Real Estate Value Fund T H I R D AV E N U E

Quarterly Update for period ended June 30, 2016

o Team utilizes a fundamental, bottom-up approach to investing in undervalued global real estate securities

o Seeks attractive total returns with a focus on capital appreciation over income

o Flexible mandate to invest in securities of real estate and real estate related companies worldwide and across the capital structure

o Diversified across geographies, sectors and property types

o Differentiated portfolio with a high active share versus domestic and global benchmarks

Fund Highlights

One Month

Three Months

Year-to-Date One Year Three Year Five Year Ten Year Fifteen Year Since

Inception

Third Avenue Real Estate Value Fund (Institutional Class)1 -1.22% 1.82% 1.39% -3.78% 6.66% 7.99% 4.28% 8.91% 10.68%

Third Avenue Real Estate Value Fund (Investor Class)2 -1.26% 1.76% 1.26% -4.02% 6.39% 7.73% -- -- 9.30%

FTSE EPRA/NAREIT Developed Index3 3.75% 3.74% 9.38% 12.57% 8.94% 8.62% 5.00% 9.80% 10.46%

Performance

Forest City Enterprises, Inc., Class A 5.2%

Weyerhaeuser Co. 5.1%

Westfield Corp. 5.1%

Land Securities Group plc 5.1%

Rayonier, Inc. 4.8%

FivePoint Holdings LLC 4.7%

Cheung Kong Property Holdings, Ltd. 4.2%

Macerich Co. 4.2%

First Industrial Realty Trust, Inc. 4.0%

Henderson Land Development Co., Ltd. 3.9%

Total 46.3%

Top 10 Holdings*

Total Net Assets $2.0 Billion

Number of Equity Holdings 32

Weighted Market Cap4,5 $13.48 Billion

Median Market Cap4,5 $5.70 Billion

Price-to-Book4,5 1.07x

Dividend Yield4,5 2.60%

Portfolio Turnover6 10%

Active Share4,7 91.01%

Portfolio Characteristics

1. Institutional Share Class Inception Date: September 17, 1998. 2. Investor Share Class Inception Date: December 31, 2009. 3. The FTSE EPRA/NAREIT Developed Index was developed by the European Public Real Estate Association (EPRA), a common interest group aiming to promote, develop and represent the

European public real estate sector, and the North American Association of Real Estate Investment Trusts (NAREIT), the representative voice of the US REIT industry. The index series is designed to reflect the stock performance of companies engaged in specific aspects of the North American, European and Asian Real Estate markets. The Index is capitalization-weighted. Index performance reported since inception of Institutional Share Class.

4. Source: FactSet Portfolio Analytics. 5. Based on equity holdings only. 6. For the six-month period ended April 30, 2016. 7. Relative to the FTSE EPRA/NAREIT Developed Index. Active Share is the percentage of a fund’s portfolio that differs from the benchmark index.

Past performance is no guarantee of future results; returns include reinvestment of all distributions. The above represents past performance and current performance may be lower or higher than performance quoted above. Investment return and principal value fluctuate so that an investor's shares, when redeemed, may be worth more or less than the original cost.

Prospectuses contain more complete information on management fees, distribution charges, and other expenses. Please read the Prospectus carefully before investing or sending money. For current Fund performance or a copy of the Prospectus please visit our website: www.thirdave.com or call 800-443-1021. M.J. Whitman LLC, Distributor. Member FINRA/SIPC.

The Indices are not securities that can be purchased or sold, and their total returns are reflective of unmanaged portfolios. The returns include reinvestment of interest, capital gains and dividends.

T H I R D A V E N U E M A N A G E M E N T L L C • 6 2 2 T H I R D A V E N U E • N E W Y O R K , N Y 1 0 0 1 7 8 0 0 . 4 4 3 . 1 0 2 1 • W W W . T H I R D A V E . C O M

Annualized

*Subject to change without notice.

Michael Winer Lead Portfolio Manager

Jason Wolf, CFA Lead Portfolio Manager

Ryan Dobratz, CFA Lead Portfolio Manager

Institutional: TAREX ǀ Investor: TVRVX

Third Avenue Real Estate Value Fund Quarterly Update for period ended June 30, 2016

United States 46.4%

Hong Kong 15.1%

United Kingdom 12.9%

Singapore 6.7%

Australia 5.0%

Top 5 Countries2

Non-U.S. Real Estate Operating Companies 36.8%

U.S. Real Estate Investment Trust 16.9%

Non-U.S. Real Estate Investment Trust 11.1%

Forest Products & Paper 9.9%

U.S. Real Estate Operating Companies 8.5%

Top 5 Industries

Institutional Class Investor Class

Ticker TAREX TVRVX

CUSIP 884116401 884116872

Minimum Investment $100,000 $2,500

NAV/Share $29.13 $28.94

Fund Details

Institutional Class Investor Class

Gross Expense Ratio4 1.15% 1.40%

Net Expense Ratio4 1.15% 1.40%

Management (Advisory) Fee 0.90% 0.90%

Distribution (12b-1) Fees None 0.25%

Annual Operating Expenses

Property Type Weightings1

1. Fund Management has provided property sector exposures on a “look-through” basis for equity holdings only. Third Avenue Management LLC ("TAM") does not necessarily utilize these Property Types in its quarterly reporting to shareholders. Narrow industries are utilized for compliance purposes, whereas broad sectors are utilized for reporting. TAM does not adhere to any pre-determined sector, industry, or geographic allocations.

2. Source: FactSet Portfolio Analytics. 3. “Other” may consist of option investments. 4. For the six-month period ended April 30, 2016.

In addition to general market conditions, the value of the Fund will be affected by the strength of the real estate markets. Factors that could affect the value of the Fund’s holdings include the following: overbuilding and increased competition, increases in property taxes and operating expenses, declines in the value of real estate, lack of availability of equity and debt financing to refinance maturing debt, vacancies due to economic conditions and tenant bankruptcies, losses due to costs resulting from environmental contamination and its related clean-up, changes in interest rates, changes in zoning laws, casualty or condemnation losses, variations in rental income, changes in neighborhood values, and functional obsolescence and appeal of properties to tenants. For a full disclosure of principal investment risks, please refer to the Fund’s Prospectus.

622 Third Avenue, 31st floor | New York, New York 10017

www.thirdave.com

Equity 95.8%

Debt 0.2%

Cash, Equivalents, Other3 4.0%

Asset Classes

0.0% 0.0% 0.0% 0.2% 2.1%

7.8%

11.7%

14.4%

18.7% 19.3%

21.6%

Diversified Healthcare SelfStorage

MortgageBacked

Lodgings/Resorts

Residential Industrial Other Specialty Office Retail