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STRATEGIC REAL ESTATE AT VALUE PRICES, SINCE 1998.

Third Avenue Real Estate Value

Real Estate Value

Third Avenue Real Estate Value Fund

DATE OF INCEPTION

September 1998
Institutional: TAREX | Investor: TVRVX | Class Z: TARZX

PORTFOLIO MANAGER

Jason Wolf
Jason Wolf, CFA
Portfolio Manager
View Bio >
Ryan Dobratz
Ryan Dobratz, CFA
Portfolio Manager
View Bio >

MORNINGSTAR RATING

Cheryl Smith, CFA, PhDCheryl Smith, CFA, PhDCheryl Smith, CFA, PhDCheryl Smith, CFA, PhDCheryl Smith, CFA, PhDMorningstar Bronze ratingSilverstar Morningstar Rating
as of April 30, 2024
Cheryl Smith, CFA, PhDCheryl Smith, CFA, PhDCheryl Smith, CFA, PhDCheryl Smith, CFA, PhD
Overall Morningstar rating, as of May 31, 2024, vs. 175 funds. TAREX was rated against the following numbers of Global Real Estate Category Funds over the following time periods: 175 funds in the last three years and 173 funds in the last five years and 114 funds in the last ten years. With respect to these Global Real Estate funds, TAREX received a Morningstar Rating of 5 stars for the three-year period, 4 stars for the five-year period and 3 stars for the ten-year period, respectively. Ratings based on risk adjusted return. Past performance is no guarantee of future results.

MORNINGSTAR RATING

Cheryl Smith, CFA, PhDCheryl Smith, CFA, PhDCheryl Smith, CFA, PhDCheryl Smith, CFA, PhDCheryl Smith, CFA, PhD
as of November 14, 2023

Fund Documents

as of March 31, 2024
Shareholder Letter
Fact Sheet

Key Differentiators

Total Return Focus

We focus on total return and favor capital appreciation over current income.

Expansive Real Estate Universe

We invest in a wider-set of businesses with exposure to Commercial, Residential and Real Estate Services.

Long-Term Value-Oriented Holdings

We target securities trading at discounts to Net-Asset Value issued by enterprises that are well-capitalized, well-managed, with prospects to compound over time. 

High Active Share

The portfolio is concentrated around a select-set of securities (30-40 positions), as well as tactically holds cash, treasuries, and implements other hedges.

Tenured Managers

The Fund is managed by an experienced Portfolio Management team that implements a repeatable process with personal capital invested in the strategy.

Statutory Documents

as of March 31, 2024
Annual Report
Statement of Additional Information
Semi-Annual Report
Full Prospectus

Objective:

Third Avenue’s Real Estate Value Fund seeks long-term capital appreciation by investing in the securities of a select-set of real estate and real estate-related businesses in developed markets.

UNIQUe, FOCUSED & LONG-TERM ORIENTED

91%

Active Share vs. MSCI World Index
Active Share1 vs.
FTSE EPRA/Nareit Developed Index

28

Total Equity
Holdings

17%

Portfolio
Turnover
Portfolio
Turnover2

GROWTH of $10,000

as of March 31, 2024
Hypothetical Investment made in the Institutional Share Class and Benchmarks as of September 30, 1998 (Fund Inception Date September 17, 1998). This assumes reinvestment of Capital Gains and Income.
Performance is shown for the Third Avenue Real Estate Fund (Institutional Class). Past performance is no guarantee of future results; returns include reinvestment of all distributions. The chart represents past performance and current performance may be lower or higher than performance quoted above. Investment return and principal value fluctuate so that in investor's shares, when redeemed, may be worth more or less than the original cost.

COUNTRY EXPOSURE

as of March 31, 2024

PERFORMANCE

as of March 31, 2024
QTR
1 Year
3 Year*
5 Year*
10 Year*
Inception*
Third Avenue Real Estate Value Fund
2.81
24.26
3.16
3.13
3.73
8.68
FTSE EPRA/Nareit Developed Index
-1.11
8.49
-0.22
0.73
4.00
7.98
Performance Data is best viewed in landscape on your mobile device.
Performance is shown for the Third Avenue Real Estate Value Fund (Institutional Class). Past performance is no guarantee of future results; returns include reinvestment of all distributions. The chart represents past performance and current performance may be lower or higher than performance quoted above. Investment return and principal value fluctuate so that an investor’s shares, when redeemed, may be worth more or less than the original cost. For the most recent month-end performance, please visit the Fund’s website at www.thirdave.com or call 1-800-443-1021.
Institutional Share Class Inception Date: September 17, 1998.
*Annualized

Top 10 Holdings

as of March 31, 2024
FUND
Lennar Corp.
7.0
%
Brookfield Corp.
6.3
%
D.R. Horton, Inc.
6.1
%
U-Haul Holding Co.
6.1
%
CBRE Group Inc.
5.4
%
Prologis, Inc.
4.6
%
Weyerhaeuser Co.
4.1
%
American Homes 4 Rent
3.8
%
Berkeley Group Holdings PLC
3.6
%
Rayonier, Inc.
3.4
%
TOTAL
50.4
%

Allocations are subject to change without notice

ASSET ALLOCATION

as of March 31, 2024
BY REGION
FUND
North America
70.3
%
Europe
16.1
%
Asia Pac
10.5
%
Cash
3.1
%
BY TYPE
FUND
Residential
41.5
%
Commercial
34.5
%
Real Estate Services
20.9
%
Cash, Debt, & Options
3.1
%

RELATED MEDIA

Important Risk Disclosures

Third Avenue Funds are distributed by Foreside Fund Services, LLC.  Investors should consider the investment objectives, risks, charges and expenses carefully before investing. Third Avenue Funds are offered by prospectus only.  The prospectuses and summary prospectuses are available on this website or by calling (800) 443-1021.  Read the prospectus or summary prospectus carefully before investing.

FUND RISKS: In addition to general market conditions, the value of the Fund will be affected by the strength of the real estate markets. Factors that could affect the value of the Fund’s holdings include the following: overbuilding and increased competition, increases in property taxes and operating expenses, declines in the value of real estate, lack of availability of equity and debt financing to refinance maturing debt, vacancies due to economic conditions and tenant bankruptcies, losses due to costs resulting from environmental contamination and its related clean-up, changes in interest rates, changes in zoning laws, casualty or condemnation losses, variations in rental income, changes in neighborhood values, and functional obsolescence and appeal of properties to tenants. For a full disclosure of principal investment risks, please refer to the Fund’s Prospectus.

1 Active Share is the percentage of a fund’s portfolio that differs from the benchmark index. The FTSE EPRA/NAREIT Developed Real Estate Index was developed by the European Public Real Estate Association (EPRA), a common interest group aiming to promote, develop and represent the European public real estate sector, and the North American Association of Real Estate Investment Trusts (NAREIT), the representative voice of the US REIT industry. The index series is designed to reflect the stock performance of companies engaged in specific aspects of the North American, European and Asian Real Estate markets. The Index is capitalization-weighted.

2 5-year average for the period ended October 31, 2023.

Indices are not securities that can be purchased or sold, and their total returns are reflective of unmanaged portfolios. The returns include reinvestment of interest, capital gains and dividends.

Past performance does not guarantee future results.

The Morningstar Analyst RatingTM is not a credit or risk rating. It is a subjective evaluation performed by Morningstar’s manager research group, which consists of various Morningstar, Inc. subsidiaries (“Manager Research Group”). In the United States, that subsidiary is Morningstar Research Services LLC, which is registered with and governed by the U.S. Securities and Exchange Commission. The Manager Research Group evaluates funds based on five key pillars, which are process, performance, people, parent, and price. The Manager Research Group uses this five-pillar evaluation to determine how they believe funds are likely to perform relative to a benchmark over the long term on a risk adjusted basis. They consider quantitative and qualitative factors in their research. For actively managed strategies, people and process each receive a 45% weighting in their analysis, while parent receives a 10% weighting. For passive strategies, process receives an 80% weighting, while people and parent each receive a 10% weighting. For both active and passive strategies, performance has no explicit weight as it is incorporated into the analysis of people and process; price at the share-class level (where applicable) is directly subtracted from an expected gross alpha estimate derived from the analysis of the other pillars. The impact of the weighted pillar scores for people, process and parent on the final Analyst Rating is further modified by a measure of the dispersion of historical alphas among relevant peers. For certain peer groups where standard benchmarking is not applicable, primarily peer groups of funds using alternative investment strategies, the modification by alpha dispersion is not used.

The Analyst Rating scale is Gold, Silver, Bronze, Neutral, and Negative. For active funds, a Morningstar Analyst Rating of Gold, Silver, or Bronze reflects the Manager Research Group’s expectation that an active fund will be able to deliver positive alpha net of fees relative to the standard benchmark index assigned to the Morningstar category. The level of the rating relates to the level of expected positive net alpha relative to Morningstar category peers for active funds. For passive funds, a Morningstar Analyst Rating of Gold, Silver, or Bronze reflects the Manager Research Group’s expectation that a fund will be able to deliver a higher alpha net of fees than the lesser of the relevant Morningstar category median or 0. The level of the rating relates to the level of expected net alpha relative to Morningstar category peers for passive funds. For certain peer groups where standard benchmarking is not applicable, primarily peer groups of funds using alternative investment strategies, a Morningstar Analyst Rating of Gold, Silver, or Bronze reflects the Manager Research Group’s expectation that a fund will deliver a weighted pillar score above a predetermined threshold within its peer group. Analyst Ratings ultimately reflect the Manager Research Group’s overall assessment, are overseen by an Analyst Rating Committee, and are continuously monitored and reevaluated at least every 14 months.

For more detailed information about Morningstar’s Analyst Rating, including its methodology, please go to
https://shareholders.morningstar.com/investor-relations/governance/ Compliance–Disclosure/default.aspx.

The Morningstar Analyst Rating (i) should not be used as the sole basis in evaluating a fund, (ii) involves unknown risks and uncertainties which may cause the Manager Research Group’s expectations not to occur or to differ significantly from what they expected, and (iii) should not be considered an offer or solicitation to buy or sell the fund.

©2024 Morningstar. All Rights Reserved. The information contained herein: (1) is proprietary to Morningstar and/or its content providers; (2) may not be copied or distributed; and (3) is not warranted to be accurate, complete or timely. Neither Morningstar nor its content providers are responsible for any damages or losses arising from any use of this information. Past performance does not guarantee future results.

Overall Morningstar rating, as of May 31, 2024, vs. 175 funds. TAREX was rated against the following numbers of Global Real Estate Category Funds over the following time periods: 175 funds in the last three years, 173 funds in the last five years and 114 funds in the last ten years. With respect to these Global Real Estate Funds, TAREX received a Morningstar Rating of 5 stars for the three-year period, 4 stars for the five-year period and 3 stars for the ten-year period, respectively. Ratings based on risk adjusted return. Past performance is no guarantee of future results.

The Morningstar Rating™ for funds, or “star rating,” is calculated for mutual funds, variable annuity and variable life subaccounts, exchange-traded funds, closed-end funds, and separate accounts) with at least a three-year history. Exchange-traded funds and open-ended mutual funds are considered a single population for comparative purposes. It is calculated based on a Morningstar Risk-Adjusted Return measure that accounts for variation in a managed product’s monthly excess performance, placing more emphasis on downward variations and rewarding consistent performance. The top 10% of products in each product category receive 5 stars, the next 22.5% receive 4 stars, the next 35% receive 3 stars, the next 22.5% receive 2 stars, and the bottom 10% receive 1 star. The Overall Morningstar Rating for a managed product is derived from a weighted average of the performance figures associated with its three-, five-, and 10-year (if applicable) Morningstar Rating metrics. The weights are: 100% three-year rating for 36-59 months of total returns, 60% five-year rating/40% three-year rating for 60-119 months of total returns, and 50% 10-year rating/30% five-year rating/20% three-year rating for 120 or more months of total returns. While the 10-year overall star rating formula seems to give the most weight to the 10-year period, the most recent three-year period has the greatest impact because it is included in all three rating periods.

©2024 Morningstar. All Rights Reserved. The information contained herein: (1) is proprietary to Morningstar and/or its content providers; (2) may not be copied or distributed; and (3) is not warranted to be accurate, complete or timely. Neither Morningstar nor its content providers are responsible for any damages or losses arising from any use of this information. Past performance does not guarantee future results.

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For more information regarding Separate and Sub-Advised Accounts, including GIPS-compliant performance please contact us at clientservice@thirdave.com.

DATE OF INCEPTION

April 2018

PORTFOLIO MANAGERs

Matthew Fine, CFA
Jason Wolf, CFA
Portfolio Manager
View Bio >
Matthew Fine, CFA
Ryan Dobratz, CFA
Portfolio Manager
View Bio >

PORTFOLIO CHARACTERISTICS

as of March 31, 2024
Weighted Market Cap
$25.6B
Median Market Cap
$13.8B
Price to Book
1.2x

Key Differentiators

Total Return Focus

We focus on total return and favor capital appreciation over current income.

Expansive Real Estate Universe

We invest in a wider-set of businesses with exposure to Commercial, Residential and Real Estate Services.

Long-Term Value-Oriented Holdings

We target securities trading at discounts to Net-Asset Value issued by enterprises that are well-capitalized, well-managed, with prospects to compound over time.  

High Active Share

The portfolio is concentrated around a select-set of securities (approximately 20 positions).

Tenured Managers

The Fund is managed by an experienced Portfolio Management team that implements a repeatable process with personal capital invested in the strategy.

Objective:

Third Avenue’s Real Estate Select strategy seeks long-term capital appreciation by investing in the securities of premier real estate and real estate-related businesses in developed markets. The strategy is available as a Separately Managed Account and takes a more “concentrated approach” while striving to remain “fully invested” around core holdings.

Top 10 Holdings

as of March 31, 2024
PORTFOLIO
Lennar Corp.
8.9
%
Brookfield Corp.
7.7
%
D.R. Horton, Inc.
7.6
%
Weyerhaeuser Co.
6.8
%
U-Haul Holding Co.
5.8
%
CBRE Group Inc.
5.6
%
Wharf Holdings
5.1
%
Grainger PLC
4.9
%
Five Point Holdings, LLC
4.7
%
Prologis, Inc.
4.6
%
TOTAL
61.7
%

Allocations are subject to change without notice

ASSET ALLOCATION

as of March 31, 2024
BY REGION
PORTFOLIO
North America
67.9
%
Europe
17.4
%
Asia Pac
12
%
Cash
2.7
%
BY TYPE
PORTFOLIO
Residential
42.9
%
Real Estate Services
27.9
%
Commercial
26.6
%
Cash, Debt, & Options
2.6
%

COUNTRY EXPOSURE

as of March 31, 2024

Important Risk Disclosures

Sources for data noted above are from FactSet as of the date specified. Material presented is based on composite holdings and not a representative account. The firm maintains a complete list of composite descriptions, which are available upon request.  

Investors should consider the investment objectives, risks charges and expenses carefully before investing.  Risks that could negatively impact returns include: fluctuations in currencies versus the US dollar, political/social/economic instability in foreign countries where investments are made, lack of diversification and adverse general market conditions.

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MORNINGSTAR RATING

Cheryl Smith, CFA, PhDCheryl Smith, CFA, PhDCheryl Smith, CFA, PhDCheryl Smith, CFA, PhDCheryl Smith, CFA, PhDMorningstar Bronze rating
Overall Morningstar rating, as of June 30, 2023, vs. 444 funds. Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam, quis nostrud exercitation ullamco laboris nisi ut aliquip ex ea commodo consequat. Duis aute irure dolor in reprehenderit in voluptate velit esse cillum dolore eu fugiat nulla pariatur. Excepteur sint occaecat cupidatat non proident, sunt in culpa qui officia deserunt mollit anim id est laborum.