<PAGE> 1
TRUSTEES
Samuel A. Lieber
Laurence B. Ashkin
H. Guy Leibler [ALPINE LOGO]
INVESTMENT ADVISER
Alpine Management and Research, LLC U.S. REAL ESTATE
122 East 42nd Street, 37th floor Equity Fund
New York, NY 10168
CUSTODIAN
IFTC
801 Pennsylvania
Kansas City, MO 64105
ADMINISTRATOR AND TRANSFER AGENT
BISYS Fund Services Ohio, 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
DISTRIBUTOR
BISYS Fund Services L.P.
3435 Stelzer Road
Columbus, OH 43219
Alpine U.S. Real Estate Equity Fund ANNUAL REPORT
122 East 42nd Street, 37th floor September 30, 2000
New York, NY 10168
(212) 687-5588
This material must be preceded
or accompanied by a current prospectus.
(11/00)
<PAGE> 2
TABLE OF CONTENTS
Portfolio Manager's Report to Shareholders
PAGE 2
Report of Independent Accountants
PAGE 8
Schedule of Portfolio Investments
PAGE 9
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 20
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<PAGE> 3
Portfolio Manager's Report to Shareholders Alpine U.S. Real Estate Equity Fund
--------------------------------------------------------------------------------
Value of a $10,000 Investment
<TABLE>
<CAPTION>
ALPINE U.S. REAL ESTATE WILSHIRE REAL ESTATE LIPPER REAL ESTATE FUNDS
CLASS Y SHARES SECURITIES TR INDEX AVERAGE
----------------------- ----------------------- ------------------------
<S> <C> <C> <C>
9/3/93(Inception) 10000 10000 10000
9/30/93 10350 10455 10434
9/30/94 10117 9890 9836
9/30/95 11900 10823 10552
9/30/96 13515 12962 12152
9/30/97 24151 18410 16469
9/30/98 18189 15326 14299
9/30/99 16298 14662 14079
9/30/00 19934 18366 16989
</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 directly
invest in an index.
<TABLE>
<CAPTION>
COMPARATIVE TOTAL RETURNS AS OF 9/30/00
SINCE
1 YEAR 3 YEAR 5 YEAR INCEPTION+
<S> <C> <C> <C> <C>
-----------------------------------------------------------------------------------------
Alpine Class Y 22.31% (6.20)% 10.87% 10.23%
Alpine Class A (4.75%)* 21.87% (6.45)% 10.55% 9.98%
Alpine Class B (5.00%)** 20.92% (7.14)% 9.76% 9.36%
-----------------------------------------------------------------------------------------
Wilshire Real Estate Securities Index 25.26% (0.08)% 11.16% 8.96%
Lipper Real Estate Funds Average 22.02% (0.63)% 10.33% 7.46%
</TABLE>
* REPRESENTS MAXIMUM FRONT-END SALES LOAD.
** REPRESENTS APPLICABLE CONTINGENT DEFERRED SALES CHARGE.
+ Performance of Class A and Class B shares from the period prior to their
inceptions on 3/10/95 and 3/7/95, respectively, represents performance for
Class Y shares, which commenced operations on 9/3/93. Class A and Class B
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> 4
Portfolio Manager's Report to Shareholders Alpine U.S. Real Estate Equity Fund
--------------------------------------------------------------------------------
Dear Investor,
We are pleased to present the Fiscal Year 2000 Annual Report for the Alpine
U.S. Real Estate Equity Fund.
OVERVIEW
For the twelve months ended September 30, 2000, Class Y shares produced a
total return of 22.31%. This compares favorably with the broad market as the
Standard & Poor's (S&P) 500(1) Index was up 13.28% for this period. However, one
data point does not reflect the volatility of either the Fund or real estate
stocks over the past year. Both the Fund and the sector experienced negative
returns during most of the first half of the fiscal year, then rallied strongly
over the past six months in contrast to the S&P 500 and NASDAQ(2) indices which
declined. The Alpine management team believes that real estate stocks have and
will continue to benefit from this recent transition in the market's psychology
away from a fixation only on future growth towards an increased emphasis on
visible earnings at attractive valuations.
Across the country, most regions and sectors have enjoyed solid demand for
property which has typically outstripped current or near term supply. This has
resulted in some of the lowest vacancy rates in memory, between 2% to 5% in
major growth centers such as San Francisco, Seattle, Boston, New York, and
Washington, D.C. Incremental demand from Telecom, Media and Technology (TMT)
related businesses accounted for 15% to 30% of new space absorption in these
cities over the past year and now the prospect of a slowing economy along with
the NASDAQ's implosion suggests to some observers that economic demand and hence
real estate demand may flatten for several quarters.
We believe that a soft landing is likely and that many real estate equities
are already pricing a greater slowdown into shares, which remain at historically
attractive valuations. We have positioned the portfolio to benefit from regions
and sectors offering superior growth and/or significant revaluation potential,
either through continued performance, or corporate takeovers.
PERFORMANCE
During the six and twelve month periods ended September 30, 2000, Class Y
shares produced total returns of 24.33% and 22.31%. By comparison, the Lipper
Real Estate Funds Average(3) was up 19.37% and 22.02%, respectively, while the
Wilshire Real Estate Securities Index(4) registered returns of 21.56% and 25.26%
for the same periods. For five years and since inception the Fund's respective
annualized total returns were 10.87% and 10.23%, while the Lipper Average was
10.33% and 7.46% and the Wilshire Index produced 11.16% and 8.96%.
Since the investment universe of the Alpine U.S. Real Estate Fund is both
more diverse and
---------------
(1) The Standard & Poor's 500 Index is a capitalization-weighted index of 500
stocks. The index is designed to measure performance of a broad domestic
economy through changes in the aggregate market value of 500 stocks
representing all major industries.
(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.
(3) The Lipper Real Estate 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.
(4) The Wilshire Real Estate Securities Index is a market capitalization-
weighted performance index of listed property and real estate securities.
--------------------------------------------------------------------------------
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<PAGE> 5
Portfolio Manager's Report to Shareholders Alpine U.S. Real Estate Equity Fund
--------------------------------------------------------------------------------
roughly five times larger than the typical REIT fund, no single index is
representative of the portfolio. Thus, the Fund's performance is best understood
in the context of several different indices which both include and expand upon
the stocks which constitute the Wilshire Index. The best sectors since the
Fund's semi-annual report were the S&P Homebuilder Index(5)(+38.8%) and the
Bloomberg U.S. Lodging Index(6) (+28.7%), while The Morgan Stanley REIT Index(7)
(+19.7%) was propelled by office, hotel and apartment subsectors. The leaders
over the fiscal year were the same as for six-months but performance was muted
by generally negative returns for real estate stocks in the first half, from
September, 1998 until March 14, 2000. We believe, this was due to a combination
of tax loss selling and declining earnings estimates from Wall Street analysts,
which subsequently proved too pessimistic! Over the fiscal year, homebuilders
ended up 25.5%, after sliding 15% in the first half and hotels were up 22.9%
after being down by 9% at mid year. REIT's produced 21.25% on the strength of
the office and apartment sectors, although healthcare REIT's lost almost 45%.
REAL ESTATE MARKETS
Property fundamentals have been very strong with only regions of isolated
weakness. The strong economy, propelled at the margin by TMT sector expansion,
has absorbed much of the new supply of properties which the market had been
afraid of two years ago. The forecasted glut of Texas office space, the
continued increase of highway intersection hotels, the ongoing retail malling of
America, and the anticipated satiation of homebuyers have not broken the
proverbial camel's back. The demand for office, hotel, retail, and residential
space far exceeded expectations for this year, while the pipeline of near term
supply is in many cases moderating. Fortunately, the prior two years of caution
served to curtail some of the debt and equity capital available for development.
Thus the supply of properties which is now coming to market is relatively
smaller than would be expected at this point in the cycle. Unlike the real
estate busts in 1974-75, 1980-82, and 1990-91 when the peaks in supply coincided
with collapsing demand, the supply and demand prospects for the next few years
are more likely to be gradually moderating. In fact, Alpine Management believes
that the economy will slow in 2001, offering an opportunity for The Federal
Reserve to lower interest rates and loosen liquidity which could prove
stimulative for real estate securities.
VALUE VS. GROWTH
Over the past century the "old economy" has survived and incorporated many
"new economies". Similarly, the cult of growth investing periodically supercedes
and then surrenders to the tradition of value investing. Thus in commenting on
the tech bubble in last February's Alpine View 2000, we anticipated renewed
investor interest in both visible earnings and relative valuations after the
illusion of incomparable future growth proved increasingly elusive.
The long term leases of income producing properties and the record order
backlogs of virtually every public homebuilder provides near term visibility
through at least next year. In the case of
---------------
(5) The Standard & Poor's Homebuilding Index is a capitalization- weighted index
of all stocks designed to measure the performance of the homebuilding sector
of the Standard & Poor's 500 Index.
(6) The Bloomberg U.S. Lodging Index is a capitalization- weighted performance
index of the leading lodging stocks in the United States. The index was
developed with a base value of 100 as of December 31, 1998.
(7) The Morgan Stanley REIT Index is a total return index consisting of the most
actively traded real estate investment trusts and is designed to be a
measure of the real estate equity performance. The index was developed with
a base value of 200 as of December 31, 1994.
--------------------------------------------------------------------------------
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<PAGE> 6
Portfolio Manager's Report to Shareholders Alpine U.S. Real Estate Equity Fund
--------------------------------------------------------------------------------
GEOGRAPHICAL DISTRIBUTION*
<TABLE>
<S> <C> <C> <C> <C> <C> <C> <C>
South East Mountain States Pacific Southwest New England Central Plains South Midwest Mid Atlantic
14% 6% 27% 6% 3% 12% 9% 19%
<S> <C> <C>
Pacific Northwest Canada
3% 1%
</TABLE>
SECTOR DISTRIBUTION*
<TABLE>
<S> <C> <C> <C> <C> <C> <C> <C>
Lodging Home Builder Office Retail Other Diversified Operating Land Apartments
12% 32% 12% 23% 7% 7% 1% 2%
<S> <C>
Health Care
4%
</TABLE>
hotels, which are rented on a nightly basis, demand is usually a product of
Gross Domestic Product (GDP) growth, so supply is the other key variable and it
is projected to expand less than current GDP forecasts for only the second time
in the past five years. Thus even here the prospects for near term earnings
appears solid.
The public markets for real estate are still much smaller than the private
markets, so "Wall Street" typically is dependent upon "Main Street" for setting
values. This relationship is inverted in many other industries and is
particularly so for the TMT Sectors. Thus volatility in the psychology or
valuation metrics of Wall Street have much less impact on underlying property
valuations, providing a stable point of reference which periodically provides
arbitrage (ie: Mergers & Acquisitions -- "M&A") opportunities. Arbitrage
opportunities can provide a floor or more for share prices and your Fund
benefited from five such transactions during this year. Despite these and
several other takeovers, real estate stocks are still trading at historically
cheap prices by most measures.
ECONOMIC PROSPECTS
As the U.S. approaches its tenth year of continued economic expansion
without the boom/bust volatility of the prior thirty years, it is logical to
question how long can the good times last. Although oil equates to only 3% of
GDP (half of its impact of ten years ago) the economy is still vulnerable to
induced cost pressures, exacerbated by the low savings rate and the ballooning
trade deficit. Offsetting these concerns, new business formation and job growth
has been fueled by the combination of increases in business capital expenditures
and productivity enhancements. Combined with steady consumption growth and the
strong dollar, inflation has remained tame. Can this pace be sustained? Unlikely
but it does not have to fall precipitously, either.
A key element supporting investor confidence in the U.S. has been
reductions in the Government's budget deficit and Treasury Bond buy-backs. We
believe the markets will be cautious regarding the fiscal course which the next
President chooses
--------------------------------------------------------------------------------
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<PAGE> 7
Portfolio Manager's Report to Shareholders Alpine U.S. Real Estate Equity Fund
--------------------------------------------------------------------------------
between tax cuts and spending programs, which might impact the deficit.
Potential philosophical changes in economic policy and the future composition
the Federal Reserve Board may also affect market confidence and hence interest
rates, the Dollar, and foreign investment in the U.S.
Fortunately, the economy has developed enhanced depth and diversity over
the past decade. Barring unforeseen events this should help to moderate most
industry specific or regional pressures. Thus the potential impact of a dot com
contraction will probably have only modest impact on real estate markets in most
regions. Similarly, any moderate stock market contraction should not prove
painful to economic demand.
Given the low nationwide vacancy rates of between 7-9% for most property
types and the moderate development pipelines, we believe a soft landing will not
produce significant pressures on real estate profitability. It is likely that
publicly traded companies will again be in a stronger capital position than many
private players, providing further opportunities for future growth.
PORTFOLIO CHANGES & SECTOR PROSPECTS *
Major changes in the Alpine U.S. Real Estate Equity Fund's portfolio over
the past year have reflected our focus on undervalued opportunities. While the
Portfolio's geographic concentration has not changed appreciably with 53% in the
Sunbelt and 25% along the East Coast, the distribution by property type and top
ten holdings has been adjusted.
The principle change in sector weightings of over the past year has been an
increase in homebuilders from 24% last year, to 28% in March as the group began
to rebound, and now 32% as of September, 2000. Retail real estate exposure was
increased from 16% to 23% over twelve months, while the office sector has grown
from 7% to 12%. The major source of funds for these changes came from lodging,
which was reduced from 35% to 23% in March, and now to 12%.
The hotel sector was reduced as values were realized through M&A. First,
Sunstone Hotel Investors last November, Bristol Hotels in March and then
Homestead Village in May. The Fund built a position in Extended Stay America in
the spring and then sold it in the summer for a 54.6% gain. Even though we still
think the sector offers value, we are cautious of poor investor sentiment in a
slowing economy.
Similarly, retail property companies have been depressed by economic
uncertainty, however, potential downside earnings volatility, particularly in
regional malls, is minimized by long-term leases. Over a twelve-month period, we
are comfortable with the prospects of owning such shares at twenty to thirty
percent discounts to NAV and collecting high dividend yields while we wait for
sentiment to improve.
TOP 10 HOLDINGS*
<TABLE>
<C> <S> <C> <C> <C> <C>
1. Standard Pacific Corp. 9.74% 6. Ryland Group, Inc. 4.33%
2. Alexander's Inc. 6.71% 7. Trizec-Hahn Corp. 4.17%
3. Meristar Hotels & Resorts, Inc. 5.22% 8. Excel Legacy Corp. 3.53%
4. Lennar Corp. 5.01% 9. Crown American Realty Trust 3.50%
5. Chelsea GCA Realty, Inc. 4.96% 10. Wellsford Real Properties, Inc. 3.29%
Percentages based on net assets.
</TABLE>
* Portfolio holdings are subject to change.
--------------------------------------------------------------------------------
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<PAGE> 8
Portfolio Manager's Report to Shareholders Alpine U.S. Real Estate Equity Fund
--------------------------------------------------------------------------------
Despite improving business performance, the homebuilder group was unwanted
in most portfolios for over a year before shares turned up in March. While
sweating through market induced doubts, we held to our investment style and the
courage of our convictions. Today, with the group still trading at an average
6.6 times price/earnings ratio (P/E) versus its mature cycle average of 10x P/E,
and the potential for lower interest rates next year, we remain positive on the
sector.
SUMMATION
The combination of attractive equity valuations, excellent real estate
fundamentals, stable if moderating economic prospects and an increasingly
receptive investor mindset should foster a positive climate for real estate
equities. While the Alpine U.S. Real Estate Equity Fund has an historical
pattern of greater NAV volatility than a REIT oriented fund such as the Alpine
Realty Income and Growth Fund, it has been equally dynamic in up & down markets.
After eighteen months of decline it is nice to report on this positive year,
especially the past six months of strong relative performance. We believe the
portfolio is well positioned to benefit from the current environment and look
forward to reporting on your Fund's progress in our next report.
Sincerely,
/s/ Samuel A. Lieber
Samuel A. Lieber
CEO/Portfolio Manager
---------------
* Portfolio holdings and composition are subject to change.
Past performance is not guarantee for future results. Investment return and net
asset value will fluctuate so that an investor's shares, when redeemed may be
worth more or less than the original cost.
The Alpine U.S. Real Estate Equity Fund is distributed by BISYS Fund Services.
For more complete information on the U.S. Real Estate Fund, including fees,
expenses and sales charges please call 1-888-785-5578 for a free prospectus.
Please read the prospectus carefully before investing or sending any money.
The views expressed in this report reflect those of the investment advisor 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
conditions.
--------------------------------------------------------------------------------
-7-
<PAGE> 9
Portfolio Manager's Report to Shareholders Alpine U.S. Real Estate Equity Fund
--------------------------------------------------------------------------------
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 U.S. Real Estate Equity
Fund (the "Fund") at September 30, 2000, 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 five years in the
period then ended, in conformity with accounting principles generally accepted
in the United States of America. 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 auditing standards
generally accepted in the United States of America, 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 included confirmation of securities at
September 30, 2000 by correspondence with the custodian and brokers, provide a
reasonable basis for our opinion.
PricewaterhouseCoopers LLP
November 15, 2000
--------------------------------------------------------------------------------
-8-
<PAGE> 10
ALPINE U.S. REAL ESTATE EQUITY FUND
SCHEDULE OF PORTFOLIO INVESTMENTS
SEPTEMBER 30, 2000
<TABLE>
<CAPTION>
SECURITY MARKET
SHARES DESCRIPTION VALUE
------- --------------------------------- -----------
<C> <S> <C>
REAL ESTATE INVESTMENT TRUSTS -- 32.6%
Hotels -- 1.0%
18,000 RFS Hotel Investors, Inc......... $ 227,250
-----------
Manufactured Home Parks -- 1.2%
24,280 American Land Lease, Inc......... 276,185
-----------
Mortgage REITS -- 3.3%
53,000 Impac Mortgage Holdings, Inc..... 143,100
26,500 iStar Financial, Inc............. 594,594
-----------
737,694
-----------
Diversified -- 2.5%
37,700 First Union Real Estate Equity
and Mortgage Investments....... 103,675
155,400 Meditrust Companies.............. 456,488
-----------
560,163
-----------
Office-Industrial Buildings -- 5.8%
10,000 Alexandria Real Estate Equities,
Inc............................ 343,125
21,200 HRPT Properties Trust............ 148,400
5,000 Kilroy Realty Corp............... 133,438
48,000 Mission West Properties, Inc..... 666,000
-----------
1,290,963
-----------
Retail -- 18.8%
18,200 Alexander's, Inc. (b)............ 1,487,849
29,000 Burnham Pacific Properties,
Inc............................ 175,813
6,800 CBL & Associates Properties,
Inc............................ 170,425
31,300 Chelsea GCA Realty, Inc.......... 1,099,412
128,100 Crown American Realty Trust...... 776,606
20,700 Macerich Co...................... 439,875
-----------
4,149,980
-----------
Total Real Estate Investment
Trusts......................... 7,242,235
-----------
COMMON STOCKS -- 62.2%
Ancillary Property Services -- 7.1%
24,400 Central Parking Corp............. 483,425
60,100 Encompass Services Corp. (b)..... 488,312
22,500 FrontLine Capital Group, Inc.
(b)............................ 369,844
39,300 Grubb & Ellis Co. (b)............ 240,713
-----------
1,582,294
-----------
</TABLE>
<TABLE>
<CAPTION>
SECURITY MARKET
SHARES DESCRIPTION VALUE
------- --------------------------------- -----------
<C> <S> <C>
COMMON STOCKS, CONTINUED:
Homebuilders -- 29.7%
19,000 California Coastal Communities,
Inc. (b)....................... $ 108,063
20,300 Crossmann Communities, Inc.
(b)............................ 400,925
22,890 D.R. Horton, Inc................. 393,422
22,100 Del Webb Corp. (b)............... 613,275
37,460 Lennar Corp...................... 1,112,094
8,400 Pulte Corp....................... 277,200
31,000 Ryland Group, Inc................ 961,000
120,100 Standard Pacific Corp............ 2,161,799
42,300 Washington Homes, Inc. (b)....... 412,425
20,000 William Lyon Homes............... 132,500
-----------
6,572,703
-----------
Lodging -- 9.1%
33,000 John Q. Hammons Hotels, Inc.
(b)............................ 214,500
430,500 MeriStar Hotels & Resorts, Inc.
(b)............................ 1,156,969
21,000 Starwood Hotels & Resorts
Worldwide, Inc................. 656,250
-----------
2,027,719
-----------
Long Term Care Facilities -- 2.8%
28,700 Sunrise Assisted Living, Inc.
(b)............................ 622,431
-----------
Manufactured Housing -- 1.2%
11,000 Cavalier Homes, Inc.............. 16,500
36,000 Champion Enterprises, Inc. (b)... 153,000
7,500 Palm Harbor Homes, Inc. (b)...... 103,125
-----------
272,625
-----------
Real Estate Operating Companies -- 12.3%
225,400 Crescent Operating, Inc. (b)..... 267,663
330,100 Excel Legacy Corp. (b)........... 783,988
55,000 TrizecHahn Corp.................. 924,687
36,900 Wellsford Real Properties, Inc.
(b)............................ 728,775
-----------
2,705,113
-----------
Total Common Stocks.............. 13,782,885
-----------
80,300 Miscellaneous
Securities -- 2.5%............. 556,003
-----------
Total Investments
(Cost $20,760,046) (a)97.3% 21,581,123
Other assets in excess of
liabilities 2.7% 602,673
---- ----------
TOTAL NET ASSET........... 100.0% $22,183,796
==== ==========
</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 reporting of
$270,097. Cost for federal income tax purposes differs from value by net
unrealized appreciation of securities as follows:
<TABLE>
<S> <C>
Unrealized appreciation................... $ 3,372,889
Unrealized depreciation................... (2,821,909)
-----------
Net unrealized appreciation............... $ 550,980
===========
</TABLE>
(b) Represents non-income producing securities.
See notes to financial statements.
--------------------------------------------------------------------------------
-9-
<PAGE> 11
ALPINE U.S. REAL ESTATE EQUITY FUND
STATEMENT OF ASSETS AND LIABILITIES
SEPTEMBER 30, 2000
<TABLE>
<S> <C>
ASSETS:
Investments, at value (cost $20,760,046).................. $21,581,123
Dividends receivable...................................... 41,307
Receivable for investment securities sold................. 1,499,851
Receivable from investment advisor........................ 10,394
Prepaid expenses and other assets......................... 12,842
-----------
Total assets........................................... 23,145,517
-----------
LIABILITIES:
Payable to custodian for line of credit................... 520,278
Payable for investment securities purchased............... 354,880
Payable for capital shares redeemed....................... 11,158
Accrued expenses and other liabilities:
Investment advisory fees............................... 17,632
Administration fees.................................... 11,213
Distribution fees...................................... 2,257
Other.................................................. 44,303
-----------
Total liabilities...................................... 961,721
-----------
NET ASSETS.................................................. $22,183,796
===========
NET ASSETS REPRESENTED BY
Capital stock, at par value............................... $ 165
Additional paid-in-capital................................ 28,261,453
Undistributed net investment income....................... 1,660
Accumulated net realized losses from foreign exchange
transactions, short sales and investments.............. (6,900,559)
Net unrealized appreciation from investment
transactions........................................... 821,077
-----------
TOTAL NET ASSETS....................................... $22,183,796
===========
NET ASSET VALUE
Class A Shares
Net assets of $1,949,835 / 146,360 shares
outstanding........................................... $ 13.32
===========
Offering price (based on sales charge of 4.75%)........ $ 13.98
===========
Class B Shares*
Net assets of $2,342,816 / 181,725 shares
outstanding........................................... $ 12.89
===========
Class Y Shares
Net assets of $17,891,145 / 1,321,310 shares
outstanding........................................... $ 13.54
===========
</TABLE>
---------------
* Redemption price per share varies based on length of time shares are held
(Note 5)
See notes to financial statements.
-10-
<PAGE> 12
ALPINE U.S. REAL ESTATE EQUITY FUND
STATEMENT OF OPERATIONS
YEAR ENDED SEPTEMBER 30, 2000
<TABLE>
<S> <C> <C>
INVESTMENT INCOME:
Dividends (net of foreign withholding taxes of $2,828).............. $ 436,569
-----------
Total income..................................................... 436,569
-----------
EXPENSES:
Investment advisory fees.................................. $205,776
Administration fees....................................... 89,980
Distribution fees -- Class B.............................. 17,656
Distribution fees -- Class C*............................. 3,078
Shareholder servicing fee -- Class A...................... 4,396
Shareholder servicing fee -- Class B...................... 5,885
Shareholder servicing fee -- Class C*..................... 1,026
Custodian fees............................................ 19,744
Fund accounting fees...................................... 9,506
Interest expense.......................................... 61,490
Legal fees................................................ 49,470
Transfer agent fees....................................... 29,111
Trustees' fees and expenses............................... 6,993
Printing costs............................................ 34,499
Other..................................................... 70,695
--------
Total expenses before reimbursement......................... 609,305
-----------
Expenses reimbursed by investment advisor................. (42,651)
-----------
Net expenses......................................... 566,654
-----------
Net investment loss......................................... (130,085)
-----------
REALIZED/UNREALIZED GAIN/(LOSS) ON INVESTMENTS:
Net realized losses from foreign exchange transactions, short sales
and investments.................................................. (2,512,267)
Net change in unrealized depreciation from investment
transactions..................................................... 6,434,422
-----------
Net realized/unrealized gains/(losses) from investments............... 3,922,155
-----------
Change in net assets resulting from operations........................ $ 3,792,070
===========
</TABLE>
---------------
* Class C shares were merged into Class A shares effective April 30, 2000.
See notes to financial statements.
-11-
<PAGE> 13
ALPINE U.S. REAL ESTATE EQUITY FUND
STATEMENTS OF CHANGES IN NET ASSETS
<TABLE>
<CAPTION>
YEAR ENDED YEAR ENDED
SEPTEMBER 30, 2000 SEPTEMBER 30, 1999
------------------ ------------------
<S> <C> <C>
OPERATIONS:
Net investment loss....................................... $ (130,085) $ (112,930)
Net realized losses from foreign exchange transactions,
short sales and investments............................ (2,512,267) (3,946,405)
Net change in unrealized depreciation from investment
transactions........................................... 6,434,422 1,399,873
------------ ------------
Change in net assets resulting from operations............ 3,792,070 (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 resulting from distributions to
shareholders........................................... -- (367,313)
------------ ------------
SHARES OF BENEFICIAL INTEREST TRANSACTIONS:
Proceeds from shares sold.............................. 4,752,839 6,689,349
Proceeds from shares issued in connection with exchange
from Class C......................................... 1,446,851 --
Dividends reinvested................................... -- 329,632
Cost of shares redeemed................................ (10,359,089) (19,766,365)
Cost of shares redeemed in connection with exchange to
Class A.............................................. (1,446,851) --
------------ ------------
Change in net assets from shares of beneficial interest
transactions........................................... (5,606,250) (12,747,384)
------------ ------------
Total Change in net assets................................ (1,814,180) (15,774,159)
------------ ------------
NET ASSETS:
Beginning of period....................................... 23,997,976 39,772,135
------------ ------------
End of period............................................. $ 22,183,796 $ 23,997,976
============ ============
</TABLE>
See notes to financial statements.
-12-
<PAGE> 14
ALPINE U.S. REAL ESTATE EQUITY FUND
NOTES TO FINANCIAL STATEMENTS
SEPTEMBER 30, 2000
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 and Class Y shares. Class A shares are
sold with a maximum front-end sales charge of 4.75%. Class B shares are
sold without a front-end sales charge, but pay distribution fees. 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 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.
Class C shares were merged into Class A shares effective April 30, 2000.
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 for which the primary market is on a domestic or
foreign exchange and over-the-counter securities admitted to trading on the
National Association of Securities Dealers Automated Quotation National
Market System ("NASDAQ") National List at the last quoted sale price or, if
no sale, at the mean of closing bid and asked price. Over-the-counter
securities not included in the NASDAQ National List for which market
quotations are readily available are valued at a price quoted by one or
more brokers. Securities for which accurate quotations are not available or
market quotations are not readily available, will be valued at fair value
as determined in good faith according to procedures approved by the Board
of Trustees.
B. REPURCHASE AGREEMENTS:
The Fund may invest in repurchase agreements. The custodian holds
securities pledged as collateral for repurchase agreements 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.
Continued
-13-
<PAGE> 15
ALPINE U.S. REAL ESTATE EQUITY FUND
NOTES TO FINANCIAL STATEMENTS, CONTINUED
SEPTEMBER 30, 2000
C. SECURITY TRANSACTIONS AND INVESTMENT INCOME:
Securities transactions are accounted for on the date a security is
purchased or sold (i.e. on the trade date). Realized gains and losses are
computed on the identified cost basis. Interest income is recorded on the
accrual basis and includes accretion of discounts and amortization of
premiums where applicable. Dividend income is recorded on the ex-dividend
date or in the case of some foreign securities, on the date thereafter when
the Fund is made aware of the dividend. Foreign income may be subject to
foreign withholding taxes, which are accrued as applicable. Capital gains
realized on some foreign securities are subject to foreign taxes, which are
accrued as applicable.
D. SHORT SALE TRANSACTIONS:
The Fund is authorized to engage in short selling. Short sales are the
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 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, which could be substantial and potentially unlimited, if
the market price of the security increases between the date of short sale
and the date on which the Fund replaces the borrowed security. The Fund
will realize a gain if the security declines in the value between those
dates. The amount of the liability is subsequently marked-to-market to
reflect the current value of the short position. The Fund is also at risk
of incurring dividend expense if the security that has been sold short
declares a dividend. The Fund must pay the dividend to the lender of the
security.
All short sales must be fully collateralized. Accordingly, 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.
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. All the assets in the
portfolio are held as collateral for the Committed Line. As of September
30, 2000, the Trust had an unused Committed Line balance of $2,184,674.
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.
Continued
-14-
<PAGE> 16
ALPINE U.S. REAL ESTATE EQUITY FUND
NOTES TO FINANCIAL STATEMENTS, CONTINUED
SEPTEMBER 30, 2000
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.
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 GAAP. These "book/tax" differences
are either considered temporary or permanent in nature (i.e. reclass of
Section 988 gain/loss, wash sales, REIT temporary difference and capital
and post October loss carryover). 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 September 30, 2000, the following reclassifications have been made to
increase (decrease) such accounts with offsetting adjustments made to
additional paid-in-capital:
<TABLE>
<CAPTION>
ACCUMULATED
ACCUMULATED NET REALIZED (LOSSES)
NET INVESTMENT FROM INVESTMENT
INCOME TRANSACTIONS
-------------- ---------------------
<S> <C> <C>
U.S. Real Estate Equity................................. $131,745 ($355)
</TABLE>
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,
Continued
-15-
<PAGE> 17
ALPINE U.S. REAL ESTATE EQUITY FUND
NOTES TO FINANCIAL STATEMENTS, CONTINUED
SEPTEMBER 30, 2000
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.
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
SEPTEMBER 30, 2000 SEPTEMBER 30, 1999
---------------------- -------------------------
SHARES AMOUNT SHARES AMOUNT
-------- ----------- ---------- ------------
<S> <C> <C> <C> <C>
CLASS A
Shares sold.......................... 13,230 $ 142,061 51,927 $ 633,527
Shares issued in connection with
exchange from Class C............. 44,214 1,446,851 -- --
Shares issued in reinvestment of
dividends......................... -- -- 3,603 44,996
Shares redeemed...................... (112,462) (1,193,633) (306,363) (3,785,541)
-------- ----------- ---------- ------------
Net change........................... (55,018) 395,279 (250,833) (3,107,018)
-------- ----------- ---------- ------------
CLASS B
Shares sold.......................... 1,644 17,296 12,316 145,539
Shares issued in reinvestment of
dividends......................... -- -- 3,863 47,319
Shares redeemed...................... (110,443) (1,135,513) (249,576) (3,069,937)
-------- ----------- ---------- ------------
Net change........................... (108,799) (1,118,217) (233,397) (2,877,079)
-------- ----------- ---------- ------------
</TABLE>
Continued
-16-
<PAGE> 18
ALPINE U.S. REAL ESTATE EQUITY FUND
NOTES TO FINANCIAL STATEMENTS, CONTINUED
SEPTEMBER 30, 2000
<TABLE>
<CAPTION>
YEAR ENDED YEAR ENDED
SEPTEMBER 30, 2000 SEPTEMBER 30, 1999
---------------------- -------------------------
SHARES AMOUNT SHARES AMOUNT
-------- ----------- ---------- ------------
<S> <C> <C> <C> <C>
CLASS C
Shares sold.......................... 2,578 $ 26,373 74,205 $ 909,809
Shares issued in reinvestment of
dividends......................... -- -- 988 12,100
Shares redeemed...................... (79,033) (812,439) (118,685) (1,452,165)
Shares redeemed in connection with
exchange to Class A............... (45,549) (1,446,851) -- --
-------- ----------- ---------- ------------
Net change........................... (122,004) (2,232,917) (43,492) (530,256)
-------- ----------- ---------- ------------
CLASS Y
Shares sold.......................... 423,606 4,567,109 394,300 5,000,465
Shares issued in reinvestment of
dividends......................... -- -- 17,823 225,217
Shares redeemed...................... (674,669) (7,217,504) (910,641) (11,458,713)
-------- ----------- ---------- ------------
Net change........................... (251,063) (2,650,395) (498,518) (6,233,031)
-------- ----------- ---------- ------------
Total net change..................... (536,884) $(5,606,250) (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
$30,731,330 and $36,729,096, respectively, for the fiscal year ended
September 30, 2000.
5. DISTRIBUTION PLANS:
BISYS Fund Services LP ("BISYS LP"), 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 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 September 30, 2000, amounts earned by BISYS LP
pursuant to the Fund's Class A, Class B and Class C shares Distribution
Plans were $4,396, $23,541 and $4,104, respectively.
Each of the Distribution Plans may be terminated at any time by vote of the
Independent Trustees or by vote of a majority of the outstanding voting
shares of the respective class.
Continued
-17-
<PAGE> 19
ALPINE U.S. REAL ESTATE EQUITY FUND
NOTES TO FINANCIAL STATEMENTS, CONTINUED
SEPTEMBER 30, 2000
During the fiscal year ended September 30, 2000, commissions earned by
BISYS LP on sale of shares were $131.
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>
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>
For the fiscal year ended September 30, 2000, Alpine earned $205,776 for
its services.
BISYS LP is the Fund's Distributor. BISYS Fund Services Ohio, Inc.("BISYS")
is the Fund's Administrator, Transfer Agent and Dividend Disbursing Agent.
In return for these services, BISYS LP and BISYS will earn an annual fee
amounting to 0.23% of the Fund's average daily net assets subject to a
minimum of $250,000 annually from the trust. The shortfall in fees between
those calculated based on Fund's average daily net assets and annual
minimum is being reimbursed voluntarily by the investment adviser.
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.
Continued
-18-
<PAGE> 20
ALPINE U.S. REAL ESTATE EQUITY FUND
NOTES TO FINANCIAL STATEMENTS, CONTINUED
SEPTEMBER 30, 2000
8. OTHER FEDERAL INCOME TAX INFORMATION (UNAUDITED)
As of September 30, 2000 the Fund has net capital loss carryforward of
$180,229 and $3,460,270 which will be available through the years 2007 and
2008 respectively, to offset future net capital gains, if any, to the
extent provided by the applicable regulations. To the extent this
carryforward is used to offset future capital gains, it is probable that
the gains so offset will not be distributed to shareholders.
Under current tax law, capital losses realized after October 31 of a Fund's
fiscal year may be deferred and treated as occurring on the first day of
the next fiscal year. As of September 30, 2000 the Fund has elected to
defer such losses amounting to $2,988,302.
-19-
<PAGE> 21
ALPINE U.S. REAL ESTATE EQUITY FUND
FINANCIAL HIGHLIGHTS
(FOR A SHARE OUTSTANDING THROUGHOUT EACH PERIOD)
<TABLE>
<CAPTION>
YEAR ENDED SEPTEMBER 30,
------------------------------------------------------
2000 1999(a) 1998(a) 1997(a) 1996(a)
------ -------- -------- -------- --------
<S> <C> <C> <C> <C> <C>
CLASS A SHARES
NET ASSETS VALUE BEGINNING OF YEAR............ $10.93 $12.34 $19.34 $12.49 $11.42
------ ------ ------ ------ ------
INCOME/(LOSS) FROM INVESTMENT OPERATIONS:
Net investment income/(loss)................ (0.10) (0.01) 0.08 0.12(c) 0.20
Net realized/unrealized gain/(loss) on
foreign exchange transactions, short
sales and investments.................... 2.49 (1.28) (4.25) 8.57 1.28
------ ------ ------ ------ ------
Total from investment operations............ 2.39 (1.29) (4.17) 8.69 1.48
------ ------ ------ ------ ------
LESS DISTRIBUTIONS:
Net investment income....................... -- --(b) (0.15) (0.26)(c) (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 YEAR................... $13.32 $10.93 $12.34 $19.34 $12.49
====== ====== ====== ====== ======
TOTAL RETURN (EXCLUDES SALES CHARGES)......... 21.87% (10.59)% (24.86)% 78.28% 13.12%
ANNUALIZED RATIOS/SUPPLEMENTARY DATA:
Net assets at end of period (000)........... $1,950 $2,200 $5,582 $2,778 $ 263
Ratio of expenses to average net assets..... 2.86% 2.82% 1.95% 1.77% 1.72%
Ratio of net investment income/(loss) to
average net assets....................... (0.85)% (0.05)% 0.27% 0.90% 1.60%
Ratio of expenses to average net
assets(d)................................ N/A N/A N/A 1.76% N/A
Ratio of expenses to average net
assets(e)................................ 3.07% 2.82% 1.97% 2.49% 9.65%
Ratio of interest expense to average net
assets................................... 0.30% N/A N/A N/A 0.04%
Portfolio Turnover(f)....................... 143% 77% 138% 205% 169%
</TABLE>
---------
(a) Net investment income is based on average shares outstanding during the
period.
(b) Distribution per share was less than $0.005
(c) The per share amount of net investment income is not in accord with the
distributions per share from net investment income due to the timing of
sales of Fund shares after the Fund declared its annual income distribution
on December 26, 1996. The distributions declared on such date were paid
principally from net investment income earned during the previous fiscal
year.
(d) During the period, certain fees were indirectly paid. If such fees
indirectly paid had not occurred, the ratios would have been as indicated.
(e) During the period, certain fees were waived or reimbursed. If such fees
waived or reimbursed had not occurred, the ratios would have been as
indicated.
(f) 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> 22
ALPINE U.S. REAL ESTATE EQUITY FUND
FINANCIAL HIGHLIGHTS
(FOR A SHARE OUTSTANDING THROUGHOUT EACH PERIOD)
<TABLE>
<CAPTION>
YEAR ENDED SEPTEMBER 30,
------------------------------------------------------
2000 1999(a) 1998(a) 1997(a) 1996(a)
------ -------- -------- -------- --------
<S> <C> <C> <C> <C> <C>
CLASS B SHARES
NET ASSETS VALUE BEGINNING OF YEAR............ $10.65 $12.12 $19.14 $12.41 $11.37
------ ------ ------ ------ ------
INCOME/(LOSS) FROM INVESTMENT OPERATIONS:
Net investment income/(loss)................ (0.20) (0.12) (0.05) 0.02(b) 0.13
Net realized/unrealized gain/(loss) on
foreign exchange transactions, short
sales and investments.................... 2.44 (1.23) (4.18) 8.49 1.27
------ ------ ------ ------ ------
Total from investment operations............ 2.24 (1.35) (4.23) 8.51 1.40
------ ------ ------ ------ ------
LESS DISTRIBUTIONS:
Net investment income....................... -- -- (0.11) (0.20)(b) (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 YEAR................... $12.89 $10.65 $12.12 $19.14 $12.41
====== ====== ====== ====== ======
TOTAL RETURN (EXCLUDES REDEMPTION CHARGES).... 20.92% (11.28)% (25.43)% 76.87% 12.49%
ANNUALIZED RATIOS/SUPPLEMENTARY DATA:
Net Assets at end of period (000)........... $2,343 $3,094 $6,352 $3,446 $ 431
Ratio of expenses to average net assets..... 3.66% 3.61% 2.70% 2.52% 2.46%
Ratio of net investment income/(loss) to
average net assets....................... (1.51)% (0.96)% (0.42)% 0.12% 1.05%
Ratio of expenses to average net
assets(c)................................ N/A N/A N/A 2.51% N/A
Ratio of expenses to average net
assets(d)................................ 3.87% 3.61% 2.72% 3.24% 6.19%
Ratio of interest expenses to average net
assets................................... 0.30% N/A N/A N/A 0.04%
Portfolio Turnover(e)....................... 143% 77% 138% 205% 169%
</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
waived or reimbursed 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.
See notes to financial statements.
-21-
<PAGE> 23
ALPINE U.S. REAL ESTATE EQUITY FUND
FINANCIAL HIGHLIGHTS
(FOR A SHARE OUTSTANDING THROUGHOUT EACH PERIOD)
<TABLE>
<CAPTION>
YEAR ENDED SEPTEMBER 30,
-------------------------------------------------------
2000 1999(a) 1998(a) 1997(a) 1996(a)
------- -------- -------- -------- --------
<S> <C> <C> <C> <C> <C>
CLASS Y SHARES
NET ASSETS VALUE BEGINNING OF YEAR....... $ 11.07 $ 12.47 $ 19.49 $ 12.56 $ 11.44
------- ------- ------- ------- -------
INCOME/(LOSS) FROM INVESTMENT OPERATIONS:
Net investment income/(loss)........... (0.06) (0.02) 0.13 0.16(b) 0.24
Net realized/unrealized gain/(loss) on
foreign exchange transactions, short
sales and investments............... 2.53 (1.26) (4.32) 8.63 1.29
------- ------- ------- ------- -------
Total from investment operations....... 2.47 (1.28) (4.19) 8.79 1.53
------- ------- ------- ------- -------
LESS DISTRIBUTIONS:
Net investment income.................. -- -- (0.15) (0.28)(b) (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) (1.86) (0.41)
------- ------- ------- ------- -------
NET ASSET VALUE END OF YEAR.............. $ 13.54 $ 11.07 $ 12.47 $ 19.49 $ 12.56
======= ======= ======= ======= =======
TOTAL RETURN............................. 22.31% (10.40)% (24.69)% 78.79% 13.57%
ANNUALIZED RATIOS/SUPPLEMENTARY DATA:
Net Assets at end of period (000)...... $17,891 $17,405 $25,832 $19,459 $10,601
Ratio of expenses to average net
assets.............................. 2.57% 2.68% 1.70% 1.51% 1.46%
Ratio of net investment income/(loss)
to average net assets............... (0.47)% (0.19)% 0.58% 1.10% 2.02%
Ratio of expenses to average net
assets(c)........................... N/A N/A N/A 1.50% N/A
Ratio of expenses to average net
assets(d)........................... 2.78% 2.68% 1.72% 2.26% 2.25%
Ratio of interest expense to average
net assets.......................... 0.30% N/A N/A N/A 0.04%
Portfolio Turnover(e).................. 143% 77% 138% 205% 169%
</TABLE>
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(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
waived or reimbursed 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.
See notes to financial statements.
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