PGZ - IGR: No Near-Term Upside Catalyst But The Fund Did Cover Its Distribution Last Year

2024-04-15 09:58:27 ET

Summary

• The CBRE Global Real Estate Income Fund offers exposure to the real estate sector and real estate investment trusts (REITs) with a 14.52% yield.
• The fund has a higher yield than its peers, but there are concerns about its ability to sustain its distribution.
• The fund's net asset value has declined recently, and it relies on capital gains to cover its distributions, which may not be sustainable in the long term.
• The fund did manage to cover its 2023 distributions, but its poor performance YTD and lack of a near-term catalyst still presents doubts.
• The fund is trading at a reasonably attractive discount on net asset value.

The CBRE Global Real Estate Income Fund ( IGR ) is a closed-end fund that income-focused investors can employ to obtain some exposure to the real estate sector and specifically real estate investment trusts (REITs). These have long been among the more popular companies for any investors who are seeking income, but their yields have been relatively low for most of the past fifteen years. In addition, the sector took another hit from the pandemic a few years ago as the trend towards remote work has resulted in growing commercial real estate vacancies and falling valuations for urban office space. Fortunately, this fund is able to do reasonably well on the income front as it boasts a 14.52% yield at the current price. This yield compares pretty well to the fund's peers:

For further details see: