T
hird Avenue International Real Estate Value Fund – Q3 2025 Report
(Quarter ended 30 Sept 2025)
**Performance**
The Fund delivered a net return of +3.96 % (after fees). The benchmark, the FTSE EPRA/NAREIT Global ex US Index, returned +4.03 % (before fees) over the same period.
**Investment Philosophy**
We remain selective with listed real‑estate companies that have significant emerging‑market exposure. Key criteria include:
* Experienced, shareholder‑aligned management.
* Strong balance sheets with ample liquidity and local banking ties.
* Proven capital‑allocation discipline that creates shareholder value.
* Focus on high‑quality assets positioned to benefit from cyclical or structural growth.
**Highlighted Holdings**
*CTP NV (OTCPK:CTPVF)* – Dutch‑based, 35 % of its portfolio in Eastern Europe. Owns and develops 13.5 M m² of industrial space, with a 2 M m² pipeline and a 13 M m² landbank. Capital‑markets day underscored:
1. Persistent near‑shoring trend.
2. Strong tenant demand and a 16 % ROE.
3. Raised growth targets, projecting mid‑teens EPS growth over five years.
CTP’s leasing mix now includes 20 % Asian‑headquartered tenants, reflecting the “China plus one” strategy. Demand for Southeast‑Asian locations (Malaysia, Thailand, Vietnam) is rising; Vietnam saw a 33 % jump in foreign investment in H1 2025.
*Amata Corporation (OTC:AMCZF)* – Thai‑listed developer of large‑scale industrial estates in Thailand’s EEC and Vietnam. Operates two flagship estates in the EEC and four in Vietnam, covering 7,000 acres. Earnings grew 20 % annually for three years; balance sheet remains robust. We purchased at roughly half the conservative NAV estimate and a 6× P/E versus a 12× ten‑year average, reflecting a discount driven by U.S. trade‑policy uncertainty. Amata’s integrated model now generates ~50 % of earnings from recurring rents, utilities, and services. The company offers a ~6 % dividend yield and is well‑positioned to capture the “China plus one” momentum.
*Shurgard Self‑Storage Ltd. (OTCPK:SSSAF)* – Owns 338 self‑storage sites across the UK and Europe. Acquired the UK portfolio “Lok N Store” for £600 m last year. Leveraging its platform has lifted occupancy from 67 % to 77 %, cut staff per site from 3.8 to 2.5, and expanded unit counts by ~4 %. Shurgard’s scale and operational efficiencies make it a high‑conviction holding.
*Big Yellow Group PLC (OTCPK:BYLOF)* – 109 self‑storage assets mainly around London, with 14 in development. Blackstone Europe is reportedly considering a cash offer. The share price offered a 45 % premium to our assessed £14.4 NAV; independent JLL appraisals valued the portfolio at £13.6 NAV, suggesting additional upside if sold as a portfolio. Big Yellow’s conservative balance sheet (13 % net debt‑to‑capital) and platform value position it well for future lease‑ups, development, and potential acquisitions.
**Sector Themes**
1. **Industrial Near‑Shoring** – 20 % of the Fund’s exposure, heavily weighted toward Central & Eastern Europe, Mexico, and Southeast Asia.
2. **Deep‑Value & Special Situations** – Ongoing focus on undervalued assets with turnaround potential.
3. **Undersupplied Residential** – Targeting markets with limited supply and strong demand fundamentals.
4. **Immature Self‑Storage** – 20 % of exposure; attractive due to low occupancies, high growth potential, and scale benefits.
**Geographic Allocation**
Asia‑Pacific (incl. Japan & Australia) now represents 50 % of assets. The UK & Europe account for ~33 %, with the remainder in Canada and Latin America.
**Outlook**
The Fund’s disciplined emerging‑market approach, combined with structural drivers such as near‑shoring and “China plus one,” supports continued growth. We remain optimistic about the potential for further privatizations of high‑platform assets like Big Yellow, and we expect the self‑storage sector to benefit from urbanization and rising consumer storage needs.
**Contact**
For questions or comments, email [email protected].
**Disclaimer**
This communication is not an offer or solicitation to buy or sell securities. The information herein is based on sources believed reliable but is not guaranteed. Forward‑looking statements are subject to risks and uncertainties that could cause actual results to differ materially. Past performance is not indicative of future results. For full risk details, see the Fund’s prospectus.
