of net inflows and vastly differentiated returns relative to broader equities. This path is even more likely for global real estate strategies with international allocations where the price-to-value disconnect is more pronounced.
| Date | Letter | Tickers | Keywords | Pitches | Quick Takes |
|---|---|---|---|---|---|
| Jan 22 2026 | 2025 Q4 | AMH, BKG.L, BRK-A, BYG.L, CBRE, DHI, FMCC, FNF, FNMA, FPH, JLL, LEN, PHM, PLD, RYN, SKY, SUI, UHAL, UTG.L, WY | Commercial, Homebuilders, real estate, REIT, Residential, value |
HCC LUN CN CS CN HBR LN 2330 TT BIRG ID DBK GR |
Fund maintains significant exposure to commercial real estate platforms including real estate services, asset management, industrial and logistics properties, and self-storage facilities. These holdings represent… |
| Oct 21 2025 | 2025 Q3 | AC FP, SKY, UTG LN | Affordable Housing, Discount Valuation, Hotel Franchising, Structural Shift, UK Real Estate |
CS LUN HBR OR DBK BOISE ROG AC CHMP UTG ACCOR CHMP UTG |
The fund identifies bifurcation in global property markets, emphasizing affordable housing producers like Champion Homes as structural beneficiaries of U.S. housing undersupply. It expands exposure… |
| Jul 22 2025 | 2025 Q2 | BRK/A, JAR LN, PLD, SKY, WCC | capital structure, Patience, real estate, Resource Conversion, valuation |
PLD WCC SKY JAR LN |
The letter emphasizes U.S. real estate companies with strong assets and conservative capital structures. Management focuses on resource conversion and private market realizations. Patience is… |
| Mar 31 2025 | 2025 Q1 | FPH, MRP, PHM, UTG LN | - | - | - |
| Dec 31 2024 | 2024 Q4 | AC FP, BKG LN, BYG LN, FMCC | - | - | - |
| Sep 30 2024 | 2024 Q3 | AC FP, LEN, WCC | - | - | - |
| Jul 19 2024 | 2024 Q2 | PLD, WCC | - | - | - |
| May 7 2024 | 2024 Q1 | BN, FPH, GRI LN, PLD, SGRO LN | - | - | - |
| Jan 31 2024 | 2023 Q4 | - | - | - | - |
| Oct 25 2023 | 2023 Q3 | BYG LN, SUI | - | - | - |
| Jul 14 2023 | 2023 Q2 | JLL, SUI | - | - | - |
| Mar 31 2023 | 2023 Q1 | CBRE, INA AU, JLL, SVS LN | - | - | - |
| Dec 31 2022 | 2022 Q4 | BAM | - | - | - |
| Oct 25 2022 | 2022 Q3 | BAM, DHC, FNF, LEN, NWDHU | - | - | - |
| Jun 30 2022 | 2022 Q2 | CBRE, DHI | - | - | - |
| Mar 31 2022 | 2022 Q1 | TDW, UGP | - | - | - |
| QUARTER | THEMES | TAGS |
|---|---|---|
| 2025 Q4 |
BuybacksShare repurchases in 2024 and 2025 hit consecutive records as companies raced to meet Tokyo Stock Exchange capital efficiency mandates. Buybacks were a primary driver of the market's 20% climb in the first half of FY2025. |
Share Repurchases Capital Efficiency TSE Mandates Shareholder Returns Records |
HomebuildersDespite near-term housing market challenges from affordability issues and buyer/seller strikes, there is structural underinvestment in housing relative to demographic needs. US builds same number of homes today as 1960 despite 160 million more people. Fund sees long-term bullish opportunity in companies like Toll Brothers and Champion Homes as housing market rebounds. |
Affordability Demographics Structural Shortage Millennials Manufactured | |
Real EstateReal Estate segment benefited from property transfers from the Automotive segment, including assumption of tenant operating leases. The segment includes investment properties with land, retail, office and industrial properties leased to corporate tenants. |
Commercial Real Estate Property Management Industrial REITs | |
ValueManager emphasizes investing in controlled companies trading at significant discounts to NAV, with European holding companies showing discounts of 30-68%. The strategy focuses on securities mispricing where real value exists, contrasting with overvalued technology stocks. |
Discounts NAV Mispricing Undervalued Controlled | |
| 2025 Q3 |
EuropeThe firm is expanding European relationships and published research on European shareholder activism. They view Europe as an attractive alternative to expensive American markets and are building manager relationships in the region. |
Activism Shareholder Valuation Diversification Research |
Hospitality |
||
HousingStructural shortage of housing in the USA with higher mortgage rates reducing existing home supply as homeowners are locked into low-rate mortgages. New homebuilders capturing increasing share of home sales as they can buy-down mortgages to lower rates. |
Homebuilders Building Materials Mortgage Construction | |
| 2025 Q2 |
RealEstate |
| Date | Pitch Type | Author | Ticker | Company | Industry | Sub Industry | Bull / Bear | Exchange | Keywords | Action |
|---|---|---|---|---|---|---|---|---|---|---|
| Jul 22, 2025 | Fund Letters | Jason Wolf | SKY | Skyline Champion Corporation | Consumer Discretionary | Homebuilding | Bull | New York Stock Exchange | affordability, Balance_Sheet, Cyclicality, Housing, manufacturing | Login |
| Oct 21, 2025 | Fund Letters | Matthew Fine | CS | CCO Capstone Copper Corp. | Materials | Copper Mining | Bull | TSX | Chile, Copper, expansion, FCF, Production, Supply, valuation | Login |
| Jul 22, 2025 | Fund Letters | Jason Wolf | JAR LN | Jarvis Securities plc | Financials | Investment Banking & Brokerage | Bull | New York Stock Exchange | Brokerage, Netcash, recovery, Regulation, Trading | Login |
| Oct 21, 2025 | Fund Letters | Matthew Fine | LUN | Lundin Mining Corp. | Materials | Copper & Gold Mining | Bull | TSX | cash flow, Copper, Gold, Hedge, Mining, Operations | Login |
| Jan 22, 2026 | Fund Letters | Matthew Fine | HCC | Warrior Met Coal, Inc. | Materials | Metallurgical Coal | Bull | New York Stock Exchange | cashflow, coal, dividends, metallurgical, Production | Login |
| Oct 21, 2025 | Fund Letters | Matthew Fine | HBR | Harbour Energy plc | Energy | Oil & Gas Exploration & Production | Bull | NYSE | cash flow, Gas, North sea, oil, Regulation, Taxation | Login |
| Jan 22, 2026 | Fund Letters | Matthew Fine | LUN CN | Lundin Mining Corporation | Materials | Copper | Bull | New York Stock Exchange | Copper, Electrification, infrastructure, Mining, Scarcity | Login |
| Oct 21, 2025 | Fund Letters | Matthew Fine | OR | Old Republic International Corp. | Materials | Property & Casualty Insurance | Bull | NYSE | capital return, Insurance, turnaround, underwriting, valuation | Login |
| Jan 22, 2026 | Fund Letters | Matthew Fine | CS CN | Capstone Copper Corp. | Materials | Copper | Bull | New York Stock Exchange | Copper, Electrification, Mining, Reserves, Scarcity | Login |
| Oct 21, 2025 | Fund Letters | Matthew Fine | DBK | Deutsche Bank AG | Financials | Banks | Bull | - | banking, capital return, restructuring, ROE, turnaround | Login |
| Jan 22, 2026 | Fund Letters | Matthew Fine | HBR LN | Harbour Energy plc | Energy | Oil & Gas Exploration & Production | Bull | New York Stock Exchange | Acquisitions, Freecashflow, Gas, Offshore, oil | Login |
| Oct 21, 2025 | Fund Letters | Matthew Fine | BOISE | Boise Cascade Co. | Other | Building Materials | Bull | NYSE | Building materials, cash, consolidation, Housing, valuation | Login |
| Jan 22, 2026 | Fund Letters | Matthew Fine | 2330 TT | T.S. Lines Ltd. | Industrials | Marine Transportation | Bull | New York Stock Exchange | Asia, cashflow, Container, dividends, Shipping | Login |
| Oct 21, 2025 | Fund Letters | Matthew Fine | ROG | Rogers Corporation | Information Technology | Electronic Components | Bull | NYSE | Activism, electronics, EV, Margins, materials, restructuring | Login |
| Jan 22, 2026 | Fund Letters | Matthew Fine | BIRG ID | Bank of Ireland Group PLC | Financials | Diversified Banks | Bull | New York Stock Exchange | banking, Capital, Regulation, Returns, valuation | Login |
| Oct 21, 2025 | Fund Letters | Matthew Fine | AC | AC Ayala Corporation | Industrials | Diversified Holdings | Bull | Philippine Stock Exchange | assets, buybacks, conglomerate, Emerging markets, Philippines, valuation | Login |
| Jan 22, 2026 | Fund Letters | Matthew Fine | DBK GR | Deutsche Bank AG | Financials | Diversified Banks | Bull | Xetra | banking, Capital, rerating, Returns, turnaround | Login |
| Oct 21, 2025 | Fund Letters | Jason Wolf | CHMP | Champion Homes (Skyline Champion Corp.) | Industrials | Homebuilding & Manufactured Housing | Bull | NYSE | affordability, Housing, manufacturing, Regulation, vertical integration | Login |
| Oct 21, 2025 | Fund Letters | Jason Wolf | UTG | Unite Group plc | Real Estate | Residential REIT | Bull | NYSE | NAV discount, REIT, student housing, Universities, valuation | Login |
| Oct 21, 2025 | Fund Letters | Jason Wolf | ACCOR | Accor SA | Consumer Discretionary | Hotels, Resorts & Cruise Lines | Bull | Euronext Stock Exchange | asset-light, buybacks, diversification, franchise, hospitality, valuation | Login |
| Oct 21, 2025 | Fund Letters | Jason Wolf | CHMP | Champion Homes (Skyline Champion Corp.) | Industrials | Homebuilding & Manufactured Housing | Bull | NYSE | affordability, Housing, manufacturing, Regulation, vertical integration | Login |
| Oct 21, 2025 | Fund Letters | Jason Wolf | UTG | Unite Group plc | Real Estate | Residential REIT | Bull | NYSE | NAV discount, REIT, student housing, Universities, valuation | Login |
| Jul 22, 2025 | Fund Letters | Jason Wolf | PLD | Prologis, Inc. | Real Estate | Industrial REIT | Bull | New York Stock Exchange | Balance_Sheet, Industrial, Logistics, NAV, Rents | Login |
| Jul 22, 2025 | Fund Letters | Jason Wolf | WCC | WESCO International, Inc. | Industrials | Industrial Distribution | Bull | New York Stock Exchange | cashflow, Cyclicality, Distribution, Electrification, infrastructure | Login |
| TICKER | COMMENTARY |
|---|---|
| AMH | Invitation Homes, the largest owner and manager of single-family rental homes in the US, operates a high-quality portfolio across the Western US, Sunbelt and Florida. The company has faced near-term pressure from slower job growth and reduced immigration, but its portfolio has benefited from limited new supply, renter demographics favoring single-family homes and a favorable rent-versus-buy dynamic. Long term, we believe Invitation will benefit from higher rents and strategic acquisitions to further build its portfolio. |
| BRK-A | Miles mentioned that he had been a long-term shareholder of Berkshire Hathaway and had never sold his shares. Over roughly twenty-five years, his investment compounded at about 10.9% annually. The first dollar he invested became approximately thirteen dollars. Since around 1990, Berkshire has only marginally outperformed the S&P 500. By Buffett's own historical standards, this period could be described as mediocre. And yet, admiration for Buffett has not faded—if anything, it has intensified. |
| BYG.L | Blackstone's discussions with Big Yellow in the U.K. did not result in a transaction; however, we believe that any future privatization would likely require a premium of ~35% above the current share price. The founders—who collectively own more than £100 million of shares—appear open to a sale at the right valuation. |
| CBRE | CBRE Group Inc. was an excellent investment for us. As the world's largest commercial real estate services company, CBRE has a market-leading position in leasing and property sales brokerage. We purchased shares in June 2022 at peak concern regarding the future of the office due to remote work, rising interest rates, and a weakening economy. CBRE's value grew over the course of our ownership, but its share price rose faster, and we reallocated capital to more discounted businesses. |
| DHI | Conversely, our biggest detractors this quarter were DR Horton (DHI), Lennar Corp (LEN), Home Depot (HD). |
| FMCC | Fannie and Freddie shares more than tripled in 2025 as the Trump administration reiterated its commitment to an eventual privatization. We believe YTD share price declines greatly underestimate how quickly President Trump can act to drive a re-rating of shares and unveil a taxpayer asset worth ~$300 billion. |
| FNF | Fidelity National Financial, the largest provider of title insurance for residential and commercial properties in the U.S. distributing a near $500 million stake in its life insurance affiliate F&G Annuities and Life (F&G). The transaction will increase the public float of the separately listed entity, with the aim of improving (i) F&G's cost of capital (i.e., implied multiple) relative to other market comparables in this line of insurance and (ii) the sum of the parts value for Fidelity National when also factoring in its other distinctive title insurance and transactions businesses. |
| FNMA | Fannie and Freddie shares more than tripled in 2025 as the Trump administration reiterated its commitment to an eventual privatization. The administration has repeatedly emphasized three key objectives: Enhance home affordability by compressing the spread of mortgages over Treasuries, Demonstrate a near-term mark to market for the taxpayers' ownership in the GSEs, Maximize long-term value of the taxpayers' interest in Fannie and Freddie. |
| FPH | The largest negative performance contributions this quarter derived from Atlanta Braves Holdings, FivePoint Holdings and BlueLinx Holdings. The latter two investments have faced headwinds from the slowdown in U.S. housing construction activity. |
| JLL | Leading commercial real estate service company Jones Lang LaSalle Incorporated contributed positively to performance during the fourth quarter, aided by the company's beat and raise 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. |
| LEN | LEN: $5B authorized January 2024; $4B completed |
| PHM | PulteGroup, in the homebuilding industry, struggled due to slowing orders and margin pressures despite a slight decrease in mortgage rates. We continue to hold PulteGroup in the Fund. |
| PLD | Best-in-class industrial REIT Prologis, Inc. contributed positively to performance during the fourth quarter, aided by the company's strong third quarter financial report, coupled with management's robust multi-year business outlook. We continue to believe the appreciation potential for Prologis' shares remains compelling given the strong runway for future cash flow and earnings growth in the next several years and an undemanding valuation. |
| RYN | Rayonier, one of the largest owners of timberlands in the U.S. completing the divestiture of its New Zealand venture, paying a special dividend, and announcing a merger with industry peer PotlatchDeltic. Once completed, the combined company will benefit from additional efficiencies within its timber segment, in Fund Management's opinion, as well as more scale in its real estate and resources portfolio that includes substantial sub-surface rights in the Smackover Formation. |
| SKY | We began acquiring shares of Champion Homes, Inc. during the quarter. Champion Homes is one of America's largest manufacturers of factory-built housing, having sold over 26,000 homes during its most recent fiscal year. Factory-built homes are potentially a key solution to housing affordability issues. The average home built by Champion Homes costs $93,000 compared to approximately $400,000 for the average site-built home in America. |
| UHAL | The largest detractors were Lennar Corp (LEN), U-Haul Holdings (UHAL/B), and Occidental Petroleum (OXY). |
| UTG.L | This thesis was ultimately borne out, as in mid-2025 ESP announced it had received a merger proposal from a larger rival, Unite Group (UTG), on terms that represented – in theory – a 10% premium based on ESP's and UTG's undisturbed share prices. However, shortly after the merger was announced, UTG and ESP's prices came under pressure, amid evidence of a slower student booking cycle and fears of what this might mean for future earnings growth. The fall was particularly pronounced in October when UTG confirmed that its occupancy levels for academic year 25/26 had undershot the company's targets. |
| WY | GreenFirst and Weyerhauser have both been poor performers over the last several years, we expect lumber prices to be inflecting finally, and EPS should begin to improve from here meaningfully. |
| Ticker | Put/Call | Amount Bought | Shares Bought | % Change | Weight % |
|---|---|---|---|---|---|
| No Recent Buys Data | |||||
| Ticker | Put/Call | Amount Sold | Shares Sold | % Change | Weight % | Status |
|---|---|---|---|---|---|---|
| No Recent Sells Data | ||||||
| Industry | Prev Quarter % | Current Quarter % | Change |
|---|---|---|---|
| No industry data available | |||
