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.”
Prologis, Inc. (NYSE:PLD) is not on our list of 40 Most Popular Stocks Among Hedge Funds Heading Into 2026. According to our database, 54 hedge fund portfolios held Prologis, Inc. (NYSE:PLD) at the end of the fourth quarter, compared to 59 in the previous quarter. While we acknowledge the risk and potential of Prologis, Inc. (NYSE:PLD) as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. If you are looking for an AI stock that is more promising than Prologis, Inc. (NYSE:PLD) and that has 10,000% upside potential, check out our report about this cheapest AI stock.
In another article, we covered Prologis, Inc. (NYSE:PLD) and shared a list of best real estate stocks to buy according to hedge funds. In addition, please check out our hedge fund investor letters Q4 2025 page for more investor letters from hedge funds and other leading investors.
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Disclosure: None. This article is originally published at Insider Monkey.
