Third Avenue International Real Estate Value Fund Q2 2026 Letter Highlights Undervalued International REITs
Third Avenue Management's Q2 2026 letter reports the International Real Estate Value Fund returned +2.23% (after fees), slightly underperforming the MSCI ACWI ex USA IMI Core Real Estate Index's +2.64%. The fund trades at about 10 times earnings, roughly half the valuation of US REITs, despite similar growth. Management capitalized on increased geopolitical dispersion from the Iran conflict to add two new positions, deepening exposure to structurally undersupplied residential and industrial real estate. A key new investment is Neinor Homes, Spain's largest homebuilder after acquiring AEDAS Homes, benefiting from strong housing demand, low mortgage rates, and a shareholder return plan with dividends exceeding 15%. Existing positions include Glenveagh Properties (Ireland) and TAG Immobilien (Germany/Poland). The fund has outperformed its index by 5.59% annually over the last decade.
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