With broader U.S. equities trading back at record-high valuations, are you looking to further diversify a portfolio? If so, Third Avenue believes that listed real estate can be an attractive alternative for several reasons, including much more compelling valuations.
That said, most investors strictly look to U.S. REITs for their real estate exposure, whereas there are much wider opportunities, including in well-capitalized residential businesses and real estate services companies, both of which have been key pillars of the Third Avenue Real Estate Value Fund for more than two decades. Right now, we're seeing substantial value in these select pockets.
In fact, at the end of the most recent quarter, the holdings in the Third Avenue Real Estate Value Fund were on average trading at nearly a 30% discount to our estimates of Net Asset Value. That's a level that we've really only seen in a few other instances in the past 15 years, and has historically been a strong indivator of prospective returns.
For those reasons, we believe that listed real estate can diversify a portfolio, and that the Real Estate Value Strategy at Third Avenue is an attractive way to access that exposure at this moment. To learn more about the strategy, please contact us at clientservice@thirdave.com. Thank you.
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