<PAGE> 1
TABLE OF CONTENTS
Portfolio Manager's Report to Shareholders
PAGE 2
Report of Independent Accountants
PAGE 7
Schedule of Portfolio Investments
PAGE 8
Statement of Assets and Liabilities
PAGE 10
Statement of Operations
PAGE 11
Statements of Changes in Net Assets
PAGE 12
Notes to Financial Statements
PAGE 13
Financial Highlights
PAGE 19
- --------------------------------------------------------------------------------
-1-
<PAGE> 2
Portfolio Manager's Report to Shareholders Alpine International Real Estate
Equity Fund
- --------------------------------------------------------------------------------
Value of a $10,000 Investment
<TABLE>
<CAPTION>
GPR Y CLASS
--- -------
<S> <C> <C>
10/31/89 10000 10000
4/30/90 8263 9774
10/31/90 8026 8809
4/30/91 8453 10074
10/31/91 8479 9296
4/30/92 7726 9006
10/31/92 7891 9504
4/30/93 9477 12275
10/31/93 10983 14897
4/30/94 11637 14983
10/31/94 11893 14499
4/30/95 10885 12303
10/31/95 11613 13094
4/30/96 12998 14823
10/31/96 13830 13908
4/30/97 13727 12879
10/31/97 12960 14678
4/30/98 12381 17260
10/31/98 11201 14668
4/30/99 12257 16632
10/31/99 11319 14989
</TABLE>
Past performance is not predictive of future results. Investment return and
principal value of the Alpine International Real Estate Equity Fund will
fluctuate, so that the shares, when redeemed, may be worth more or less than
their original cost.
The GPR-Global Real Estate Securities Index is a global market capitalization
weighted performance index of internationally exchange listed property and real
estate securities. An investor cannot invest directly in an index.
International investing involves increased risk and volatility.
<TABLE>
<CAPTION>
COMPARATIVE TOTAL RETURNS AS OF 10/31/99
10
TOTAL RETURN 1 YEAR 5 YEAR+ YEAR+
- ------------------------------------------------------------------------------------
<S> <C> <C> <C>
Alpine Class Y 2.19% 0.67% 4.13%
Alpine Class A (4.75%)* -2.88% -0.48% 3.53%
Alpine Class B (5.00%)** -3.81% -0.56% 3.69%
Alpine Class C (1.00%)** 0.19% -0.19% 3.69%
- ------------------------------------------------------------------------------------
GPR Global Real Estate Securities Index 1.05% -0.98% 1.25%
</TABLE>
* Represents maximum sales load. ** Represents maximum redemption fee.
+ Performance of Class A, Class B and Class C shares for the period prior to
their inceptions on 2/10/95, 2/8/95 and 2/9/95, respectively, represents
performance for Class Y shares, which commenced operations on 2/1/89.
- --------------------------------------------------------------------------------
-2-
<PAGE> 3
Portfolio Manager's Report to Shareholders Alpine International Real Estate
Equity Fund
- --------------------------------------------------------------------------------
Dear Shareholder:
We are pleased to present the Alpine International Real Estate Equity Fund's
1999 Annual Report to Shareholders. Over the twelve months ended October 31,
1999 net asset value of the Class Y shares of the Alpine International Real
Estate Fund was $13.23, producing a total return of 2.19%. In comparison, the
GPR Global Real Estate Securities Index returned 1.05%. While the first six
months of this year brought solid returns throughout much of the world,
particularly in Asia where companies rebounded from recessionary levels, the
second half of this year was marked by lackluster performance with gradual
declines in some of the weak performers. In virtually every market that we
follow, the real estate sector underperformed the broader market index, a
characteristic shared by most cyclical or mature industries, not just real
estate. The explosion of interest in internet, telecom and related "new economy"
businesses followed a compelling theme which has recently been absorbing much of
the global equity market's new interest and liquidity. We believe this trend
will subside over time, but today's prices have forced investors in these
sectors around the world to shift valuation measures from price to earnings
ratios towards price to revenue multiples, which themselves are often 50 to 100
times. The potential for a bubble bursting in this sector should drive
investment capital back to undervalued sectors, such as real estate, where price
to earning ranges from 3 to 30 times, even in Japan.
Q. HOW DIFFERENT ARE THE REAL ESTATE CYCLES AROUND THE WORLD TODAY?
A. A number of countries have been impacted by recent recessions requiring a
restructuring of their banking systems and those countries typically have
witnessed a slower rebound in economic performance and thus a real estate
recovery. Indonesia, Thailand, Malaysia, have yet to experience a significant
improvement in prices and rents. Similarly, Japan has only just begun to
restructure the real estate related portion of its economy despite its
prolonged recession. In contrast amongst the Asian economies, Hong Kong and
Singapore have strong banking systems and thus have already experienced
strong activity and stabilization of prices, although significant
appreciation is only just now beginning to occur. Germany has also been an
economic laggard which like Japan, has been slow to restructure some of its
industries although its banking systems' inherent strength has created
stability.
A similar situation exists in Switzerland where real estate prices
appear to have finally bottomed as well. The French real estate market,
centered in Paris has historically been dependent upon the large banks, which
have been proactive in restructuring over the past few years as the economy
has started to pick up steam. Thus, France is well into the recovery phase of
its real estate cycle, although rents and prices are well below the peak
levels of the last cycle.
Spain and the Netherlands could be characterized as nearing the end of
the recovery phase and have moved into the expansion phase of the cycle
characterized by significant new construction fueled by strong demand and
rising prices. The Scandinavian markets are also well-advanced in the cycle,
however the level of new development is generally not nearly so energetic.
Similar distinctions in terms of the level of new activity can be drawn
between Australia and New Zealand where both countries are in the growth
phase of the real estate cycle, yet only the former is experiencing
significant new development. Canada has also passed through the recovery
phase to a level where economic activity has increased rents but had only
limited new construction. The U.S. and the U.K. appear to have advanced the
most in their respective real estate cycles and are experiencing a signifi-
- --------------------------------------------------------------------------------
-3-
<PAGE> 4
Portfolio Manager's Report to Shareholders Alpine International Real Estate
Equity Fund
- --------------------------------------------------------------------------------
cant growth phase fueled by strong economic activity. This has produced rent
levels close to and in some locations surpassing the peak of the prior cycle.
Assuming current economic conditions remain solid for both economies over the
next year or two. The potential exists for stable occupancy levels and
further rent and price appreciation.
To summarize, the world's real estate markets vary from a number of
Asian and Latin American countries which are at or approaching the bottom of
the cycle, while several Asian and European markets are still in the recovery
phase. The north and south of Europe are in a growth or expansion part of the
cycle and most of the world's English speaking countries are still enjoying
the growth period or entering a mature equilibrium phase.
Q. WILL THE GROWTH OF THE INTERNET HAVE A MATERIAL IMPACT ON REAL ESTATE?
A. Already the Internet has created a globalization of information flow,
simultaneously increasing access and minimizing the impact of time and
distance in our communications. We have observed an increased focus on
globalization in business itself over the past year which has been most
pronounced in several prominent cross-border mergers and acquisitions,
particularly in the telecom sector. Over the past couple of years the real
estate build has seen an increased global spread, evidenced by companies such
as Trizec Hahn in the public arena and several prominent private U.S.
investors such as Tishman-Speyer, Sam Zell's Equity Group and Gerald Hines
Interests. The Fund has benefited during this past eighteen months starting
with Security Capital Group's (U.S.) acquisition of Bernheim-Comofi in
Belgium, last Summer, and IVG's (Germany) acquisition of the Franco-Belgium
company, Asticus, this Spring. The Fund also owns shares in Prima
Inmobiliaria (Spain) which has formalized a partial share exchange with
Germany's RSE. Over the past two years, America's largest public real estate
brokerage firms all raced to buy European and Asian firms in an effort to
serve the needs of their multi-national corporate clientele. Thus, a physical
globalization is already well underway.
Beyond the broader impact of globalization on most businesses, the
internet should increase demand for warehouse distribution facilities and can
lead to increased office demand not only by internet firms and providers
themselves, but also growing corporate divisions utilizing IT functions. The
potential negative impacts upon retail will probably be mostly limited to
relatively generic product groups such as electronics, books and records, and
perhaps dry goods. Hotels might also be impacted to a modest degree by
certain types of meetings or presentations which can occur over the web more
readily than in person.
Q. HAVE THERE BEEN ANY SIGNIFICANT PORTFOLIO CHANGES OVER THE PAST YEAR?
A. The scope and distribution of the portfolio has not been dramatically changed
as fourteen of the previous holdings were sold and ten new positions were
added. The major change in country weightings was an increase in Canada from
9.1% of the portfolio in October 1998 to 15.6% at October 1999, as the fund
took advantage of continued depressed share prices in Canadian real estate
companies. The major addition was Clublink Corp, Canada's largest owner of
golf courses, which utilizes yield management strategies focused on corporate
members as it operates a network of clubs surrounding Toronto. Club Corp
based in Dallas, the world's largest owner of golf courses, has taken a 25%
stake in the company at a price 25% above October's close. The weighting of
U.S. stocks in the portfolio has declined from over 20% in 1998 to 17%,
although the historically cheap valuations in the U.S., exceeded only by
those in Canada, are increasingly attractive. In Europe, Spain has surpassed
- --------------------------------------------------------------------------------
-4-
<PAGE> 5
Portfolio Manager's Report to Shareholders Alpine International Real Estate
Equity Fund
- --------------------------------------------------------------------------------
France as the fund's largest country weighting with 11.2% versus 9.9% last
year. Just prior to the end of the fiscal year, NH Hotels made a successful
bid to acquire golf resort developer Sotogrande, one of the Fund's long term
holdings in Spain. Takeover activity also benefited the fund in our U.K.
investments where long-time positions in Greycoat and Hemingway Properties
were taken private by management-led buyouts, reducing the Fund's British
exposure from 3.6% to 0.9%. Perhaps the most significant change in the
portfolio, although not in scale, was the addition of new investments in
Japan in October, increasing the Fund's weighting from 6.2% to 10.1%. This
gradual shift from a significant underweighting relative to Japan's
proportion amongst global property shares comes as a result of the first
signs of deregulation of tenant friendly lease laws, which have significantly
constrained office landlords' ability to benefit from market activity. Thus
the fund acquired shares in three notable office-building owners, Mitsubishi
Estate, Daibiru, and Sankei Building. We also believe that legislation
opening up new forms of real estate securities such as pooled mortgages, and
REIT style investment funds could be a positive catalyst for the sector in
the year 2000.
Q. WHAT ARE THE PROSPECTS FOR REAL ESTATE SHARES AROUND THE WORLD?
A. The most significant feature among real estate stocks today is their value
relative to both underlying property levels, historic share prices as well as
other segments of the stock market. As 1999 comes to a close, this portfolio
is being adjusted to emphasize growth opportunities in countries where the
economies are rebounding from recession or where structural reform can
benefit the property industry. The Fund is also concentrated on countries
where property is perceived to be in a mature phase of its business cycle and
significantly undervalued as stock investors focus on what is new and
dynamic, irrespective of valuation.
We believe the explosion of interest and activity in the Internet
business can be a long run positive for certain types of real estate and a
potential negative for others. During the past year office companies
throughout the US, Asia and Europe have sought ways to provide new services
such as high speed fiber optic connectivity to tenants or bundling internet
business to business services on their own portals, all in an effort to both
enhance revenues and remain competitive.
During the past year the fund has benefited from five companies which
were taken private either through management buyouts taking advantage of
either undervalued situations (Sunstone Hotels in the U.S., Greycoat and
Hemingway in the U.K.), strategic integration (Sotogrande in Spain), or
cross-border expansion (Asticus in Belgium). We believe these trends and
themes will continue into the year 2000 as the globalization of real estate
and real estate securities should continue to grow.
We look forward to reporting to shareholders on our progress as we enter
the year 2000. Thank you for your interest and support.
Sincerely,
/s/ SAMUEL A. LIEBER
Samuel A. Lieber
- --------------------------------------------------------------------------------
-5-
<PAGE> 6
Portfolio Manager's Report to Shareholders Alpine International Real Estate
Equity Fund
- --------------------------------------------------------------------------------
GEOGRAPHICAL DISTRIBUTION
[GEOGRAPHICAL DISTRIBUTION PIE GRAPH]
<TABLE>
<CAPTION>
NORTH AMERICA EUROPE ASIA LATIN AMERICA
- ------------- ------ ---- -------------
<S> <C> <C> <C>
35% 36% 24% 5%
</TABLE>
SECTOR DISTRIBUTION
[SECTOR DISTRIBUTION PIE GRAPH]
<TABLE>
<CAPTION>
<S> <C> <C> <C> <C> <C>
OFFICE RESIDENTIAL RETAIL LODGING INDUSTRIAL OTHER
- ------ ----------- ------ ------- ---------- -----
31% 22% 19% 18% 5% 5%
</TABLE>
TOP 10 HOLDINGS* AS OF 10/31/99
<TABLE>
<CAPTION>
<C> <S> <C> <C> <C> <C>
1. Societe Du Louvre (France) 5.82% 6. U.S. Home Corp. (United States) 3.31%
2. Societe das Immeubles DeFrance (France) 5.13% 7. Bentall Corp. (Canada) 3.25%
3. Clublink Corp. (Canada) 4.99% 8. Tachihi Enterprise Co., Ltd. (Japan) 3.18%
4. Alexander's Inc. (United States) 4.95% 9. Kiwi Development Trust (New Zealand) 2.92%
5. Prima Inmobiliaria-SA (Spain) 3.92% 10. HKR International, Ltd. (Hong Kong) 2.89%
</TABLE>
* Portfolio composition subject to change.
- --------------------------------------------------------------------------------
-6-
<PAGE> 7
REPORT OF INDEPENDENT ACCOUNTANTS
To the Shareholders and Trustees
Alpine Equity Trust
In our opinion, the accompanying statement of assets and liabilities, including
the schedule of portfolio investments, and the related statements of operations
and of changes in net assets and the financial highlights present fairly, in all
material respects, the financial position of the Alpine International Real
Estate Equity Fund of the Alpine Equity Trust (hereafter referred to as the
"Fund") at October 31, 1999, and the results of its operations for the year then
ended, the changes in its net assets for each of the two years in the period
then ended and the financial highlights for each of the periods presented, in
conformity with generally accepted accounting principles. These financial
statements and financial highlights (hereafter referred to as "financial
statements") are the responsibility of the Fund's management; our responsibility
is to express an opinion on these financial statements based on our audits. We
conducted our audits of these financial statements in accordance with generally
accepted auditing standards which require that we plan and perform the audit to
obtain reasonable assurance about whether the financial statements are free of
material misstatement. An audit includes examining, on a test basis, evidence
supporting the amounts and disclosures in the financial statements, assessing
the accounting principles used and significant estimates made by management, and
evaluating the overall financial statement presentation. We believe that our
audits, which includes confirmation of securities at October 31, 1999 by
correspondence with the custodian and brokers, provide a reasonable basis for
the opinion expressed above.
PricewaterhouseCoopers LLP
Columbus, Ohio
December 20, 1999
- --------------------------------------------------------------------------------
-7-
<PAGE> 8
ALPINE INTERNATIONAL REAL ESTATE EQUITY FUND
SCHEDULE OF PORTFOLIO INVESTMENTS
OCTOBER 31, 1999
<TABLE>
<CAPTION>
SECURITY MARKET
SHARES DESCRIPTION VALUE
- ---------- ------------------------------ -----------
<C> <S> <C>
COMMON STOCKS -- (100.5%)
Argentina -- (4.5%)
286,323 IRSA Inversiones y
Representaciones SA......... $ 865,117
21,646 IRSA Inversiones y
Representaciones SA, GDR
(c)......................... 653,439
-----------
1,518,556
-----------
Canada -- (15.6%)
121,400 Bentall Corp.................. 1,101,835
100,000 Cambridge Shopping Centres
(b)......................... 496,295
301,100 Clublink Corp. (b)............ 1,688,812
1,033,000 Dundee Realty Corp. (b)....... 870,841
64,400 Gentra, Inc. (b).............. 540,717
1,294,500 Royop Properties Corp. (b).... 545,646
-----------
5,244,146
-----------
Denmark -- (2.8%)
50,780 TK Development................ 933,460
-----------
Finland -- (1.5%)
116,400 Sponda Oyj.................... 516,284
-----------
France -- (11.0%)
85,000 Societe des Immeubles De
France...................... 1,737,649
30,736 Societe Du Louvre............. 1,970,611
-----------
3,708,260
-----------
Germany -- (1.2%)
29,871 Kampa-Haus AG................. 417,566
-----------
Hong Kong -- (4.2%)
310,000 Harbour Centre Development.... 233,412
1,290,400 HKR International, Ltd........ 979,902
2,236,000 Midland Realty Holdings,
Ltd......................... 189,942
-----------
1,403,256
-----------
Japan -- (10.1%)
30,000 Daibiru Corp.................. 206,113
190,000 Diamond City Co., Ltd......... 655,423
146,410 Kansai Sekiwa Real Estate Co.,
Ltd......................... 561,173
80,000 Mitsubishi Estate Co., Ltd.... 801,073
33,000 Sankei Building Co., Ltd...... 116,366
40,000 Tachihi Enterprise Co.,
Ltd......................... 1,077,041
-----------
3,417,189
-----------
Mexico -- (1.0%)
70,000 Grupo Posadas SA, Class A
(b)......................... 37,789
715,000 Grupo Posadas SA, Class L
(b)......................... 311,756
-----------
349,545
-----------
Netherlands -- (2.4%)
62,400 European City Estates N.V..... 813,261
-----------
New Zealand -- (2.9%)
1,552,145 Kiwi Development Trust (b).... 989,948
-----------
</TABLE>
<TABLE>
<CAPTION>
SECURITY MARKET
SHARES DESCRIPTION VALUE
- ---------- ------------------------------ -----------
<C> <S> <C>
COMMON STOCKS, CONTINUED:
Norway -- (2.5%)
133,000 Choice Hotels Scandinavia
ASA......................... $ 313,655
39,200 Steen & Strom Invest ASA...... 537,185
-----------
850,840
-----------
Philippines -- (1.0%)
13,625,000 SM Development Corp........... 332,565
-----------
Singapore -- (5.1%)
318,833 DBS Land, Ltd................. 590,203
600,000 Marco Polo Developments,
Ltd......................... 793,345
150,000 Singapore Land, Ltd........... 333,565
-----------
1,717,113
-----------
Spain -- (11.2%)
50,000 Bami, Sociedad Anonima
Inmobiliaria De
Construcciones y Terrenos
(b)......................... 181,832
350,000 Filo SA (b)................... 500,300
100,710 Inmobilaria Ubris............. 558,895
50,000 NH Hoteles SA (b)............. 564,940
150,000 Prima Inmobiliaria SA (b)..... 1,327,476
169,993 Sotogrande SA (b)............. 641,430
-----------
3,774,873
-----------
Sweden -- (3.0%)
33,900 Castellum AB.................. 292,163
60,000 Fastighets AB Balder.......... 713,746
-----------
1,005,909
-----------
Thailand -- (2.6%)
105,000 Central Pattana Public Co.,
Ltd......................... 102,008
178,600 Dusit Thani Public Co., Ltd.
(b)......................... 185,078
400,000 Saha Pathana Inter-Holding
Public Co., Ltd............. 507,771
195,000 Sammakorn Public Co., Ltd.
(b)......................... 75,777
-----------
870,634
-----------
United Kingdom -- (0.9%)
55,000 Chelsfield PLC................ 293,311
-----------
United States -- (17.0%)
22,900 Alexander's, Inc. (b) (c)..... 1,675,993
33,000 Crossmann Communities, Inc.
(b)......................... 552,750
31,500 Felcor Lodging Trust, Inc.
(c)......................... 535,500
15,000 Lennar Corp. (c).............. 246,563
25,000 Meditrust Co.................. 201,563
55,000 MeriStar Hotels & Resorts,
Inc. (b).................... 137,500
10,500 Starwood Hotels & Resorts
Worldwide, Inc. (c)......... 240,844
89,100 Sunstone Hotel Investors, Inc.
(c)......................... 852,019
</TABLE>
Continued
-8-
<PAGE> 9
ALPINE INTERNATIONAL REAL ESTATE EQUITY FUND
SCHEDULE OF PORTFOLIO INVESTMENTS
OCTOBER 31, 1999
<TABLE>
<CAPTION>
SECURITY MARKET
SHARES DESCRIPTION VALUE
- ---------- ------------------------------ -----------
<C> <S> <C>
COMMON STOCKS, CONTINUED:
40,000 U.S. Home Corp. (b)........... $ 1,119,999
50,000 Wyndham International, Inc.,
Class A (b)................. 143,750
-----------
5,706,481
-----------
Total Common Stocks
(Cost $37,695,787).......... 33,863,197
===========
</TABLE>
<TABLE>
<CAPTION>
SECURITY MARKET
SHARES DESCRIPTION VALUE
- ---------- ------------------------------ -----------
<C> <S> <C>
COMMON STOCKS, CONTINUED:
(Cost $37,695,787) (a)......
100.5% $33,863,197
Liabilities in excess of
other assets....... (0.5)% (158,261)
---- ----------
TOTAL NET ASSETS....... 100.0% $33,704,936
---- ----------
---- ----------
</TABLE>
- ---------
Forward Currency Contracts:
<TABLE>
<CAPTION>
DELIVERY CONTRACT CONTRACT VALUE
POSITION DATE PRICE (U.S. DOLLARS) APPRECIATION
-------- -------- -------- -------------- --------------
<S> <C> <C> <C> <C> <C>
Japanese Yen..................................... short 11/12/99 $104.01 $300,644,000 $ 2,310
--------------
Net unrealized appreciation on forward currency contracts.......................... $ 2,310
==============
</TABLE>
(a) Represents cost for financial reporting purposes and differs from cost basis
for federal income tax purposes by the amount of losses recognized for
financial reporting purposes in excess of federal income tax purposes of
$1,940 and by the amount of market to market adjustments for passive foreign
investment companies of $242,882. Cost for federal income tax purposes
differs from value by net unrealized depreciation of securities as follows:
<TABLE>
<S> <C>
Unrealized appreciation................... $ 4,453,745
Unrealized depreciation................... ($8,531,157)
-----------
Net unrealized depreciation............... ($4,077,412)
===========
</TABLE>
(b) Non-income producing securities.
(c) All or a portion of this security is held as collateral for the line of
credit.
GDR -- Global Depository Receipts
PLC -- Public Limited Company
See notes to financial statements.
-9-
<PAGE> 10
ALPINE INTERNATIONAL REAL ESTATE EQUITY FUND
STATEMENT OF ASSETS AND LIABILITIES
OCTOBER 31, 1999
<TABLE>
<S> <C>
ASSETS:
Investments, at value (Cost $37,695,787).................. $33,863,197
Interest and dividends receivable......................... 32,084
Receivable for investment securities sold................. 1,775,678
Unrealized appreciation on forward currency contracts..... 2,310
Reclaim receivable........................................ 24,776
Prepaid expenses and other assets......................... 14,598
-----------
Total Assets............................................ 35,712,643
-----------
LIABILITIES:
Payable to custodian for line of credit................... 541,835
Payable for investment securities purchased............... 1,373,902
Payable for capital shares redeemed....................... 1,734
Interest payable.......................................... 1,304
Foreign withholding taxes payable......................... 361
Accrued expenses and other liabilities:
Investment advisory fees................................ 28,987
Administration fees..................................... 1,056
Distribution fees....................................... 301
Other................................................... 58,227
-----------
Total Liabilities....................................... 2,007,707
-----------
NET ASSETS.................................................. $33,704,936
===========
NET ASSETS REPRESENTED BY
Shares of beneficial interest, at par value............... $ 255
Additional paid-in-capital................................ 37,840,665
Distributions in excess of net investment income.......... (137,155)
Accumulated net realized losses on foreign exchange
transactions and investments............................ (161,681)
Unrealized depreciation from foreign exchange transactions
and investments......................................... (3,837,148)
-----------
TOTAL NET ASSETS........................................ $33,704,936
===========
NET ASSETS VALUE
Class A shares
Net assets of $338,870/25,767 shares outstanding........ $ 13.15
===========
Offering price (based on sales charge of 4.75%)......... $ 13.81
===========
Class B shares*
Net assets of $201,862 / 15,873 shares outstanding...... $ 12.72
===========
Class C shares*
Net assets of $67,034 / 5,276 shares outstanding........ $ 12.70
===========
Class Y Shares
Net assets of $33,097,170 / 2,501,818 shares
outstanding............................................ $ 13.23
===========
</TABLE>
* Redemption price per share varies based on length of time shares are held
(Note 5)
See notes to financial statements.
-10-
<PAGE> 11
ALPINE INTERNATIONAL REAL ESTATE EQUITY FUND
STATEMENT OF OPERATIONS
FOR THE YEAR ENDED OCTOBER 31, 1999
<TABLE>
<S> <C> <C>
INVESTMENT INCOME:
Interest.................................................. $ 52
Dividends (net of foreign withholding taxes of $71,247)... 869,636
-----------
Total Income................................................ 869,688
---------
EXPENSES:
Investment advisory fees.................................. $ 373,589
Administration fees....................................... 85,926
Distribution fees -- Class B.............................. 1,767
Distribution fees -- Class C.............................. 747
Shareholder servicing fees -- Class A..................... 794
Shareholder servicing fees -- Class B..................... 589
Shareholder servicing fees -- Class C..................... 249
Custodian fees............................................ 85,181
Fund accounting fees...................................... 3,000
Legal fees................................................ 89,463
Trustees' fees............................................ 8,922
Transfer agent fees....................................... 7,986
Registration and filing fees.............................. 51,303
Other..................................................... 73,402
-----------
Total Expenses.............................................. 782,918
---------
Net Investment Income....................................... 86,770
---------
NET REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS:
Net realized gains from foreign exchange transactions and
investments............................................ 1,908,001
Net change in unrealized depreciation from foreign
exchange transactions and investments.................. (1,169,584)
---------
Net realized/unrealized gains from investments.............. 738,417
---------
Change in net assets resulting from operations.............. $ 825,187
=========
</TABLE>
See notes to financial statements.
-11-
<PAGE> 12
ALPINE INTERNATIONAL REAL ESTATE EQUITY FUND
STATEMENTS OF CHANGES IN NET ASSETS
<TABLE>
<CAPTION>
FOR THE FOR THE
YEAR ENDED YEAR ENDED
OCTOBER 31, OCTOBER 31,
1999 1998
------------ ------------
<S> <C> <C>
OPERATIONS:
Net investment income..................................... $ 86,770 $ 10,611
Net realized gains from foreign exchange transactions and
investments............................................ 1,908,001 2,869,579
Net change in unrealized depreciation from foreign
exchange transactions and investments.................. (1,169,584) (2,703,766)
------------ ------------
Change in net assets resulting from operations......... 825,187 176,424
------------ ------------
DISTRIBUTIONS TO SHAREHOLDERS:
From net investment income
Class Y................................................ (37,658) --
------------ ------------
Total change in net assets from distributions to
shareholders......................................... (37,658) --
------------ ------------
SHARES OF BENEFICIAL INTEREST TRANSACTIONS:
Proceeds from shares sold................................. 9,270,528 10,972,286
Cost of shares redeemed................................... (11,799,836) (11,629,044)
Dividends reinvested...................................... 36,449 --
------------ ------------
Net decrease in net assets resulting from shares of
beneficial interest transactions....................... (2,492,859) (656,758)
------------ ------------
Total change in net assets............................. (1,705,330) (480,334)
------------ ------------
NET ASSETS:
Beginning of period....................................... 35,410,266 35,890,600
------------ ------------
End of period............................................. $ 33,704,936 $ 35,410,266
============ ============
</TABLE>
See notes to financial statements.
-12-
<PAGE> 13
ALPINE INTERNATIONAL REAL ESTATE EQUITY FUND
NOTES TO FINANCIAL STATEMENTS
OCTOBER 31, 1999
1. ORGANIZATION:
The Alpine International Real Estate Equity Fund, the (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 shares. 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
("GAAP"), 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 National Association of Securities Dealers Automated
Quotation 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.
Continued
-13-
<PAGE> 14
ALPINE INTERNATIONAL REAL ESTATE EQUITY FUND
NOTES TO FINANCIAL STATEMENTS, CONTINUED
OCTOBER 31, 1999
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 Funds are 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.
D. FEDERAL TAXES:
It is the Fund's policy to continue 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.)
E. 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 GAAP. 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 returns of capital.
As of October 31, 1999, the following reclassifications have been made to
increase (decrease) such accounts with offsetting adjustments made to
additional paid-in-capital:
<TABLE>
<CAPTION>
ACCUMULATED UNDISTRIBUTED
ACCUMULATED UNDISTRIBUTED NET REALIZED GAINS
NET INVESTMENT (LOSSES) FROM INVESTMENT
INCOME (LOSSES) TRANSACTIONS
------------------------- -------------------------
<S> <C> <C>
International Real Estate
Equity......................... ($39,138) $39,138
</TABLE>
Continued
-14-
<PAGE> 15
ALPINE INTERNATIONAL REAL ESTATE EQUITY FUND
NOTES TO FINANCIAL STATEMENTS, CONTINUED
OCTOBER 31, 1999
F. 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.
G. FOREIGN EXCHANGE TRANSACTIONS:
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.
H. FORWARD CURRENCY CONTRACTS:
A forward currency contract ("forward") is an agreement between two parties
to buy and sell a currency at a set price on a future date. The market
value of the forward fluctuates with changes in currency exchange rates.
The forward is marked-to-market daily and the change in market value is
recorded by a Fund as unrealized appreciation or depreciation. When the
forward is closed, the Fund records a realized gain or loss equal to the
fluctuation in value during the period the forward was open. The Fund could
be exposed to risk if a counterparty is unable to meet the terms of a
forward or if the value of the currency changes unfavorably.
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>
YEAR ENDED YEAR ENDED
OCTOBER 31, 1999 OCTOBER 31, 1998
----------------------- -----------------------
SHARES AMOUNT SHARES AMOUNT
-------- ----------- -------- -----------
<S> <C> <C> <C> <C>
CLASS A
Shares sold..................... 10,912 $ 150,123 83,001 $ 1,177,240
Shares redeemed................. (13,322) (187,553) (80,825) (1,131,032)
-------- ----------- -------- -----------
Net change...................... (2,410) (37,430) 2,176 46,208
-------- ----------- -------- -----------
</TABLE>
Continued
-15-
<PAGE> 16
ALPINE INTERNATIONAL REAL ESTATE EQUITY FUND
NOTES TO FINANCIAL STATEMENTS, CONTINUED
OCTOBER 31, 1999
<TABLE>
<CAPTION>
YEAR ENDED YEAR ENDED
OCTOBER 31, 1999 OCTOBER 31, 1998
----------------------- -----------------------
SHARES AMOUNT SHARES AMOUNT
-------- ----------- -------- -----------
<S> <C> <C> <C> <C>
CLASS B
Shares sold..................... 1,743 $ 24,854 13,606 $ 190,234
Shares redeemed................. (5,438) (72,924) (10,848) (149,239)
-------- ----------- -------- -----------
Net change...................... (3,695) (48,070) 2,758 40,995
-------- ----------- -------- -----------
CLASS C
Shares sold..................... 3,916 51,362 17,119 232,674
Shares redeemed................. (10,964) (145,203) (13,173) (171,623)
-------- ----------- -------- -----------
Net change...................... (7,048) (93,841) 3,946 61,051
-------- ----------- -------- -----------
CLASS Y
Shares sold..................... 628,545 9,044,189 683,226 9,372,138
Shares redeemed................. (802,649) (11,394,156) (725,879) (10,177,150)
Shares issued in reinvestment of
dividends.................... 2,728 36,449 -- --
-------- ----------- -------- -----------
Net change...................... (171,376) (2,313,518) (42,653) (805,012)
-------- ----------- -------- -----------
Total net change................ (184,529) $(2,492,859) (33,773) $ (656,758)
======== =========== ======== ===========
</TABLE>
4. SECURITIES TRANSACTIONS:
Cost of purchases and proceeds from sales of investment securities,
excluding securities sold short, forward currency contracts and short-term
investments, were $11,427,290 and $12,965,021, respectively, for the fiscal
year ended October 31, 1999.
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. Distributions
plans permit the Fund to reimburse its principle 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 Shares, currently
pays a service fee equal to 0.25% of the average daily net assets of the
class. Class B and Class C shares 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 fiscal year ended October 31, 1999, BISYS L.P. received $2,262
from commissions earned on sales of shares.
Continued
-16-
<PAGE> 17
ALPINE INTERNATIONAL REAL ESTATE EQUITY FUND
NOTES TO FINANCIAL STATEMENTS, CONTINUED
OCTOBER 31, 1999
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 B shares are subject to a Contingent Deferred Sales Charge ("CDSC")
on redemption 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%
Six......................................................... 1%
</TABLE>
Class C shares are subject to a 1% CDSC on shares redeemed within one year
after the month of purchase.
6. INVESTMENT ADVISORY AGREEMENT AND OTHER AFFILIATED TRANSACTIONS
Investment advisory services are provided to the Fund by Alpine Management
& Research LLC ("Alpine"). Pursuant to the investment advisor's agreement
with the Fund, Alpine is entitled to an annual fee of 1.00% based on the
Fund average daily net assets.
BISYS L.P. is the Fund's 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.
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,
Continued
-17-
<PAGE> 18
ALPINE INTERNATIONAL REAL ESTATE EQUITY FUND
NOTES TO FINANCIAL STATEMENTS, CONTINUED
OCTOBER 31, 1999
with respect to certain countries, there is a 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 Fund or result in a lack of liquidity and high price volatility with
respect to securities of issuers from developing countries.
8. FINANCING AGREEMENT
Effective August 27, 1999, 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 October 31, 1999 the Trust had an unused Committed Line balance of
$3,668,842.
9. OTHER FEDERAL INCOME TAX INFORMATION (UNAUDITED)
As of October 31, 1999, the following Funds have net capital loss
carryforwards which will be available through the stated years to offset
future net capital gains, if any, to the extent provided by the applicable
regulations. To the extent that this carryforward is used to offset future
capital gains, it is probable that the gains so offset will not be
distributed to shareholders:
<TABLE>
<CAPTION>
AMOUNT EXPIRES
-------- -------
<S> <C> <C>
International Real Estate Equity......................... $159,741 2003
</TABLE>
For corporate shareholders the following percentage of the total ordinary
income distributions paid during the fiscal year ended October 31, 1999,
qualify for the corporate dividend received deduction for the following
funds:
<TABLE>
<S> <C>
International Real Estate Equity............................ 100%
</TABLE>
Continued
-18-
<PAGE> 19
ALPINE INTERNATIONAL REAL ESTATE EQUITY FUND
FINANCIAL HIGHLIGHTS
(FOR A SHARE OUTSTANDING THROUGHOUT EACH PERIOD)
<TABLE>
<CAPTION>
YEAR ENDED PERIOD ENDED
------------------------------------------------- SEPTEMBER 30,
1999(a) 1998 1997(a) 1996(a) 1995(a)(b) 1995(a)(c)
------- ------ ------- ------- ---------- -------------
<S> <C> <C> <C> <C> <C> <C>
CLASS A SHARES
NET ASSETS VALUE BEGINNING OF YEAR....... $12.90 $12.94 $12.28 $11.58 $12.12 $11.46
------ ------ ------ ------ ------ ------
INCOME (LOSS) FROM INVESTMENT OPERATIONS:
Net investment income (loss)........... (0.01) (0.05) (0.06) 0.06 (0.01) 0.07
Net realized and unrealized gain (loss)
from foreign exchange transactions
and investments...................... 0.26 0.01 0.72 0.64 (0.53) 0.59
------ ------ ------ ------ ------ ------
Total from investment operations....... 0.25 (0.04) 0.66 0.70 (0.54) 0.66
------ ------ ------ ------ ------ ------
NET ASSET VALUE END OF YEAR.............. $13.15 $12.90 $12.94 $12.28 $11.58 $12.12
====== ====== ====== ====== ====== ======
TOTAL RETURN (EXCLUDES SALES CHARGES).... 1.94% (0.31)% 5.40% 6.00% (4.50)%(g) 5.80%(g)
ANNUALIZED RATIOS/ SUPPLEMENTARY DATA:
Net Assets at end of period (000)...... $ 339 $ 363 $ 336 $ 721 $ 74 $ 66
Ratio of expenses to average net
assets............................... 2.32% 2.04% 2.10% 1.79% 1.73%(f) 1.61%(f)
Ratio of interest expense to average
net assets........................... 0.00% N/A 0.03% 0.03% 0.03%(f) 0.01%(f)
Ratio of net investment income (loss)
to average net assets................ 0.00% (0.26)% (0.47)% 0.40% (1.26)(f) 0.98%(f)
Ratio of expenses to average net
assets(d)............................ 2.32% 2.04% 2.19% 2.97% 46.90%(f) 21.59%(f)
Ratio of expenses to average net
assets(e)............................ N/A N/A 2.10% N/A N/A N/A
Portfolio Turnover(h).................. 31% 82% 44% 25% 1% 28%
</TABLE>
- ---------
<TABLE>
<S> <C>
(a) Net investment income is based on average shares outstanding during the period.
(b) The Fund changed its year end from September 30 to October 31, effective October 31, 1995.
(c) For the period from February 10, 1995 (commencement of operations) to September 30, 1995.
(d) During the period, certain fees were waived or reimbursed. If such fees waived or reimbursed had not
incurred, the ratios would have been as indicated.
(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) 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>
See notes to financial statements.
-19-
<PAGE> 20
ALPINE INTERNATIONAL REAL ESTATE EQUITY FUND
FINANCIAL HIGHLIGHTS
(FOR A SHARE OUTSTANDING THROUGHOUT EACH PERIOD)
<TABLE>
<CAPTION>
YEAR ENDED PERIOD ENDED
------------------------------------------------- SEPTEMBER 30,
1999(a) 1998 1997(a) 1996(a) 1995(a)(b) 1995(a)(c)
------- ------ ------- ------- ---------- -------------
<S> <C> <C> <C> <C> <C> <C>
CLASS B SHARES
NET ASSETS VALUE BEGINNING OF YEAR....... $12.57 $12.69 $12.14 $11.53 $12.08 $11.44
------ ------ ------ ------ ------ ------
INCOME (LOSS) FROM INVESTMENT OPERATIONS:
Net investment income (loss)........... (0.11) (0.10) (0.15) (0.13) (0.02) 0.08
Net realized and unrealized gain (loss)
from foreign exchange transactions
and investments...................... 0.26 (0.02) 0.70 0.74 (0.53) 0.56
------ ------ ------ ------ ------ ------
Total from investment operations....... 0.15 (0.12) 0.55 0.61 (0.55) 0.64
------ ------ ------ ------ ------ ------
NET ASSET VALUE END OF YEAR.............. $12.72 $12.57 $12.69 $12.14 $11.53 $12.08
====== ====== ====== ====== ====== ======
TOTAL RETURN (EXCLUDES REDEMPTION
CHARGES)............................... 1.19% (0.95)% 4.50% 5.30% (4.60)%(g) 5.60%(g)
ANNUALIZED RATIOS/ SUPPLEMENTARY DATA:
Net Assets at end of period (000)...... $ 202 $ 246 $ 213 $ 134 $ 100 $ 128
Ratio of expenses to average net
assets............................... 3.08% 2.80% 2.82% 2.56% 2.44%(f) 2.42%(f)
Ratio of interest expense to average
net assets........................... 0.00 N/A 0.03% 0.03% 0.03%(f) 0.03%(f)
Ratio of net investment income (loss)
to average net assets................ (0.79)% (0.95)% (1.23)% (1.03)% (1.98)%(f) (1.38)%(f)
Ratio of expenses to average net
assets(d)............................ 3.08% 2.80% 2.90% 14.45% 31.39%(f) 82.74%(f)
Ratio of expenses to average net
assets(e)............................ N/A N/A 2.81% N/A N/A N/A
Portfolio Turnover(h).................. 31% 82% 44% 25% 1% 28%
</TABLE>
- ---------
<TABLE>
<S> <C>
(a) Net investment income is based on average shares outstanding during the period.
(b) The Fund changed its year end from September 30 to October 31, effective October 31, 1995.
(c) For the period from February 8, 1995 (commencement of operations) to September 30, 1995.
(d) During the period, certain fees were waived or reimbursed. If such fees waived or reimbursed had not
incurred, the ratios would have been as indicated.
(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) 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>
See notes to financial statements.
-20-
<PAGE> 21
ALPINE INTERNATIONAL REAL ESTATE EQUITY FUND
FINANCIAL HIGHLIGHTS
(FOR A SHARE OUTSTANDING THROUGHOUT EACH PERIOD)
<TABLE>
<CAPTION>
YEAR ENDED PERIOD ENDED
------------------------------------------------- SEPTEMBER 30,
1999(a) 1998 1997(a) 1996(a) 1995(a)(b) 1995(a)(c)
------- ------ ------- ------- ---------- -------------
<S> <C> <C> <C> <C> <C> <C>
CLASS C SHARES
NET ASSETS VALUE BEGINNING OF YEAR....... $12.56 $12.70 $12.14 $11.53 $12.08 $11.43
------ ------ ------ ------ ------ ------
INCOME (LOSS) FROM INVESTMENT OPERATIONS:
Net investment income (loss)........... (0.16) (0.08) (0.14) (0.13) (0.02) 0.06
Net realized and unrealized gain (loss)
from foreign exchange transactions
and investments...................... 0.30 (0.06) 0.70 0.74 (0.53) 0.59
------ ------ ------ ------ ------ ------
Total from investment operations....... 0.14 (0.14) 0.56 0.61 (0.55) 0.65
------ ------ ------ ------ ------ ------
NET ASSET VALUE END OF YEAR.............. $12.70 $12.56 $12.70 $12.14 $11.53 $12.08
====== ====== ====== ====== ====== ======
TOTAL RETURN (EXCLUDES REDEMPTION
CHARGES)............................... 1.19% (1.10)% 4.60% 5.30% (4.60)%(g) 5.70%(g)
ANNUALIZED RATIOS/ SUPPLEMENTARY DATA:
Net Assets at end of period (000)...... $ 67 $ 155 $ 106 $ 8 $ 4 $ 7
Ratio of expenses to average net
assets............................... 3.04% 2.83% 2.83% 2.54% 2.37%(f) 1.54%(f)
Ratio of interest expense to average
net assets........................... 0.00% N/A 0.03% 0.03% 0.02%(f) 0.01%(f)
Ratio of net investment income (loss)
to average net assets................ (0.98)% (0.82)% (1.15)% (1.06)% (1.94)%(f) 0.86%(f)
Ratio of expenses to average net
assets(d)............................ 3.04% 2.83% 2.91% 118.64% 570.26%(f) 269.60%(f)
Ratio of expenses to average net
assets(e)............................ N/A N/A 2.83% N/A N/A N/A
Portfolio Turnover(h).................. 31% 82% 44% 25% 1% 28%
</TABLE>
- ---------
<TABLE>
<S> <C>
(a) Net investment income is based on average shares outstanding during the period.
(b) The Fund changed its year end from September 30 to October 31, effective October 31, 1995.
(c) For the period from February 9, 1995 (commencement of operations) to September 30, 1995.
(d) During the period, certain fees were waived or reimbursed. If such fees waived or reimbursed had not
incurred, the ratios would have been as indicated.
(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) 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>
See notes to financial statements.
-21-
<PAGE> 22
ALPINE INTERNATIONAL REAL ESTATE EQUITY FUND
FINANCIAL HIGHLIGHTS
(FOR A SHARE OUTSTANDING THROUGHOUT EACH PERIOD)
<TABLE>
<CAPTION>
YEAR ENDED PERIOD ENDED
-------------------------------------------------- SEPTEMBER 30,
1999(a) 1998 1997(a) 1996(a) 1995(a)(b) 1995(a)
------- ------- ------- ------- ---------- -------------
<S> <C> <C> <C> <C> <C> <C>
CLASS Y SHARES
NET ASSETS VALUE BEGINNING OF YEAR... $ 12.96 $ 12.97 $ 12.31 $ 11.59 $ 12.13 $ 13.81
------- ------- ------- ------- ------- -------
INCOME (LOSS) FROM INVESTMENT
OPERATIONS:
Net investment income (loss)....... 0.03 0.01 (0.03) 0.01 (0.01) 0.11
Net realized and unrealized gain
(loss) from foreign exchange
transactions and investments..... 0.25 (0.02) 0.71 0.71 (0.53) (1.17)
------- ------- ------- ------- ------- -------
Total from investment operations... 0.28 (0.01) 0.68 0.72 (0.54) (1.06)
------- ------- ------- ------- ------- -------
LESS DISTRIBUTIONS
From net investment income......... (0.01) -- (0.02) -- -- (0.10)
From net realized gains............ -- -- -- -- -- (0.52)
------- ------- ------- ------- ------- -------
Total distributions................ (0.01) -- (0.02) -- -- (0.62)
------- ------- ------- ------- ------- -------
NET ASSET VALUE END OF YEAR.......... $ 13.23 $ 12.96 $ 12.97 $ 12.31 $ 11.59 $ 12.13
======= ======= ======= ======= ======= =======
TOTAL RETURN......................... 2.19% (0.08)% 5.50% 6.20% (4.50)% (7.70)%
ANNUALIZED RATIOS/ SUPPLEMENTARY
DATA:
Net Assets at end of period
(000)............................ $33,097 $34,646 $35,234 $47,502 $61,418 $67,645
Ratio of expenses to average net
assets........................... 2.08% 1.78% 1.82% 1.62% 1.62% 1.54%
Ratio of interest expense to
average net assets............... 0.00% N/A 0.03% 0.03% 0.03% 0.05%
Ratio of net investment income
(loss) to average net assets..... 0.24% 0.04% (0.21)% 0.11% (1.14)% 0.92%
Ratio of expenses to average net
assets(c)........................ 2.08% 1.78% 1.90% 1.67% N/A N/A
Ratio of expenses to average net
assets(d)........................ N/A N/A 1.82% N/A N/A N/A
Portfolio Turnover(e).............. 31% 82% 44% 25% 1% 28%
</TABLE>
- ---------
<TABLE>
<S> <C>
(a) Net investment income is based on average shares outstanding during the period.
(b) The Fund changed its year end from September 30 to October 31, effective October 31, 1995.
(c) During the period, certain fees were waived or reimbursed. If such fees waived or reimbursed had not
incurred, the ratios would have been as indicated.
(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) 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.
-22-
<PAGE> 23
TRUSTEES
Samuel A. Lieber
Laurence B. Ashkin
Foster Bam
H. Guy Leibler
[ALPINE LOGO]
INVESTMENT ADVISOR
Alpine Management and Research, LLC International
122 East 42nd Street, 37th floor Real Estate
New York, NY 10168 Equity Fund
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 [GRAPHIC]
_______________________________
Alpine International Real Estate Equity Fund ANNUAL REPORT
122 East 42nd Street, 37th floor October 31, 1999
New York, NY 10168
(212) 687-5588
(12/99)
