I'm sticking with EGLRX and DRW for my foreign real estate exposure (about 5% of portfolio).  Both look miserable YTD but such is life.  They'll bounce back.

If you want a souped-up global real estate CEF that uses leverage, then IGR is your best option...

Would you buy IGR now, with it being priced at a 9% premium?

 

Hi RatonBob,

I do not have the intestinal fortitude for IGR.  PURZX is much more my speed.

Kevin 

How incredibly timely.

Being new here, I was not aware of EGLRX having been such a hot topic, yet I posted a question about it, on this very forum, just an hour before this thread was started (see "International Real Estate"--my browser doesn't seem to support the active-link tool).

 Kinda makes me wonder if JW was responding to me, avoiding me (have I offended??), or just unaware of the coincidence?

 Regardless--I'm grateful for all the insight and ideas, especially Kevin's. One correction though: the timber and infrastructure sectors of BAM were spun off into BIP earlier this year. Since BAM is now trading at 35x anticipated earnings, I would pass on that and go directly to BIP. The P/E is no better, but the price/book of 0.8 (vs. BAM 2.9), and deep-value timber assets, looks like a much better bet to me.

AAlan 

As discussed HERE, BAM continues to manage 100% of BIP and owns 40% of BIP.  With BAM, you get greater diversity, a reasonable P/B, and better performance to date. 

Kevin 

I've been in and out of IGR a couple times.  Yes, It had a 9% premium today -- a couple days ago, it was 1% and had a discount not too long ago.  You need to watch for the discount.  On the plus side, it's up 15% YTD and has better than an 8% dividend. 

Interesting enough that I've been keeping my eyes on it and RNP, but I'm still leery about Real Estate -- I don't think the bottom has been reached yet, so I'll probably continue to sit on the sidelines and watch for a while longer.

Zwilnik

AAlan, I noticed your thread after I posted mine. It was a complete coincidence. Thanks Kevin and everyone else for the different options. I will look into them and decide if I should go the global real estate route in the future or stick with EGLRX.

kevindow:

As discussed HERE, BAM continues to manage 100% of BIP and owns 40% of BIP.  With BAM, you get greater diversity, a reasonable P/B, and better performance to date. 

Kevin 

Kevin, first let me apologize for the awkward way I raised the point of the BIP/BAM spinoff. Of course you were more familiar with the company than I was, and I feel a bit foolish for implying that you might have overlooked it.

 

As for  performance... well, I wouldn't make price performance my main way of judging a 4-month-old stock -- especially one dependent on growing trees!   So I see it as a classic growth-vs.-value choice.  And of course each choice has virtues and risks. But I'm having a hard time envisioning  a growth rate that will support a price at 34x earnings--in real estate? 

 

Respectfully,

AAlan 

Jwalker:

AAlan, I noticed your thread after I posted mine. It was a complete coincidence.

Well, then, that is just the coolest coincidence, isn't it? You must be my lost twin brother. :-)  And we both get the  benefit of each other's responses.

 --AAlan 

I'm still with it. Last Dec.2007 they paid dividends of $2,63. At a $32.00 NAV  that is an 8,21% dividend yield.

I was absolutely not offended by your post, and I actually appreciated your comments.  You have been a welcome addition to our forum.  Of course I don't judge stocks based on 4 month results, but I carefully watch spin offs from parent companies for price and volume action.  I continue to watch BIP, but the youth of this stock and its low daily trading volume makes it worthy of my watch list but not a buy candidate.  Take care and have a great and relaxing weekend.

Kevin 

 

Thank you Kevin, that's very kind. I'm glad to have a "family" to check in with as I explore what is really a whole new world for me.

I'm having more than a weekend--I'm off to camp for a whole week, during which I'll have no phone, no computer, no news. What a switch!

I "trimmed the sails" on my portfolio tonight so hopefully it can make it safely through the next week without my constant supervision! :-)

Oh, and I decided not to buy BIP yet because WY finally came down to the bargain price I was waiting for, giving me the timber I've been yearning. I'll look into more infrastructure next month.

Have a nice week! 

 yours,

AAlan