Current State of REITs: Publicly traded real estate investment trusts (REITs) have underperformed compared to the S&P 500 since the pandemic, with a total return of 40% versus 106.5% for stocks, largely due to rising borrowing costs.
Opportunity in Declining Interest Rates: As interest rates are now trending down, REITs are positioned to expand profit margins, yet their potential is not being reflected in current market performance, indicating they are undervalued.
Investment Strategy: The article recommends investing in diversified closed-end funds (CEFs) like the Cohen & Steers Quality Income Realty Fund (RQI), which offers an 8% yield and trades at a discount to net asset value, providing a strong buying opportunity.
Future Prospects: The author identifies five additional "hidden" CEFs with significant dividend payouts and potential for price appreciation, suggesting that now is the time to invest before these discounts disappear.
Wall Street analysts forecast RQI stock price to rise over the next 12 months. According to Wall Street analysts, the average 1-year price target for RQI is USD with a low forecast of USD and a high forecast of USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.
0 Analyst Rating
Wall Street analysts forecast RQI stock price to rise over the next 12 months. According to Wall Street analysts, the average 1-year price target for RQI is USD with a low forecast of USD and a high forecast of USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.
0 Buy
0 Hold
0 Sell
Current: 12.110
Low
Averages
High
Current: 12.110
Low
Averages
High
No data
About RQI
Cohen & Steers Quality Income Realty Fund, Inc. (the Fund) is a diversified, closed-end management investment company. The Fund's primary investment objective is high current income through investment in real estate securities. The Fund's secondary investment objective is capital appreciation. The Fund's subsidiary is Cohen & Steers RQI Trust (the REIT Subsidiary). The REIT Subsidiary acts as an investment vehicle for the Fund in order to effect certain investments on behalf of the Fund, consistent with the Fund's investment objectives and policies. Unlike the Fund, the REIT Subsidiary may invest without limitation in private real estate. Investments in the REIT Subsidiary are limited to 25% of the Fund's total assets. The Fund's investment manager is Cohen & Steers Capital Management, Inc.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
