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 2025 Q4 investor letter, Third Avenue Small-Cap Value Fund highlighted stocks like Lennar Corporation (NYSE:LEN). Lennar Corporation (NYSE:LEN) is a leading homebuilder in America, operating primarily under the Lennar brand. On March 06, 2026, Lennar Corporation (NYSE:LEN) stock closed at $101.17 per share. Lennar Corporation (NYSE:LEN)’s one-month return 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 said the following about Lennar Corporation (NYSE:LEN) 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: Lennar Corporation (NYSE:LEN), the second-largest U.S. homebuilder, has completed an exchange offer for its remaining 20% stake in Millrose Properties, the “land banking” firm that Lennar spun off earlier in the year. The transaction effectively acted as an accelerated share repurchase, with Lennar exchanging Millrose shares for 5% of its remaining A shares. Not only does this deal move Lennar closer to a “light on Earth” model, but it looks set to grow the company’s long-term earnings per share.
