Lower Interest Rates Boost Global Real Estate Investment Opportunities

Investors seeking high-yield income may consider adding shares of REITs to their portfolios as interest rates drop, according to a finance expert with Bloomberg experience. The expert suggests reviewing Cohen & Steers Global Real Estate Securities Fund (IGR) for its potential to generate high income from global real estate.

As interest rates continue to drop, investors seeking high-yield income may consider adding shares of Real Estate Investment Trusts (REITs) to their portfolios. According to a finance expert with Bloomberg experience, the Cohen & Steers Global Real Estate Securities Fund (IGR) presents a compelling opportunity for those looking to generate income from global real estate.

The fund, which invests globally with an emphasis on income-producing common equity and preferred stocks of real estate companies, offers a high current income objective and capital appreciation as a secondary goal. IGR's primary holdings are US-based, but approximately 40% of its assets are in non-US markets, including Japan, Europe, Hong Kong, Australia, the UK, Singapore, and Canada. These regions are experiencing lower central bank interest rates and long-term growth in real estate values, similar to the US.

The fund has demonstrated resilience, paying a consistent managed distribution of $0.06 per share monthly for the past three and a half years, resulting in a current distribution yield of nearly 14%. Over the past ten years, IGR has increased its distribution twice, showing a strong track record of consistent high-yield payouts. Relative to its peers, IGR has substantially outperformed on a year-to-date basis.

The global real estate market, particularly the US housing market, is expected to benefit from lower interest rates, which should help push down long-term mortgage rates. According to an investment insight from US Bank, "Fed rate cuts could help bring mortgage rates lower, although interest rates already price in expectations of some rate cuts. If mortgage rates decline and real income growth remains healthy, it could support housing demand and help offset higher supply."

Recent research from Jones Lang Lasalle (JLL) suggests that risk mitigation, resilience, and agility will be key factors for H2 2025 performance. The fund's performance may be impacted by geopolitical and economic risks, but the market's resilience and flexibility are expected to see it through to recovery.

Despite the potential risks, IGR's consistent high-yield distributions and long-term track record make it an attractive option for income investors. The fund's price appreciation may follow as the real estate sector recovers from high and rising interest rates. However, investors should be aware of potential downside pressure from inflation, geopolitical uncertainty, and the global trade war.

In conclusion, investors seeking high-yield income from global real estate may consider adding shares of Cohen & Steers Global Real Estate Securities Fund (IGR). While the fund's performance may be influenced by various factors, its consistent high-yield distributions and long-term track record make it a solid option for income investors.