Skip to main content
No. of Recommendations: 22
I have followed this Board for a long time, perhaps 20 years or so. In the days of Yoda and Ralph it was a valuable source of information for me. Not so anymore. This is sad but times change.

I do have some words of wisdom for buy and hold REIT investors such as myself who are looking for singles and not home runs and who have an aversion to striking out. Unfortunately I have had my share of strikeouts.

The Cohen and Steers Realty Fund has an excellent track record. It has beaten the Vanguard REIT Index Fund over the past five years. As I age and trust my own judgement less and less I am putting more IRA money into it. However, the large majority of my portfolio is still in individual REITs. Now before I buy an individual REIT I look to see if it is owned by Cohen and Steers, Fidelity or TIAA CREF REIT funds. If none of these funds own a specific REIT I am very loathe to purchase it.

For Cohen and Steers you can see their holdings four times a year. Here is the most recent.

Note for example that SPG now represents 5.6% of its portfolio. I doubled my holdings in SPG in the year before COVID only to see my holdings lose 70% of my purchase price. SPG has doubled from its low but it is still well below my purchase price. After the fall I have still been slowly adding to my position in SPG. Check it out.

I still follow the REIT chatter here and on Seeking Alpha, but I do not have the hubris to believe that I can do better than the experts at Cohen and Steers, TIAA CREF and Fidelity.

This is all I have to say.

Print the post Back To Top
No. of Recommendations: 3
Hey Martin!

Good post, and I agree with you that Cohen and Steers is a good source of REIT investments.

They also have some good CEFs, including RFI, the latter of which pays monthly dividends and has maintained its dividend since inception around 2005.

Print the post Back To Top
No. of Recommendations: 8
They also have some good CEFs, including RFI, the latter of which pays monthly dividends and has maintained its dividend since inception around 2005.

Either your source of information is incorrect, or you're confusing RFI with a different closed-end fund. The inception date for RFI is 09/27/1993.

RFI has not maintained its dividend since 2005. In 2009, the fund slashed its dividend by over 50%, which coincided with a temporary change from monthly dividends to quarterly dividends. If by "maintained" you simply meant the fund paid a dividend every year since 2005 (albeit one that was significantly reduced at one point), then yes, RFI has maintained its dividend.

When deciding whether to invest in a fund, it's generally a good idea to examine its long-term performance as a means of evaluating the fund manager's process. In terms of excess returns versus RFI's benchmark, not much value has been added by Cohen & Steers for their active management of the fund's assets. From inception through the end of last year - a period spanning 27.25 years - RFI's annualized rate of return is 9.5%, which is only a smidgen above the 9.37% annualized rate of return of the FTSE Nareit All Equity REITs Index that Cohen & Steers uses as the fund's benchmark. In light of the cumulative time and effort spent managing the fund, a mere 13 basis points of outperformance is rather uninspiring. In fairness, outperforming the aforementioned index is not identified as an objective in RFI's prospectus, so existing and potential investors in the fund will need to decide for themselves if the fund has achieved its stated objective: "The Fund’s investment objective is to achieve a high total return through investment in real estate securities."

Incidentally, the fund's current monthly dividend of eight cents per share is exactly what it was in 1994, so whatever advantages RFI may offer investors, long-term growth of dividends is not one of them.
Print the post Back To Top
No. of Recommendations: 1
Thanks, cosmicos, for correcting me. You are spot-on about RFI.

I goofed and somehow confused RFI (wildly so) with Cohen & Steers Infrastructure Fund, Inc. (UTF).
UTF includes some tower REITs in its portfolio but is not a REIT CEF. It's inception date is around 2004 or 2005.

Sorry to all for the confusion.

Long UTF
Print the post Back To Top