Third Avenue Management, an investment management company based in New York City, recently released its “Third Avenue Real Estate Value Fund” fourth-quarter 2025 investor letter. The letter, which can be downloaded here, revealed that the Fund posted a return of +11.61% (after fees) in the calendar year, outperforming the MSCI ACWI IMI Core Real Estate Index. With an annualized return of +8.96% since its inception in 1998, Third Avenue Management continues to demonstrate its commitment to long-term wealth creation for its clients.
The Fund’s portfolio allocation includes 40.3% in U.S.-based companies, 27.5% in North American-based companies, 27.6% in International Real Estate companies, and 4.6% in Cash, Debt & Options. Looking ahead, Third Avenue Management anticipates that the next five years may present opportunities reminiscent of the early 2000s, with attractive valuations in U.S.-listed real estate.
In its fourth-quarter 2025 investor letter, the Third Avenue Small-Cap Value Fund highlighted Lennar Corporation (NYSE:LEN) as a key stock pick. Lennar Corporation, a leading home builder in America, saw its stock close at $101.17 per share on March 6, 2026. Despite a one-month return of -11.32% and a 19.21% loss over the past 52 weeks, Lennar Corporation boasts a market capitalization of $24.988 billion.
The investor letter specifically discussed Lennar Corporation’s recent exchange offer for its remaining 20% stake in Millrose Properties, a land banking company spun out by Lennar. This strategic move effectively acted as an accelerated share repurchase, with Lennar exchanging the Millrose shares for 5% of its outstanding A shares. By moving closer to a “land light” model, Lennar Corporation aims to enhance its long-term earnings potential on a per-share basis.
As Third Avenue Management celebrates its 40th anniversary, the company’s focus on core principles and adaptability in seeking out opportunities for long-term wealth creation remains unwavering. By analyzing the Fund’s top five holdings, investors can gain valuable insights into the key selections for 2025. With a track record of success and a strategic approach to investment management, Third Avenue Management continues to position itself as a trusted partner for investors seeking sustainable growth in the real estate market.
