SVLPF - Third Avenue Real Estate Value Fund Q4 2023 Portfolio Manager Commentary

2024-02-01 00:56:00 ET

Summary

• Third Avenue’s Real Estate Value strategy has sought out value-oriented opportunities through investments in the securities of well-capitalized and strategic real estate enterprises on a global basis.
• For the most recent calendar year, the Fund generated a return of +23.27% (after fees) versus +10.85% (before fees) for the Fund’s most relevant benchmark, the FTSE EPRA NAREIT Developed Index.
• After factoring in the most recent activity, the Fund had approximately 38.5% of its capital invested in Residential Real Estate companies with strong ties to the U.S. and U.K. residential markets.
• Fund Management has concentrated the portfolio on issuers with securities available at modest prices relative to conservative estimates of their corporate net worth.

Dear Fellow Shareholders,

We are pleased to provide you with the Third Avenue Real Estate Value Fund's (the "Fund") report for the quarter ended December 31, 2023. For the most recent calendar year, the Fund generated a return of +23.27% (after fees) versus +10.85% (before fees) for the Fund's most relevant benchmark, the FTSE EPRA NAREIT Developed Index. ¹

The primary contributors to performance during the most recent quarter included investments in some of the Fund's core holdings, including those involved with Residential Real Estate (Lennar Corp. ( LEN ), D.R. Horton ( DHI ), and Berkeley Group ( BKGFY )), Commercial Real Estate (U-Haul Holdings Co. ( UHAL ), Prologis ( PLD ), and Big Yellow Group ( BYLOF )), and Real Estate Services (CBRE Group ( CBRE ) and Brookfield Corp.). Notwithstanding, these gains were slightly offset by detractors during the period, which included the Fund's investments in certain Real Estate Operating Companies (CK Asset Holdings and Trinity Place Holdings). Further details on a number of these holdings, other significant developments, and overall portfolio positioning are included herein....

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