VNQ - RNP: This Fund Looks Expensive From 2 Angles
2024-06-07 00:58:32 ET
Summary
- Real estate closed-end funds offer consistent monthly income at a higher yield than other comparable vehicles.
- Cohen & Steers REIT & Preferred Income Fund is a top-performing real estate closed-end fund managed by Cohen & Steers.
- We explore two valuation methodologies for RNP and explain why the fund seems overvalued.
Real estate-focused closed-end funds are a hot topic of discussion for real estate investors. From a variety of perspectives, these investments warrant debate and speculation from discerning investors who are looking to place capital efficiently. First and foremost, these actively managed REIT funds are generally expensive, charging expense ratios above typical REIT funds and incurring leverage expenses. Consequently, some investors opt to invest in REITs directly, avoiding the management fees altogether by accepting the burden of stock picking....
RNP: This Fund Looks Expensive From 2 Angles