Third Avenue Fund Adds FirstService in Q4 2025 after 20% Book Value Growth
Third Avenue Real Estate Value Fund initiated a position in FirstService Corporation in Q4 2025, highlighting its sub-10% net-debt-to-asset ratio, 7x fixed-charge coverage and 20% annual book value growth. Shares closed at $148.81 on March 6, down 9.42% over one month and 10.36% in 52 weeks with insiders holding 10%.
1. Fund Initiates Position
In Q4 2025, Third Avenue Real Estate Value Fund initiated a new position in FirstService, citing its conservative capital structure, robust free cash flow and long-term growth record. This addition reflects the fund’s bullish view on normalized real estate valuations in North America.
2. Strong Balance Sheet Metrics
FirstService operates two key segments—Residential property management and commercial Brands services—and maintains a net-debt-to-asset ratio below 10% with a fixed-charge coverage ratio near 7×. Insiders hold about 10% of shares, and book value per share has compounded at 20% annually over the past decade.
3. Stock Performance Trends
Shares closed at $148.81 on March 6, 2026, after a one-month decline of 9.42% and a 10.36% drop over the past 52 weeks. The company’s market capitalization stands at $6.843 billion.
4. Hedge Fund Ownership Trends
FirstService was held in 33 hedge fund portfolios at the end of Q4 2025, up from 25 in the previous quarter, indicating growing institutional interest despite its absence from the top 40 hedge fund stock list for 2026.