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Infrastructure REITs: A Match Made In Low Yield Environment Heaven

Published Fri, 19 Apr 2019 01:23:19 -0400 on Seeking Alpha

By Catherine Yoshimoto, director, product management
For a brief period, it appeared that the extended low-yield environment of today might at last be coming to a close. But the Fed's about-face to a more dovish stance on interest rates has investors again searching for yield, giving a boost to income-producing investments. Two asset classes that have benefited in particular are REITs and Infrastructure, and the combination of them - Infrastructure REITs - have performed notably better than broader REIT and equity indexes.
Infrastructure REITs are the largest property sector in the FTSE Nareit All Equity REITs Index, comprising 14.7% of the index. With seven constituents, the sector includes REITs that own and manage infrastructure real estate. FTSE Russell defines infrastructure companies as those that own, manage or operate structures or networks used for the processing or moving goods, services, information and data, people, energy and necessities from one location to another. As such, infrastructure REITs' property types include fiber cables, wireless infrastructure, telecommunications towers and energy pipelines.
I've previously written about the current low interest environment being a tailwind for both infrastructure and REIT performance. But as shown below, when infrastructure and REITs are brought together, the impact of the ongoing hunt for yield has been particularly pronounced.

As the above graph illustrates, while all of the broad REIT and equity... Read more

Stock name Last trade   P/E Earnings/Share Dividend/Share Dividend yield
NUVEEN REAL ESTATE INCOME FUND 10.65   0.0 0.00 0.00 7.18
COHEN & STEERS REIT 21.50   0.0 0.00 0.00 6.90
RMR REAL ESTATE INCOME FUND 19.20   0.0 0.00 0.00 6.89
COHEN & STEERS QUALITY INCOME REALTY FUND 14.20   0.0 0.00 0.00 6.80
COHEN & STEERS TOTAL RETURN REALTY FUND 14.36   0.0 0.00 0.00 6.68
ISHARES COHEN & STEERS REALTY MAJORS INDEX FUND 116.42   0.0 0.00 0.00 0.00

NUVEEN REAL ESTATE INCOME FUND - JRS
NUVEEN REAL ESTATE INCOME FUND - JRS  


Older articles featuring Nuveen Real Estate Income Fund (JRS):
Resolving The Contradictory Signal Between The Yield Curve And Housing: Watch Corporate Profits
Global X SuperDividend REIT ETF: A Solution In Search Of A Problem?
Yield Hunter CEF Report March 2019: Distribution Cuts Pick Up, But So Do Increases
Barron's Says To Buy MLPs In 2019, Yet Its Best Yield Plays Favor Vodafone
Will Rates/Yields Peak Soon?
100 High-Yielders Down Big: These 5 Are Worth Considering
Housing History And Why The Yield Curve Got So Flat
Mortgage Rates Head To 6%, 10-Year Yield To 4%, Yield Curve Fails To 'Invert,' And Fed Keeps Hiking
Want To Be A High Yield Landlord? Hop Aboard The REIT Income Train
The Chemist's CEF Report - July 2018: Treasury Yield Spread Continues To Narrow

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