Third Avenue and Longevity Partners Form Strategic Relationship to Enhance ESG Standards
December 14, 2021
NEW YORK, NY AND AUSTIN, TX — Third Avenue Management LLC (“Third Avenue” or “the Firm”), a New York-based investment advisor, and Longevity Partners (“Longevity”), a global, multi-disciplinary energy and sustainability consultancy, today announced the formation of a strategic relationship to strengthen Third Avenue’s framework for assessing Environmental, Social, and Governance (“ESG”) factors within publicly-traded real estate securities.
Third Avenue will leverage Longevity’s industry leading expertise to enhance its existing ESG process and proprietary scoring system for analyzing publicly-traded real estate companies. Third Avenue and Longevity will establish an ongoing review process unique to real estate securities to ensure the integrity of Third Avenue’s ESG processes and strategies–including the Third Avenue International Real Estate Value Fund. Access to Longevity’s global network will also assist Third Avenue in adapting to a rapidly evolving regulatory environment.
“We are excited to join forces with Longevity Partners, a leading provider of social and environmental sustainability solutions to the property markets, as Third Avenue continues to strategically enhance its real estate platform,” said Ryan Dobratz, Co-Portfolio Manager of the Third Avenue Real Estate Value Fund and Member of the Firm’s Management Committee. “By incorporating Longevity’s resources into the Firm’s investment process, we believe Third Avenue will be uniquely placed in its pursuit of long-term, sustainable, and value-oriented opportunities in the securities of real estate and real asset businesses globally.”
“With sustainability firmly established as a key risk and opportunity in global real estate investing, it is crucial to manage listed real estate investments with a deep understanding of ESG factors,” said Quentin Velleley, Portfolio Manager of the Third Avenue International Real Estate Value Fund. “For more than five years, the International Real Estate Value Fund has incorporated an ESG approach to investing. By collaborating with Longevity, a leader in ESG advisory within direct real estate, we expect to remain at the forefront of rapidly evolving sustainability trends, and for our international real estate strategy to be increasingly recognized for its distinct ESG approach.”
“We’re delighted to announce this fantastic partnership with Third Avenue who are integrating elements of Longevity’s responsible investing methodology in their listed real estate investment process,” said Etienne Cadestin, Founder and CEO of Longevity Partners. “Our technical knowledge of net zero carbon buildings and portfolios makes Longevity Partners a popular choice to complete bespoke ESG performance assessments for acquisitions and disposals to better understand the holistic transition and adaptations costs. This project is part of Longevity’s wider diversification strategy to support the transition to green funds across all investment types.”
“Longevity Partners has spent nearly a decade supporting the development and execution of ESG and net zero carbon strategies on behalf of our clients around the world. Our shared goal is to create long-term value for our partners through more resilient real estate assets,” said Sarah Welton, Director of US Business Growth at Longevity. “The US team is excited that our extensive knowledge of real estate sustainability can help influence Third Avenue’s investment strategy and ultimately, positively affect the US capital markets.”
Third Avenue and Longevity have been working together since September 2021 to further advance the Firm’s existing ESG processes. The partnership plans to provide additional disclosures on key developments during 2022 as the Firm strives to raise ESG standards within its real estate strategies.
About Longevity Partners
Longevity Partners is a multi-disciplinary energy and sustainability consultancy that was founded in 2015 to support businesses in the transition to a low carbon economy across the UK, Europe and worldwide. Based in London, Paris, and Amsterdam, we provide strategic guidance, compliance support and innovative solutions to property investors, developers and occupiers. We enable them to achieve their energy and resource efficiency targets, reduce their environmental impact, future-proof their businesses and unlock their full commercial potential. Longevity Partners’ believes in long-term partnerships in order to drive the transition to a low carbon economy through the implementation of innovative tactics. We provide our clients with solutions to improve their competitiveness, grow revenues and better address the changing needs of their clients.
About Third Avenue Management
Third Avenue Management LLC is a New York-based investment advisory firm founded in 1986 by legendary investor Martin J. Whitman. For more than 35 years, the Firm has consistently pursued a modern-value approach to investing by focusing on the company’s balance sheet, the value of its underlying assets, the discounted price of its securities, and the ability of the enterprise to increase its corporate net worth over time. Today, the Firm is partnered with Affiliated Managers Group, Inc. (NYSE:AMG) and has more than $1.50 billion in assets under management across its four core strategies – Global Value (TAVFX), Small-Cap (TASCX), Real Estate (TAREX), and International Real Estate (REIFX) – which are available to investors through Mutual Funds, UCITS, Separate Accounts, and Sub-Advisory Arrangements.
Third Avenue Funds are offered only by prospectus. The prospectus contains important information, including investment objectives, risks, advisory fees and expenses. Please read the Prospectus carefully before investing or sending money. For a current Prospectus please visit our Fund Literature page on our website at www.thirdave.com/fund-literature/, or call 800-443-1021.
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. The Adviser’s use of its ESG framework could cause it to perform differently compared to funds that do not have such a policy. The criteria related to this ESG framework may result in the Fund’s forgoing opportunities to buy certain securities when it might otherwise be advantageous to do so, or selling securities for ESG reasons when it might be otherwise disadvantageous for it to do so. For a full disclosure of principal investment risks, please refer to the Fund’s Prospectus.
Distributor of Third Avenue Funds: Foreside Fund Services, LLC.
Third Avenue Management
Client Services Department