Third Avenue Management, an investment management firm 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 a return of +9.86% (before fees) for the MSCI ACWI IMI Home Real Estate Index. 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 Way Management, highlighting its core principles and its adaptability in the pursuit of long-term wealth creation for its clients. The fund invests 40.3% of its capital in US-based companies, 27.5% in North American-based companies, 27.6% in international real estate companies, and the remaining 4.6% in cash, debt and options. The fund predicts that the next five years could be similar to the early 2000s, a time characterized by attractive valuations in US-listed real estate. Please review the portfolio’s top five properties to gain insight into their key choices for 2025.
In a letter to investors in the fourth quarter of 2025, Third Avenue Real Estate Value Fund pointed out that Prologis, Inc. (NYSE:PLD). Prologis, Inc. (NYSE:PLD) is a logistics real estate leader focused on high-disruption, high-growth markets. On March 06, 2026, Prologis Inc. (NYSE:PLD) stock closed at $134.54 per share. Prologis Inc. (NYSE:PLD)’s one-month return was -2.00%, and its shares have grown 14.14% over the past 52 weeks. Prologis Inc. (NYSE:PLD) has a market capitalization of $125.06 billion.
Third Avenue Real Estate Value Fund made the following comments about Prologis Inc. (NYSE:PLD) in its fourth quarter 2025 investor letter:
“Incidentally, the last quarter was the most active period of resource turnover for holding real estate value funds in many years. In fact, more than a third of the core portfolio engaged in (or announced) such initiatives during the period, some of the most notable including: Prologis, Inc. (NYSE:PLD), the world’s largest owner of modern logistics and industrial properties, is sponsoring a REIT listed in China to focus on investing in strategic properties in the “Greater Bay” region. The offering further expands Prologis’ $65 billion investment management platform, which is likely to expand further next year, in addition to the company’s focus on unlocking data center opportunities with institutional partners.
