<PAGE> 1
TRUSTEES
Samuel A. Lieber
Laurence B. Ashkin
Foster Bam
H. Guy Leibler
INVESTMENT ADVISER
Alpine Management and Research, LLC
122 East 42nd Street, 37th floor
New York, NY 10168
CUSTODIAN
IFTC
801 Pennsylvania
Kansas City, MO 64105
TRANSFER AGENT
BISYS Fund Services, Inc.
3435 Stelzer Road
Columbus, OH 43219
ACCOUNTANTS
PricewaterhouseCoopers LLP
100 East Broad Street
Columbus, OH 43215
LEGAL COUNSEL
Schulte Roth & Zabel LLP
900 Third Avenue
New York, NY 10022
ADMINISTRATOR AND DISTRIBUTOR
BISYS Fund Services L.P.
3435 Stelzer Road
Columbus, OH 43219
Alpine U.S. Real Estate Equity Fund
122 East 42nd Street, 37th floor
New York, NY 10168
(212) 687-5588
[Alpine logo]
U.S. Real Estate
Equity Fund
- ------------------------------------
SEMI-ANNUAL REPORT
March 31, 1999
(5/99)
<PAGE> 2
TABLE OF CONTENTS
Portfolio Manager's Report to Shareholders
PAGE 2
Schedule of Portfolio Investments
PAGE 9
Statement of Assets and Liabilities
PAGE 11
Statement of Operations
PAGE 12
Statements of Changes in Net Assets
PAGE 13
Notes to Financial Statements
PAGE 14
Financial Highlights
PAGE 20
- --------------------------------------------------------------------------------
-1-
<PAGE> 3
Portfolio Manager's Report to Shareholders Alpine U.S. Real Estate Equity Fund
- --------------------------------------------------------------------------------
Value of a $10,000 Investment
<TABLE>
<CAPTION>
ALPINE U.S. REAL ESTATE WILSHIRE REAL ESTATE LIPPER REAL ESTATE FUND
CLASS Y SHARES SECURITIES INDEX AVERAGE
----------------------- -------------------- -----------------------
<S> <C> <C> <C>
9/3/93 10000.00 10000.00 10000.00
9/30/93 10350.00 10455.00 10330.00
3/31/94 10901.00 9924.00 9940.00
9/30/94 10117.00 9890.00 9693.00
3/31/95 9674.00 9902.00 9313.00
9/30/95 11900.00 10823.00 10342.00
3/31/96 13085.00 11685.00 10900.00
9/30/96 13515.00 12962.00 11812.00
3/31/97 16229.00 15627.00 13743.00
9/30/97 24151.00 18410.00 15936.00
3/31/98 25876.00 18245.00 16201.00
9/30/98 18189.00 15325.00 13423.00
3/31/99 17446.00 14016.00 13124.00
</TABLE>
<CN>
Past performance is not predictive of future results. Investment return and
principal value of the Alpine U.S. Real Estate Fund will fluctuate, so that the
shares, when redeemed, may be worth more or less than their original cost. The
returns set forth reflect the waiver of certain advisory fees. Without the
waiver of fees, total return would have been lower.
The Wilshire Real Estate Securities Index is a market capitalization weighted
performance index of listed property and real estate securities.
The Lipper Real Estate Fund Average is an average of funds that invest 65% of
their portfolio in equity securities of domestic and foreign companies engaged
in the real estate industry.
<TABLE>
<CAPTION>
COMPARATIVE TOTAL RETURNS AS OF 03/31/99
SINCE
6 MONTH 1 YEAR 3 YEAR 5 YEAR INCEPTION+
<S> <C> <C> <C> <C> <C>
- --------------------------------------------------------------------------------------
Alpine Class Y (4.09)% (32.58)% 10.06% 9.86% 10.49%
Alpine Class A (4.75%)* (8.79)% (35.97)% 8.01% 7.80% 9.30%
Alpine Class B (5.00%)** (9.34)% (36.60)% 8.15% 7.91% 9.55%
Alpine Class C (1.00%)** (5.57)% (33.92)% 8.98% 8.29% 9.76%
- --------------------------------------------------------------------------------------
Wilshire Real Estate Securities (4.39)% (19.68)% 7.84% 8.11% 6.33%
Index
Lipper Real Estate Fund Average (3.57)% (20.35)% 7.50% 6.91% 5.36%
</TABLE>
* Represents maximum front-end sales load.
** Represents continent deferred sales charge.
+ Performance of Investor A, Class B and Class C shares for the period prior to
their inceptions on 2/10/95, 3/7/95 and 7/12/95, respectively, represents
performance for Class Y shares, which commenced operations on 9/3/93. Class A,
Class B and Class C shares are subject to distribution and service fees, which
had they been included in the prior period, performance would have been lower.
- --------------------------------------------------------------------------------
-2-
<PAGE> 4
Portfolio Manager's Report to Shareholders Alpine U.S. Real Estate Equity Fund
- --------------------------------------------------------------------------------
Dear Shareholder:
We are pleased to present the Alpine U.S. Real Estate Equity Fund's semi-annual
report to shareholders for the period ended March 31, 1999. During the six
months under review, we continued to experience the volatile and weak pattern of
returns for real estate stocks that has been evident for the past twelve months.
In this report we will discuss the fund's performance as well as issues and
trends which are affecting both real estate and securities markets. This
discussion will also explain why we believe the near future for real estate
securities could be more positive.
Q. WHAT WAS THE ALPINE US REAL ESTATE EQUITY FUND'S PERFORMANCE DURING THE
SIX-MONTH PERIOD ENDED MARCH 31, 1999?
A. During the past six months the Fund generated a negative total return of
-4.09% (Class Y). This was superior to the fund's benchmark Wilshire Real
Estate Securities Index(1) which lost -4.39%, Lipper Real Estate Fund
Average(2) declined by -3.57% during the period. As of this writing it is
worth noting that both your Fund and real estate securities have experienced
a strong rebound during the month of April, following the period under
review. Clearly, the volatility has not come to an end, but there appears to
be a positive trend as we look towards the future.
The Fund's twelve month total return was negative, -32.58%, while the
Wilshire Index declined -19.68% and the Lipper Real Estate Fund Average lost
-20.35%. Not only was 1998's performance disappointing, but it reduced both
the Fund's trailing five-year total return and return-since- inception to
9.86% and 10.49%, respectively. Thus, the Fund's return-since-inception has
fallen from over 22% twelve months ago (March '98) to under 10% today on an
annualized basis. Despite this weak 1998, your Fund's long term returns are
still superior to the Wilshire Real Estate Securities Index which generated
8.11% over five years and 6.33% since the fund's inception. The Lipper R.E.
Fund Average returned 6.91% and 5.36%, respectively. For reasons which we
will explain below, we believe that this past year's negative returns for
both real estate stocks and real estate mutual funds represent an
intra-cyclical low point in the performance of these shares.
Q. WHAT CREATED THIS INTRA-CYCLICAL DECLINE IN REAL ESTATE STOCKS AND HOW DO WE
KNOW WE ARE NOT APPROACHING A CYCLICAL LOW?
A. We believe that the price decline and subsequent volatility over the past
8-12 months in the world's stock markets reflects a process of adjustment
over time, to uncertainty regarding the impact of the Asian financial
collapse on each country's economy, as well as its financial and real estate
markets. In our last report to shareholders, we examined this series of
events in detail with an analysis of its effect on liquidity for real estate
finance. We expressed our conclusion that the potential impact on the U.S.
economy at that time had been overstated by the financial stock markets.
However, the jittery stock market chose to focus most of its energy and funds
flow on relatively predictable, well known large capitalization non-cyclical
companies or alternatively, in "new technology" companies that offer the
potential for significant, yet to be realized growth. As a result, the market
did not favor economically sensitive,
- ---------------
(1) The Wilshire Real Estate Securities Index is a market capitalization
weighted performance index of listed property and real estate
securities.
(2) The Lipper Real Estate Fund Average is an average of funds that invest
65% of their portfolio in equity securities of domestic and foreign
companies engaged in the real estate industry.
- --------------------------------------------------------------------------------
-3-
<PAGE> 5
Portfolio Manager's Report to Shareholders Alpine U.S. Real Estate Equity Fund
- --------------------------------------------------------------------------------
GEOGRAPHICAL DISTRIBUTION*
<TABLE>
<CAPTION>
MOUNTAIN PACIFIC NEW CENTRAL MID
SOUTH EAST STATES SOUTHWEST ENGLAND PLAINS SOUTH MIDWEST ATLANTIC
- ---------- -------- --------- ------- ------- ----- ------- --------
<S> <C> <C> <C> <C> <C> <C> <C>
17% 13% 22% 8% 7% 10% 8% 5%
<CAPTION>
PACIFIC
NORTHWEST
- ---------
<S> <C>
10%
</TABLE>
SECTOR DISTRIBUTION*
<TABLE>
<CAPTION>
HOTEL/LODGING HOME BUILDING OFFICE/INDUSTRIAL RETAIL RESIDENTIAL OPERATING COS.
- ----------------- ------------- ----------------- ------ -------------- --------------
<S> <C> <C> <C> <C> <C>
31% 33% 11% 10% 8% 3%
<CAPTION>
LAND
- ----
<S> <C>
4%
</TABLE>
mature sectors such as real estate. Indeed the most economically sensitive real
estate stocks were hit hardest by the decline in the 1998. Specifically
companies engaged in property development and the management of hotel properties
were viewed as most economically sensitive. Typically, if investors believe that
an alternative investment has greater risk it is expected that potential returns
must be greater to offset higher uncertainty. Hence, last fall, the markets
required a larger price discount for the most economically sensitive stocks, so
they were sold down to levels which were below historic relative valuations.
However, since Alpine Management concluded last Fall that the economic cycle was
not near its end and that the stock market was in fact incorporating an
historically high risk premium, the chance of a decline in these aforementioned
sectors was overly discounted. Thus, this was where the Fund concentrated its
investments. Over the past six months the Fund has continued to emphasize the
home building and lodging sectors even though they have been out of favor with
the market.
During the past few weeks the stock market's broad focus appears to be
shifting away from new technology and internet stocks and focusing on cyclically
sensitive sectors such as equipment manufacturing, materials processors and
finally real estate owners and developers. This is in response to signs of
renewed economic activity and improved capital flows into Asia, while our
economy remains robust. Even though the U.S. economy has slowed from the 4.9% to
5.5% annual GDP growth rates that it sustained over the past 5 years, we believe
the economy should grow at a rate in excess of 3% for much of this year. This
contrasts greatly with expectations of a potential recession in 1999, which some
prognosticators envisioned just 6 months ago. Alpine believes the end of this
business cycle is not yet in sight!
- --------------------------------------------------------------------------------
-4-
<PAGE> 6
Portfolio Manager's Report to Shareholders Alpine U.S. Real Estate Equity Fund
- --------------------------------------------------------------------------------
Q. HOW HAS THE FUND CHANGED IN ITS FOCUS OVER THE PAST 6 MONTHS?
A. The Fund has placed somewhat greater emphasis on the home-building sector in
particular because that's where we see the greatest disconnect between
fundamental performance on both a company specific and general business level
in comparison with stock market evaluations. The percentage in home builders
in the Fund has been increased from 28% to 33% while lodging is the next
largest concentration for 31% of the Fund. Compared with 6 months ago, the
reduced percentage invested in the office and industrial sectors has less to
do with business prospects than with relative valuations.
As a result of share price volatility, Alpine has been actively
adjusting the portfolio. This is evident in the Fund's top ten holdings,
which constituted 40.7% of the portfolio last September, 1998 and today
represents 48.9% of the portfolio. Specifically, Alpine increased its
exposure to home-building companies with Standard Pacific Corp. at 6.6%,
Lennar Corp. at 5.7% and U.S. Home Corp. at 5.2%. The next four largest
holdings, Prime Hospitality, Sunstone Hotels, Meditrust and Starwood Lodging
are all involved in the lodging sector. Prime Hospitality and Meditrust were
relatively small positions in the Fund six months ago. Thereafter, Alpine
took advantage of depressed share prices to increase the Fund's exposure to
these companies. We did the same with Standard Pacific, nearly doubling the
Fund's holdings in the company.
Investors should note that Alpine has recently taken advantage of
depressed stock valuations by utilizing a modest amount of leverage
(typically between 4% to 8% of net assets and not to exceed the 10% permitted
by the prospectus) in order to enhance the Fund's return on assets. We
believe the disconnect between fundamental positive operating performance and
low stock market valuations offer significant upside potential which can be
enhanced with judicious leverage. I wish to point out that your Fund has not
used such leverage before, but now relative valuations for our investment
universe have created such compelling investment opportunities that
management believes downside risk is minimal. Please note that when the Fund
utilizes leverage, the cost of such debt is added to the fund's operating
expenses and may modestly increase total operating costs beyond normal base
projections included in the prospectus, however management believes the
potential rewards in terms of enhanced total return, significantly outweigh
any higher expenses during the limited periods in which leverage is employed.
TOP 10 HOLDINGS*
<TABLE>
<CAPTION>
<C> <S> <C> <C> <C> <C>
1. Standard Pacific Corp. 6.60% 6. Meditrust Co. 4.57%
2. Lennar Corp. 5.70% 7. Starwood Hotels & Resorts Worldwide, Inc. 4.49%
3. U.S. Home Corp. 5.18% 8. D.R. Horton, Inc. 4.31%
4. Prime Hospitality Corp. 5.00% 9. Toll Brothers, Inc. 4.19%
5. Sunstone Hotel Investors, Inc. 4.88% 10. Felcor Lodging Trust, Inc. 4.01%
* Portfolio composition subject to change.
</TABLE>
- --------------------------------------------------------------------------------
-5-
<PAGE> 7
Portfolio Manager's Report to Shareholders Alpine U.S. Real Estate Equity Fund
- --------------------------------------------------------------------------------
Q. ASSUMING THE STRONGER ECONOMY CAN SUSTAIN CURRENT LEVELS OF DEMAND FOR REAL
ESTATE, WHAT MAKES TODAY'S VALUATIONS SO COMPELLING?
A. Simply stated, the stock market has been valuing real estate companies, and
particularly home builders and lodging companies at levels which anticipate
the impact of a recession upon operating performance. For example, most
lodging REITs yielded between 8-12% at the end of March in contrast with 5.2%
for 10-year U.S. government bonds. This is an historically large yield
premium which might suggest that dividend levels may not be sustainable,
however most lodging REITs pay out only 70% to 85% of their cash flow in
dividends and thus have a safety cushion. Furthermore, recent earnings
results for the first quarter show that most hotel companies have been able
to increase top line room revenue between 2% and 6%, which translates into
about 4% to 10% cash flow growth on a net corporate basis.
For homebuilders the market disconnect is even greater as many of these
companies are trading at multiples of 6 to 9 times earnings. This is in
comparison with the S&P 500's price earnings ratio of 28 times. Thus the
implicit relative price to earnings multiple for homebuilders is equivalent
to roughly 26% (plus or minus 5%) of the broad market level. Historically,
homebuilders have traded at around 65% of the market P/E ratio! Such a
discount contrasts with the operating performance of homebuilders who are
reporting higher profit margins. According to Merrill Lynch, homebuilders are
benefiting from new order levels during the first three months of this year
which are up 11% above last year's record setting levels. Despite a strong
economy, sustained consumer confidence and high levels of affordability, the
stock market has been expecting a recession that would slow home sales for
the past nine months, and this caution has been incorporated into share
prices. We believe that a robust economy will continue to propel operating
performance and this may change market sentiment towards homebuilders.
With few exceptions, owners of commercial real estate are enjoying
higher occupancy levels in most markets and property types than was
experienced in at least 19 out of the last 20 years. In spite of sustained
tenant demand, rent levels in many areas have yet to exceed the peak levels
set during the last cycle, ten years ago! This suggests that there is still
scope for rising rents, assuming economic growth and supply/demand balances
can be maintained over the next few years. We do not believe the market has
begun to factor this potential upside into real estate share prices.
It is worth noting that low real estate stock valuations have stimulated
merger and acquisition activity. During the First Quarter of 1999, the Fund
benefited from two such transactions; Marriott International acquired
Execustay Corp. and a bid was made by management to acquire all shares in
Sunstone Hotel Investors.
- --------------------------------------------------------------------------------
-6-
<PAGE> 8
Portfolio Manager's Report to Shareholders Alpine U.S. Real Estate Equity Fund
- --------------------------------------------------------------------------------
[Cumulative Total Return Comparison]
<TABLE>
<CAPTION>
S&P HOMEBUILDING
S&P 500 INDEX NAREIT INDEX INDEX RUSSELL 200
------------- ------------ ---------------- -----------
<S> <C> <C> <C> <C>
Oct-90 100.00 100.00 100.00 100.00
Dec-90 108.62 106.77 146.29 111.25
Mar-91 123.43 198.58 143.91
June-91 122.09 132.07 193.88 141.05
Sep-91 127.59 137.48 208.73 151.61
Dec-91 137.20 144.89 270.87 159.84
Mar-92 132.79 145.85 295.49 171.41
June-92 134.26 149.69 227.12 158.75
Sep-92 137.43 159.91 259.79 162.35
Dec-92 143.33 166.03 329.21 185.99
Mar-93 148.58 201.95 323.24 192.89
June-93 148.20 196.16 356.06 196.37
Sep-93 150.96 214.50 417.75 212.87
Dec-93 153.44 198.66 431.03 217.61
Mar-94 146.63 205.42 336.26 211.28
June-94 146.14 209.20 261.88 202.21
Sep-94 152.52 204.92 241.29 215.53
Dec-94 151.08 204.96 246.48 210.69
Mar-95 164.71 204.61 249.68 219.45
June-95 179.19 216.64 297.09 238.69
Sep-95 192.24 226.85 292.80 261.20
Dec-95 202.61 236.25 348.15 265.90
Mar-96 212.34 241.62 311.19 278.36
June-96 220.60 252.37 303.95 291.69
Sep-96 226.09 268.88 297.69 291.50
Dec-96 243.66 319.56 335.62 305.15
Mar-97 249.05 321.79 322.68 288.28
June-97 291.16 337.79 387.84 333.56
Sep-97 311.61 377.71 500.67 381.91
Dec-97 319.22 384.31 535.99 367.77
Mar-98 362.42 382.51 667.29 404.51
June-98 372.97 364.97 700.97 384.91
Sep-98 334.54 326.57 591.31 305.97
Dec-98 404.35 317.05 734.54 355.10
Mar-99 423.15 317.85 553.45 334.62
</TABLE>
1. The Standard & Poor's 500 Index is a capitalization-weighted index of 500
stocks. The index is designed to measure performance of the broad domestic
economy through changes in the aggregate market value of 500 stocks representing
all major industries.
2. The Standard & Poor's Homebuilding Index is a capitalization-weighted
index of all stocks designed to measure the performance of the homebuilding
sector of the Standard & Poor's 500 Index.
3. The National Association of Real Estate Investment Trusts is a total
return performance index of all equity REITS tracked by NAREIT.
4. The Russell 2000 Index is comprised of the smallest 2000 companies in the
Russell 3000 Index, representing approximately 11% of the Russell 3000 total
market capitalization.
Q. IF THE STOCK MARKET BEGINS TO TAKE A MORE FAVORABLE VIEW OF REAL ESTATE
COMPANIES WHAT ARE THE PROSPECTS FOR THEIR RELATIVE PERFORMANCE?
A. To provide an educated speculation as to the potential upside of real estate
stocks verses the broader stock market, it is perhaps most useful to examine
historic performance trends. The accompanying chart illustrates historic
total returns for two key real estate indices and two principal broad stock
market indices, since this business cycle and Stock Market Expansion started
in October, 1990, through March 31, 1999. The NAREIT Equity Index(3) is
useful for illustrating the specific performance of REITs during this period
as is the S&P Homebuilder Index for its sector. The S&P 500 represents the
broad, large capitalization stock universe and the Russell 2000 Index
represents smaller capitalization stocks, which are comparable to REITs and
homebuilders in size. It is worth noting that the aggregate returns for the
S&P 500 lagged the other indices through May, 1998. However, during the past
12 months only the S&P 500 a produced positive return, up nearly 18.5% as
compared to negative returns ranging from -16.2% to almost -17% for the small
cap and real estate indices. The long term annualized total return of the S&P
500 was strong with a gain of 21.66% while REITs returned 14.72%, close to
the Russell 2000's 15.43%, and the S&P Homebuilding Index(2) return of 23.8%
outperformed the S&P 500 during this period.
- --------------------------------------------------------------------------------
-7-
<PAGE> 9
Portfolio Manager's Report to Shareholders Alpine U.S. Real Estate Equity Fund
- --------------------------------------------------------------------------------
One feature of this chart is that it illustrates how, at any point in
time, a composite data series or total return index can be influenced by an
extraordinary event or a period with unusual returns. Clearly, the near
market meltdown of 1998 constituted an extraordinary event and perhaps, so
does its impact of negative returns for economically sensitive small cap
stocks such as the real estate sector. Thus, we would suggest that the
approximate 35% differential in total return between the S&P 500 and real
estate stock indices during 1998 could be at least partially recouped over
time. As the overall stock market stabilizes and more stocks return to
historic relative valuation levels, pre-1998 performance trends may be
re-established.
CONCLUDING REMARKS:
As significant shareholders in all three Alpine Real Estate Funds, management
regards all shareholders as our partners. We share your frustration when this
investment under performs and we experience the same elation when its potential
is realized. We appreciate the responsibility that you have entrusted us to
continue to provide strong performance over time, relative to our peer group and
relative to the broader universe of investment opportunities. With this in mind
we wish to thank you for your continued support and interest during this recent
volatile period.
In closing we would like to reiterate the sentiments expressed in our last
report to shareholders, "that real estate securities are now priced at levels
which offer medium term investors considerable opportunity for positive returns
over the next few years of this cycle." The difference today is that we are now
closer to realizing these potential returns. We remain positive in our outlook
for this portfolio.
Sincerely,
/s/ Samuel A. Lieber
Samuel A. Lieber
CEO/Portfolio Manager
- --------------------------------------------------------------------------------
-8-
<PAGE> 10
ALPINE U.S. EQUITY REAL ESTATE FUND
SCHEDULE OF PORTFOLIO INVESTMENTS
MARCH 31, 1999
(UNAUDITED)
<TABLE>
<CAPTION>
SECURITY MARKET
SHARES DESCRIPTION VALUE
- ---------- ------------------------------ -----------
<C> <S> <C>
REAL ESTATE INVESTMENT TRUSTS -- (33.5%)
Hotels -- (12.4%)
55,000 Felcor Lodging Trust, Inc..... $ 1,275,313
76,778 Patriot American Hospitality,
Inc. (b).................... 393,487
60,000 RFS Hotel Investors, Inc...... 693,750
216,200 Sunstone Hotel Investors,
Inc......................... 1,553,937
-----------
3,916,487
-----------
Office-Industrial Buildings -- (5.9%)
43,000 Corporate Office Properties
Trust, Inc.................. 276,813
59,500 Kilroy Realty Corp............ 1,219,750
19,500 Koger Equity, Inc............. 262,031
6,900 SL Green Realty Corp.......... 129,806
-----------
1,888,400
-----------
Mixed Use -- (5.7%)
79,800 First Union Real Estate
Investments (b)............. 349,125
116,800 Meditrust Co.................. 1,452,700
-----------
1,801,825
-----------
Shopping Centers -- (5.7%)
17,700 Alexander's, Inc. (b)......... 1,199,175
11,250 Chelsea GCA Realty, Inc....... 313,594
100 J.P. Realty, Inc.............. 1,969
12,400 Kranzco Realty Trust.......... 146,475
8,000 Pennsylvania Real Estate
Investment Trust............ 149,500
-----------
1,810,713
-----------
Manufactured Home Parks -- (3.8%)
101,980 Asset Investor Corp........... 1,223,760
-----------
Total Real Estate Investment
Trusts
(Cost $13,047,937).......... 10,641,185
-----------
COMMON STOCKS -- (67.8%)
Homebuilders -- (32.4%)
50,000 Crossman Communities, Inc.
(b)......................... 996,875
81,925 D.R. Horton, Inc.............. 1,372,244
81,060 Lennar Corp................... 1,813,717
41,400 Ryland Group, Inc............. 1,047,938
163,000 Standard Pacific Corp......... 2,098,624
73,600 Toll Brothers, Inc. (b)....... 1,334,000
50,500 U.S. Home Corp. (b)........... 1,647,563
-----------
10,310,961
-----------
</TABLE>
<TABLE>
<CAPTION>
SECURITY MARKET
SHARES DESCRIPTION VALUE
- ---------- ------------------------------ -----------
<C> <S> <C>
COMMON STOCKS, CONTINUED:
Real Estate Operating Companies -- (17.9%)
65,700 Bentall Corp.................. $ 705,732
19,000 California Coastal
Communities, Inc. (b)....... 123,500
74,200 Capital Trust (b)............. 361,725
171,900 Crescent Operating, Inc.
(b)......................... 623,138
346,000 Excel Legacy Corp. (b)........ 1,189,374
40,920 Forest City Enterprises,
Inc......................... 989,753
55,000 LNR Property Corp............. 1,086,250
70,200 Wellsford Real Properties,
Inc. (b).................... 614,250
-----------
5,693,722
-----------
Lodging -- (17.5%)
22,000 Candlewood Hotel Co., Inc.
(b)......................... 88,000
25,000 Crestline Capital Corp. (b)... 384,375
180,300 Homestead Village Properties,
Inc. (b).................... 439,481
109,000 John Q. Hammons Hotels, Inc.
(b)......................... 395,125
450,100 Meristar Hotels & Resorts,
Inc. (b).................... 1,237,775
159,900 Prime Hospitality Corp. (b)... 1,589,006
50,001 Starwood Hotels & Resorts
Worldwide, Inc. (b) (c)..... 1,428,154
-----------
5,561,916
-----------
Total Common Stocks
(Cost $25,176,158).......... 21,566,599
-----------
MISCELLANEOUS SECURITIES -- (0.1%)
4,800 Miscellaneous Securities
(b)......................... 35,100
-----------
Total Miscellaneous Securities
(Cost $36,240).............. 35,100
-----------
Total Investments
(Cost $38,260,335)
(a)...................101.4% 32,242,884
-----------
Liabilities in excess of other
assets.................(1.4) (431,258)
---- ----------
TOTAL NET ASSETS........100.0% $31,811,626
==== ==========
</TABLE>
<TABLE>
<CAPTION>
MARKET
SHARES VALUE
- ---------- -----------
<C> <S> <C>
SECURITIES SOLD SHORT -- (1.9%)
12,500 Total Securities Sold Short
(Proceeds $627,948)......... $ 609,375
===========
</TABLE>
Continued
-9-
<PAGE> 11
ALPINE U.S. EQUITY REAL ESTATE FUND
SCHEDULE OF PORTFOLIO INVESTMENTS
MARCH 31, 1999
(UNAUDITED)
- ---------------
(a) Cost for federal income tax purposes differs from value by net unrealized
depreciation as follows:
<TABLE>
<S> <C>
Unrealized appreciation................. $ 956,408
Unrealized depreciation................. (6,973,859)
-----------
Net unrealized depreciation............. $(6,017,451)
===========
</TABLE>
(b) Non income producing security.
(c) Part of the security is held as collateral for the short sale.
See notes to financial statements.
-10-
<PAGE> 12
ALPINE U.S. REAL ESTATE EQUITY FUND
STATEMENT OF ASSETS AND LIABILITIES
MARCH 31, 1999
(UNAUDITED)
<TABLE>
<S> <C>
ASSETS:
Investments, at value (Cost $36,909,862).................. $31,178,310
Deposits with broker and custodian bank for securities
sold short (Cost $1,350,473)............................ 1,064,574
-----------
Total Investments......................................... 32,242,884
Foreign currency (Cost $511).............................. 514
Receivable for investment securities sold short........... 627,948
Receivable for investment securities sold................. 2,066,939
Receivable for capital shares issued...................... 6,000
Interest and dividends receivable......................... 71,018
Prepaid expenses and other assets......................... 52,028
-----------
Total Assets............................................ 35,067,331
-----------
LIABILITIES:
Securities sold short (proceeds $627,948)................. 609,375
Cash overdrafts........................................... 2,323,639
Payable for dividends on securities sold short............ 9,875
Payable for investment securities purchased............... 139,874
Payable for capital shares redeemed....................... 92,973
Accrued expenses and other liabilities:
Investment advisory fees................................ 28,065
Administration fees..................................... 1,005
Distribution fees payable............................... 6,140
Other................................................... 44,759
-----------
Total liabilities....................................... 3,255,705
-----------
NET ASSETS.................................................. $31,811,626
===========
NET ASSETS REPRESENTED BY
Capital stock, at par value............................... $ 271
Additional paid-in-capital................................ 40,604,490
Undistributed (distributions in excess of) net investment
income.................................................. 265,021
Accumulated undistributed net realized gains (losses) on
investment transactions................................. (3,059,284)
Unrealized appreciation (depreciation) from investments... (5,998,872)
-----------
NET ASSETS.............................................. $31,811,626
===========
NET ASSETS VALUE
Class Y Shares
Net assets of $22,289,830 / 1,881,742 shares
outstanding............................................ $ 11.85
===========
Class A Shares
Net assets of $3,608,899 / 308,298 shares outstanding... $ 11.71
===========
Offering price (based on sales charge of 4.75%)......... $ 12.29
===========
Class B Shares*
Net assets of $4,317,221 / 376,905 shares outstanding... $ 11.45
===========
Class C Shares*
Net assets of $1,595,676 / 139,369 shares outstanding... $ 11.45
===========
</TABLE>
- ---------------
* Redemption price per share varies based on length of time shares are held
(Note 5)
See notes to financial statements.
-11-
<PAGE> 13
ALPINE U.S. REAL ESTATE EQUITY FUND
STATEMENT OF OPERATIONS
SIX MONTHS ENDED MARCH 31, 1999
(UNAUDITED)
<TABLE>
<S> <C> <C>
INVESTMENT INCOME:
Dividends (net of foreign withholding taxes of $5,902).............. $ 673,485
-----------
EXPENSES:
Investment advisory fees.................................. $184,922
Administration fees....................................... 42,532
Distribution fees -- Class B.............................. 20,809
Distribution fees -- Class C.............................. 6,715
Shareholder Servicing Fees -- Class A..................... 6,202
Shareholder Servicing Fees -- Class B..................... 6,936
Shareholder Servicing Fees -- Class C..................... 2,238
Custodian fees............................................ 58,083
Legal fees................................................ 38,204
Trustees' fees and expenses............................... 5,670
Other..................................................... 71,005
--------
Total Expenses......................................... 443,316
--------
Net Investment Income................................................. 230,169
-----------
REALIZED/UNREALIZED GAINS (LOSSES) ON INVESTMENTS:
Net realized gains (losses) from investment and foreign currency
transactions..................................................... (2,624,712)
Net change in unrealized appreciation (depreciation) from
investments and translation of assets and liabilities in foreign
currencies....................................................... 1,014,346
-----------
Net realized/unrealized gains (losses) from investments............... (1,610,366)
-----------
Change in net assets resulting from operations........................ $(1,380,197)
===========
</TABLE>
See notes to financial statements.
-12-
<PAGE> 14
ALPINE U.S. REAL ESTATE EQUITY FUND
STATEMENTS OF CHANGES IN NET ASSETS
<TABLE>
<CAPTION>
FOR SIX-MONTHS FOR THE YEAR
ENDED ENDED
MARCH 31, 1999 SEPTEMBER 30, 1998
-------------- ------------------
(UNAUDITED)
<S> <C> <C>
OPERATIONS:
Net investment income..................................... $ 230,169 $ 172,407
Net realized gains (losses) from investment and foreign
currency transactions.................................. (2,624,712) 692,757
Net change in unrealized appreciation (depreciation) from
investments and translation of assets and liabilities
in foreign currencies.................................. 1,014,346 (13,160,995)
----------- ------------
Change in net assets resulting from operations............ (1,380,197) (12,295,831)
----------- ------------
DISTRIBUTIONS TO SHAREHOLDERS:
From net investment income
Class A................................................ (291) (33,856)
Class B................................................ -- (32,220)
Class C................................................ -- (13,786)
Class Y................................................ -- (151,695)
From net realized gains
Class A................................................ (52,182) (645,169)
Class B................................................ (57,711) (785,584)
Class C................................................ (18,450) (336,121)
Class Y................................................ (238,679) (2,702,405)
----------- ------------
Total change in net assets from distributions to
shareholders......................................... (367,313) (4,700,836)
----------- ------------
SHARES OF BENEFICIAL INTEREST TRANSACTIONS:
Net increase (decrease) in net assets resulting from
shares of beneficial interest transactions............. (6,212,999) 29,412,793
----------- ------------
Total change in net assets................................ (7,960,509) 12,416,126
----------- ------------
NET ASSETS:
Beginning of period....................................... 39,772,135 27,356,009
----------- ------------
End of period............................................. $31,811,626 $ 39,772,135
=========== ============
</TABLE>
See notes to financial statements.
-13-
<PAGE> 15
ALPINE U.S. REAL ESTATE EQUITY FUND
NOTES TO FINANCIAL STATEMENTS
(UNAUDITED)
1. ORGANIZATION:
Alpine U.S. Real Estate Equity Fund, the ("Fund"), is registered under the
Investment Company Act of 1940, as amended (the "1940 Act"), as a
diversified, open-end management investment company. The Fund is a separate
series of the Alpine Equity Trust, a Massachusetts business trust organized
in 1988.
Alpine U.S. Real Estate Equity Fund seeks long-term capital growth. Current
income is secondary objective.
2. SIGNIFICANT ACCOUNTING POLICIES:
The following is a summary of significant accounting policies consistently
followed by the Fund in the preparation of its financial statements. The
policies are in conformity with generally accepted accounting principles,
which require management to make estimates and assumptions that affect
amounts reported herein. Actual results could differ from these estimates.
A. VALUATION OF SECURITIES:
The Fund values securities traded on a national securities exchange or
included on the NASDAQ National Market System ("NASDAQ") at the last
reported sales price on the exchange where primarily traded. The Fund
values securities traded on an exchange or NASDAQ for which there has been
no sale and other securities traded in the over-the-counter market at the
mean between the last reported bid and asked price. Securities for which
market quotations are not available, including restricted securities, are
valued at fair value as determined in good faith according to procedures
approved by the Board of Trustees. Short-term investments with remaining
maturities of 60 days or less are carried at amortized cost, which
approximates market value.
B. REPURCHASE AGREEMENTS:
The Fund may invest in repurchase agreements. Securities pledged as
collateral for repurchase agreements are held by the custodian on the
Fund's behalf. The Fund monitors the adequacy of the collateral daily and
will require the seller to provide additional collateral in the event the
market value of the securities pledged falls below the carrying value of
the repurchase agreement, including accrued interest. The Fund will only
enter into repurchase agreements with banks and other financial
institutions which are deemed by the investment advisor to be creditworthy
pursuant to guidelines established by the Board of Trustees. Repurchase
agreements are considered to be loans under the 1940 act.
C. SECURITY TRANSACTIONS AND INVESTMENT INCOME:
Securities transactions are accounted for no later than one business day
after the trade date. Realized gains and losses are computed on the
identified cost basis. Interest income is recorded on the accrual basis and
includes accretion of discounts and amortization of premiums, where
applicable. Dividend income is recorded on the ex-dividend date or in the
case of some foreign securities, on the date thereafter when the Fund is
made aware of the dividend. Foreign income may be subject to foreign
withholding taxes, which are accrued as applicable. Capital gains realized
on some foreign securities are subject to foreign taxes, which are accrued
as applicable.
Continued
-14-
<PAGE> 16
ALPINE U.S. REAL ESTATE EQUITY FUND
NOTES TO FINANCIAL STATEMENTS, CONTINUED
(UNAUDITED)
D. FOREIGN CURRENCY TRANSLATION:
The market value of investment securities, other assets and liabilities of
the U.S. Real Estate Equity Fund denominated in a foreign currency are
translated into U.S. dollars at the current exchange rate. Purchases and
sales of securities, income receipts and expense payments are translated
into U.S. dollars at the exchange rate on the dates of the transactions.
The fund does not isolate that portion of the results of operations
resulting from changes in foreign exchange rates on investments from the
fluctuations arising from changes in market prices of securities held. Such
fluctuations are included with the net realized and unrealized gains or
losses from investments.
Reported net realized foreign exchange gains or losses arise from sales and
maturities of fund securities, sales of foreign currencies, currency
exchange fluctuations between the trade and settlement dates of securities
transactions, and the difference between the amounts of assets and
liabilities recorded and the U.S. dollar equivalent of the amounts actually
received or paid. Net unrealized foreign exchange gains and losses arise
from changes in the value of assets and liabilities, including investments
in securities, resulting from changes in currency exchange rates.
E. RISKS ASSOCIATED WITH FOREIGN SECURITIES AND CURRENCIES
Investments in securities of foreign issuers carry certain risks not
ordinarily associated with investments in securities of domestic issuers.
Such risks include future political and economic developments, and the
possible imposition of exchange controls or other foreign governmental laws
and restrictions. In addition, with respect to certain countries, there is
the possibility of expropriation of assets, confiscatory taxation,
political or social instability or diplomatic developments which could
adversely affect investments in those countries.
Certain countries may also impose substantial restrictions on investments
in their capital markets by foreign entities, including restrictions on
investments in issuers or industries deemed sensitive to relevant national
interests. These factors may limit the investment opportunities available
to the U.S. Real Estate Equity Fund or result in a lack of liquidity and
high price volatility with respect to securities of issuers from developing
countries.
F. SHORT SALE TRANSACTIONS
Short sales are transactions in which the Fund sells a security it does not
own in anticipation of a decline in the market value of that security. To
complete such a transaction, the Fund must borrow the security to deliver
to the buyer upon the short sale; the Fund then is obligated to replace the
security borrowed by purchasing it in the open market at some later date.
The Fund will incur a loss if the market price of the security increases
between the date of the short sale and the date on which the Fund replaces
the borrowed security. The Fund will realize a gain if the security
declines in value between those dates. All short sales must be fully
collateralized. The Fund maintains the collateral in a segregated account
with its custodian, consisting of cash, equities and/or U.S. government
securities sufficient to collateralize its obligation on the short
positions. At March 31, 1999, equities held by the Fund with a total market
value of $1,064,574 were segregated as collateral for its short sales. For
six months ended March 31, 1999, the market value of the
Continued
-15-
<PAGE> 17
ALPINE U.S. REAL ESTATE EQUITY FUND
NOTES TO FINANCIAL STATEMENTS, CONTINUED
(UNAUDITED)
investments purchased to cover short sales and proceeds from investments
sold short were $609,375 and $627,948, respectively.
For financial statement purposes, an amount equal to the settlement amount
is included in the Statements of Assets and Liabilities as an asset and an
equivalent liability. The amount of the liability is subsequently
marked-to-market to reflect the current value of the short position.
Securities sold short at March 31, 1999 and their related market values and
proceeds are set forth in the schedule of portfolio investments.
G. FEDERAL TAXES:
It is the Fund's policy to comply with the requirements of the Internal
Revenue Code applicable to regulated investment companies and to distribute
timely, substantially all of its net investment company income and net
realized capital gains to shareholders. Therefore, no federal income tax
provision is required. (Under the applicable foreign tax law, a withholding
tax may be imposed on interest, dividends and capital gains earned on
foreign investments at various rates. Where available, the Fund will file
for claims on foreign taxes withheld.)
H. DIVIDENDS AND DISTRIBUTIONS:
The Fund intends to distribute substantially all of its net investment
income and net realized capital gains, if any, annually in the form of
dividends. Distributions to shareholders are recorded at the close of
business on the ex-dividend date.
The amounts of dividends from net investment income and of distributions
from net realized gains are determined in accordance with federal income
tax regulations, which may differ from generally accepted accounting
principles. These "book/tax" differences are either considered temporary or
permanent in nature. To the extent these differences are permanent in
nature, such amounts are reclassified within the composition of net assets
based on their federal tax-basis treatment; temporary differences do not
require reclassification.
Dividends and distributions to shareholders which exceed net investment
income and net realized capital gains for financial reporting purposes but
not for tax purposes are reported as dividends in excess of net investment
income or distributions in excess of net realized gains. To the extent they
exceed net investment income and net realized gains for tax purposes, they
are reported as distributions of capital.
I. CLASS ALLOCATIONS:
Income, expenses (other than class specific expenses) and realized and
unrealized gains and losses are prorated among the classes based on the
relative net assets of each class. Class specific expenses are allocated to
the class to which they relate. Currently, class specific expenses are
limited to expenses incurred under the Distribution Plans.
Continued
-16-
<PAGE> 18
ALPINE U.S. REAL ESTATE EQUITY FUND
NOTES TO FINANCIAL STATEMENTS, CONTINUED
(UNAUDITED)
3. CAPITAL SHARE TRANSACTIONS:
The Fund has an unlimited number of shares of beneficial interest, with
$0.0001 par value, authorized. Transactions in shares and dollars of the
Fund were as follows:
<TABLE>
<CAPTION>
SIX MONTHS ENDED YEAR ENDED
MARCH 31, 1999 SEPTEMBER 30, 1998
-------------------------------- ------------------------
SHARES AMOUNT SHARES AMOUNT
----------------- ----------- --------- -----------
<S> <C> <C> <C> <C>
CLASS A
Shares sold................... 42,112 $ 507,321 804,558 $13,656,844
Shares redeemed............... (189,629) (2,336,536) (535,972) (8,757,392)
Shares issued in reinvestment
of distributions........... 3,603 44,996 40,006 636,489
--------- ----------- --------- -----------
Net increase (decrease)....... (143,914) (1,784,219) 308,592 $ 5,535,941
--------- ----------- --------- -----------
CLASS B
Shares sold................... 11,479 134,669 489,790 8,252,330
Shares redeemed............... (162,358) (1,986,849) (193,555) (3,096,673)
Shares issued in reinvestment
of distributions........... 3,863 47,319 47,696 749,779
--------- ----------- --------- -----------
Net increase (decrease)....... (147,016) (1,804,861) 343,931 5,905,436
--------- ----------- --------- -----------
CLASS C
Shares sold................... 53,414 663,606 243,416 4,143,415
Shares redeemed............... (80,529) (981,534) (185,069) (3,079,800)
Shares issued in reinvestment
of distributions........... 988 12,100 19,734 310,020
--------- ----------- --------- -----------
Net increase (decrease)....... (26,127) (305,828) 78,081 1,373,635
--------- ----------- --------- -----------
CLASS Y
Shares sold................... 302,581 3,796,702 1,325,466 20,817,418
Shares redeemed............... (509,553) (6,340,010) (420,021) (6,900,201)
Shares issued in reinvestment
of distributions........... 17,823 225,217 167,013 2,680,564
--------- ----------- --------- -----------
Net increase (decrease)....... (189,149) (2,318,091) 1,072,458 16,597,781
--------- ----------- --------- -----------
Total Net increase/decrease... (506,206) $(6,212,999) 1,803,062 $29,412,793
--------- ----------- --------- -----------
</TABLE>
Continued
-17-
<PAGE> 19
ALPINE U.S. REAL ESTATE EQUITY FUND
NOTES TO FINANCIAL STATEMENTS, CONTINUED
(UNAUDITED)
The Fund offers Class A, Class B, Class C and Class Y shares. Class A
shares are sold with a front-end sales charge. Class B shares are sold
subject to a contingent deferred sales charge that is payable upon
redemption and decreases depending on how long the shares have been held.
Class C shares are sold subject to a contingent deferred sales charge
payable on shares redeemed within one year after the month of purchase.
Class Y shares are sold only to certain institutional or individual
investors who do not receive services of financial intermediaries that
offer shares of the Fund.
4. SECURITIES TRANSACTIONS
Cost of purchases and proceeds from sales of investment securities,
excluding securities sold short and short-term investments, were
$14,698,001 and $20,237,679, respectively, for six months ended March 31,
1999.
5. TRANSACTIONS WITH AFFILIATES
Investment advisory services are provided to the Fund by Alpine Management
& Research LLC ("Alpine"). Pursuant to each investment advisor's agreement
with the Fund, Alpine is entitled to an annual fee based on the Fund's
average daily net assets, in accordance with the following schedule:
First $750 million 1.00%
Next $250 million 0.90%
Over $1 billion 0.80%
BISYS Fund Services L.P. ("BISYS L.P.") is the Fund's Principal Underwriter
and Distributor. BISYS Fund Services Ohio, Inc. is the Fund's Administrator
and BISYS Fund Services, Inc. ("BISYS") is the Fund's Fund Accountant,
Transfer Agent and Dividend Disbursing Agent. In addition, Investors
Fiduciary Trust Company ("IFTC") is the Fund's Custodian. In return for
these serves, BISYS L.P and BISYS will earn an annual fee amounting to
0.23% of the Fund's average daily net assets and IFTC will earn an annual
fee amounting to 0.095% of the Fund's average daily net assets.
The Fund has adopted Distribution Plans for each class of shares, except
Class Y Shares, as allowed by Rule 12b-1 of the 1940 Act. Distribution
plans permit the Fund to reimburse its principal underwriter for costs
related to selling shares of the Fund and for various other services. These
costs, which consist primarily of commissions and service fees to
broker-dealers who sell shares of the Fund, are paid by the Fund. Pursuant
to the Distribution plans, each class, except Class Y, currently pays a
service fee equal to 0.25% of the average daily net assets of the class.
Class B and Class C also presently pay distribution fees equal to 0.75% of
the average daily net assets of the class. Distribution Plan fees are
calculated daily and paid monthly.
During the six months ended March 31, 1999, amounts paid to brokers by
BISYS L.P. pursuant to the Fund's Class A, Class B and Class C Distribution
Plans were $3,235, $5,506 and $6,781, respectively.
Each of the Distribution Plans may be terminated at any time by vote of the
Independent Trustees or by vote of a majority of the outstanding voting
shares of the respective class.
Continued
-18-
<PAGE> 20
ALPINE U.S. REAL ESTATE EQUITY FUND
NOTES TO FINANCIAL STATEMENTS, CONTINUED
(UNAUDITED)
Class A shares are subject to a 4.75% sales charge at the time of purchase.
Class B shares are subject to a Contingent Deferred Sales Charge (CDSC) on
redemptions of shares made within six years of purchase. The applicable
CDSC is equal to a percentage of the lesser of the net asset value per
share (NAV) at the date of the original purchase or at the date of
redemption. Class C shares are subject to a 1% CDSC on shares redeemed
during the first year after purchase.
Officers of the Fund and affiliated Trustees receive no compensation
directly from the Fund.
6. CONCENTRATION OF CREDIT RISK
The Fund invests a substantial portion of its assets in the equity
securities of issuers engaged in the real estate industry, including real
estate investment trusts (REITs). As a result, the Fund may be more
affected by economic developments in the real estate industry than would a
general equity fund.
Continued
-19-
<PAGE> 21
ALPINE U.S. REAL ESTATE EQUITY FUND
FINANCIAL HIGHLIGHTS
(FOR A SHARE OUTSTANDING THROUGHOUT EACH PERIOD)
<TABLE>
<CAPTION>
SIX MONTHS
ENDED YEAR ENDED SEPTEMBER 30,
MARCH 31, ----------------------------------------------
1999(a) 1998(a) 1997(a) 1996(a) 1995(b)
----------- ------- ------- ------- -------
(UNAUDITED)
<S> <C> <C> <C> <C> <C>
CLASS A SHARES
NET ASSETS VALUE BEGINNING OF PERIOD................ $12.34 $19.34 $12.49 $11.42 $ 9.21
------ ------ ------ ------ ------
INCOME (LOSS) FROM INVESTMENT OPERATIONS
Net investment income (loss)...................... 0.08 0.08 0.12(c) 0.20 0.18
Net realized and unrealized gain (loss) from
investments and foreign currencies.............. (0.59) (4.25) 8.57 1.28 2.03
------ ------ ------ ------ ------
Total from investment operations.................. (0.51) (4.17) 8.69 1.48 2.21
------ ------ ------ ------ ------
LESS DISTRIBUTIONS
From net investment income........................ -- (0.15) (0.26)(c) (0.20) --
From net realized gains........................... (0.12) (2.68) (1.58) (0.21) --
------ ------ ------ ------ ------
Total distributions............................... (0.12) (2.83) (1.84) (0.41) --
------ ------ ------ ------ ------
NET ASSET VALUE END OF PERIOD....................... $11.71 $12.34 $19.34 $12.49 $11.42
====== ====== ====== ====== ======
TOTAL RETURN (EXCLUDES SALES CHARGES)............... (4.21)%(g) (24.86)% 78.28% 13.12% 24.00%
ANNUALIZED RATIOS/SUPPLEMENTARY DATA:
Net Assets at end of period (000)................... $3,609 $5,582 $2,778 $ 263 $ 5
Ratio of expenses to average net assets............. 2.41%(f) 1.95% 1.77% 1.72% 1.78%(f)
Ratio of interest expense to average net assets..... N/A N/A N/A 0.04% N/A
Ratio of net investment income (loss) to average net
assets............................................ 1.28%(f) 0.27% 0.90% 1.60% 3.13%(f)
Ratio of expenses to average net assets (d)......... N/A N/A 1.76% N/A N/A
Ratio of expenses to average net assets (e)......... N/A 1.97% 2.49% 9.65% 364.74%(f)
Ratio of net investment income (loss) to average net
assets (e)........................................ N/A 0.25% 0.88% 1.58% 3.11%(f)
Portfolio Turnover (h).............................. 38% 138% 205% 169% 115%
</TABLE>
- ---------
<TABLE>
<S> <C>
(a) Net investment income is based on average shares outstanding
during the period.
(b) For the period from March 10, 1995 (commencement of Class
operations) to September 30, 1995.
(c) The per share amount of net investment income is not in
accord with the distributions per share from net investment
income due to the timing of sales of Fund shares after the
Fund declared its annual income distribution on December 26,
1996. The distributions declared on such date were paid
principally from net investment income earned during the
previous fiscal year.
(d) During the period, certain fees were indirectly paid. If
such fees indirectly paid had not occurred, the ratios would
have been as indicated.
(e) During the period, certain fees were waived or reimbursed.
If such fees waived or reimbursed had not occurred, the
ratios would have been as indicated.
(f) Annualized.
(g) Not annualized.
(h) Portfolio turnover is calculated on the basis of the Fund,
as a whole, without distinguishing between the classes of
shares issued.
</TABLE>
-20-
<PAGE> 22
ALPINE U.S. REAL ESTATE EQUITY FUND
FINANCIAL HIGHLIGHTS
(FOR A SHARE OUTSTANDING THROUGHOUT EACH PERIOD)
<TABLE>
<CAPTION>
SIX MONTHS
ENDED YEAR ENDED SEPTEMBER 30,
MARCH 31, ----------------------------------------------
1999(a) 1998(a) 1997(a) 1996(a) 1995(b)
----------- ------- ------- ------- -------
(UNAUDITED)
<S> <C> <C> <C> <C> <C>
CLASS B SHARES
NET ASSET VALUE BEGINNING OF PERIOD................. $12.12 $19.14 $12.41 $11.37 $ 9.19
------ ------ ------ ------ ------
INCOME (LOSS) FROM INVESTMENT OPERATIONS
Net investment income (loss)...................... 0.03 (0.05) 0.02(c) 0.13 0.05
Net realized and unrealized gain (loss) from
investments and foreign currencies.............. (0.58) (4.18) 8.49 1.27 2.13
------ ------ ------ ------ ------
Total from investment operations.................. (0.55) (4.23) 8.51 1.40 2.18
------ ------ ------ ------ ------
LESS DISTRIBUTIONS
From net investment income........................ -- (0.11) (0.20)(c) (0.15) --
From net realized gains........................... (0.12) (2.68) (1.58) (0.21) --
------ ------ ------ ------ ------
Total distributions............................... (0.12) (2.79) (1.78) (0.36) --
------ ------ ------ ------ ------
NET ASSET VALUE END OF PERIOD....................... $11.45 $12.12 $19.14 $12.41 $11.37
====== ====== ====== ====== ======
TOTAL RETURN (EXCLUDES REDEMPTION CHARGES).......... (4.62)%(g) (25.43)% 76.87% 12.49% 23.72%
ANNUALIZED RATIOS/SUPPLEMENTARY DATA:
Net Assets at end of period (000)................... $4,317 $6,352 $3,446 $ 431 $ 160
Ratio of expenses to average net assets............. 3.16%(f) 2.70% 2.52% 2.46% 2.51%(f)
Ratio of interest expense to average net assets..... N/A N/A N/A 0.04% N/A
Ratio of net investment income (loss) to average net
assets............................................ 0.51%(f) (0.42)% 0.12% 1.05% 2.00%(f)
Ratio of expenses to average net assets (d)......... N/A N/A 2.51% N/A N/A
Ratio of expenses to average net assets (e)......... N/A 2.72% 3.24% 6.19% 28.70%(f)
Ratio of net investment income (loss) to average net
assets............................................ N/A (0.44)% 0.10% 1.03% 1.98%(f)
Portfolio Turnover (h).............................. 38% 138% 205% 169% 115%
</TABLE>
- ---------
<TABLE>
<S> <C>
(a) Net investment income is based on average shares outstanding
during the period.
(b) For the period from March 7, 1995 (commencement of Class
operations) to September 30, 1995.
(c) The per share amount of net investment income is not in
accord with the distributions per share from net investment
income due to the timing of sales of Fund shares after the
Fund declared its annual income distribution on December 26,
1996. The distributions declared on such date were paid
principally from net investment income earned during the
previous fiscal year.
(d) During the period, certain fees were indirectly paid. If
such fees indirectly paid had not occurred, the ratios would
have been as indicated.
(e) During the period, certain fees were waived or reimbursed.
If such fees waived or reimbursed had not occurred, the
ratios would have been as indicated.
(f) Annualized.
(g) Not annualized.
(h) Portfolio turnover is calculated on the basis of the Fund,
as a whole, without distinguishing between the classes of
shares issued.
</TABLE>
-21-
<PAGE> 23
ALPINE U.S. REAL ESTATE EQUITY FUND
FINANCIAL HIGHLIGHTS
(FOR A SHARE OUTSTANDING THROUGHOUT EACH PERIOD)
<TABLE>
<CAPTION>
SIX MONTHS
ENDED YEAR ENDED SEPTEMBER 30,
MARCH 31, ----------------------------------------------
1999(a) 1998(a) 1997(a) 1996(a) 1995(b)
---------- ------- ------- ------- -------
UNAUDITED
<S> <C> <C> <C> <C> <C>
CLASS C SHARES
NET ASSET VALUE BEGINNING OF PERIOD................. $12.12 $19.13 $12.44 $11.41 $10.87
------ ------ ------ ------ ------
INCOME (LOSS) FROM INVESTMENT OPERATIONS
Net investment income (loss)...................... 0.03 (0.05) 0.03(c) 0.13 0.08
Net realized and unrealized gain (loss) from
investments and foreign currencies.............. (0.58) (4.17) 8.47 1.28 0.46
------ ------ ------ ------ ------
Total from investment operations.................. (0.55) (4.22) 8.50 1.41 0.54
------ ------ ------ ------ ------
LESS DISTRIBUTIONS
From net investment income........................ -- (0.11) (0.23)(c) (0.17) --
From net realized gains........................... (0.12) (2.68) (1.58) (0.21) --
------ ------ ------ ------ ------
Total distributions............................... (0.12) (2.79) (1.81) (0.38) --
------ ------ ------ ------ ------
NET ASSET VALUE END OF PERIOD....................... $11.45 $12.12 $19.13 $12.44 $11.41
====== ====== ====== ====== ======
TOTAL RETURN (EXCLUDES REDEMPTION CHARGES).......... (4.62)%(g) (25.38)% 76.89% 12.49% 4.97%(g)
ANNUALIZED RATIOS/SUPPLEMENTARY DATA:
Net Assets at end of period (000)................... $1,596 $2,006 $1,673 $ 125 $ 3
Ratio of expenses to average net assets............. 3.16%(f) 2.70% 2.52% 2.47% 2.49%(f)
Ratio of interest expense to average net assets..... N/A N/A N/A 0.04% N/A
Ratio of net investment income (loss) to average net
assets............................................ 0.47%(f) (0.46)% 0.23% 1.08% 2.55%(f)
Ratio of expenses to average net assets (d)......... N/A N/A 2.51% N/A N/A
Ratio of expenses to average net assets (e)......... N/A 2.72% 3.24% 18.82% 421.54%(f)
Ratio of net investment income (loss) to average net
assets (e)........................................ N/A (0.48)% 0.21% 1.06% 2.53%(f)
Portfolio Turnover (h).............................. 38% 138% 205% 169% 115%
</TABLE>
- ---------
<TABLE>
<S> <C>
(a) Net investment income is based on average shares outstanding
during the period.
(b) For the period from July 12, 1995 (commencement of Class
operations) to September 30, 1995.
(c) The per share amount of net investment income is not in
accord with the distributions per share from net investment
income due to the timing of sales of Fund shares after the
Fund declared its annual income distribution on December 26,
1996. The distributions declared on such date were paid
principally from net investment income earned during the
previous fiscal year.
(d) During the period, certain fees were indirectly paid. If
such fees indirectly paid had not occurred, the ratios would
have been as indicated.
(e) During the period, certain fees were waived or reimbursed if
such fees waived or reimbursed had not occurred, the ratios
would have been as indicated.
(f) Annualized.
(g) Not annualized.
(h) Portfolio turnover is calculated on the basis of the Fund,
as a whole, without distinguishing between the classes of
shares issued.
</TABLE>
-22-
<PAGE> 24
ALPINE U.S. REAL ESTATE EQUITY FUND
FINANCIAL HIGHLIGHTS
(FOR A SHARE OUTSTANDING THROUGHOUT EACH PERIOD)
<TABLE>
<CAPTION>
SIX MONTHS
ENDED YEAR ENDED SEPTEMBER 30,
MARCH 31, --------------------------------------------------------------
1999(a) 1998(a) 1997(a) 1996(a) 1995(a) 1994(a)(c)
----------- ------- ------- ------- ------- ----------
(UNAUDITED)
<S> <C> <C> <C> <C> <C> <C>
CLASS Y SHARES
NET ASSET VALUE BEGINNING OF PERIOD... $ 12.47 $ 19.49 $ 12.56 $ 11.44 $10.07 $10.71
------- ------- ------- ------- ------ ------
INCOME (LOSS) FROM INVESTMENT
OPERATIONS
Net investment income (loss)........ 0.09 0.13 0.16(b) 0.24 0.23 0.11
Net realized and unrealized gain
(loss) from investments and
foreign currencies................ (0.59) (4.32) 8.63 1.29 1.46 (0.75)
------- ------- ------- ------- ------ ------
Total from investment operations.... (0.50) (4.19) 8.79 1.53 1.69 (0.64)
------- ------- ------- ------- ------ ------
LESS DISTRIBUTIONS
From net investment income.......... -- (0.15) (0.28)(b) (0.20) (0.20) --
From net realized gains............. (0.12) (2.68) (1.58) (0.21) (0.12) --
------- ------- ------- ------- ------ ------
Total distributions................. (0.12) (2.83) (1.86) (0.41) (0.32) --
------- ------- ------- ------- ------ ------
NET ASSET VALUE END OF PERIOD......... $ 11.85 $ 12.47 $ 19.49 $ 12.56 $11.44 $10.07
======= ======= ======= ======= ====== ======
TOTAL RETURN.......................... (4.09)%(g) (24.69)% 78.79% 13.57% 17.63% (5.98)%(g)
ANNUALIZED RATIOS/SUPPLEMENTARY DATA:
Net Assets at end of period (000)..... $22,290 $25,832 $19,459 $10,601 $9,456 $8,630
Ratio of expenses to average net
assets.............................. 2.16%(f) 1.70% 1.51% 1.46% 1.50% 1.49%(f)
Ratio of interest expense to average
net assets.......................... N/A N/A N/A 0.04% N/A N/A
Ratio of net investment income (loss)
to average net assets............... 1.46%(f) 0.58% 1.10% 2.02% 2.45% 1.60%(f)
Ratio of expenses to average net
assets (d).......................... N/A N/A 1.50% N/A N/A N/A
Ratio of expenses to average net
assets (e).......................... N/A 1.72% 2.26% 2.25% 2.70% 2.65%(f)
Ratio of net investment income (loss)
to average net assets (e)........... N/A 0.56% 1.08% 2.00% 2.43% 1.58%(f)
Portfolio Turnover (h)................ 38% 138% 205% 169% 115% 102%
</TABLE>
- ---------
<TABLE>
<S> <C>
(a) Net investment income is based on average shares outstanding
during the period.
(b) The per share amount of net investment income is not in
accord with the distributions per share from net investment
income due to the timing of sales of Fund shares after the
Fund declared its annual income distribution on December 26,
1996. The distributions declared on such date were paid
principally from net investment income earned during the
previous fiscal year.
(c) For the nine months ended September 30, 1994. The Fund
changed its fiscal year end from December 31 to September
30, effective September 30, 1994.
(d) During the period, certain fees were indirectly paid. If
such fees indirectly paid had not occurred, the ratios would
have been as indicated.
(e) During the period, certain fees were waived or reimbursed.
If such fees waived or reimbursed had not occurred, the
ratios would have been as indicated.
(f) Annualized.
(g) Not annualized.
(h) Portfolio turnover is calculated on the basis of the Fund,
as a whole, without distinguishing between the classes of
shares issued.
</TABLE>
-23-
