CBRE Clarion Real Estate Income Fund (IGR) — a closed-end fund — offers an indicated yield of 6.13%. Its current price of $9.79 represents a 6.50% discount to net asset value and is 18% below our fair value estimate of $12.00, notes Marty Fridson, editor of Fridson/Forbes Income Securities Investor.
CBRE Clarion Real Estate Income Fund’s investment objective is high current income, with capital appreciation as a secondary objective. The fund invests at least 80% of total assets in income-producing real estate securities. IGR can invest up to 25% of its assets in preferred shares of global real estate companies.
The fund is well diversified geographically and by property sector. As of 10/31/21, real estate sector diversification was led by Residential (16.55%), Industrial (15.28%), Retail (13.82%), Diversified (9.89%), Self-Storage (9.84%), and Towers (9.51%).
IGR’s top five holdings at 10/31/21, all common stocks, were American Tower (7.46%), Simon Property (6.52%), ProLogis (5.49%), Duke Realty (4.86%), and Crown Castle International (4.41%).
Distributions have accounted for 50%-75% of return of capital over the last three years, although that mix may change. This investment is suitable for low- to medium-risk portfolios.
Exchange: NYSE. Pay cycle: Monthly. Expense Ratio: 1.53%. Leverage Ratio 19.64%. CUSIP: 44982G104. Website: (www.cbreclarion.com)
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