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RNP: Building A Sustainable Income Portfolio With Real Estate Exposure

Left Banker profile picture
Left Banker
12.26K Followers

Summary

  • Real estate is an important component of an income portfolio. CEFs offer high yields and good prospects for capital appreciation.
  • RNP is a strong real estate portfolio with a mix of REIT equity, preferreds, bonds, and convertibles.
  • RNP is near a five-year low discount which has taken its distribution rate down to 6%.
Low Angle View of Skyscrapers in Hong Kong
Photo by CHUNYIP WONG/iStock via Getty Images

After an unscheduled excursion deeper into to woods of CEF Option-Income Equity Land than I expected to go (emphasizing ETY, EOS and CII/BDJ), I want to return to the project on Building a Sustainable income Portfolio I described

This article was written by

Left Banker profile picture
12.26K Followers
I'm a retired individual investor.

Analyst’s Disclosure: I am/we are long RQI. 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.

This article does not constitute investment or tax-planning advice. I am passing along the results of my research on the subject. Any investor who finds these results intriguing will certainly want to do all due diligence to determine if any fund mentioned here is suitable for his or her portfolio. And, any investor who has concerns about the tax status of an investment will want to consult with a tax professional on that topic.

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.

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Comments (24)

Seatonmanagement profile picture
Long both RNP & RQI for several years now. Very satisfied with results. High 'stock price' now.
d
geez a tuf room huh.c and s a superior group.i own both rqi and utf in retirement acct.both have been great to me.added to both big time in march april 2020.y.causereally liked their holdings for me both buy and holds.thx u left banker for your articles.i always read em and learn.and years ago u directed me to ACV..also doubled it during march april 2020.thx u again.keep these articles coming
No_Bravo_Sierra profile picture
What is your opinion on IGR ?
b
Good Article
Am bookmarking
Thank You
Dennis O profile picture
I went thru this a couple of years ago with RQI/RNP. Life is to short to go thru all this internal buy dilemma. Kind of like BST/BSTZ or UTF/UTG ect. So I can SWAN I just buy them all. You really can't go wrong . After a time they will sort themselves out. Life is Good so don't make it complicated. Best of luck.- Dennis
Monthly Income Investor profile picture
@Dennis O Did the same thing for the same reasons on the stocks you mention!
j
@Dennis O Wise advice. I see continuous SA articles saying to buy the same stocks and funds. It gets boring.
SlowHandLuke profile picture
Thanks for the article. I always learn something from these updates. I bought RNP at 22.97 and am happy with the income.
RettW profile picture
Every time I compare RQI to CSQ in Portfolio Visualizer, no matter what the time frame, CSQ comes out far, far superior. You must have some emotional attachment to C & S funds.
Income4ever aka Cyclenut profile picture
@RettW
And BST will smoke CSQ..... we can cherry pick all day long but Cohen Steers does have a solid high quality reputation and LT performance to back it up
NV_GARY profile picture
@RettW
Why compare them? CSQ is 1.9% real estate.
Compare this orange to AAPL maybe? Just as applicable.
Bob-in-DE profile picture
@RettW RQI and CSQ are not even vaguely similar in their holdings/exposure, so why compare them?
Income4ever aka Cyclenut profile picture
Sorry but all three funds are not Entirely invested in real estate.
Rnp specifically and RQI to a much lesser degree venture in the preferred holdings into other sectors as well and not limited to reits.
Quite frankly it doesn't take that much research or effort to check holdings before publishing an article.
NV_GARY profile picture
@Income4ever aka Cyclenut
Read the article.
j
Two articles on the same fund? Sure it's a SA darling and good investment 6 months ago but now?
Left Banker profile picture
@jasonjones
2nd to last paragraph
@jasonjones You can start a position and add more when it drops. Meanwhile, you enjoyed the dividends.
j
@Left Banker I mean there are two SA articles today on this CEF. Lots of RNP articles. SA editors fault not yours. It's a good article though. I would like to see one on BIGZ.
B
@Left Banker

I have RNP on my watchlist. Last year I bought RQI at $9.00. Real estate should be in every retirees portfolio. I have positions in STOR & NHI for some growth. Both are triple net. IMHO , NHI may not increase its dividend this year, but the management is top notch, as is the management of STOR.

Byrnzie
S
I own a small position in RNP. I have been letting it DRIP since it is at a discount but agree would not add or start a new position due to valuation.
b
AWP may be at a better price today?
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