Stock Analysis & Valuation CBRE Global Real Estate Income Fund (IGR)

• Previous Close: $4.78
• Sector Valuation Confidence Level: High

Valuation method	Value, $	Upside, %
Artificial intelligence (AI)	21.11	342
Intrinsic value (DCF)	4.72	-1
Graham-Dodd Method		n/a
Graham Formula		n/a

Strategic Investment Analysis

Company Overview

CBRE Global Real Estate Income Fund (NYSE: IGR) is a specialized closed-end fund managed by CBRE Clarion Securities, focusing on global real estate investments. The fund targets income generation by investing in publicly traded real estate equities, including REITs, across developed markets such as North America, Europe, Australia, and Asia. Its diversified portfolio spans multiple property types, including office, retail, industrial, multifamily, healthcare, and self-storage. IGR employs fundamental analysis and in-house research to identify high-yield opportunities in the real estate sector. As part of the broader financial services industry, IGR provides investors with exposure to global real estate markets while emphasizing income stability. With a market cap of approximately $690 million, the fund appeals to income-focused investors seeking diversification in real estate assets without direct property ownership.

Investment Summary

CBRE Global Real Estate Income Fund (IGR) offers investors exposure to a diversified portfolio of global real estate equities, primarily REITs, with a focus on income generation. The fund's negative revenue and net income in recent filings reflect broader challenges in the real estate sector, including interest rate sensitivity and macroeconomic volatility. However, its dividend yield of $0.72 per share may attract income-seeking investors. The fund's high beta (1.416) indicates significant market correlation, making it susceptible to broader equity market swings. While its global diversification mitigates some regional risks, investors should weigh the fund's performance against sector headwinds, including rising interest rates and fluctuating property valuations. IGR's lack of leverage (zero total debt) is a positive, but its negative earnings and reliance on market conditions warrant caution.

Competitive Analysis

CBRE Global Real Estate Income Fund (IGR) competes in the crowded real estate income fund space, differentiating itself through global diversification and CBRE Clarion's specialized research capabilities. Its competitive advantage lies in its access to CBRE's extensive real estate market insights and a focus on high-quality REITs across developed markets. However, the fund's performance is highly correlated with global real estate trends, making it vulnerable to sector-wide downturns. Compared to peers, IGR's lack of leverage reduces risk but may limit returns in bullish markets. The fund's emphasis on income generation appeals to conservative investors, but its negative earnings and reliance on dividend sustainability pose risks. Its competitive positioning is further challenged by larger, more diversified real estate funds with stronger track records in navigating cyclical downturns. IGR's niche lies in its global scope, but it must demonstrate resilience in volatile markets to stand out.

Major Competitors

• Cohen & Steers Quality Income Realty Fund (RQI): RQI focuses on high-quality U.S. REITs with a strong income orientation. It benefits from Cohen & Steers' deep REIT expertise but lacks IGR's global diversification. Its larger AUM provides scale advantages, but its U.S.-centric approach may limit growth in international markets.
• Cohen & Steers Total Return Realty Fund (RFI): RFI emphasizes total return (income + capital appreciation) and invests primarily in U.S. REITs. It competes with IGR for income-focused investors but offers a more aggressive strategy. Its performance is closely tied to U.S. real estate cycles, unlike IGR's global mandate.
• Principal Real Estate Income Fund (PGZ): PGZ targets U.S. and international real estate securities with an income focus. It has a similar strategy to IGR but with a smaller AUM. Its performance is less volatile than IGR's, but its global exposure is more limited.
• Nuveen Real Asset Income and Growth Fund (JRS): JRS combines real estate and infrastructure investments, offering broader diversification than IGR. Its multi-asset approach reduces reliance on REITs alone, but its income yield may be lower due to infrastructure holdings. Nuveen's brand strength gives it an edge in distribution.