RQI - Cohen & Steers Total Return Realty Fund: The Fund's Lack Of Leverage Is Paying Off
2024-04-16 15:17:54 ET
Summary
- RFI is a closed-end fund which mirrors RQI, its more popular peer from the same manager.
- The fund uses no leverage and has performed similarly over long-time horizons.
- As rates remain higher for longer, RFI's relative performance is poised to improve, earning a "Buy" rating.
- We explore the fund and compare long term trends against its leveraged counterparts.
Over the past decade, REITs operated in a low interest rate environment where cheap capital and declining yields fueled a long-term rally for commercial real estate assets. Long-term falling yields of income-producing assets supported elevated REIT valuations and declining capitalization rates in the open market. For real estate investors, this was an easy street with year after year of strong returns. REITs excelled over this era where investors found themselves in a "cannot lose" environment backed by a powerful rising tide....
Cohen & Steers Total Return Realty Fund: The Fund's Lack Of Leverage Is Paying Off