WELL - RQI: 8% Income And Potential Capital Appreciation From Real Estate Turnaround

2024-03-10 09:00:00 ET

Summary

• Cohen & Steers Quality Income Realty Fund is a closed-end fund that primarily invests in equity and preferred securities of real-estate companies, including REITs.
• The RQI CEF has an excellent long-term performance record. However, the recent performance has been sub-par in alignment with the real-estate sector.
• We believe it is an excellent fund in the real-estate sector for income investors who can tolerate relatively high volatility due to its 30% leverage.

Introduction:

Cohen & Steers Quality Income Realty Fund (RQI) is a closed-end fund, or CEF, incepted in Feb. 2002. The fund is one of the few CEFs with a successful record of nearly 22 years. The fund primarily invests in equity and preferred securities of real-estate companies and REITs (Real-Estate Investment Trusts). The fund is mandated to invest at least 80% of the assets in the securities issued by real-estate companies and the rest in fixed-income securities. These real-estate securities could be common equity, preferred securities issued by real-estate companies or REITs. Nearly 80% of its assets are invested in U.S.-based securities, and the rest from the developed markets, including Canada, Europe, the U.K., and Australia....

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