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Cohen & Steers Reit and Preferr Message Board

  • richmondinvestor richmondinvestor Apr 2, 2011 1:11 PM Flag

    Dividend Listing on Yahoo page

    It seems like a pretty good idea to double check anything that is posted on the Yahoo financial board. Currently, RNP pays $1.10 for the past twelve months which is a return of over 7%. The Yahoo page shows the dividend as $0.79 and only 5% return.

    If interest rates go up, I am hoping that the RNP price increases accordingly. After all, the price was $29 when the interest rates were higher. Does this make sense?

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    • <If interest rates go up, I am hoping that the RNP price increases accordingly.>
      The preferreds will drop in value with a rise in rates especially those near and above par. I would expect management to sell pfs and buy dividend growing REIT common as rates increase.

    • If interest rates go up, it will put downward pressure on RNP assuming everything is constant. But RNP invests in REITs and preferred stock.Both have come back, but not 100%.

    • The dividend is currently 30cents per quarter or $1.20 per year. So I woudl use that in my analysis. Good luck.

    • No it does not make sense. If interest rates go up the market typically swoons and RNP will swoon with the market. Interest costs for companies in the RNP portfolio will increase & that will adversely affect their bottom line (although most should really be in pretty good shape for at least a couple of years - it will adversely affect new deals), this will affect each company’s valuation so the RNP portfolio will take a hit. Finally, and perhaps most important, Cohen & Steers are financing the leverage portion of RNP w debt as a result of the ARPS fiasco; if rates go up the costs of RNP debt will go up, to some extent, and adversely affect RNPs bottom line.

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