RLTY - RLTY: 9% Income Attractive Discount And Benefit From A Real Estate Turnaround

2024-03-17 09:00:00 ET

Summary

• Cohen & Steers Real Estate Opportunities and Income Fund is a closed-end fund that invests in real estate companies, including REITs, and in fixed income and preferred securities.
• The RLTY CEF is a fairly new fund with only a two-year history. However, the fund offers a very attractive discount and yield compared to some of the more established but similar funds.
• We believe the fund offers exposure to the real estate sector with monthly high distributions and great timing to enter at discounted prices. The downside is high leverage, which may result in high volatility.

Introduction

Cohen & Steers Real Estate Opportunities and Income Fund ( RLTY ) is a closed-end fund, or CEF, incepted on Feb.24, 2022. The fund has a very short history of just two years, but the fund group (Cohen & Steers) is a well-respected name in the real estate sector. The fund primarily invests in common equity of real-estate companies and REITs (Real Estate Investment Trusts) and, to a lesser extent, in preferred and fixed-income securities. The fund is mandated to invest at least 70% of the assets in the common equities issued by real-estate companies and the remaining 30% in fixed-income securities, including preferred securities. Nearly 90% of its assets are invested in the U.S. and North America, and the rest from the developed markets, including Europe, the U.K., and Australia....

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