RQI - RQI: Real Estate Exposure At A Discount

2024-06-09 22:31:36 ET

Summary

• The Cohen & Steers Quality Income Realty Fund presents an opportunity for long-term investors to buy into the real estate sector at lower valuations.
• RQI offers a high dividend yield of 8.3% and monthly distributions, making it appealing for income investors, especially retirees, due to its reliability over the last decade.
• The fund's strategy includes leverage and a diverse range of exposure across different subsectors of real estate, which helps mitigate concentration risk.
• Future interest rates are likely to serve as a catalyst for price appreciation, as lower rates are a more ideal environment for real estate.

Overview

With the rise of interest rates, the real estate sector has continued to deliver underwhelming returns for investors due to their heavy reliance on access to cheap debt. However, I believe that this presents an opportunity for long-term investors to buy in at lower valuations. With so many options out there within the real estate sector, it can be challenging to determine the best approach to these times of uncertainty. This is where the Cohen & Steers Quality Income Realty Fund ( RQI ) comes in. We can see that the total return of RQI closely aligns to the real estate sector ( XLRE ) and Vanguard's Real Estate ETF ( VNQ ) for reference....

For further details see: