<PAGE> 1
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TABLE OF CONTENTS
Portfolio Manager's Report to Shareholders
PAGE 2
Schedule of Portfolio Investments
PAGE 8
Statement of Assets and Liabilities
PAGE 9
Statement of Operations
PAGE 10
Statements of Changes in Net Assets
PAGE 11
Notes to Financial Statements
PAGE 12
Financial Highlights
PAGE 18
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<PAGE> 2
Portfolio Manager's Report to Shareholders Alpine U.S. Real Estate Equity Fund
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
ALPINE U.S. REAL ESTATE WILSHIRE REAL ESTATE LIPPER REAL ESTATE FUNDS
CLASS Y SHARES SECURITIES TR INDEX (1) AVERAGE
----------------------- ----------------------- ------------------------
<S> <C> <C> <C>
9/3/93 10000 10000 10000
9/30/93 10350 10455 10,438
3/31/94 10901 9924 9899
9/30/94 10117 9890 9622
3/31/95 9674 9902 9274
9/30/95 11900 10823 10312
3/31/96 13085 11685 10922
9/30/96 13515 12962 11849
3/31/97 16229 15627 13841
9/30/97 24151 18410 16088
3/31/98 25876 18245 16448
9/30/98 18189 15326 13815
3/31/99 17446 14654 13275
9/30/99 16298 14662 13512
3/31/00 16033 15109 13589
</TABLE>
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.
The Wilshire Index and Lipper Average are unmanaged and do not reflect the
deduction of fees associated with a mutual fund, such as investment adviser
fees. The performance for the Alpine U.S. Real Estate Equity Fund reflects the
deduction of fees for these value-added services. Investors cannot invest
directly in an index.
<TABLE>
<CAPTION>
COMPARATIVE TOTAL RETURNS AS OF 03/31/00
SINCE
6 MONTH 1 YEAR 3 YEAR 5 YEAR+ INCEPTION+
<S> <C> <C> <C> <C> <C>
--------------------------------------------------------------------------------------
Alpine Class Y (1.63)% (8.10)% (0.40)% 10.63% 7.44%
Alpine Class A (4.75%)* (6.53)% (12.69)% (2.26)% 9.25% 6.41%
Alpine Class B (5.00%)** (7.14)% (13.55)% (2.23)% 9.25% 6.61%
Alpine Class C (1.00%)** (3.14)% (9.91)% (1.36)% 9.60% 6.67%
--------------------------------------------------------------------------------------
Wilshire Real Estate Securities 3.04% 3.10% (1.12)% 8.82% 6.47%
Index
Lipper Real Estate Fund Average 1.97% 2.88% (0.05)% 8.57% 4.80%
</TABLE>
* REPRESENTS MAXIMUM FRONT-END SALES LOAD.
** REPRESENTS APPLICABLE CONTINGENT DEFERRED SALES CHARGE.
+ Performance of Class A, Class B and Class C shares for the period prior to
their inceptions on 3/10/95, 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.
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<PAGE> 3
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 six months ended March 31, 2000. With a closing
NAV of $10.89 for Class Y shares, the fund produced a total return of -1.63% for
the six months ended 3/31/00, which compared with an increase in our benchmark
Wilshire Real Estate Securities Index(1) of 3.04% for the same period. The
Fund's total return was negatively impacted by exposure to the lodging and
homebuilding sectors whose performance lagged the Wilshire Index. Despite a
lackluster performance for both the Fund and real estate stocks in general, we
are encouraged by the improving performance trend since the end of tax selling
in mid-December and more recently by a second upward leg which began in
mid-March. We believe this trend can continue based on our favorable view of a
moderating economy with a solid, if prospectively less dynamic outlook for
rental growth and real estate appreciation over the next four years. The
undemanding valuation of real estate securities along both historical and
relative measures has been highlighted by the implosion of IT (Internet and
Telecom) stocks after pushing the NASDAQ(2) to a penultimate peak on March 12
and the rebound in real estate, homebuilding and lodging share indices which
commenced on March 15. While the growth potential of new technology sectors is
certainly more compelling than the prospects of "old economy" businesses such as
real estate, earnings are less predictable. The market has been mispricing risk
and is now adjusting its valuation of both sectors to incorporate not only
cyclical, but also secular and business specific factors. We believe this
process will likely continue to unfold as an emphasis on risk-adjusted total
returns once again gains favor with investors.
REAL ESTATE FUNDAMENTALS
Alpine has long believed that real estate share prices are driven to
different degrees at different times by the combination of overall equity market
sentiment and liquidity, the historic interaction between bond yields and real
estate capital markets, as well as prospective property fundamentals. Over the
past two years property shares have been out of favor, as many investors became
enamored with Tech stocks. Some investors were first concerned about debt market
instability and now over rising interest rates. Others feared a growing supply
of new real estate under construction would overwhelm demand, prompting higher
vacancy rates and reduced rent levels. We currently believe Tech has stumbled,
interest rates are nearing a peak, and most real estate is performing well.
The supply of new office buildings, warehouses, shopping centers, rental
apartments, self-storage facilities, and new homes for sale, has indeed
accelerated, yet demand has been stronger than expected as record consumer
confidence and emerging business sectors have fueled unprecedented economic
growth and employment levels. According to most real estate brokerage surveys,
office properties nationwide are typically enjoying greater than 90% occupancy
levels and the publicly traded owners of CBD (Central Business District) office
properties in the strongest cities such as New York, Boston, San Francisco, and
Seattle are enjoying portfolio occupancy rates of 96-99%, and thus possess the
ability to push rents to higher levels. Even though the U.S. is the country with
the greatest amount of retail space per capita, retail sales for the major
shopping mall owners have reported growth of 5-8% on a same store basis over the
past year. Clearly, the additional threat of E-retailing has yet to materialize.
Even new single
---------------
1 The Wilshire Real Estate Securities Index is a market capitalization weighted
performance index of listed property and real estate securities. An investor
cannot invest directly in an index.
2 The NASDAQ Composite Index is a broad based capitalization- weighted index of
all NASDAQ National Market and Small Cap Stocks. An investor cannot invest
directly in an index.
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<PAGE> 4
Portfolio Manager's Report to Shareholders Alpine U.S. Real Estate Equity Fund
--------------------------------------------------------------------------------
GEOGRAPHICAL DISTRIBUTION*
GEO DIST PIE
<TABLE>
<S> <C>
South East 15%
Mountain States 6%
Pacific Southwest 27%
New England 7%
Central Plains 4%
South 14%
Midwest 9%
Mid Atlantic 13%
Pacific Northwest 4%
Canada 1%
</TABLE>
SECTOR DISTRIBUTION*
SECTOR DIST PIE
<TABLE>
<S> <C>
Lodging 23%
Home Building 28%
Office 9%
Retail 23%
Diversified 5%
Operating Cos. 5%
Land 1%
Apartments 2%
HealthCare 4%
</TABLE>
family home sales remain strong after experiencing the strongest sales volume in
over 30 years and the existing single family home market enjoyed its fourth
straight record year of sales. In spite of record home ownership levels and
rising interest rates the latest new home sales data appear to be similar to
last years record pace, as inventories of homes for sale continue near last
year's low levels.
The sectors which have been notably impacted by excess supply over the past
two years are hotels and assisted living communities. This has been especially
so at the more affordable end of these groups. However, new supply in both these
property types appears to be peaking which should lead to higher occupancies and
improved operating performance in future quarters. Its is also noteworthy that
the supply of new high-end hotels and office buildings in major urban locations
has yet to peak although the prospective supply/demand gap does not currently
appear excessive. As is always the case with real estate, selectivity according
to demand trends and capacity for new supply go hand in hand with the mantra
location, location, location. In particular, older cities where development is
difficult due to tough environmental constraints or zoning and entitlement
issues tend to enjoy relatively stable supply conditions while the plethora of
lifestyle choices which are often sought by participants in the most vital
fields of economic activity are typically more available in major cities. For
these reasons, we tend to prefer the more established cities on the East and
West Coasts. For many landlords in these cities, this is the best real estate
market in a generation!
VALUATIONS
Despite such fundamental strength, property shares do not reflect this in
their valuations. In our prior report to shareholders, as well as in our Alpine
View 2000 commentary, we discussed the historically low valuation levels of most
real estate stocks as well as their exceedingly low valuations relative to both
alternative investments or even the direct property investment market. As we
mentioned in the beginning of this report, this divergent trend appears to be
gradually reversing itself in part due to the meltdown of IT stocks, which have
been driving the
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<PAGE> 5
Portfolio Manager's Report to Shareholders Alpine U.S. Real Estate Equity Fund
--------------------------------------------------------------------------------
NASDAQ. The only caveat would apply to a significant drop in demand for space. A
significant recession could cripple both consumer confidence and new business
formation, but we do not foresee one although the market appears to have
factored this into property share prices during the past two years.
REAL ESTATE AND TECHNOLOGY
The combination of the market's enthusiasm for technology plays and the
realization that technology will impact the requirement of space users have
driven a number of public real estate companies to capitalize on these trends
with new initiatives. Many real estate companies approach to technology has
focused on selecting third-party partners to provide broadband access for their
tenants. In some cases companies are attempting to provide content in the form
of Business to Business and Business to Consumer services. In most cases, access
and services will be subject to competition, as tenants will not only expect
this from landlords but demand choice as well. We believe the delivery of such
services will be important for property owners from a competitive perspective
yet will probably be less significant in terms of overall profitability.
Despite the constant competition and rapid evolution of new technologies,
there are recently established opportunities to profitably benefit from the
intersection of real estate and the "new economy". To date, we perceive the most
profitable connection between clicks and bricks are properties designed to house
and facilitate specialized IT companies. Currently, properties which meet the
specific needs of webhosting companies and enhanced communications connectivity
providers are producing high returns on investment of 20% or greater. While we
expect such returns to fall as more capital comes into the new arena, this niche
may prove attractive over the next few years for Trizec-Hahn Corp. (TZH) which
has recently invested in such a specialist developer.
PORTFOLIO ACTIVITY*
As long as property shares are undervalued, the prospect of value
realization from Merger & Acquisition (M&A) activity remains. Given Alpine's
investment focus on undervalued stocks, we are always delighted when the Fund
benefits from M&A activity. With this in mind, we are pleased that the
acquisition of Sunstone Hotel Investors, which was pending as of our last report
to shareholders, was consummated. During the first calendar quarter of this
year, your fund initiated an investment in Bristol Hotel & Resorts, which
shortly thereafter was acquired by Bass and then Homestead Village Inc. received
a takeover offer from its parent company Security Capital Corp. Subsequent to
the period under review, as this report was finalized, a definitive deal was
made. We are also pleased with the takeover of US Homes Corp. by Lennar Corp. We
believe this is significant in that most homebuilders would not accept a
takeover price below book value as US Homes Corp. did. In this case, management
was looking at how competitive the two entities combined would be versus if they
remained independent. In practical terms, one plus one may indeed equal three as
the new Lennar will become the largest homebuilder in the US with a spread of
well-located low cost land positioned in some of the most promising market
segments.
TOP 10 HOLDINGS*
<TABLE>
<C> <S> <C> <C> <C> <C>
1. Homestead Village, Inc. 9.96% 6. Lennar Corp. 5.30%
2. Standard Pacific Corp. 8.64% 7. Chelsea GCA Realty, Inc. 4.77%
3. Meristar Hotels & Resorts 6.71% 8. Toll Brothers, Inc. 4.56%
4. Alexander's, Inc. 6.13% 9. Trizec-Hahn Corp. 4.37%
5. Excel Legacy Corp. 5.91% 10. Crossman Communities 4.20%
Percentages based on net assets.
</TABLE>
* Portfolio holdings are subject to change.
--------------------------------------------------------------------------------
-5-
<PAGE> 6
Portfolio Manager's Report to Shareholders Alpine U.S. Real Estate Equity Fund
--------------------------------------------------------------------------------
Taking advantage of the significant volatility and temporarily depressed
share prices in many different areas of Alpine's broad real estate stock
universe, the Fund made a number of significant changes to the portfolio during
this six month period. As a percentage of the total portfolio, homebuilders are
now 28.8% vs. 24.1% six months ago. Retail exposure was significantly increased
to 23.5% from 13.3% last October. Major changes in retail included additions to
the Fund's holdings in Chelsea GCA Realty the premier outlet center developer,
and new investments in Macerich Corp., a leading investor in West Coast shopping
malls and in potential takeover target, Burnham Pacific Properties, a San Diego
based owner of strip shopping centers. The lodging sector grew to 23.3% of the
portfolio from 18.8% while the overall direct and indirect exposure to the
office/industrial sector rose to 18.4% from 8%. We increased the position in
Wellsford Real Properties, which is benefiting from its portfolio of
northeastern suburban office buildings and added Trizec-Hahn Corp., one of the
largest investors in office properties over the past half decade. Trizec-Hahn's
portfolio includes the Sears Tower in Chicago and the Grace Building in New
York. Indirect exposure to offices is provided by the Funds' new investment in
mortgage investor Starwood Financial Investors which has not only financial
properties such as the GM Building in New York, but also owns corporate
headquarters office buildings. Another indirect play on the office sector is a
new investment in Central Parking Corp., the world's largest owner of parking
facilities primarily in and for office buildings in the US. Thus, the Funds'
direct exposure to office industrial properties of 10.4% vs. 6.7% increased in
effect to 18.4% vs. 8% six months ago. The other noteworthy change was with
regard to healthcare facilities where the Fund sold its two investments in
CareMatrix Corp. and Alterra as we perceived they would be involved in
protracted restructuring of their balance sheets. Instead, the Fund chooses to
invest in Sunrise Assisted Living Inc., which is the dominant independent owner
of upscale assisted living communities and possesses a superior balance sheet to
most other companies in the sector.
We wish to point out that the portfolio is currently leveraged in order to
minimize any drag from the Funds' current 10% position in Homestead Village
where we believe the aforementioned takeover bid is highly likely to succeed.
Such a large position is unusual for Alpine and contrasts with its pre-bid size
of 5.6% on December 3. Currently, the fund does not have any short-sale
positions.
SHARE PERFORMANCE PROSPECTS
Alpine believes that the trend of placing greater emphasis on risk adjusted
returns could likely continue, creating a mirror image of the prior periods'
weak returns. Most real estate companies and particularly those in sectors which
are deemed the most economically sensitive such as homebuilders, hotels and to a
lesser degree, the owners of shopping centers, are the most depressed in our
view. This also suggests that they may possess the most upside potential from
improving sentiment for a continued period of economic strength. While we expect
interest rates to increase by 50-100 basis points in two to three more raises by
the Federal Reserve, we do not believe this will lead to a recession, rather
merely a slowing of the economy to a more normalized 2-3% growth rate. Barring a
recession, we believe the impact of such increases on real estate markets is
more than priced in by the stock market. Investors appear to be projecting a
replay of 1970's-1980's patterns of boom and bust cyclicality in valuing these
stocks. We disagree with such an interpretation of real estate performance
prospects.
As the stock market recovers from its bout with irrational exuberance, it
will once again focus on risk and return potential in its evaluation and
valuation of stocks. Our empirical observations of real estate stock performance
relative to the underlying property cycle in different countries and through
different periods over the past twenty years suggest that many property shares
can outperform other sectors, as
--------------------------------------------------------------------------------
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<PAGE> 7
Portfolio Manager's Report to Shareholders Alpine U.S. Real Estate Equity Fund
--------------------------------------------------------------------------------
earnings are more predictable. The late cycle strength of investment real estate
derives from the stability of long-term leases in most commercial properties.
Thus, predictability with moderate growth can provide attractive risk adjusted
medium term returns.
In addition to seeking stocks with predictable returns, this Fund's
managers will continue to search for undervalued situations and opportunistic
investments, which we hope, will further enhance the returns to long-term
shareholders in this fund. We appreciate your support during this difficult
period for property shares. We look forward to renewed positive performance for
investors in this sector.
Sincerely,
/s/ Samuel A. Lieber
Samuel A. Lieber
CEO/Portfolio Manager
---------------
* Portfolio Holdings are subject to change.
Past performance is not predictive of future results.
The Alpine U.S. Real Estate Equity Fund is distributed by BISYS Fund Services.
For more complete information on the U.S. Real Estate Equity Fund, including
fees, expenses and sales charges please call 1-877-945-3863 for a free
prospectus. Please read the prospectus carefully before investing or sending
money.
The views expressed in this report reflect those of the investment adviser only
through the end of the period of the report as stated on the cover. The
manager's views are subject to change at any time based on the market and other
condition.
--------------------------------------------------------------------------------
-7-
<PAGE> 8
ALPINE U.S. REAL ESTATE EQUITY FUND
SCHEDULE OF PORTFOLIO INVESTMENTS
MARCH 31, 2000
(UNAUDITED)
<TABLE>
<CAPTION>
SECURITY MARKET
SHARES DESCRIPTION VALUE
---------- ------------------------------ -----------
<C> <S> <C>
REAL ESTATE INVESTMENT TRUSTS -- (27.8%)
Retail -- (18.0%)
18,200 Alexander's, Inc. (b)(c)...... $ 1,155,699
98,200 Burnham Pacific Properties,
Inc......................... 693,538
31,000 Chelsea GCA Realty, Inc.
(c)......................... 899,000
14,500 Crown American RealtyTrust.... 77,031
27,500 Macerich Co................... 567,188
-----------
3,392,456
-----------
Mortgage REITs -- (5.2%)
20,000 Capital Trust, Inc. (b)....... 80,000
70,800 CRIIMI MAE, Inc. (b).......... 110,625
44,500 Starwood Financial, Inc.
(c)......................... 784,313
-----------
974,938
-----------
Office-Industrial Buildings -- (3.2%)
9,500 Kilroy Realty Corp. (c)....... 200,094
48,000 Mission West Properties....... 411,000
-----------
611,094
-----------
Manufactured Home Parks -- (1.4%)
24,280 Asset Investor Corp........... 261,010
-----------
Total Real Estate Investment
Trusts
(Cost $5,532,289)............. 5,239,498
-----------
COMMON STOCKS -- (77.6%)
Homebuilders -- (28.8%)
50,000 Crossmann Communities, Inc.
(b) (c)..................... 792,188
40,000 D.R. Horton, Inc.............. 522,500
46,060 Lennar Corp. (c).............. 998,926
7,500 Palm Harbor Homes, Inc. (b)... 115,313
18,100 Ryland Group, Inc............. 339,375
163,000 Standard Pacific Corp. (c).... 1,629,999
43,000 Toll Brothers, Inc. (b)....... 860,000
20,000 William Lyon Homes (b)........ 167,500
-----------
5,425,801
-----------
</TABLE>
<TABLE>
<CAPTION>
SECURITY MARKET
SHARES DESCRIPTION VALUE
---------- ------------------------------ -----------
<C> <S> <C>
COMMON STOCKS, CONTINUED:
Lodging -- (23.3%)
59,400 Extended Stay America, Inc.
(b)......................... $ 445,500
589,400 Homestead Village, Inc. (b)... 1,878,712
33,000 John Q. Hammons Hotels,
Inc. (b).................... 144,375
430,500 MeriStar Hotels & Resorts,
Inc. (b).................... 1,264,594
22,000 Starwood Hotels & Resorts
Worldwide, Inc.............. 577,500
46,778 Wyndham International, Inc. --
Class A (b)................. 87,709
-----------
4,398,390
-----------
Real Estate Operating Companies -- (18.9%)
19,000 California Coastal
Communities, Inc. (b)....... 103,313
225,400 Crescent Operating, Inc.
(b)......................... 648,025
330,100 Excel Legacy Corp. (b)........ 1,114,087
42,300 Grubb & Ellis Co. (b)......... 237,938
55,000 Trizec Hahn Corp.............. 824,999
73,800 Wellsford Real Properties,
Inc. (b).................... 641,138
-----------
3,569,500
-----------
Long Term Care Facilities -- (4.0%)
57,000 Sunrise Assisted Living, Inc.
(b)......................... 755,250
-----------
Ancillary Property Services -- (2.6%)
24,400 Central Parking Corp.......... 488,000
-----------
Total Common Stocks
(Cost $17,207,508)............ 14,636,941
-----------
Total Investments
(Cost $22,739,797)..(a)105.4% 19,876,439
Liabilities in excess of other
assets.................(5.4)% (1,017,270)
---- ----------
TOTAL NET ASSETS....... 100.0% $18,859,169
===== ===========
</TABLE>
---------------
(a) Represents cost for federal income tax and financial reporting purposes and
differs from value by net unrealized depreciation of securities as follows:
<TABLE>
<S> <C>
Unrealized appreciation................... $ 656,802
Unrealized depreciation................... (3,520,160)
-----------
Net unrealized depreciation............... $(2,863,358)
===========
</TABLE>
(b) Non income producing security.
(c) All or portion of this security held as collateral for the line of credit.
See notes to financial statements.
-8-
<PAGE> 9
ALPINE U.S. REAL ESTATE EQUITY FUND
STATEMENT OF ASSETS AND LIABILITIES
MARCH 31, 2000
(UNAUDITED)
<TABLE>
<S> <C>
ASSETS:
Investments, at value (Cost $22,739,797).................. $19,876,439
Interest and dividends receivable......................... 48,958
Receivable for investment securities sold................. 1,547,073
Prepaid expenses and other assets......................... 19,471
-----------
Total assets........................................... 21,491,941
-----------
LIABILITIES:
Cash overdrafts........................................... 70,293
Payable to custodian for line of credit................... 1,876,998
Payable for investments securities purchased.............. 568,262
Payable for capital shares redeemed....................... 27,361
Accrued expenses and other liabilities:
Investment advisory fees............................... 15,480
Administration fees.................................... 594
Distribution fees...................................... 2,493
Other.................................................. 71,291
-----------
Total liabilities...................................... 2,632,772
-----------
NET ASSETS.................................................. $18,859,169
===========
NET ASSETS REPRESENTED BY
Capital stock, at par value............................... $ 174
Additional paid-in capital................................ 29,474,359
Undistributed net investment income....................... 25,274
Distributions in excess of net realized gain on investment
transactions........................................... (8,069,204)
Net unrealized depreciation from foreign exchange
transactions and investments........................... (2,571,434)
-----------
TOTAL NET ASSETS....................................... $18,859,169
===========
NET ASSETS VALUE
Class A shares
Net assets of $1,349,457 / 125,758 shares
outstanding........................................... $ 10.73
===========
Offering price (based on sales charge of 4.75%)........ $ 11.27
===========
Class B shares*
Net assets of $2,147,785 / 206,122 shares
outstanding........................................... $ 10.42
===========
Class C shares*
Net assets of $500,089 / 48,010 shares outstanding..... $ 10.42
===========
Class Y shares
Net assets of $14,861,838 / 1,364,651 shares
outstanding........................................... $ 10.89
===========
</TABLE>
---------------
* Redemption price per share varies based on length of time shares are held
(Note 5)
See notes to financial statements.
-9-
<PAGE> 10
ALPINE U.S. REAL ESTATE EQUITY FUND
STATEMENT OF OPERATIONS
SIX MONTHS ENDED MARCH 31, 2000
(UNAUDITED)
<TABLE>
<S> <C> <C>
INVESTMENT INCOME:
Interest income..................................................... $ 66
Dividends (net of foreign withholding taxes of $1,385).............. 348,712
-----------
Total income..................................................... 348,778
-----------
EXPENSES:
Investment advisory fees.................................. $105,982
Administration fees....................................... 46,137
Distribution fees -- Class B.............................. 9,465
Distribution fees -- Class C.............................. 2,781
Shareholder servicing fee -- Class A...................... 2,188
Shareholder servicing fee -- Class B...................... 3,155
Shareholder servicing fee -- Class C...................... 927
Fund accounting fees...................................... 7,189
Custodian fees............................................ 10,264
Interest expense.......................................... 43,967
Legal fees................................................ 44,017
Printing.................................................. 25,781
Transfer agent fees....................................... 7,687
Trustees' fees............................................ 2,822
Other..................................................... 32,903
--------
Total expenses before voluntary fee reductions.............. 345,265
-----------
Expenses reimbursed by investment advisor................. (21,761)
-----------
Net expenses......................................... 323,504
-----------
Net investment income....................................... 25,274
-----------
NET REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS:
Net realized losses from foreign exchange transactions, short sales
and investments.................................................. (3,681,267)
Net change in unrealized depreciation from foreign exchange
transactions
and investments.................................................. 3,041,911
-----------
Net realized/unrealized gains/(losses) from investments............... (639,356)
-----------
Change in net assets resulting from operations........................ $ (614,082)
===========
</TABLE>
See notes to financial statements.
-10-
<PAGE> 11
ALPINE U.S. REAL ESTATE EQUITY FUND
STATEMENTS OF CHANGES IN NET ASSETS
<TABLE>
<CAPTION>
SIX MONTHS ENDED YEAR ENDED
MARCH 31, 2000 SEPTEMBER 30, 1999
------------------ ------------------
(UNAUDITED)
<S> <C> <C>
OPERATIONS:
Net investment income/(loss).............................. $ 25,274 $ (112,930)
Net realized losses on foreign exchange transactions,
short sales and investments............................ (3,681,267) (3,946,405)
Net change in unrealized depreciation on foreign exchange
transactions and investments........................... 3,041,911 1,399,873
----------- ------------
Change in net assets resulting from operations............ (614,082) (2,659,462)
----------- ------------
DISTRIBUTIONS TO SHAREHOLDERS:
Distributions to Class A Shareholders:
From net investment income............................. -- (72)
In excess of net realized gain on investment
transactions......................................... -- (45,681)
Tax return of capital.................................. -- (6,501)
Distributions to Class B Shareholders:
In excess of net realized gain on investment
transactions......................................... -- (50,514)
Tax return of capital.................................. -- (7,197)
Distributions to Class C Shareholders:
In excess of net realized gain on investment
transactions......................................... -- (16,152)
Tax return of capital.................................. -- (2,298)
Distributions to Class Y Shareholders:
In excess of net realized gain on investment
transactions......................................... -- (208,945)
Tax return of capital.................................. -- (29,953)
----------- ------------
Change in net assets from distributions to shareholders... -- (367,313)
----------- ------------
SHARES OF BENEFICIAL INTEREST TRANSACTIONS:
Proceeds from shares sold................................. 3,431,599 6,689,349
Dividends reinvested...................................... -- 329,632
Cost of shares redeemed................................... (7,956,324) (19,766,365)
----------- ------------
Change in net assets from shares of beneficial interest
transactions......................................... (4,524,725) (12,747,384)
----------- ------------
Change in net assets................................... (5,138,807) (15,774,159)
----------- ------------
NET ASSETS:
Beginning of period....................................... 23,997,976 39,772,135
----------- ------------
End of period............................................. $18,859,169 $ 23,997,976
=========== ============
</TABLE>
See notes to financial statements.
-11-
<PAGE> 12
ALPINE U.S. REAL ESTATE EQUITY FUND
NOTES TO FINANCIAL STATEMENTS
MARCH 31, 2000
(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 (the "Trust"), a Massachusetts business
trust organized in 1988.
The Fund offers Class A, Class B, Class C and Class Y shares. Class A
shares are sold with a maximum front-end sales charge of 4.75%. Class B and
Class C shares are sold without a front-end sales charge, but pay higher
ongoing distribution fees than Class A. 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 B shares
purchased after January 1, 1997 will automatically convert to Class A
shares after seven years. Class B shares purchased prior to January 1, 1997
retain their existing conversion rights. Class Y shares are sold at net
asset value and are not subject to contingent deferred sales charges or
distribution fees. 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.
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
Continued
-12-
<PAGE> 13
ALPINE U.S. REAL ESTATE EQUITY FUND
NOTES TO FINANCIAL STATEMENTS, CONTINUED
MARCH 31, 2000
(UNAUDITED)
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. 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 and are accrued as applicable.
D. 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. As of March 31, 2000, there were no outstanding positions of
securities sold short.
E. FINANCING AGREEMENT:
The Trust entered into a secured committed revolving line of credit (the
"Committed Line") with State Street Bank and Trust Company (the "Bank").
Under this agreement, the Bank provides a $5,000,000 Committed Line to be
used by the Funds of the Trust. Borrowings of the Funds under this
agreement will incur interest at 0.50% per annum above the Bank's overnight
federal funds rate. A commitment fee of 0.08% per annum will be incurred on
the unused portion of the Committed Line, which will be allocated by
average net assets to all Funds of the Trust. As of March 31, 2000 the
Trust had no balance available in the Committed Line.
F. 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, 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.)
Continued
-13-
<PAGE> 14
ALPINE U.S. REAL ESTATE EQUITY FUND
NOTES TO FINANCIAL STATEMENTS, CONTINUED
MARCH 31, 2000
(UNAUDITED)
G. 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.
H. 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 for each class.
I. FOREIGN EXCHANGE TRANSACTIONS:
The Fund may invest up to 15% of the value of its total assets in foreign
securities. The books and records of the Fund are maintained in U.S.
dollars. Non-U.S. denominated amounts are translated into U.S. dollars as
follows, with the resultant exchange gains and losses recorded in the
Statement of Operations:
i) market value of investment securities and other assets and
liabilities at the exchange rate on the valuation date,
ii) purchases and sales of investment securities, income and expenses
at the exchange rate prevailing on the respective date of such
transactions.
Dividends and interest from non-U.S. sources received by the Fund are
generally subject to non-U.S. withholding taxes at rates ranging up to 30%.
Such withholding taxes may be reduced or eliminated under the terms of
applicable U.S. income tax treaties, and the Fund intends to undertake any
procedural steps required to claim the benefits of such treaties.
Continued
-14-
<PAGE> 15
ALPINE U.S. REAL ESTATE EQUITY FUND
NOTES TO FINANCIAL STATEMENTS, CONTINUED
MARCH 31, 2000
(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, 2000 SEPTEMBER 30, 1999
---------------------- -------------------------
SHARES AMOUNT SHARES AMOUNT
-------- ----------- ---------- ------------
<S> <C> <C> <C> <C>
CLASS A
Shares sold.......................... 9,742 $ 101,825 51,927 $ 633,527
Shares issued in reinvestment of
dividends......................... -- -- 3,603 44,996
Shares redeemed...................... (85,362) (877,235) (306,363) (3,785,541)
-------- ----------- ---------- ------------
Net change........................... (75,620) (775,410) (250,833) (3,107,018)
-------- ----------- ---------- ------------
CLASS B
Shares sold.......................... 1,049 10,683 12,316 145,539
Shares issued in reinvestment of
dividends......................... -- -- 3,863 47,319
Shares redeemed...................... (85,451) (853,709) (249,576) (3,069,937)
-------- ----------- ---------- ------------
Net change........................... (84,402) (843,026) (233,397) (2,877,079)
-------- ----------- ---------- ------------
CLASS C
Shares sold.......................... 2,574 26,379 74,205 909,809
Shares issued in reinvestment of
dividends......................... -- -- 988 12,100
Shares redeemed...................... (76,568) (786,843) (118,685) (1,452,165)
-------- ----------- ---------- ------------
Net change........................... (73,994) (760,464) (43,492) (530,256)
-------- ----------- ---------- ------------
CLASS Y
Shares sold.......................... 313,390 3,292,711 394,300 5,000,465
Shares issued in reinvestment of
dividends......................... -- -- 17,823 225,217
Shares redeemed...................... (521,112) (5,438,536) (910,641) (11,458,713)
-------- ----------- ---------- ------------
Net change........................... (207,722) (2,145,825) (498,518) (6,233,031)
-------- ----------- ---------- ------------
Total net change..................... (441,738) $(4,524,725) (1,026,240) $(12,747,384)
======== =========== ========== ============
</TABLE>
4. SECURITIES TRANSACTIONS:
Cost of purchases and proceeds from sales of investment securities,
excluding securities sold short and short-term investments, were
$15,327,543 and $18,182,971, respectively, for six months period ended on
March 31, 2000.
Continued
-15-
<PAGE> 16
ALPINE U.S. REAL ESTATE EQUITY FUND
NOTES TO FINANCIAL STATEMENTS, CONTINUED
MARCH 31, 2000
(UNAUDITED)
5. DISTRIBUTION PLANS:
BISYS Fund Services L.P. ("BISYS L.P."), a wholly-owned subsidiary of The
BISYS Group Inc. serves as principal underwriter to the Fund.
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 six months period ended on March 31, 2000, amounts earned by BISYS
L.P. pursuant to the Fund's Class A, Class B and Class C Distribution Plans
were $2,188, $12,620 and $3,708, 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.
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, according to the following chart:
<TABLE>
<CAPTION>
YEAR OF REDEMPTION CDSC
------------------ ----
<S> <C>
First................................................ 5%
Second............................................... 4%
Third................................................ 3%
Fourth............................................... 3%
Fifth................................................ 2%
Sixth................................................ 1%
</TABLE>
Class C shares are subject to a 1% CDSC on shares redeemed within one year
after the month of purchase.
Continued
-16-
<PAGE> 17
ALPINE U.S. REAL ESTATE EQUITY FUND
NOTES TO FINANCIAL STATEMENTS, CONTINUED
MARCH 31, 2000
(UNAUDITED)
6. INVESTMENT ADVISORY AGREEMENT AND OTHER AFFILIATED TRANSACTIONS:
Alpine Management & Research LLC ("Alpine") provide investment advisory
services to the Fund. Pursuant to the 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:
<TABLE>
<S> <C>
First $750 million.................................. 1.00%
Next $250 million................................... 0.90%
Over $1 billion..................................... 0.80%
</TABLE>
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 services, BISYS L.P and BISYS
will earn an annual fee amounting to 0.23% of the Fund's average daily net
assets. As of July 1, 1999 this changed to the greater of an annual fee
amounting to 0.23% of the Fund's average daily net assets or $250,000
annually for the Trust. IFTC will earn an annual fee amounting to 0.095% of
the Fund's average daily net assets
Officers of the Fund and affiliated Trustees receive no compensation
directly from the Fund.
7. 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.
8. SUBSEQUENT EVENT:
On April 30, 2000, the Fund liquidated Class C shares. Class C shareholders
chose to either have their shares convert to Class A shares or liquidated.
Continued
-17-
<PAGE> 18
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, ---------------------------------------------------
2000 1999(a) 1998(a) 1997(a) 1996(a) 1995(b)
----------- ------- ------- ------- ------- -------
(UNAUDITED)
<S> <C> <C> <C> <C> <C> <C>
CLASS A SHARES
NET ASSET VALUE BEGINNING OF PERIOD... $10.93 $ 12.34 $ 19.34 $12.49 $11.42 $ 9.21
------ ------- ------- ------ ------ -------
INCOME (LOSS) FROM INVESTMENT
OPERATIONS:
Net investment income (loss)........ 0.01 (0.01) 0.08 0.12(d) 0.20 0.18
Net realized and unrealized gain
(loss) on foreign exchange
transactions, short sales and
investments....................... (0.21) (1.28) (4.25) 8.57 1.28 2.03
------ ------- ------- ------ ------ -------
Total from investment operations.... (0.20) (1.29) (4.17) 8.69 1.48 2.21
------ ------- ------- ------ ------ -------
LESS DISTRIBUTIONS:
Net investment income............... -- --(c) (0.15) (0.26)(d) (0.20) --
Net realized gains from
investments....................... -- -- (2.68) (1.58) (0.21) --
In excess of net realized gains from
investments....................... -- (0.11) -- -- -- --
Tax return of capital............... -- (0.01) -- -- -- --
------ ------- ------- ------ ------ -------
Total distributions................. -- (0.12) (2.83) (1.84) (0.41) --
------ ------- ------- ------ ------ -------
NET ASSET VALUE END OF PERIOD......... $10.73 $ 10.93 $ 12.34 $19.34 $12.49 $ 11.42
====== ======= ======= ====== ====== =======
TOTAL RETURN (EXCLUDES SALES
CHARGE)............................. (1.83)%(h) (10.59)% (24.86)% 78.28% 13.12% 24.00%(h)
ANNUALIZED RATIOS/SUPPLEMENTARY DATA:
Net Assets at end of period (000)... $1,349 $ 2,200 $ 5,582 $2,778 $ 263 $ 5
Ratio of expenses to average net
assets............................ 3.19%(g) 2.82% 1.95% 1.77% 1.72% 1.78%(g)
Ratio of net investment income
(loss) to average net assets...... 0.04%(g) (0.05)% 0.27% 0.90% 1.60% 3.13%(g)
Ratio of expenses to average net
assets (e)........................ N/A N/A N/A 1.76% N/A N/A
Ratio of expenses to average net
assets (f)........................ 3.41%(g) 2.82% 1.97% 2.49% 9.65% 364.74%(g)
Ratio of interest expense to average
net assets........................ 0.41%(g) N/A N/A N/A 0.04% N/A
Portfolio Turnover (i).............. 69% 77% 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) Distribution per share was less than $0.005.
(d) 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 distribution declared on such date were paid
principally from net investment income earned during the
fiscal year.
(e) During the period, certain fees were indirectly paid. If
such fees indirectly paid had not occurred, the ratios would
have been as indicated.
(f) During the period, certain fees were waived or reimbursed.
If such fees were not waived or reimbursed, the ratios would
have been as indicated.
(g) Annualized.
(h) Not annualized.
(i) Portfolio turnover is calculated on the basis of the Fund,
as a whole, without distinguishing between the classes of
shares issued.
</TABLE>
See notes to financial statements.
-18-
<PAGE> 19
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, ---------------------------------------------------
2000 1999(a) 1998(a) 1997(a) 1996(a) 1995(b)
----------- ------- ------- ------- ------- -------
(UNAUDITED)
<S> <C> <C> <C> <C> <C> <C>
CLASS B SHARES
NET ASSET VALUE BEGINNING OF PERIOD.... $10.65 $ 12.12 $ 19.14 $12.41 $11.37 $ 9.19
------ ------- ------- ------ ------ ------
INCOME (LOSS) FROM INVESTMENT
OPERATIONS:
Net investment income (loss)......... -- (0.12) (0.05) 0.02(c) 0.13 0.05
Net realized and unrealized gain
(loss) on foreign exchange
transactions, short sales and
investments........................ (0.23) (1.23) (4.18) 8.49 1.27 2.13
------ ------- ------- ------ ------ ------
Total from investment operations..... (0.23) (1.35) (4.23) 8.51 1.40 2.18
------ ------- ------- ------ ------ ------
LESS DISTRIBUTIONS:
Net investment income................ -- -- (0.11) (0.20)(c) (0.15) --
Net realized gains from
investments........................ -- -- (2.68) (1.58) (0.21) --
In excess of net realized gains from
investments........................ -- (0.11) -- -- -- --
Tax return of capital................ -- (0.01) -- -- -- --
------ ------- ------- ------ ------ ------
Total distributions.................. -- (0.12) (2.79) (1.78) (0.36) --
------ ------- ------- ------ ------ ------
NET ASSET VALUE END OF PERIOD.......... $10.42 $ 10.65 $ 12.12 $19.14 $12.41 $11.37
====== ======= ======= ====== ====== ======
TOTAL RETURN (EXCLUDES SALES CHARGE)... (2.25)%(g) (11.28)% (25.43)% 76.87% 12.49% 23.72%(g)
ANNUALIZED RATIOS/SUPPLEMENTARY DATA:
Net Assets at end of period (000).... $2,148 $ 3,094 $ 6,352 $3,446 $ 431 $ 160
Ratio of expenses to average net
assets............................. 3.97%(f) 3.61% 2.70% 2.52% 2.46% 2.51%(f)
Ratio of net investment income (loss)
to average net assets.............. (0.71)%(f) (0.96)% (0.42)% 0.12% 1.05% 2.00%(f)
Ratio of expenses to average net
assets (d)......................... N/A N/A N/A 2.51% N/A N/A
Ratio of expenses to average net
assets (e)......................... 4.24%(f) 3.61% 2.72% 3.24% 6.19% 28.70%(f)
Ratio of interest expense to average
net assets......................... 0.41%(f) N/A N/A N/A 0.04% N/A
Portfolio Turnover (h)............... 69% 77% 138% 205% 169% 115%
</TABLE>
---------
(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 distribution declared on such date were paid
principally from net investment income earned during the 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 were
not waived or reimbursed, 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.
See notes to financial statements.
-19-
<PAGE> 20
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, ---------------------------------------------------
2000 1999(a) 1998(a) 1997(a) 1996(a) 1995(b)
----------- ------- ------- ------- ------- -------
(UNAUDITED)
<S> <C> <C> <C> <C> <C> <C>
CLASS C SHARES
NET ASSET VALUE BEGINNING OF PERIOD... $10.65 $ 12.12 $ 19.13 $12.44 $11.41 $ 10.87
------ ------- ------- ------ ------ -------
INCOME (LOSS) FROM INVESTMENT
OPERATIONS:
Net investment income (loss)........ -- (0.15) (0.05) 0.03(c) 0.13 0.08
Net realized and unrealized gain
(loss) on foreign exchange
transactions, short sales and
investments....................... (0.23) (1.20) (4.17) 8.47 1.28 0.46
------ ------- ------- ------ ------ -------
Total from investment operations.... (0.23) (1.35) (4.22) 8.50 1.41 0.54
------ ------- ------- ------ ------ -------
LESS DISTRIBUTIONS:
Net investment income............... -- -- (0.11) (0.23)(c) (0.17) --
Net realized gains from
investments....................... -- -- (2.68) (1.58) (0.21) --
In excess of net realized gains from
investments....................... -- (0.11) -- -- -- --
Tax return of capital............... -- (0.01) -- -- -- --
------ ------- ------- ------ ------ -------
Total distributions................. -- (0.12) (2.79) (1.81) (0.38) --
------ ------- ------- ------ ------ -------
NET ASSET VALUE END OF PERIOD......... $10.42 $ 10.65 $ 12.12 $19.13 $12.44 $ 11.41
====== ======= ======= ====== ====== =======
TOTAL RETURN (EXCLUDES SALES
CHARGE)............................. (2.16)%(g) (11.28)% (25.38)% 76.89% 12.49% 4.97%(g)
ANNUALIZED RATIOS/SUPPLEMENTARY DATA:
Net Assets at end of period (000)... $ 500 $ 1,299 $ 2,006 $1,673 $ 125 $ 3
Ratio of expenses to average net
assets............................ 4.23%(f) 3.67% 2.70% 2.52% 2.47% 2.49%(f)
Ratio of net investment income
(loss) to average net assets...... (0.83)%(f) (1.19)% (0.46)% 0.23% 1.08% 2.55%(f)
Ratio of expenses to average net
assets (d)........................ N/A N/A N/A 2.51% N/A N/A
Ratio of expenses to average net
assets (e)........................ 4.51%(f) 3.67% 2.72% 3.24% 18.82% 421.54%(f)
Ratio of interest expense to average
net assets........................ 0.37%(f) N/A N/A N/A 0.04% N/A
Portfolio Turnover (h).............. 69% 77% 138% 205% 169% 115%
</TABLE>
---------
(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 distribution declared on such date were paid
principally from net investment income earned during the 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 were
not waived or reimbursed, 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.
See notes to financial statements.
-20-
<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, ---------------------------------------------------
2000 1999(a) 1998(a) 1997(a) 1996(a) 1995(a)
----------- ------- ------- ------- ------- -------
(UNAUDITED)
<S> <C> <C> <C> <C> <C> <C>
CLASS Y SHARES
NET ASSET VALUE BEGINNING OF PERIOD.... $ 11.07 $ 12.47 $ 19.49 $ 12.56 $ 11.44 $10.07
------- ------- ------- ------- ------- ------
INCOME (LOSS) FROM INVESTMENT
OPERATIONS:
Net investment income (loss)......... 0.01 (0.02) 0.13 0.16(b) 0.24 0.23
Net realized and unrealized gain
(loss) on foreign exchange
transactions, short sales and
investments........................ (0.19) (1.26) (4.32) 8.63 1.29 1.46
------- ------- ------- ------- ------- ------
Total from investment operations..... (0.18) (1.28) (4.19) 8.79 1.53 1.69
------- ------- ------- ------- ------- ------
LESS DISTRIBUTIONS:
Net investment income................ -- -- (0.15) (0.28)(b) (0.20) (0.20)
Net realized gains from
investments........................ -- -- (2.68) (1.58) (0.21) (0.12)
In excess of net realized gains from
investments........................ -- (0.11) -- -- -- --
Tax return of capital................ -- (0.01) -- -- -- --
------- ------- ------- ------- ------- ------
Total distributions.................. -- (0.12) (2.83) (1.86) (0.41) (0.32)
------- ------- ------- ------- ------- ------
NET ASSET VALUE END OF PERIOD.......... $ 10.89 $ 11.07 $ 12.47 $ 19.49 $ 12.56 $11.44
======= ======= ======= ======= ======= ======
TOTAL RETURN........................... (1.63)%(f) (10.40)% (24.69)% 78.79% 13.57% 17.63%
ANNUALIZED RATIOS/SUPPLEMENTARY DATA:
Net Assets at end of period (000).... $14,862 $17,405 $25,832 $19,459 $10,601 $9,456
Ratio of expenses to average net
assets............................. 2.84%(e) 2.68% 1.70% 1.51% 1.46% 1.50%
Ratio of net investment income (loss)
to average net assets.............. 0.46%(e) (0.19)% 0.58% 1.10% 2.02% 2.45%
Ratio of expenses to average net
assets (c)......................... N/A N/A N/A 1.50% N/A N/A
Ratio of expenses to average net
assets (d)......................... 3.03%(e) 2.68% 1.72% 2.26% 2.25% 2.70%
Ratio of interest expense to average
net assets......................... 0.42%(e) N/A N/A N/A 0.04% N/A
Portfolio Turnover (g)............... 69% 77% 138% 205% 169% 115%
</TABLE>
---------
(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) During the period, certain fees were indirectly paid. If such fees
indirectly paid had not occurred, the ratios would have been as indicated.
(d) During the period, certain fees were waived or reimbursed. If such fees were
not waived or reimbursed, the ratios would have been as indicated.
(e) Annualized.
(f) Not annualized.
(g) Portfolio turnover is calculated on the basis of the Fund, as a whole,
without distinguishing between the classes of shares issued.
See notes to financial statements.
-21-
<PAGE> 22
TRUSTEES
Samuel A. Lieber
Laurence B. Ashkin
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 LOGO]
U.S. REAL ESTATE
Equity Fund
ALPINE U.S. REAL ESTATE EQUITY FUND
122 East 42nd Street, 37th floor
New York, NY 10168
(212)687-5588
(5/00)
------------------------------------------------
SEMI-ANNUAL REPORT
March 31, 2000
This material must be preceded or accompanied by
a current prospectus.
