Third Avenue Management, an investment management company based in New York City, released its “Third Avenue Real Estate Value Fund” fourth-quarter 2025 investor letter. A copy of the letter can be downloaded here. The Third Avenue Real Estate Value Fund posted a return of +11.61% (after fees) in the calendar year, compared to the MSCI ACWI IMI Core Real Estate Index’s +9.86% (before fees) return. Since its inception in 1998, the Fund has generated an annualized return of +8.96% (after fees). This year marks the 40th anniversary of Third Avenue Management, highlighting its commitment to its core principles and its adaptability in seeking long-term wealth creation for its clients. The Fund had 40.3% of its capital invested in U.S.-based companies, 27.5% in North American-based companies, 27.6% in International Real Estate companies, and the remaining 4.6% in Cash, Debt & Options. The Fund anticipates that the next five years may resemble the early 2000s, a time characterized by attractive valuations in U.S.-listed real estate. Please review the Portfolio’s top five holdings to gain insights into their key selections for 2025.
In its fourth-quarter 2025 investor letter, Third Avenue Small-Cap Value Fund highlighted stocks like Lennar Corporation (NYSE:LEN). Lennar Corporation (NYSE:LEN) is a leading home builder in America operates primarily under the Lennar brand. On March 06, 2026, Lennar Corporation (NYSE:LEN) stock closed at $101.17 per share. One-month return of Lennar Corporation (NYSE:LEN) was -11.32%, and its shares lost 19.21% over the past 52 weeks. Lennar Corporation (NYSE:LEN) has a market capitalization of $24.988 billion.
Third Avenue Small-Cap Value Fund stated the following regarding Lennar Corporation (NYSE:LEN) in its fourth quarter 2025 investor letter:
“Coincidentally, the recent quarter was one of the most active periods of resource conversion for the Real Estate Value Fund holdings in many years. As a matter of fact, more than one-third of the underlying portfolio engaged in (or announced) such initiatives during the period, with some of the most notable including: Lennar Corporation (NYSE:LEN), the second largest homebuilder in the U.S. completed an exchange offer for its remaining 20% stake in Millrose Properties, a “land banking” company that Lennar spun-out earlier in the year. The transaction effectively acted as an accelerated share repurchase, with Lennar exchanging the Millrose shares for 5% of its outstanding A shares. Not only does this deal move Lennar closer to a “land light” model, but it also seems to enhance the company’s long-term earnings potential on a per-share basis.”
