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Nuveen Real Estate Income Fund (JRS) Message Board

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  • hungrydoggy hungrydoggy Jan 7, 2010 5:04 PM Flag

    Price break-out above 50d moving avg.

    I lost quite a bit of money on this fund so I'm pretty down on it. I think I'm out about $35,000 on JRS that I can't afford to lose. (I've sold out my shares of JQC at a loss. I'm not sure what to do with my shares of JTP.)

    I don't blame them for the collapse in REIT prices, but I do blame them for a lack of transparency and for not making any effort to reach out to their shareholders in a time of crisis to explain in detail what was going on. Nuveen did have one generalized conference call covering all of the funds about the failure of the leveraging strategy. That conference call was helpful as far it went, but not nearly detailed enough to make investment decisions.

    I can't figure out what is going on with JRS. Their web site shows the fund is making .0400 per share per month, but the monthly dividend is .0733 per share. So where is the missing .0333 coming from? Is that return of capital? Nuveen's history of making sudden dividend cuts without any explanation to the shareholders doesn't give me much confidence.

    Some of the MLP's that you mentioned are quite attractive investments. But Nuveen sucks. Pardon my French.

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    • Hey Hungry, The thing to remember is that you are only out if you sell. You still make the same income per share regardless of price. Well, yes obviously the div . can change as well, which it has...years ago this thing has been paying crazy high dividends. Not so crazy anymore, but 11% in this market ? I "ll take it esp. knowing the worst is over ( i hope) . Look at the volume today. low, means more buyers than sellers with the price jump. I checked and I still am getting .22 share/qtr which is still .88/yr.? where did you get your number from? maybe I'm missing something? , I just check the distribution for 31 dec. I rode this thing down to the bottom and kept on buying, so my loses are diminishing fast. Only u know how long to recoup 35k. Im not a wealthy investor , but I am self taught and in this movement, I would not sell right yet. Wait to 12 or 13. Demand is steaming into REIT's, as long as buying is occuring,the price will move. It is. MOst of my divi investments are ones that I leave the CG's to my beneficiaries to sort out and get teh dividend for a long time. I also like BDC's and Master LImit Partnerships. I will also sell some once in a while , but eventually buy them back. To me 10-13 % year in year out is good deal with most of these, that is unless you are fishing for two, three, four baggers. The longer you hold , the less you loose hungary. cheers and goodluck!

      • 1 Reply to bonefishinfool
      • 0.0733 is the dividend per month.

        The firm's income from operations can be found at Look up JRS, then click on the distributions tab under JRS.

        I purchased my shares at 14.5. At that purchase price and the current dividend rate, my yield on the capital I originally invested is currently about 6%. (Ironically, that's about what bank CD's were paying at the time.) But of course the percentage return on my capital is a moot point because my shares are currently only worth less than half of what I paid for them. So the question really becomes whether at the current share price JRS is the best use of the remaining capital. You have to balance that against what other investments like some of the natural gas MLP's are paying and against what you perceive the relative risks vs. price appreciation to be. I don't have an answer.

        If you bought into JRS a few months ago, you've done very well. I haven't checked, but I think the share price doubled from the low.

        I used to consider most Nuveen funds to be relatively conservative investments with low risk. At this point I don't trust these funds. It looked to me like management failed to anticipate the failure of the auction rate securities, reacted very slowly after the failure, and failed to keep in touch with their shareholders. Just one shareholders opinion.

        I also still hold some JTP that is trading at a big loss to what I paid. I originally bought it planning for it to be a permanent hold. Again, I'm not sure if I should continue holding it or sell. Its an 8% yield at the current share price and the earnings per share have recently risen but I'm not sure what the fund is trying to do or if I can trust their management. Its a tough decision.

        Good luck to you. I hope your investment works out for you.

10.38-0.01(-0.10%)Aug 28 4:00 PMEDT