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The objective of the BFG Real Estate Income portfolio is to provide high dividend income and long-term capital appreciation by investing in a concentrated portfolio of REITs (Real Estate Investment Trusts) and real estate-based companies.
BFG Real Estate Income
What is Real Estate Income?
Real Estate Income refers to income generated primarily from publicly traded REITs (Real Estate Income Trusts). A REIT is an investment vehicle that pools investors' money to buy real estate classes that individual investors generally don't have access to, such as office buildings, hospitals, data centers, hotels, apartment buildings, and more.
Benefits of Investing in Real Estate
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Inflation-adjusted income
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Opportunity for capital gain
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Choice to reinvest dividends for growth
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Risks of Investing in Real Estate
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Asset class concertation risk
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Values can fluctuate from overall real estate market conditions
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Why We Invest in Real Estate
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REITs have historically outperformed the S&P 500 and corporate bonds over a long period of time. Real estate as an asset class has a low correlation (degree of movement of two investments in relation to each other) to the stock and bond markets, resulting in an effective hedge against volatility. Our strategy holds a combination of small- and mid-sized REITs, varying at approximately 50% of each type, depending on portfolio management activity. Individual holdings are diversified across a wide variety of real estate sub-sectors.
Here are a few stocks held in this strategy at one time or anothor...
BRT Apartments Corp is a real estate investment trust that primarily focused on the ownership, operation, and development of multi-family properties. BRT is also engaged in two other principal business activities: real estate lending; and the ownership, operation, and development of commercial, mixed-use and other real estate assets.
Global Net Lease Inc is a real estate investment trust that manages a globally diversified portfolio of commercial real estate properties. The company is engaged in the ownership, management, operating, lease, acquisition, investment, and sale of the portfolio assets.
Medical Properties Trust Inc is a healthcare facility REIT. The company operates one segment, which owns and leases healthcare facilities. The vast majority of Medical's revenue is generated in the United States, followed by Germany and the United Kingdom.
Spirit Realty Capital Inc is a real estate investment trust primarily involved in leasing properties throughout the U.S. Spirit Realty's core business is acquiring real estate through sale-leaseback transactions in which a tenant will sell their property to Spirit and then lease that same property back from Spirit through a prearranged, long-term agreement.