Ben Stein just recommended this stock and of course the dividend captured my interest. Would appreciate any info regarding holdings of this fund, where and what type. Does it operate as a REIT? Is the dividend sustainable? if not, what do you believe is the downside limit? TIA for any info that might help with DD.
If you go to www.etfconnect.com, you will see that RQI is still 38% leveraged. You can also see the top 10 companies although etfconnect does not report the interest rate swaps. I am wondering what lessons the managers might have learned in 08 and had hoped they would greatly reduce the leverage. Do you still think it wise to add shares?
Actually you want them to keep the leverage up and reduce it on their own as the holdings rise. what they did in 07 was to keep the leverage up as the fund was hitting new highs in the high 20's. Reducing leverage "now" would reduce the fuel needed to get back to inception nav.
The top 6 holdings are interest rate swaps, which I do not understand. 7,8,9,and 10 are:Simon Property, Boston Property,Public Storage and HCP, Inc. As you go down the list of the top 25, you see other nursing home companies: nationwide and ventas. Also, Equity Residential and Vornado. You may be able to get the top 25 yourself. Go to Morningstar.com. Enter RQI. CLICK ON PORTFOLIO. I AM A PREMIUM MEMBER, SO CAN'T TELL IF MEMBERSHIP IS REQUIRED FOR PORTFOLIO INFO. BUT, A LOT OF MORNINGSTAR INFO IS FREE.
The fund itself does not operate as a REIT. Also there is a vote coming to merge this fund with another at the end of the year. Obviously the REIT funds along with the sector have taken their lumps but I think the bottom is in for the sector. You should expect to see a mild dip in the next month but nothing like March. A couple more big REITs are reporting next week (SPG and VNO) that should provide more clarity on the sector. $3 Billion in TALF money is being made available for CRE in Sept. Don't know all of the details yet.
As for the div it has been cut pretty bad , even though many REITs are issuing shares in lieu of cash or have cut divs, I don't expect it to be trimmed much more if at all.
Been in since 2002. I was fortunate to have rec 99% of my investment back as div and distrib. so I guess this is all upside for me. Have I added down here? Yes. Am I going crazy buying? No, there is no rush CRE is not running back to its peak anytime soon.
Hope I have been helpful. I'll check back to see if I can help more. I am sure there will be other input from other holders.
all opinions and links are helpful and I thank you for both. I'm invested in IGR (it is a REIT) and like you have been lucky enough to be in a free ride position. It has shown some good movement recently and I think may also be signaling that the worst has past but the climb back will be tortuous. If so then dividend and capital gain increases may be on the medium horizon. I noticed the merger vote and at first blush find it positive but haven't explored the details yet. Have you formulated an opinion? Appreciate your time and civility.