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 Real Estate Value Fund highlighted Prologis, Inc. (NYSE:PLD). Prologis, Inc. (NYSE:PLD) is a leader in logistics real estate focuses on high-barrier, high-growth markets. On March 06, 2026, Prologis, Inc. (NYSE:PLD) stock closed at $134.54 per share. One-month return of Prologis, Inc. (NYSE:PLD) was -2.00%, and its shares gained 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 stated the following regarding Prologis, Inc. (NYSE:PLD) 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: Prologis, Inc. (NYSE:PLD), the largest owner of modern logistics and industrial properties globally sponsoring a REIT that was listed in China to focus on investing in strategic properties within the “Greater Bay” region. The offering further expands the $65 billion investment management platform at Prologis, which is likely to scale up more in the year ahead, alongside the company’s focus on unlocking data center opportunities alongside institutional partners.”
