Cohen & Steers Total Return Realty: A 30-Year Success Story with 8% Plus Yield

Cohen & Steers Total Return Realty (NYSE: RFI) is a closed-end fund with a successful 30-year track record. It primarily invests in real estate, providing an attractive, unleveraged yield of 8% or more. The fund focuses on generating total returns through a combination of current income and capital appreciation, making it a potential option for investors seeking steady returns in the real estate market.

Cohen & Steers Total Return Realty (RFI) is a closed-end fund with a successful 30-year track record. It primarily invests in real estate, providing an attractive, unleveraged yield of 8% or more. The fund focuses on generating total returns through a combination of current income and capital appreciation, making it a potential option for investors seeking steady returns in the real estate market.

The fund, managed by Cohen & Steers Capital Management, Inc., invests in the public equity markets of the United States. It benchmarks the performance of its portfolio against the FTSE NAREIT Equity REIT Index, the S&P 500 Index, and a combination of other relevant indices. This diversified approach helps to mitigate risk and provides a balanced investment strategy [2].

In recent years, RFI has faced challenges due to rising interest rates, equity and credit market headwinds, and increased competition from private real estate investment vehicles. Despite these headwinds, the fund has shown resilience, with managed assets reaching $88.9 billion by the end of June 2025, up 10.2% year over year but down 16.6% from a peak of $106.6 billion at the end of December 2021 [1].

The fund's unleveraged nature makes it particularly appealing to conservative investors. By avoiding the use of debt, RFI reduces the risk of significant losses during market downturns. This strategy has been especially beneficial in a rising interest rate environment, where leveraged funds may struggle to maintain their performance [3].

Investors in RFI can expect a high dividend yield of 7.3%, making it an attractive option for those seeking income from their investments. The fund's diversified portfolio spans multiple sectors within the real estate market, providing exposure to various types of properties and reducing the risk of concentration in any single sector [3].

In conclusion, Cohen & Steers Total Return Realty (RFI) offers a resilient, diversified real estate portfolio with a strong 8% dividend yield. Despite the challenges posed by rising interest rates and market headwinds, the fund's unleveraged strategy and focus on total returns make it a potential option for investors seeking steady returns in the real estate market.

References:
[1] https://www.morningstar.com/company-reports/1306044-higher-short-term-rates-continue-to-impact-cohen-steers-fund-flows
[2] https://stockanalysis.com/stocks/rfi/
[3] https://seekingalpha.com/article/4800408-rfi-an-attractive-unleveraged-real-estate-fund-with-8-percent-plus-yield