I am invested in IGR for two years now, and made about 18% each year (when compared to the start of the year) in dividends & special disributions.
The risk is - whether or not IGR can keep paying such large distributions. As for the current pps - I do not worry - this position is set for long-term - and I still expect to average at least 5% pps growth per year over the next 10 years.
Take this together with the dividends and special distribution - you will basically double your money about eveyr four years (with dividends re-invested). Considering this return - the risk is moderate, and now, with the down-beaten market, is a great time to accumulate.
I agree with the housing market being beat up and eventually over the years it will come back again but I think it will get worse before it gets better. I am waiting for a good time to buy IGR but I have to ask is there an expense ratio for owning shares of IGR.
Let me explain what you need to know. I bought 1000 shares at the initial offering on 2/25/04 for $15,000. I reinvested all dividends using the DRIP program. I have paid as much as $24.86 for some of the reinvested shares and more recently have paid in the $13 range. The total of my investment in IGR as of last nights close was $26,340. That works out to be an average annual gain on my original investment of 18.9%. When the stock again goes over $24 - and it will - my gain will be phenomenal. My advice is buy it and reinvest the dividends and you will be very happy in a few years!
I concur with your assessment of long term value in IGR but your numbers are off. Using the numbers you provided, your return over that time frame is 15.115%, not 18.9%. You took the total gain (75.6%) and simply divided by 4 years. This approach ignores dividend reinvestment and implies the total return was based solely on the original investment. You might want to recheck your portfolio performance metrics as the disparity between your approach and dividend reinvestment reality becomes wider with each passing year.
You really should have known where to access this information. Go to Yahoo finance, type in IGR to receive quote. On the left side of the page you'll notice where it list profile. If you click on profile you'll learn all about where their income comes from. Good Luck!!
Monthly Fact sheet from November 2007
Property type diversification
RE Services 3%
US REITs 35%
US RE Preferred 12%
The UK 8%
Hong Kong 8%
Other Asia 1%
Company Country Sector Portfolio %
Westfield Group Australia Retail 5.8
Unibail-Rodamco France Diversified 4.8
Wereldhave Netherlands Office 3.6
Nationwide Health Properties United States Healthcare 2.9
Boardwalk Real Estate Investment Canada RE Services 2.8
Agile Property Holdings Ltd Hong Kong Residential 2.6
SL Green Realty Corp. 2.3Camden Property Trust United States Apartments 2.2
Ste De La Tour Eiffel France Office 2.1
Goodman Group Australia Industria2.1
IGR is a diversified global real estate closed end fund.
The fund managers will invest in global real estate
including reits, C corporations, and debt of real estate
In my humble opinion, IGR has been a gold mine for me.
The price of the stock now yields 10%, and is selling at
a 14% discount to call.
I would rather pay 86 cents for a dozen eggs rather than