Well, obviously that depends how the underlying assets in the fund do. REIT prices are still well below their highs of 2006/2007, but commercial real estate seems to be firming up nicely. I see REIT's performing well going forward, but for IGR to do really well it would have to start trading closer to par vs it's NAV. I don't understand why some REIT's trade at such significant discounts to NAV. I own IGR which has a nice 6.7% dividend and a 7.% discount to NAV after today's nice bounce, but also own RNP which has an 8% dividend and a 9.75% discount to NAV.
I owned DRP a few months ago, and for whatever reason, the managing company of that REIT closed end fund decided to do a tender offer to close the discount to NAV. DRP was at a 10% or so discount to NAV, and now trades at about a 2% discount to NAV. So, I guess it's feasible to think RNP and IGR could see similar things happen, and that would be a nice pop to the price.
Given RNP's discount to NAV and higher dividend than IGR's, I own more RNP than IGR. But, I like both for overall very nice total appreciation this year and into 2012. With those juicy dividends, it's pretty reasonable to expect overall returns of 15-20%, and 25-30% is not out of the question.