Real Estate Closed End Funds (CEFs)

Below you will find our listing of Real Estate Closed End Funds (CEF’s)

This list may not be a complete list, but does contain the vast majority of funds that are devoted to owning shares of real estate related companies—in most instances this means owning shares of Real Estate Investment Trusts (REITs).  Note that it is typical for these funds to be required to own approximately 80% income producing equities of real estate related companies. while the other 20% can be devoted to items such as real estate related bonds.

As you scan through the issues most of the issues are entirely related to real estate investments although a few may add in some portion of securities such as preferred stocks etc.

Closed end funds generally use leverage when investing–given that borrowing costs are low they are able to earn more in dividends from their holdings than the cost of the leverage (interest) thus they are able to pay a larger distribution.

Closed end funds may trade above or below NAV (Net Asset Value) and this is simply a function of supply and demand.

Below we show the current prices and distributions for the Closed End Funds as well as the most recent distribution extrapolated out to a 12 month period.

This list in NOT meant to be the end of your research–but instead it should be just the start.  Both Morningstar and CEFConnect have extensive information on CEF’s.

Note that we have a Yield Hunter Real Estate Stock Index for the Closed End Funds.

The Yield Hunter Real Estate Closed End Fund Index  

Start      1/1/2014   62.80      

1/1/2014   Low  62.80

1/16/2015   High  76.87