EQIX - IGR: 14% Yield Contrarian Play But There Are Better Choices

2024-05-12 09:00:00 ET

Summary

• CBRE Global Real Estate Income Fund is a closed-end fund that invests in the equities and preferred securities of real estate companies, including REITs.
• The IGR CEF is a global fund, and nearly one-third of its assets are invested in international real estate, mostly in developed markets.
• The performance record of IGR simply looks unimpressive over most time periods. Even though, currently, it may be a contrarian play with enticing distribution yield, we think there are better choices in the real estate sector.

Introduction:

CBRE Global Real Estate Income Fund ( IGR ) is a closed-end fund, or CEF, that was incepted in Feb. 2004. The fund's main objective is to provide high current income to its shareholders. Capital appreciation is the secondary objective. The fund's mandate requires it to invest at least 80% of the total assets in real estate companies such as REITs. The fund is global in nature and invests all over the world. That said, it has roughly 2/3 ^rd of investments in the U.S. market, with Europe and Japan coming in second and third place. Other countries in which it is invested are Australia, the U.K., Hong Kong, Singapore, and Canada....

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