CBRE Global Real Estate Income Fund (NYSE: IGR) Declares Monthly Distribution for April, May and June and Announces a Webinar with Portfolio Management
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Insights
The declaration of distributions by the CBRE Global Real Estate Income Fund (IGR) is a significant event for shareholders and potential investors. The fund's current annualized distribution rate of 14.0% based on the market price and 13.0% based on the NAV is a substantial yield, particularly in the context of broader market dividend yields. However, the high distribution rate should be approached with caution, as it may include a return of capital, which is not a yield derived from investment income but rather a partial return of the investor's original investment.
Investors should consider the sustainability of these distributions, especially since the estimated allocations indicate a large portion as return of capital (62%). This could signal that the fund is not generating enough income from its investments to cover the distributions, which might lead to a depletion of capital over time. This is particularly relevant for those relying on this income for retirement or other income needs. The fund's focus on real estate securities, primarily through REITs, means that its performance is closely tied to the health of the real estate market, which can be cyclical and influenced by factors such as interest rates and economic growth.
From a taxation perspective, the nature of the distributions made by IGR is of interest. The fund's distributions are composed of net investment income, net realized short-term and long-term capital gains and return of capital. For tax purposes, these components are treated differently. Investment income and short-term capital gains are generally taxed at ordinary income rates, while long-term capital gains may benefit from lower tax rates. The return of capital is not taxed immediately but reduces the shareholder's cost basis, which could lead to higher capital gains taxes when the shares are sold.
It is important for investors to note that the estimated allocations are not for tax reporting purposes and that the actual allocations for tax purposes will only be finalized after the fiscal year-end. Adjustments under tax regulations could lead to significant differences between what is reported for tax purposes and the estimates provided. Therefore, shareholders should be prepared for potential discrepancies and ensure they understand the tax implications of their investments in IGR.
The closed-end fund structure of IGR allows for a fixed number of shares and can trade at a premium or discount to the NAV. The declared distributions and the fund's high yield could affect the fund's market price, potentially narrowing or widening the gap between the market price and the NAV. An investor's decision to buy, hold, or sell the fund's shares could be influenced by these factors, as well as the fund's performance relative to its peers and the broader market's real estate sector.
While the fund's distribution policy aims to closely approximate its net investment income and net realized capital gains, the market's response to this policy could vary. Investors often seek funds with stable or growing distributions, but a high return of capital component could be viewed unfavorably. Additionally, the fund's performance and the real estate market outlook presented in the upcoming webinar could provide further insights into the fund's strategies and market conditions, which could impact investor sentiment and the fund's market price.
The following dates apply:
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Declaration Date |
Ex-Dividend Date |
Record Date |
Payable Date |
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April 2024 |
04-08-2024 |
04-18-2024 |
04-19-2024 |
04-30-2024 |
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May 2024 |
04-08-2024 |
05-17-2024 |
05-20-2024 |
05-31-2024 |
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June 2024 |
04-08-2024 |
06-18-2024 |
06-20-2024 |
06-28-2024 |
The portfolio management team will host a webinar on Tuesday, April 30, 2024 at 11:30 a.m. ET. During the webinar the team will provide an update on the portfolio, market conditions, and their market outlook.
Please register for the webinar in advance by clicking on the registration link directly below or by visiting the Fund’s website www.cbreim.com/igr.
IGR’s current annualized distribution rate is
Future earnings of the Fund cannot be guaranteed, and the Fund’s distribution policy is subject to change. For more information on the Fund, please visit www.cbreim.com/igr.
The Fund’s monthly distribution is set by its Board of Trustees. The Board reviews the Fund’s distribution on a quarterly basis in view of its net investment income, realized and unrealized gains, and other net unrealized appreciation or income expected during the remainder of the year. The Fund strives to establish a level monthly distribution that, over the course of the year, will serve to distribute an amount closely approximating the Fund’s net investment income and net realized capital gains during the year.
CBRE Global Real Estate Income Fund is a closed-end fund, which is traded on the New York Stock Exchange and invests primarily in real estate securities. Holdings are subject to change. Past performance is no guarantee of future results.
For the period from January 1, 2024, to June 30, 2024, the Fund has made or declared six (6) regular monthly distributions totaling
Estimated Source of Distributions: |
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Estimated Allocations |
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Distribution |
Net Investment
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Net Realized Short-
|
Net Realized Long-
|
Return of Capital |
|
Monthly |
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|
|
|
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Period:
06/30/2024 |
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The allocations reported in this notice are only estimates and are not provided for tax reporting purposes. The actual allocations will depend on the Fund’s investment experience during the remainder of its fiscal year and will not be finalized until after year-end. In addition, the allocations reported to shareholders for tax reporting purposes will also reflect adjustments required under applicable tax regulations. Some of these tax adjustments are significant, and amounts reported to you for tax reporting may be substantially different than those presented in this notice. SHAREHOLDERS WILL BE SENT A FORM 1099-DIV FOR THE CALENDAR YEAR INDICATING HOW TO REPORT FUND DISTRIBUTIONS FOR FEDERAL INCOME TAX PURPOSES.
The estimated allocations presented above are based on the Fund’s monthly calculation of its year-to-date net investment income, capital gains and returns of capital. The Fund’s investment income is mainly comprised of distributions received from the real estate investment trusts (REITs) and other companies in which it invests. “Net investment income” refers to the Fund’s investment income offset by its expenditures, which include the fees paid to the investment adviser and other service providers. “Net realized capital gains” represents the aggregation of the capital gains and losses realized by the Fund from its purchase and sale of investment securities during the year-to-date period. Short-term capital gains are those arising from the sale of securities held by the Fund for less than one year. Long-term capital gains are those arising from the sale of securities held by the Fund for a year or more. The amount of net realized capital gains may also be offset by capital losses realized in prior years. Adjustments to net investment income are made based on the character of distributions received by the Fund. A portion of the distributions the Fund receives from REITs will be characterized by the REITs as capital gains or returns of capital. Because REITs often reclassify the distributions they make, the Fund does not know the ultimate character of these distributions at the time they are received, so the Fund estimates the character based on historical information. The Fund’s net investment income is reduced by the amounts characterized by the REITs as capital gains and returns of capital. Amounts characterized by the REITs as capital gains are added to the Fund’s net realized capital gains. Amounts characterized by the REITs as return of capital are classified as such by the Fund.
The Fund estimates that it has distributed more than its net investment income and net realized capital gains; therefore, a portion of your distribution may be a return of capital. A return of capital may occur, for example, when some or all the money that you invested in the Fund is paid back to you. A return of capital distribution does not necessarily reflect the Fund’s investment performance and should not be confused with “yield” or “income”.
Shareholders should not draw any conclusions about the Fund’s investment performance from the amount of this distribution or from the terms of the Fund’s managed distribution policy. The performance and distribution rate information disclosed in the table below is based on the Fund’s net asset value (“NAV”). The Fund’s NAV is calculated as the total market value of all the securities and other assets held by the Fund minus the total value of its liabilities. Performance figures are not meant to represent individual shareholder performance. The value of a shareholder’s investment in the Fund is determined by the market price of the Fund’s shares.
The Fund’s Cumulative Total Return for fiscal year 2024 (January 1, 2024 through March 31, 2024) is set forth below. Shareholders should take note of the relationship between the Cumulative Total Return and the Fund’s Cumulative Distribution Rate for 2024, as well as its Current Annualized Distribution Rate. Moreover, the Fund’s Average Annual Total Return for the preceding five-year period (April 1, 2019 through March 31, 2024) is set forth below. Shareholders should take note of the relationship between the Fund’s Average Annual Total Return and its Average Annual Distribution Rate for the preceding five-year period.
Fund Performance and Distribution Rate Information:
For the Period 01/01/2024 to 03/31/2024 |
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|
Cumulative Total Return1 |
- |
|
Cumulative Distribution Rate2 |
|
Preceding Five-Year Period 04/01/2019 to 03/31/2024 |
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|
Average Annual Total Return3 |
|
|
Average Annual Distribution Rate4 |
|
Current Annualized Distribution Rate5 |
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| 1 | Cumulative Total Return is the percentage change in the Fund’s NAV over the year-to-date time period including distributions paid and assuming reinvestment of those distributions. |
|
| 2 | Cumulative Distribution Rate for fiscal year to date 2024 (January 1, 2024 through March 31, 2024) is determined by dividing the dollar value of distributions in the period by the Fund’s NAV as of March 31, 2024. |
|
| 3 | Average Annual Total Return represents the simple arithmetic average of the Annual Total Returns of the Fund for the preceding five-year period. Annual Total Return is the percentage change in the Fund’s NAV over a year including distributions paid and assuming reinvestment of those distributions. |
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| 4 | Average Annual Distribution Rate is the simple arithmetic average of the Annual Distribution Rates for the preceding five-year period. The Annual Distribution Rates are calculated by taking the total distributions paid during the period divided by average daily NAV for the period. |
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| 5 | The Current Annualized Distribution Rate is the current monthly distribution rate annualized as a percentage of the Fund’s NAV as of March 31, 2024. |
Please refer to the chart below for information about the Fund’s historical NAVs, change in NAVs, total returns, and distributions paid.
|
Average
|
End of
|
Change
|
Annualized
|
Distribution
|
Level
|
Special
|
Total
|
||||||||
IPO |
|
$ |
15.00 |
|
|
|
|
|
|
|||||||
20041 |
$ |
14.39 |
$ |
17.46 |
16.40 |
% |
28.20 |
% |
5.77 |
% |
$ |
0.75 |
$ |
0.08 |
$ |
0.83 |
2005 |
$ |
16.81 |
$ |
17.23 |
-1.32 |
% |
8.13 |
% |
8.75 |
% |
$ |
1.29 |
$ |
0.18 |
$ |
1.47 |
2006 |
$ |
20.27 |
$ |
22.78 |
32.21 |
% |
53.42 |
% |
16.13 |
% |
$ |
1.38 |
$ |
1.89 |
$ |
3.27 |
2007 |
$ |
21.67 |
$ |
16.16 |
-29.06 |
% |
-15.82 |
% |
14.86 |
% |
$ |
1.38 |
$ |
1.84 |
$ |
3.22 |
2008 |
$ |
11.97 |
$ |
5.63 |
-65.16 |
% |
-61.14 |
% |
10.36 |
% |
$ |
1.24 |
$ |
- |
$ |
1.24 |
2009 |
$ |
5.82 |
$ |
7.51 |
33.39 |
% |
46.79 |
% |
9.28 |
% |
$ |
0.54 |
$ |
- |
$ |
0.54 |
2010 |
$ |
7.82 |
$ |
8.58 |
14.25 |
% |
22.41 |
% |
6.91 |
% |
$ |
0.54 |
$ |
- |
$ |
0.54 |
2011 |
$ |
8.60 |
$ |
8.14 |
-5.13 |
% |
0.94 |
% |
6.28 |
% |
$ |
0.54 |
$ |
- |
$ |
0.54 |
2012 |
$ |
8.99 |
$ |
9.48 |
16.46 |
% |
24.15 |
% |
6.47 |
% |
$ |
0.54 |
$ |
0.042 |
$ |
0.582 |
2013 |
$ |
9.57 |
$ |
9.04 |
-4.64 |
% |
0.91 |
% |
5.64 |
% |
$ |
0.54 |
$ |
- |
$ |
0.54 |
2014 |
$ |
9.77 |
$ |
10.16 |
12.39 |
% |
18.73 |
% |
5.52 |
% |
$ |
0.54 |
$ |
- |
$ |
0.54 |
2015 |
$ |
9.67 |
$ |
9.04 |
-11.02 |
% |
-5.57 |
% |
5.89 |
% |
$ |
0.57 |
$ |
- |
$ |
0.57 |
2016 |
$ |
9.11 |
$ |
8.65 |
-4.31 |
% |
2.17 |
% |
6.58 |
% |
$ |
0.60 |
$ |
- |
$ |
0.60 |
2017 |
$ |
8.75 |
$ |
8.99 |
3.93 |
% |
11.29 |
% |
6.85 |
% |
$ |
0.60 |
$ |
- |
$ |
0.60 |
2018 |
$ |
8.36 |
$ |
7.55 |
-16.02 |
% |
-9.75 |
% |
7.18 |
% |
$ |
0.60 |
$ |
- |
$ |
0.60 |
2019 |
$ |
8.62 |
$ |
8.86 |
17.35 |
% |
25.79 |
% |
6.96 |
% |
$ |
0.60 |
$ |
- |
$ |
0.60 |
2020 |
$ |
7.51 |
$ |
8.11 |
-8.47 |
% |
-0.60 |
% |
7.99 |
% |
$ |
0.60 |
$ |
- |
$ |
0.60 |
2021 |
$ |
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FAQ
What is the ticker symbol for CBRE Global Real Estate Income Fund?
The ticker symbol for CBRE Global Real Estate Income Fund is IGR.
What is the total distribution per share declared for April, May, and June 2024?
The total distribution per share declared for April, May, and June 2024 is $0.18.
What is the annualized distribution rate for IGR based on market price?
IGR's annualized distribution rate is 14.0% based on the market price of $5.16.
How does the Board of Trustees review the Fund's distributions?
The Board reviews the Fund's distributions quarterly based on net investment income, realized gains, and future expected income.
How many monthly distributions has the Fund made for Jan-Jun 2024?
For Jan-Jun 2024, the Fund has made six monthly distributions totaling $0.36 per share.
CBRE Global Real Estate Income Fund
NYSE:IGRIGR RankingsIGR Latest NewsIGR Stock Data
791.09M
140.02M
0.02%
25%
0.33%
Asset Management
Financial Services
United States of America
Radnor
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