Prior to the combination of the funds the discount was more like 21% (weighted by the fund asset values)now it went up to 25%. Theory would say that the combined pool of assets should be discounted LESS than the weighted average of the individual pools, as each pool has more variation than the total of the pools.
Based on that reasoning, a rational market (are they ever rational?) would price RIF more than 4% higher.
I am surprised that more investors have not jumped on this stock. When the merger came thru RIF went on line around 12. Now it is at 17 plus in a few months. Wake up people, especially since the Feds have stated that real estate is finally going up. We are glad to own this stock. Before the merger we had 5000 shares of RDR. Wish we had that in RIF.
We owned 5000 shares of RDR before the merger. That ETF seemed to be stuck in neutral. Now we only have 515 shares of RIF after the merger. Apprehension has turned to relief after seeing RIF moving up. If no doom and gloom sets in, maybe we will be OK. We have other REITs and they are also finally going into positive territory.