Tuesday, March 26, 2013

Meeting Your Goal:Real Estate Funds

Income investors are taking a look at real estate funds such as Invesco's.Half the fund is in equities,said Joe V. Rodriguez,Jr.,Head of Global Real Estate Securities and Portfolio Manager of Invesco Real Estate Fund.Our goal is to produce equity-like returns.It's been paying  a 4.5-5% dividend yield.
On the equity side,we really like Kilroy Realty Corp.It's on the West Coast office side.In fixed income,we like shorter duration higher quality bonds.We're also focused on things like commercial mortgage-backed securities,or CMBS.UK CMBS are yielding 2.5-4%.We're getting high yields.
In Japan,seismic-proof buildings with backup power are doing quite well.They're up over 20% in the past year.
In the US,we're gonna build a million units of single family this year.Both single family and apartments are doing well.We like Essex Property Trust,which is concentrated on the West Coast.It's well-positioned to grow rents.
Invesco Real Estate Fund(IARAX),Kilroy Realty Corp.(KRC),Essex Property Trust(ESS)

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