- The fund is one of the worst performers in the last year having lost half of its value and deleveraging back in March/April.
- The distribution was recently cut to 8 cents per share per month from 11 cents.
- An investor who wants to play the commercial real estate income rebound will need an iron stomach to buy these shares. But they are deeply discounted here.
- Tax loss selling pressure is weighing on the shares at the moment and will likely continue to do so for the next 45 days.
- We think most investors would do well avoiding the fund for now until we have more clarity and get deeper into tax loss selling.
For further details see:
Principal Real Estate Income Fund Is In Tough Sector With Tax Loss Selling Pressure, But Looks Cheap