IGR: Sell This CEF While It Trades At A Premium To NAV

Summary

  • IGR's 14.6% yield is eye-catching, but the fund's long-term total returns have been weak.
  • Despite its global label, IGR still has the majority of its assets located in the United States.
  • The fund has traded up to a premium to NAV recently, which I am not sure is warranted.
  • Given the premium valuation, weak performance, and risk of a dividend cut, I view IGR as a sell.
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EschCollection

At first glance, the CBRE Global Real Estate Income Fund (NYSE:IGR) may seem like an attractive option. This closed-end fund ("CEF") offers a greater than 14% dividend yield. It does so while giving investors exposure to a variety of real estate assets both

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This article was written by

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Ian Bezek is a former hedge fund analyst at Kerrisdale Capital. He has spent the decade living in Latin America, doing the boots-on-the ground research for investors interested in markets such as Mexico, Colombia, and Chile. He also specializes in high-quality compounders and growth stocks at reasonable prices in the US and other developed markets.

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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.

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