<PAGE> 1
TABLE OF CONTENTS
Portfolio Manager's Report to Shareholders
PAGE 2
Report of Independent Accountants
PAGE 9
Schedule of Portfolio Investments
PAGE 10
Statement of Assets and Liabilities
PAGE 11
Statement of Operations
PAGE 12
Statements of Changes in Net Assets
PAGE 13
Notes to Financial Statements
PAGE 14
Financial Highlights
PAGE 20
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<PAGE> 2
Portfolio Manager's Report to Shareholders Alpine Realty Income & Growth Fund
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<TABLE>
<CAPTION>
ALPINE REALTY INCOME & GROWTH MORGAN STANLEY REIT INDEX
FUND ESTATE CLASS Y SHARES
--------------------------------- -------------------------
<S> <C> <C>
12/30/98 10000.00 10000.00
1/31/99 10250.00 9889.00
4/30/99 11066.00 10609.00
7/31/99 10984.00 10298.00
10/31/99 10314.00 9549.00
1/31/00 10652.00 9760.00
4/30/00 11905.00 10626.00
7/31/00 13519.00 11987.00
10/31/00 12967.00 11287.00
</TABLE>
Past performance is not predictive of future results. Investment return and
principal value of the Alpine Realty Income & Growth 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 and
reimbursements. Without the waiver or reimbursement of fees, total return would
have been lower.
The Morgan Stanley REIT Index is a total-return index comprising of the most
actively traded real estate investment trusts and is designed to be a measure of
real estate equity performance. An investor can not invest directly in an index.
<TABLE>
<CAPTION>
COMPARATIVE ANNUAL TOTAL RETURNS AS OF 10/31/00
SINCE
1 YEAR INCEPTION+
------------------------------------------------------------------------------------
<S> <C> <C>
Alpine Class Y 25.72% 15.18%
Alpine Class A (4.75%)* 19.44% 11.84%
Alpine Class B (5.00%)** 19.41% 12.37%
------------------------------------------------------------------------------------
Morgan Stanley REIT Index 18.19% 6.79%
</TABLE>
* REPRESENTS MAXIMUM SALES LOAD.
** REPRESENTS MAXIMUM REDEMPTION FEE.
+ Class A and Class Y shares commenced on December 30, 1998. Performance for
Class B shares for the period prior to its inception on February 18, 1999,
represents performance for Class Y shares. 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> 3
Portfolio Manager's Report to Shareholders Alpine Realty Income & Growth Fund
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Dear Shareholder:
We are pleased to present the Alpine Realty Income & Growth Fund's (the
"Fund") annual report for the fiscal year ended October 31, 2000. The net asset
value of the Fund's Class Y shares on that date was $11.43, up from $9.90 at the
beginning of the year. In addition, the Fund made four quarterly distributions
to shareholders of $0.3135 on December 27, 1999, $0.1858 on March 27, 2000,
$0.2000 on June 26, 2000 and $0.2000 on September 25, 2000 which in combination
with the increase in net asset value produced a total return to shareholders of
25.72% during the fiscal year ended October 31, 2000.
COMPARATIVE PERFORMANCE
We are pleased to report once again that the Fund's total return
performance compares very favorably with that of its peer group and primary
benchmark, the Morgan Stanley REIT Index (the "RMS Index")(1), over a number of
measurement periods since its inception on December 30, 1998, including the
latest fiscal year. During the fiscal year ending October 31, 2000, the Fund's
Class Y shares' total return of 25.72% outpaced both the 18.19% return of the
RMS Index and the 19.22% average return of the 145 funds tracked by Lipper
Analytical Services, Inc. within Lipper's Real Estate funds category(2).
Moreover, during the nearly two year period from December 31,1998 through
October 31, 2000, the Fund achieved a total return of 14.17% on an annualized
basis, which compares to the 6.49% average of the funds tracked by Lipper and
the 5.88% return of the RMS Index. Such performance ranked #2 among the 127
funds tracked by Lipper(3) over the period. Over the same periods the Fund also
handily outperformed the S&P 500 Index(4) ("S&P") which returned 6.09% during
fiscal year 2000 and 9.87% on an annualized basis since December 31, 1998.
REAL ESTATE STOCK RELATIVE PERFORMANCE
Indeed, calendar 2000 has been an exceptional year for real estate
securities relative to other equity indices. After posting two consecutive years
of negative returns in 1998 and 1999, the RMS Index produced a total return of
16.36% through October 31, 2000, compared to -1.81% and -17.09% returns of the
S&P and NASDAQ Index(5), respectively, over the same period. The favorable shift
in investor sentiment toward real estate securities which we proposed was near
at hand in our "Alpine View 2000" and April 30, 2000 Semi-Annual Report, not
only occurred but has continued with strength throughout the year.
The factors underlying the strong performance in 2000 of real estate stocks
have primarily been (i) overall investor rotations toward value investing
---------------
(1) The Morgan Stanley REIT Index (the "RMS Index") is a total- return
index comprising of the most actively traded real estate investment trusts
and is designed to be a measure of real estate equity performance. The
index was developed with a base value of 200 as of December 31, 1994.
(2) 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. Lipper is an independent mutual fund
performance monitor whose results are based on total return & do not
reflect a sales charge.
(3) For the 1 year ending 10/31/00, the Fund ranked # 14 in terms of total
returns to shareholders out of 142 real estate funds. Lipper ranking is
based on total return and does not reflect a sales change.
(4) The Standard & Poor's 500 Index is a capitalization-weighted index of
500 stocks. The index is designed to measure performance of the board
domestic economy through changes in the aggregate market value of 500
stocks representing all major industries.
(5) The NASDAQ Composite index is a broad-based capitalization- weighted
index of all NASQAD National Market and Small Cap Stocks. An investor
cannot invest directly in an index.
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<PAGE> 4
Portfolio Manager's Report to Shareholders Alpine Realty Income & Growth Fund
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from growth investing across the equity markets and (ii) consistently strong
real estate market fundamentals which have propelled solid earnings growth of
the REIT(6) entities.
<TABLE>
<S> <C>
GEOGRAPHICAL SECTOR DISTRIBUTION*
DISTRIBUTION*
[SECTOR DISTRIBUTION
[GEOGRAPHICAL PIE GRAPH]
DISTRIBUTION PIE
GRAPH]
NEW ENGLAND 5.5% APARTMENTS 12.7%
PACIFIC NORTHWEST 3.6% DIVERSIFIED 12.2%
INTERNATIONAL 3.4% MORTGAGE/FINANCE 4.3%
MOUNTAIN STATES 3.4% STORAGE 0.8%
CENTRAL PLAINS 3.3% OFFICE/INDUSTRIAL 30.0%
MID ATLANTIC 24.2% RETAIL 18.6%
SOUTH 9.4% LODGING 21.4
MIDWEST 9.6%
SOUTHEAST 18.1%
PACIFIC SOUTHWEST 19.5%
</TABLE>
The investor shift toward value investing began in March of this year as
the illusion of incomparable future growth prospects of "new economy" technology
companies proved increasingly elusive. Investors sought and found investment
opportunities in the real estate sector with visible earnings growth, share
valuation discounts to underlying real estate value and high current dividend
yields. Additionally, the majority of companies in the REIT sector met or
outperformed the expectations of Wall Street analysts, forcing continuous upward
earnings revisions for 2000 and 2001 throughout the year. As the overvaluation
risk for new economy companies was forcefully recognized by investors, the real
estate sector benefited from increased fund flows, pushing real estate stock
prices rapidly upwards from March 13 through August 1, 2000. Over this period,
the RMS Index rose 28.72% which the technology laden NASDAQ declined 24.85%.
REAL ESTATE MARKETS
The principal engines driving the upwards earnings revisions for the REIT
sector have been exceptionally strong regional real estate market fundamentals,
particularly in the coastal markets of the Mid-Atlantic, New England, and the
Pacific from Washington to Southern California. Business expansion in the
financial services, media, and technology industries has resulted in strong job
formation, creating high demand across the board for office space, apartments,
and hotel rooms in
---------------
(6) REIT Disclosure: Investments in the Funds are subject to the risks
related to direct investment in real estate, such as real estate risk,
regulatory risks, concentration risk, and diversification risk. By itself
the fund does not constitute a complete investment plan and should be
considered a long-term investment for investors who can afford to whether
changes in the value of their investments.
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<PAGE> 5
Portfolio Manager's Report to Shareholders Alpine Realty Income & Growth Fund
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many markets. Concurrently, supply of new space in many regions, particularly
high barrier to entry coastal markets, has remained constrained, due in large
part to underwriting discipline exhibited by both commercial banks and the
capital markets. While pockets of overbuilding certainly have not been avoided
altogether in this cycle, many supply constrained markets have witnessed
historically low vacancy rates. CBD office markets in San Francisco, Boston, and
New York and suburban markets such as Silicon Valley, with vacancy rates between
2% to 5%, have allowed owners of office properties in these markets to have some
of the strongest pricing power of any sector in the economy. New office leases
in the highest caliber properties in San Francisco and New York City were inked
at stratospheric levels of $90-$100 per square foot over the summer. Meanwhile,
apartment owners' unhindered ability to raise rents at rates significantly in
excess of inflation even prompted rumblings of the need for rent regulation in
some regions of California. Healthy demand for hotel rooms has continued with
the strongest revenue growth occurring in the coastal markets where once again
the dynamic between robust economic conditions and moderate supply additions has
been most powerful.
Against this backdrop, REITs have been able to post attractive top-line
revenue growth and in the virtual absence of inflationary cost pressures,
improved operating margins and bottom-line earnings. The strongest performing
sectors of the REIT universe through the first ten months of 2000 have been the
hotel, office, mixed office/industrial, and apartment companies. Through October
26, 2000 the hotel and apartment company components of the RMS Index produced
27.1% and 20.4% total returns, respectively. Meanwhile, the office sector
returned 22.7% and companies owning both office and industrial assets, which
include the northern California-based Mission West Properties and Spikier
Properties, posted a market leading 31.2% total return. The weakest performing
sectors of the REIT group were health care companies (-2.22%), triple-net lease
companies (-4.89%), and self-storage facility owners (2.71%). Health care REITs
continued to lag due to exposure to troubled operators of nursing homes and
assisted living facilities while triple-net lease companies suffered from lack
of capital for new acquisitions and from credit deterioration in tenants ranging
from movie theater operators to golf course managers. Lastly, self-storage
companies had difficult achieving significant pricing power and occupancy gains
in the face of moderate oversupply.
PORTFOLIO COMPOSITION AND PERFORMANCE*
During the fiscal year, the Fund continued to target undervalued companies
with strong balance sheets, solid dividend coverage, and healthy real estate
fundamentals while maintaining its geographic focus on the West Coast and
Eastern seaboard markets from northern Virginia to Boston. In the fourth quarter
of 1999, as the RMS Index descended to its lows for the year, we were able to
upgrade the income producing characteristics of the
TOP TEN HOLDINGS* AS OF 10/31/00
<TABLE>
<C> <S> <C> <C> <C> <C>
1. Vornado Realty Trust 5.27% 6. Equity Residential Properties Trust 3.56%
2. Phillips International Realty Corp. 4.25% 7. MeriStar Hotels & Resorts, Inc. 3.27%
3. Duke-Weeks Realty Corp. 3.91% 8. Alexandria Real Estate Equities, Inc. 3.26%
4. Starwood Hotels & Resorts Worldwide, Inc. 3.87% 9. Regus PLC, ADR 3.18%
5. Chelsea GCA Realty, Inc. 3.59% 10. Alexander's, Inc. 3.15%
Percentages based on net assets.
</TABLE>
* Portfolio holdings are subject to change.
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<PAGE> 6
Portfolio Manager's Report to Shareholders Alpine Realty Income & Growth Fund
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Fund's holdings and purchase shares in companies at very attractive valuation
levels. As the year 2000 has progressed, we have adjusted the portfolio to
increase our investment in companies specializing in apartment, office, and
industrial properties and to decrease our exposure to entities with retail and
health care assets.
Investment in apartment companies more than doubled during the year from 6%
to 13% of net assets. Equity Residential Properties Trust and Apartment
Investment and Management Company, the two largest REIT apartment managers and
owners, are the Fund's most significant investments in the sector and were both
added during the year. Roberts Realty, with a focus on in-fill markets in the
Atlanta metro market, and Camden Property Trust, a play on improving markets in
Texas, are also new investments.
The Fund's weighting in companies owning office and industrial properties
increased from approximately 26% to 30% over the period. Notable additions
include Alexandria Real Estate Equities, Inc. and Regus, PLC, each a new top ten
holding, and Pacific Gulf Properties. Alexandria ("ARE") owns and develops
laboratory space for tenants in the pharmaceutical and biotechnology industries,
including its two largest tenants Pfizer and Merck, primarily in the research
and development corridors of Boston, northern Virginia, San Diego, and northern
California. We believe ARE by virtue of its niche position servicing industries
with robust research needs is well positioned at this point in the real estate
cycle. Regus PLC provides a global network of office business centers as an
alternate to traditional office leasing. Its centers offer workspaces complete
with workstations and conference rooms highly serviced by telecommunications and
secretarial support services. We participated in Regus's initial public offering
in October and as investors embraced Regus's plan for significant American
expansion, the shares increased 23% by month end. Pacific Gulf Properties, Inc.,
an owner of industrial and apartment assets in California, decided to maximize
shareholder value by selling its assets into the private market and making
liquidating distributions to its shareholders. We believe proceeds should
approximate $29 per share providing an attractive return on our initial average
cost of approximately $20.50.
As noted above, the Fund decreased its weightings significantly in the
retail and healthcare REIT sectors over the year. During the first half of the
year, we maintained a bullish stance on retail REITs believing the concerns of
E-retailing competition had knocked the sector to unreasonable low valuation
levels. Initially our bet paid off handsomely as regional mall companies were a
leading sector of the broader REIT indices. However, as noted in the April 2000
Semi-Annual report, we were concerned about the impact on the economy and
retailing in specific from interest rate increases led by the Federal Reserve.
With consumer confidence and retailer earnings slipping during the second half
of the fiscal year, we reduced our exposure to retail REITs from approximately
27% to 19%. That level will be reduced further as liquidating distributions
totaling an estimated $18-$18.25 per share are commenced by Philip's
International Realty Corp. ($16.625 closing price @ 10/31/00), our largest
retail investment and another holding where management opted to maximize
shareholder value by selling assets into the private market.
Additionally, the Fund sold down completely its investment in healthcare
REITs from the 5% level at the beginning of the year. The previously noted
concerns regarding the health of many of the nursing home and assisted living
operators outweighed the attractiveness of the healthcare REITs high dividend
yields in our view.
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<PAGE> 7
Portfolio Manager's Report to Shareholders Alpine Realty Income & Growth Fund
--------------------------------------------------------------------------------
Finally, worth noting are the five top total return performances of shares
held throughout the year, which were as follows:
Mission West Properties, Inc. (86.6%), Equity Office Properties Trust
(45.4%), Innkeepers USA Trust (33.8%), Starwood Hotels and Resorts Worldwide,
Inc. (32.4%) and Duke-Weeks Realty Corp (30.1%). Mission West Properties, Inc.,
a pure play on office/industrial space in Silicon Valley, benefited from the
explosive growth in technology companies and from finally being more broadly
recognized by Wall Street. Innkeepers and Starwood were the top two of a group
of solidly performing hotel investments which rallied from very depressed
valuation levels amid concerns of sector overbuilding in 1999. We have
maintained a fairly constant level of investment in the lodging sector
throughout the year, despite realizing value upon privatization in late 1999 of
Sunstone Hotel Investors, the Fund's largest holding at that time. Lastly,
Equity Office and Duke-Weeks both benefited from strong tenant demand sector
leading management teams, and positive market fundamentals in the office and
office/industrial sectors, respectively.
OUTLOOK
Alpine believes the issues with implications for the performance of real
estate securities in the year 2001 are assuredly more complex than what we
perceived a year ago. At that point, a second consecutive year of negative
performance by real estate equity securities indices was concluding despite very
sound real estate fundamentals and historically wide discounts of public from
private market valuations of property. As the year 2000 approached, we
questioned with exasperation when sentiment in the investment community would
shift to perceive the visible earnings, high current yields, and significant
discounts to underlying asset values that real estate securities offered. As
soon as investor sentiment shifted we were confident that real estate returns
would be historically strong. The overall economy was robust, consumer
confidence was soaring, and real estate markets were strong and improving.
As we approach 2001, however, the trajectory of the economy looms as a
significant question, with the economy's impact on investor sentiment and
thereby real estate securities performance a potentially counterbalancing force.
However, while directionally there is no doubt the economy is slowing, it is our
belief that Gross Domestic Product ("GDP") growth of 2.5% to 3% and benign cost
pressures will frame the most likely economic scenario. Such a scenario, though
it is likely to make underlying property markets less robust, will still keep
them quite healthy. While earnings growth for real estate companies will likely
decelerate marginally from their recent strength, real estate securities with
their visible near-term cash flow and attractive dividend income should remain a
comparatively attractive asset class as investors seek yield and greater
certainty of earnings.
In fact, we believe the expected deceleration in GDP growth should not
impact real estate property performance dramatically. As opposed to market
conditions preceding past economic downturns, today's underlying real estate
markets are in general operating at historic strengths, without the
vulnerabilities evident in previous cycles. Capital markets discipline, and
perhaps still lingering memories of the early 1990's real estate depression,
have kept new supply in check in most markets and REIT debt levels at manageable
leverage ratios. As a result, slowing business expansion and job formation will
impact demand for space across all sectors but should only cause marginal
decreases in occupancy from historically high levels and/or a slowdown in rental
rate growth.
Of course, not all real estate markets or property types will behave the
same under slowing economic conditions. Office and industrial assets by virtue
of currently high occupancies and long term
--------------------------------------------------------------------------------
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<PAGE> 8
Portfolio Manager's Report to Shareholders Alpine Realty Income & Growth Fund
--------------------------------------------------------------------------------
leases with contractual rent increases should maintain positive cash flow
growth, even in the face of slowing market rent growth. Apartment properties,
without significant supply threats, will maintain occupancies though perhaps
with less pricing power. Retail and hotel assets, dependent upon consumer
confidence and business travel bookings, have the greatest vulnerability if the
economic performance is slower than anticipated.
In the near term we will maintain our focus on companies with assets on the
Pacific Coast, Mid-Atlantic, and New England regions where market conditions
should continue at historically strong levels, though perhaps slightly less
robust than the recent 1999-2000 period. In general, the absence of supply
issues in these areas will maintain them as landlord markets for almost all
property types, even in the face of somewhat softer demand. Given our economic
outlook, we anticipate that the Fund will continue to de-emphasize retail assets
until evidence that lower interest rates will provide a stimulus to the economy
and consumer sentiment. Hotel securities, which have been outstanding performers
year to date and still trade at low multiples relative to the overall REIT
group, should also be beneficiaries of diminishing supply concerns. Despite the
above-mentioned positives, the Fund is reducing its exposure from current levels
under a more cautious sector allocation. Capital from reductions in retail and
hotel investments will likely be redeployed into companies with office and
industrial assets in the most supply constrained coastal markets and into
multifamily companies selectively when valuations turn more attractive.
We will continue our value approach throughout 2001, targeting companies
with strong balance sheets, solid dividend coverage, and healthy real estate
fundamentals, and hope to continue to produce exceptional relative performance
for our shareholders. We look forward to updating you on this Fund's progress in
2001.
Sincerely,
SAMUEL A. LIEBER ROBERT W. GADSEN
Samuel A. Lieber Robert W. Gadsden
Co-Portfolio Manager Co-Portfolio Manager
---------------
* Portfolio holdings and composition are subject to change.
Past performance is no 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.
BISYS Fund Services distributes the Alpine Realty Income & Growth Fund.
For more complete information on the Alpine Realty Income & Growth Fund,
including fees, expenses and sales charges please call 1-877-945-3863 for a free
prospectus. Please read the prospectus carefully before investing or sending
money.
The views expressed in this report reflect those of the investment adviser only
through the end of the period of the report as stated on the cover. The
manager's views are subject to change at any time based on the market and other
condition
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<PAGE> 9
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 Realty
Income & Growth Fund (the "Fund") at October 31, 2000, the results of its
operations for the year then ended, the changes in its net assets for each of
the two periods then ended and the financial highlights for each of the periods
presented, 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 October 31, 2000 by
correspondence with the custodian and brokers, provide a reasonable basis for
our opinion.
PricewaterhouseCoopers LLP
Columbus, Ohio
December 21, 2000
-9-
<PAGE> 10
ALPINE REALTY INCOME & GROWTH FUND
SCHEDULE OF PORTFOLIO INVESTMENTS
OCTOBER 31, 2000
<TABLE>
<CAPTION>
SECURITY MARKET
SHARES DESCRIPTION VALUE
------- ---------------------------------- ----------
<C> <S> <C>
COMMON STOCKS -- (12.8%)
Diversified -- (1.3%)
3,500 Security Capital Group, Inc.
(b)............................. $ 66,719
1,500 Wellsford Real Properties, Inc.
(b)............................. 26,719
----------
93,438
----------
Lodging -- (7.1%)
100,000 MeriStar Hotels & Resorts, Inc.
(b)............................. 237,500
9,500 Starwood Hotels & Resorts
Worldwide, Inc.................. 281,437
----------
518,937
----------
Office/Office Services -- (4.4%)
10,000 Regus PLC, ADR (b)................ 231,250
6,000 Trizec Hahn Corp.................. 89,625
----------
320,875
----------
Total Common Stocks............... 933,250
----------
REAL ESTATE INVESTMENT TRUSTS -- (87.1%)
Apartments -- (11.3%)
5,000 Apartment Investment & Management
Co.............................. 228,438
5,000 Camden Property Trust............. 143,125
5,500 Equity Residential Properties
Trust........................... 258,843
25,100 Roberts Realty Investors, Inc..... 194,525
----------
824,931
----------
Diversified -- (11.2%)
3,000 Alexander's, Inc. (b)............. 229,313
80,000 First Union Real Estate Equity &
Mortgage Investments............ 205,000
11,000 Vornado Realty Trust.............. 382,937
----------
817,250
----------
Hotels -- (15.0%)
8,000 Felcor Lodging Trust, Inc......... 175,500
8,000 Hospitality Properties Trust...... 172,500
18,200 Host Marriott Corp................ 193,375
20,100 Innkeepers USA Trust.............. 204,768
7,500 LaSalle Hotel Properties.......... 107,813
5,300 MeriStar Hospitality Corp......... 101,363
10,000 RFS Hotel Investors, Inc.......... 128,750
----------
1,084,069
----------
Mortgage/Finance -- (3.1%)
8,000 Anthracite Capital, Inc........... 59,000
8,500 iStar Financial, Inc.............. 170,000
----------
229,000
----------
Office-Industrial Buildings -- (26.5%)
7,000 Alexandria Real Estate Equities,
Inc............................. 237,125
2,100 AMB Property Corp................. 49,350
</TABLE>
<TABLE>
<CAPTION>
SECURITY MARKET
SHARES DESCRIPTION VALUE
------- ---------------------------------- ----------
<C> <S> <C>
REAL ESTATE INVESTMENT TRUSTS, CONTINUED:
Office-Industrial Buildings, continued:
6,000 CarrAmerica Realty Corp........... $ 177,375
12,000 Duke-Weeks Realty Corp............ 284,249
3,000 Equity Office Properties Trust.... 90,375
5,600 Koger Equity, Inc................. 89,250
3,000 Liberty Property Trust............ 79,313
8,800 Mission West Properties, Inc...... 118,250
8,000 Pacific Gulf Properties, Inc...... 212,500
7,200 ProLogis Trust.................... 151,200
5,300 PS Business Parks, Inc............ 139,125
6,100 Reckson Associates Realty Corp.... 138,013
2,000 Reckson Associates Realty Corp.,
Class B......................... 46,125
2,000 Spieker Properties, Inc........... 110,750
----------
1,923,000
----------
Retail Centers -- (6.1%)
5,000 Federal Realty Investment Trust... 96,250
4,200 Kramont Realty Trust.............. 37,800
18,600 Philips International Realty
Corp............................ 309,225
----------
443,275
----------
Shopping Malls -- (13.1%)
9,000 CBL & Associates Properties,
Inc............................. 208,125
8,100 Chelsea GCA Realty, Inc........... 261,225
24,900 Crown American Realty Trust....... 141,619
10,000 Macerich Co....................... 196,250
6,500 Simon Property Group, Inc......... 145,031
----------
952,250
----------
Storage -- (0.8%)
2,500 Public Storage, Inc............... 56,250
----------
Total Real Estate Investment
Trusts.......................... 6,330,025
----------
PREFERRED STOCK -- (2.9%)
Apartments -- (1.6%)
6,000 Apartment Investment & Management
Co. 9.00% Series C.............. 121,500
----------
Mortgage/Finance -- (1.3%)
5,200 CRIIMI MAE, Inc. 10.88% Series
B............................... 92,300
----------
Total Preferred Stock............. 213,800
----------
Total Investments (Cost
$6,975,630) (a) 102.8% 7,477,075
Liabilities in excess of other
assets 2.8% (204,747)
---- ----------
TOTAL NET ASSETS 100.0% $7,272,328
====== ==========
</TABLE>
---------------
(a) Represents cost for federal income tax and financial reporting purposes and
differs from value by net unrealized appreciation of securities as follows:
<TABLE>
<S> <C>
Unrealized appreciation..................... $ 602,470
Unrealized depreciation..................... (101,025)
---------
Net unrealized appreciation................. $ 501,445
=========
</TABLE>
(b) Represents non-income producing securities.
ADR -- American Depository Receipt
PLC -- Public Limited Company
See notes to financial statements.
-10-
<PAGE> 11
ALPINE REALTY INCOME & GROWTH FUND
STATEMENT OF ASSETS AND LIABILITIES
OCTOBER 31, 2000
<TABLE>
<S> <C>
ASSETS:
Investments, at value (cost $6,975,630)................... $7,477,075
Dividends receivable...................................... 10,553
Receivable for investment securities sold................. 453,207
Receivable from investment advisor........................ 3,044
Prepaid expenses and other assets......................... 11,079
----------
Total Assets........................................... 7,954,958
----------
LIABILITIES:
Demand loan payable to custodian.......................... 499,623
Payable for investment securities purchased............... 162,262
Accrued expenses and other liabilities:
Administration fees.................................... 1,402
Distribution fees...................................... 7
Other.................................................. 19,336
----------
Total Liabilities...................................... 682,630
----------
NET ASSETS.................................................. $7,272,328
==========
NET ASSETS REPRESENTED BY
Shares of beneficial interest, at par value............... $ 64
Additional paid-in-capital................................ 6,770,819
Net unrealized appreciation from investment
transactions........................................... 501,445
----------
TOTAL NET ASSETS....................................... $7,272,328
==========
NET ASSET VALUE
Class A shares
Net assets of $12,070 / 1,056 shares outstanding....... $ 11.43
==========
Offering price (based on sales charge of 4.75%)........ $ 12.00
==========
Class B shares*
Net assets of $5,029 / 439 shares outstanding.......... $ 11.44
==========
Class Y shares
Net assets of $7,255,229 / 634,744 shares
outstanding........................................... $ 11.43
==========
</TABLE>
---------------
* Redemption price per share varies based on length of time shares are held.
(Note 5).
See notes to financial statements.
-11-
<PAGE> 12
ALPINE REALTY INCOME & GROWTH FUND
STATEMENT OF OPERATIONS
YEAR ENDED OCTOBER 31, 2000
<TABLE>
<S> <C> <C>
INVESTMENT INCOME:
Interest.................................................. $ 5,149
Dividends (net of foreign withholding taxes of $158)...... 413,769
--------
Total income........................................... 418,918
----------
EXPENSES:
Investment advisory fees.................................. $ 55,219
Administration fees....................................... 24,138
Distribution fees -- Class B.............................. 12
Shareholder servicing fees -- Class A..................... 8
Shareholder servicing fees -- Class B..................... 4
Custodian fees............................................ 5,591
Fund accounting fees...................................... 2,361
Interest expense.......................................... 6,484
Legal fees................................................ 7,241
Audit fees................................................ 18,026
Registration and filing fees.............................. 25,959
Transfer agent fees....................................... 2,011
Trustees' fees and expenses............................... 1,778
Printing costs............................................ 19,989
Other..................................................... 2,631
--------
Total expenses before voluntary fee reductions.............. 171,452
----------
Expenses waived/reimbursed by investment advisor.......... (89,236)
----------
Net expenses......................................... 82,216
----------
Net investment income....................................... 336,702
----------
REALIZED/UNREALIZED GAIN/(LOSS) ON INVESTMENTS:
Net realized gain from investment transactions...................... 44,409
Net change in unrealized depreciation from investment
transactions..................................................... 765,081
----------
Net realized/unrealized gains from investments........................ 809,490
----------
Change in net assets resulting from operations........................ $1,146,192
==========
</TABLE>
See notes to financial statements.
-12-
<PAGE> 13
ALPINE REALTY INCOME & GROWTH FUND
STATEMENTS OF CHANGES IN NET ASSETS
<TABLE>
<CAPTION>
YEAR ENDED PERIOD ENDED
OCTOBER 31, 2000 OCTOBER 31, 1999(a)
---------------- -------------------
<S> <C> <C>
OPERATIONS:
Net investment income..................................... $ 336,702 $ 208,106
Net realized gain/(loss) from investment transactions..... 44,409 (12,705)
Net change in unrealized depreciation from investment
transactions........................................... 765,081 (263,636)
---------- ----------
Change in net assets resulting from operations............ 1,146,192 (68,235)
---------- ----------
DISTRIBUTIONS TO SHAREHOLDERS:
Distributions to Class A shareholders:
From net investment income............................. (144) (39)
From net realized gain on investment transactions...... (1) --
Tax Return of Capital.................................. (4) --
Distributions to Class B shareholders:
From net investment income............................. (94) (386)
From net realized gain on investment transactions...... (1) --
Tax Return of Capital.................................. (2) --
Distributions to Class Y shareholders:
From net investment income............................. (430,989) (141,304)
From net realized gain on investment transactions...... (4,383) --
Tax Return of Capital.................................. (11,011) --
---------- ----------
Change in net assets resulting from distributions to
shareholders........................................... (446,629) (141,729)
---------- ----------
SHARES OF BENEFICIAL INTEREST TRANSACTIONS:
Proceeds from shares sold.............................. 2,710,523 4,170,202
Dividends reinvested................................... 267,954 91,369
Cost of shares redeemed................................ (249,231) (208,088)
---------- ----------
Change in net assets from shares of beneficial interest
transactions........................................... 2,729,246 4,053,483
---------- ----------
Total change in net assets................................ 3,428,809 3,843,519
---------- ----------
NET ASSETS:
Beginning of period....................................... 3,843,519 --
---------- ----------
End of period............................................. $7,272,328 $3,843,519
========== ==========
</TABLE>
---------------
(a) The fund commenced offering Class B shares on February 18, 1999.
See notes to financial statements.
-13-
<PAGE> 14
ALPINE REALTY INCOME & GROWTH FUND
NOTES TO FINANCIAL STATEMENTS
OCTOBER 31, 2000
1. ORGANIZATION:
The Alpine Realty Income & Growth 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 the length of time the
shares have been held. 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 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 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.
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
Continued
-14-
<PAGE> 15
ALPINE REALTY INCOME & GROWTH FUND
NOTES TO FINANCIAL STATEMENTS, CONTINUED
OCTOBER 31, 2000
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 0.10% 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, 2000 the
Trust had an unused Committed Line balance of $3,828,006. All the assets in
the portfolio are held as collateral for the Committed Line.
F. FEDERAL TAXES:
It is the Fund's policy to comply with the requirements of the Internal
Revenue Code applicable to regulated investment companies and to distribute
timely, all of its net investment company income and net realized capital
gains to shareholders. Therefore, no federal income tax provision is
required.
Under the applicable foreign tax law, a withholding tax may be imposed on
interest, dividends and capital gains earned on foreign investments at
various rates. Where available, the Fund will file for claims on foreign
taxes withheld.
Continued
-15-
<PAGE> 16
ALPINE REALTY INCOME & GROWTH FUND
NOTES TO FINANCIAL STATEMENTS, CONTINUED
OCTOBER 31, 2000
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 and REIT temporary difference). 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, 2000, the following reclassifications have been made to
increase (decrease) such accounts with offsetting adjustments made to
additional paid-in-capital:
<TABLE>
<CAPTION>
ACCUMULATED
NET REALIZED
UNDISTRIBUTED GAINS
NET INVESTMENT FROM INVESTMENT
INCOME/(LOSS) TRANSACTIONS
-------------- ------------------
<S> <C> <C>
Realty Income & Growth.......................... $39,165 ($27,319)
</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 35% of the value of its total assets in foreign
securities. The books and records of the Fund are maintained in U.S.
dollars. Non-U.S. denominated amounts are translated into U.S. dollars as
follows, with the resultant exchange gains and losses recorded in the
Statement of Operations:
i) market value of investment securities and other assets and
liabilities at the exchange rate on the valuation date,
ii) purchases and sales of investment securities, income and expenses at
the exchange rate prevailing on the respective date of such
transactions.
Continued
-16-
<PAGE> 17
ALPINE REALTY INCOME & GROWTH FUND
NOTES TO FINANCIAL STATEMENTS, CONTINUED
OCTOBER 31, 2000
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 claiming 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 PERIOD ENDED
OCTOBER 31, 2000 OCTOBER 31, 1999(a)
--------------------- ---------------------
SHARES AMOUNT SHARES AMOUNT
------- ---------- ------- ----------
<S> <C> <C> <C> <C>
CLASS A
Shares sold............................. 939 $ 10,926 100 $ 1,000
Shares issued in reinvestment of
dividends............................ 13 130 4 40
------- ---------- ------- ----------
Net change.............................. 952 11,056 104 1,040
------- ---------- ------- ----------
CLASS B
Shares sold............................. 327 3,862 1,605 16,031
Shares issued in reinvestment of
dividends............................ 8 86 37 386
Shares redeemed......................... -- -- (1,538) (16,301)
------- ---------- ------- ----------
Net change.............................. 335 3,948 104 116
------- ---------- ------- ----------
CLASS Y
Shares sold............................. 246,834 2,695,735 397,771 4,153,171
Shares issued in reinvestment of
dividends............................ 25,429 267,738 8,783 90,943
Shares redeemed......................... (25,345) (249,231) (18,728) (191,787)
------- ---------- ------- ----------
Net change.............................. 246,918 2,714,242 387,826 4,052,327
------- ---------- ------- ----------
Total net change........................ 248,205 $2,729,246 388,034 $4,053,483
======= ========== ======= ==========
</TABLE>
--------------------
(a) The Fund commenced offering Class B shares on February 18, 1999.
4. SECURITIES TRANSACTIONS:
Cost of purchases and proceeds from sales of investment securities,
excluding securities sold short and short-term investments, were
$10,589,933 and $7,570,717 respectively, for the period ended October 31,
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
Continued
-17-
<PAGE> 18
ALPINE REALTY INCOME & GROWTH FUND
NOTES TO FINANCIAL STATEMENTS, CONTINUED
OCTOBER 31, 2000
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 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, 2000, amounts earned by BISYS LP
pursuant to the Fund's Class A and Class B shares Distribution Plans were
$8 and $16, 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
During the period ended October 31, 2000 BISYS LP earned no commission on
sales of shares of the fund.
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 and 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 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>
Continued
-18-
<PAGE> 19
ALPINE REALTY INCOME & GROWTH FUND
NOTES TO FINANCIAL STATEMENTS, CONTINUED
OCTOBER 31, 2000
Fees may be voluntarily reduced or reimbursed to assist the Fund in
maintaining competitive expense ratios. Information regarding these
transactions for the Fund is as follows for the period ended October 31,
2000:
<TABLE>
<CAPTION>
INVESTMENT ADVISOR
----------------------------------
ANNUAL FEE
BEFORE VOLUNTARY VOLUNTARY ADDITIONAL
FEE REDUCTIONS FEE REDUCTIONS REIMBURSEMENTS
---------------- -------------- --------------
<S> <C> <C> <C>
Realty Income & Growth Fund.............. $55,219 $55,219 $34,017
</TABLE>
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 for the Trust. The
shortfall in fees between those calculated based on Fund's average daily
net assets and the annual minimum is being reimbursed voluntarily by the
Fund's investment adviser.
Officers of the Fund and affiliated Trustees receive no compensation
directly from the Fund.
7. CONCENTRATION OF CREDIT RISK:
The Fund invest a substantial portion of its assets in the equity
securities of issuers engaged in the real estate industry, including real
estate investment trusts (REITs). As a result, the Fund may be more
affected by economic developments in the real estate industry than would a
general equity fund.
8. OTHER FEDERAL INCOME TAX INFORMATION (UNAUDITED):
For corporate shareholders, 0.75% of the total ordinary income
distributions paid during the fiscal year ended October 31, 2000, qualify
for the corporate dividend received deduction.
-19-
<PAGE> 20
ALPINE REALTY INCOME & GROWTH FUND
FINANCIAL HIGHLIGHTS
(FOR A SHARE OUTSTANDING THROUGHOUT EACH PERIOD)
<TABLE>
<CAPTION>
YEAR ENDED PERIOD ENDED
OCTOBER 31, 2000 OCTOBER 31, 1999(a)
---------------- -------------------
<S> <C> <C>
CLASS A SHARES
NET ASSET VALUE BEGINNING OF YEAR........................... $ 9.91 $10.00
------ ------
INCOME/(LOSS) FROM INVESTMENT OPERATIONS:
Net investment income..................................... 0.66 0.63(b)
Net realized/unrealized gain/(loss) from investments
transactions........................................... 1.74 (0.33)
------ ------
Total from investment operations.......................... 2.40 0.30
------ ------
LESS DISTRIBUTIONS:
From net investment income................................ (0.85) (0.39)
From net realized gains from investment transactions...... (0.01) --
Tax return of capital..................................... (0.02) --
------ ------
Total distributions....................................... (0.88) (0.39)
------ ------
NET ASSET VALUE END OF YEAR................................. $11.43 $ 9.91
====== ======
TOTAL RETURN (EXCLUDES SALES CHARGES)....................... 25.35% 2.90%(e)
ANNUALIZED RATIOS/SUPPLEMENTARY DATA:
Net assets at end of period (000)......................... $ 12 $ 1
Ratio of expenses to average net assets................... 1.79% 1.73%(d)
Ratio of net investment income/(loss) to average net
assets................................................. 5.27% 7.14%(d)
Ratio of expenses to average net assets(c)................ 3.38% 4.43%(d)
Ratio of interest expense to average net assets........... 0.22% N/A
Portfolio turnover(f)..................................... 137% 159%
</TABLE>
---------------
(a) For the period from December 30, 1998 (commencement of class operations) to
October 31, 1999.
(b) Net investment income is based on average shares outstanding during the
period.
(c) During the period, certain fees were voluntarily waived or reimbursed. If
such voluntary fee waiver or reimbursement had not occurred, the ratios
would have been as indicated.
(d) Annualized.
(e) Not annualized.
(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> 21
ALPINE REALTY INCOME & GROWTH FUND
FINANCIAL HIGHLIGHTS
(FOR A SHARE OUTSTANDING THROUGHOUT EACH PERIOD)
<TABLE>
<CAPTION>
YEAR ENDED PERIOD ENDED
OCTOBER 31, 2000 OCTOBER 31, 1999(a)
---------------- -------------------
<S> <C> <C>
CLASS B SHARES
NET ASSET VALUE BEGINNING OF YEAR........................... $ 9.92 $ 9.99
------ ------
INCOME/(LOSS) FROM INVESTMENT OPERATIONS:
Net investment income..................................... 0.63 0.53(b)
Net realized/unrealized gain/(loss) from investments
transactions........................................... 1.69 (0.23)
------ ------
Total from investment operations.......................... 2.32 0.30
------ ------
LESS DISTRIBUTIONS:
Net investment income..................................... (0.77) (0.37)
Net realized gains from investment transactions (0.01) --
Tax return of capital..................................... (0.02) --
------ ------
Total distributions....................................... (0.80) (0.37)
------ ------
NET ASSET VALUE END OF YEAR................................. $11.44 $ 9.92
====== ======
TOTAL RETURN (EXCLUDES REDEMPTION CHARGES).................. 24.41% 2.92%(e)
ANNUALIZED RATIOS/SUPPLEMENTARY DATA:
Net assets at end of period (000)......................... $ 5 $ 1
Ratio of expenses to average net assets................... 2.51% 2.48%(d)
Ratio of net investment income/(loss) to average net
assets................................................. 5.52% 6.94%(d)
Ratio of expenses to average net assets(c)................ 4.11% 5.18%(d)
Ratio of interest expense to average net assets........... 0.18% N/A
Portfolio turnover(f)..................................... 137% 159%
</TABLE>
---------------
(a) For the period from February 18, 1999 (commencement of class operations) to
October 31, 1999.
(b) Net investment income is based on average shares outstanding during the
period.
(c) During the period, certain fees were voluntarily waived or reimbursed. If
such voluntary fee waiver or reimbursement had not occurred, the ratios
would have been as indicated.
(d) Annualized.
(e) Not annualized.
(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.
-21-
<PAGE> 22
ALPINE REALTY INCOME & GROWTH FUND
FINANCIAL HIGHLIGHTS
(FOR A SHARE OUTSTANDING THROUGHOUT EACH PERIOD)
<TABLE>
<CAPTION>
YEAR ENDED PERIOD ENDED
OCTOBER 31, 2000 OCTOBER 31, 1999(a)
---------------- -------------------
<S> <C> <C>
CLASS Y SHARES
NET ASSET VALUE BEGINNING OF YEAR.......................... $ 9.90 $10.00
------ ------
INCOME/(LOSS) FROM INVESTMENT OPERATIONS:
Net investment income.................................... 0.67 0.64(b)
Net realized/unrealized gain/(loss) from investments
transactions.......................................... 1.77 (0.32)
------ ------
Total from investment operations......................... 2.44 0.32
------ ------
LESS DISTRIBUTIONS:
From net investment income............................... (0.88) (0.42)
Net realized gains from investment transactions.......... (0.01) --
Tax return of capital.................................... (0.02) --
------ ------
Total distributions...................................... (0.91) (0.42)
------ ------
NET ASSET VALUE END OF YEAR................................ $11.43 $ 9.90
====== ======
TOTAL RETURN............................................... 25.72% 3.14%(e)
ANNUALIZED RATIOS/SUPPLEMENTARY DATA:
Net assets at end of period (000)........................ $7,255 $3,842
Ratio of expenses to average net assets.................. 1.49% 1.50%(d)
Ratio of net investment/(loss) income to average net
assets................................................ 6.10% 7.76%(d)
Ratio of expenses to average net assets(c)............... 3.10% 4.18%(d)
Ratio of interest expense to average net assets.......... 0.12% N/A
Portfolio turnover(f).................................... 137% 159%
</TABLE>
---------------
(a) For the period from December 30, 1998 (commencement of class operations) to
October 31, 1999.
(b) Net investment income is based on average shares outstanding during the
period.
(c) During the period, certain fees were voluntarily waived or reimbursed. If
such voluntary fee waiver or reimbursement had not occurred, the ratios
would have been as indicated.
(d) Annualized.
(e) Not annualized.
(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.
-22-
<PAGE> 23
TRUSTEES
Samuel A. Lieber
Laurence B. Ashkin
H. Guy Leibler
INVESTMENT ADVISER
Alpine Management and Research, LLC
122 East 42nd Street, 37th floor
New York, NY 10168
CUSTODIAN
IFTC
801 Pennsylvania
Kansas City, MO 64105
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 LOGO] ALPINE
REALTY
INCOME & GROWTH
FUND
ALPINE REALTY INCOME & GROWTH FUND
122 East 42nd Street, 37th floor
New York, NY 10168
(212)687-5588
-----------------------------------
SEMI-ANNUAL REPORT
APRIL 30, 2000
This material must be preceded or
accompanied by a current prospectus.
(12/00)
