Folks, RFI is now selling at a 16% premium to NAV as of the 4/8/08 close. That's a record for this closed end fund. They're not doing anything so magical as to deserve that. I'll sell a dollar for a $1.16 anytime I can! In fact, I am short 1,000 shares of RFI, hedged by open-end fund real estate.
I would welcome any info available on RFI and other Cohen & Steers RE funds. The down trend in their stock prices is a matter of concern; should it be a matter of alarm? Appreciate comments from other owners. Thanks.
I have just returned to investing in REIT funds, after being out for a couple of years. Did pretty good in the past. Returned because of what looks to be better than average value now. I like it that Cohen and Steers is one of the more experienced REIT fund management teams. Many offerings.
The monthly income, albeit some is return of capital, is appealing. I've chosen RFI because it is an unleveraged fund. RNP, RQI, and RLF are leveraged. Leverage is OK in up markets, but I prefer unleveraged in uncertain markets. RFI's current discount to NAV and 10+% return meets my risk to expected return criteria. (Must confess, most of my purchases have been at higher prices, so I'm down a bit.)
I also own several other monthly dividend funds. Among them is Cohen and Steers Dividend Majors Fund (DVM)--a mix of REITs and other high return investments. Also unleveraged.
Another REIT fund you might want to check out is IGR. Leveraged, but has international exposure. Has a good record, but is down significantly in the past two weeks--even after its generous year end distribution.
Concerns?! Sure. There remains much uncertainty in the credit and real estate markets. Not news to anyone here. Even the experts have problems knowing when there is a enough blood on the streets to move in and find the real bargains. If RFI can continue to return its current dividend, then I am content with holding it for a long, long time--no matter its price fluctuations. So far, so good.
way to open the board! i have over a thousand shares, and am quite underwater. i think reits, realestate, will turn, but maybe a bit early now. at some time need to consider rnp, rqi, and rpf. the point to remember is that some of distribution is capital...return of your investment. it's okay when reits are appreciating, but don't think that is the case right now tom