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The housing market is
struggling, but despite these
troubles many commercial real estate
investment trusts (REITs) and the funds that
invest in them are flourishing. For
instance, which of these REIT funds is
offering a beefy 21.0% yield? A.)
Nuveen Real Estate Income Fund (JRS)
B.) Dividend Capital Realty Income
Allocation Fund (DCA)
C.) LMP Real Estate Income Fund (RIT)
D.) ING Clarion Real Estate Income Fund
(IIA)
E.) Cohen & Steers Premium Realty Fund (RPF) |
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Published:
June 2, 2008
The
correct answer is
(E.) Cohen & Steers Premium
Realty Fund (RPF)
It may be hard to believe, but with its trailing
12-month distributions totaling
$3.72 per share, RPF provides a 21.0%
yield for investors. On top of this
incredible yield, RPF has delivered
annualized total returns of +19.5%
over the past five years -- almost
twice the S&P 500's returns over the
same period.
What's its secret? The fund's objective
has kept it safe from the harder-hit
areas of real estate. About 20% of
the $872 million portfolio is in
recession-proof healthcare REITs
like Ventas (NYSE: VTR) and
Nationwide Health (NYSE: NHP), and
roughly 20% more is invested in
lower-risk REIT preferred shares.
Additionally, the balance of the
portfolio is diversified across several
other different industries, with the
heaviest weightings in apartment,
office, and regional mall REITs throughout the U.S.
So will RPF continue to shine, or is
it tapped out? StreetAuthority
editor Carla Pasternak thinks RPF -- and
the entire REIT sector -- still has
room to run. That's why she offers
an in-depth look at RPF and the
entire REIT
sector in the latest issue of her
High-Yield Investing newsletter.
Additionally, Carla unearthed a
handful of other solid REITs and REIT
funds with yields over 10% -- great
for investors who want a generous monthly income
stream, and capital appreciation. To
read more about Carla's picks, and
to learn more about the
High-Yield
Investing newsletter, please
visit
this link.
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