Third Avenue Management, an investment management firm, published its “Real Estate Value Fund” fourth quarter 2021 investor letter – a copy of which can be downloaded here. For the most recent calendar year, the Fund generated a return of +30.54% (after fees) versus +27.21% (before fees) for the Fund’s most relevant benchmark, the FTSE EPRA NAREIT Developed Index. Spare some time to check the fund’s top 5 holdings to have a clue about their top bets for 2022.
Third Avenue Management Real Estate Value Fund, in its Q4 2021 investor letter, mentioned InvenTrust Properties Corp. (NYSE: IVT) and discussed its stance on the firm. InvenTrust Properties Corp. is an Oak Brook, Illinois-based real estate investment trust company with a $1.8 billion market capitalization. IVT delivered a -7.01% return since the beginning of the year, while its 12-month returns are up by 93.51%. The stock closed at $25.35 per share on February 4, 2022.
Here is what Third Avenue Management Real Estate Value Fund has to say about InvenTrust Properties Corp. in its Q4 2021 investor letter:
“During the quarter, the Third Avenue Real Estate Value Fund entered into such a transaction by purchasing the common stock of InvenTrust Properties at prices below where the company had offered to repurchase shares via a tender offer. However, unlike traditional “risk arbitrageurs”, Fund Management’s intentions were to forego the buyback in anticipation of more value being recognized as the management team executed on its business plan for this recently listed business.
Founded in 2004, InvenTrust Properties Corp. (“InvenTrust”) historically operated as a privately-held Real Estate Investment Trust (“REIT”) that invested in a diverse set of commercial properties. However, the entity seemingly initiated a process to create liquidity for its investor base around 2015 when it internalized its management agreement with Inland Real Estate Group and subsequently spun-off its hotel assets (Xenia Corp.) and office properties (Highland REIT) into separate companies. The remaining shopping center portfolio served to form the InvenTrust platform, which was finally listed as a publiclytraded REIT during the quarter.
At the time of the listing, InvenTrust controlled nearly 10 million square feet of predominantly grocery-anchored retail properties that were approximately 93% occupied and located in select Sunbelt markets including Austin, Miami, Raleigh, and Tampa. The company also had very modest debt levels allowing it to launch a “tender offer” to purchase up to 4.0 million shares to support the transition to the public markets…” (Click here to see the full text)
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Our calculations show that InvenTrust Properties Corp. (NYSE: IVT) failed to obtain a mark on our list of the 30 Most Popular Stocks Among Hedge Funds. InvenTrust Properties Corp. (NYSE: IVT) delivered a 2.84% return in the past 3 months.
You can find other letters from hedge funds and prominent investors on our hedge fund investor letters 2021 Q4 page.
Disclosure: None. This article is originally published at Insider Monkey.
