IGR: Paying Out More Than It Earns Due To Challenging Real Estate Market
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Cain Lee7.39K FollowersFollow5ShareSavePlay(12min)CommentsSummaryCBRE Global Real Estate Income Fund remains a Hold, challenged by high leverage and unsustainable distributions in a persistent high-rate environment.IGR trades at a 3.12% discount to NAV, reflecting internal weakness and ongoing NAV decline despite a headline 16.5% yield.The fund's high leverage (32.03% of assets) and reliance on net realized gains amplify risk, especially if rate cuts are slower than anticipated.IGR's distributions exceed earnings, with recent payouts supported by return of capital, limiting near-term appeal for income-focused investors. J Studios/DigitalVision via Getty Images Overview CBRE Global Real Estate Income Fund (IGR) provides exposure to a diversified range of real estate securities, while putting an emphasis on income generation. When I previously covered IGR, I issued a This article was written byCain Lee7.39K FollowersFollowFinancial analyst by day and a seasoned investor by passion, I've been involved in the world of investing for over 15 years and honed my skills in analyzing lucrative opportunities within the market.I specialize in uncovering high quality dividend stocks and other assets that offer potential for long term-growth that pack a serious punch for bill-paying potential. I use myself as an example that with a solid base of classic dividend growth stocks, sprinkling in some Business Development Companies, REITs, and Closed End Funds can be a highly efficient way to boost your investment income while still capturing a total return that follows traditional index funds. I created a hybrid system between growth and income and manage to still capture a total return that is on par with the S&P.Analyst’s Disclosure:I/we have no stock, option or similar derivative position in any of the companies mentioned, and no plans to initiate any such positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article. Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.Recommended For You