For nearly 25 years, the Real Estate Value Fund’s versatile approach “has always been distinct, but rarely as strategic” and “has vaulted the fund to the top of Morningstar’s Global Real Estate category” as noted in this Citywire feature by John Coumarianos.
Key takeaways include:
- The Real Estate Value Fund’s flexible approach has allowed them to own non-REITs and residential-related stocks, while sidestepping the problems in office and retail REITs… “fundamentals for the US-residential markets have rarely been as compelling with record low levels of inventory and accelerating demand from the ‘millennial cohort.’
- The fund has been invested in some of the leading timber landowners for the better part of a decade…there are several emerging opportunities to monetize timber lands through alternative uses such as generating carbon credit revenues for deferred harvest, leasing land for carbon storage or renewable generation, and converting land for residential or commercial use given migration patterns.
- Real Estate Services firms have been an essential component of the commercial property markets for centuries, essentially acting as a toll booth on activity by advising property owners and occupiers on leasing, financing, and investment sales transactions.
- The fund has certain positions that may be considered to be more opportunistic in nature including the bonds of Five Point Holdings (the largest land developer in coastal California) and the preferred equity of Fannie Mae and Freddie Mac with other opportunities relating to commercial real estate on the radar.
Third Avenue Funds are offered by prospectus only. The prospectus contains important information, including investment objectives, risks, advisory fees and expenses. Please read the prospectus carefully before investing in the Funds. 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 updated information or a copy of our prospectus, please call 1-800-443- 1021 or go to our website at www.thirdave.com. For a full disclosure of principal investment risks, please refer to the Fund’s Prospectus.
Mutual fund investing involves risk, including loss of principal.
Past performance is no guarantee of future results. Mutual Fund returns include reinvestment of all distributions. Returns are annualized for periods longer than one year. The returns represent 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 https://thirdave.com/pricing/, for the most recent standard performance please click here.
Please see top Ten Holdings here which accounts for approximately 55% of assets owned by the Fund as of 6/30/2023. Earnings growth is not a forecast of the Fund’s future performance. Holdings and dividends are subject to change and are not a recommendation to buy or sell any security.
Morningstar Rankings represent a fund’s total return percentile rank relative to all funds in the same Morningstar Category for the same time period. The highest (or most favorable) percentile rank is 1%, and the lowest (or least favorable) percentile rank is 100%. It is based on Morningstar total return, which includes both income and capital gains or losses and is not adjusted for sales charges or redemption fees. Past performance does not guarantee future results. Rankings shown for Institutional Share Class only: rankings for other share classes may differ.
As of 8/1/23, TAREX was ranked in the 3rd percentile out of 195 funds in the Global Real Estate category based on the prior 12 months trailing return.
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Distributor of Third Avenue Funds: Foreside Fund Services, LLC.