JRS: Still Looks Good As An Inflation Hedge, But Rising Rates May Be A Headwind

Summary

• The Nuveen Real Estate Income Fund offers a 7.56% yield, outperforming many other real estate funds but lagging behind some peers in yield.
• Despite a lower yield, JRS has delivered a 27.33% total return over the past five years, outperforming most peers.
• The fund's portfolio primarily consists of common equities, providing inflation protection and capital appreciation, with a current leverage ratio of 28.28%.
• The market appears to believe that a Trump presidency will necessitate higher interest rates. This will probably be a headwind in the near term.
• Trading at a 9.41% discount to net asset value, the fund remains a strong option for income-seeking investors looking to hedge against inflation.
• Looking for a helping hand in the market? Members of Energy Profits in Dividends get exclusive ideas and guidance to navigate any climate. Learn More »

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Analyst’s Disclosure: I/we have a beneficial long position in the shares of IGR either through stock ownership, options, or other derivatives. 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.