Emerging Opportunities in International Real Estate: A Closer Look

The Third Avenue International Real Estate Value Fund has released its quarterly report for the period ending March 31, 2024. Despite a return of -1.7% (after fees) compared to the FTSE/EPRA NAREIT Global ex US Index’s -2.43%, the Fund has performed well in the past year. The Fund generated a return of +8.59% (after fees) in contrast to the Index’s +4.49% (before fees) over the past year. Over the last three years, the Fund has consistently outperformed the Index by an average of 8.5% annually.

During the quarter, Fund Management attended conferences and met with senior executives from nearly half of the Fund’s holdings. This due diligence reaffirmed their belief that the Fund owns the best-positioned international real estate entities. Three key investment themes identified were nearshoring growth, undersupplied residential markets in Western regions, and emerging self-storage platforms. Let’s explore these opportunities in more detail.

Nearshoring Growth: An Advantageous Position

Nearshoring in Mexico has resulted in high tenant demand that surpasses new supply. Public companies held by the Fund are well-positioned to benefit from the rental growth and attractive profits on new development. Although high interest rates pose a risk, industrial cap rates are decreasing as institutional demand for assets increases. Terrafina, a public industrial REIT, is even considering privatization or merger due to its growing popularity.

Similar nearshoring trends can also be observed in Central and Eastern Europe. CTP, a Netherlands-listed industrial owner and developer, has experienced significant rent increases and decreased construction costs in the region. These factors are contributing to the development profits of CTP’s extensive pipeline.

Undersupplied Residential Markets: A Political Challenge

In Western regions such as Australia, Canada, Ireland, the UK, and Spain, the supply-demand imbalance is becoming politically problematic. Migration and subdued construction have resulted in a shortage of housing, driving rent growth and increasing home values. Alberta, Canada, has seen careful rent control to maintain low turnover and minimize tenant friction.

In Spain, affordable home prices have led to a thriving new home construction market. Aedas Homes, one of the Fund’s investments, is unlocking significant value in its landbank by bringing new supply to the market. The UK’s institutional multifamily sector also presents growth opportunities, with Grainger targeting a doubling of earnings in the next three years.

Emerging Self-Storage Platforms: Untapped Potential

Outside of the US, the self-storage real estate market remains relatively underdeveloped. With low supply and potential for increased demand, various advancements such as contactless leasing and AI deployment are improving operating margins. Larger platforms like National Storage REIT, Big Yellow Group Plc, Storage Vault, and Shurgard Self Storage Ltd. are reaping the benefits of economies of scale and platform synergies.

Shurgard’s recent acquisition of Lok N Store in the UK further solidifies its market position. The Fund’s investments in self-storage development across the UK, Western Europe, Australia, and Canada are expected to generate attractive yields.


The Third Avenue International Real Estate Value Fund has identified promising opportunities in nearshoring growth, undersupplied residential markets, and emerging self-storage platforms. Despite short-term fluctuations, the Fund has consistently delivered strong performance compared to the Index. By strategically investing in these sectors, the Fund aims to capitalize on the potential for growth and generate favorable returns for its shareholders.

第三大道国际房地产价值基金发布了截至2024年3月31日的季度报告。尽管在费用后的回报率为-1.7%,而FTSE/EPRA NAREIT全球除美国指数为-2.43%,但该基金在过去一年中表现良好。该基金在过去一年中创造了+8.59%的回报率(在扣除费用之前),而指数在扣除费用之前的回报率为+4.49%。在过去的三年中,该基金的回报率平均每年超过指数8.5%。







在西班牙,可负担的房价导致了蓬勃发展的新房建筑市场。该基金的投资之一Aedas Homes通过向市场提供新的供应来释放其土地储备的显著价值。英国的机构多户住宅部门也提供了增长机会,Grainger计划在未来三年内使收益翻倍。


在美国以外的自存储房地产市场仍相对不发达。低供应和潜在的需求增加,诸如无接触租赁和人工智能部署等各种进展正在改善运营利润率。像National Storage REIT、Big Yellow Group Plc、Storage Vault和Shurgard Self Storage Ltd.这样的大型平台正在从规模经济和平台协同效益中获益。

Shurgard最近收购了英国的Lok N Store,进一步巩固了其市场地位。该基金对英国、西欧、澳大利亚和加拿大自存储开发的投资预计将产生可观的收益。