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Strategies & Market Trends : The Residential Real Estate Crash Index

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To: Elroy Jetson who wrote (60854)8/26/2006 6:40:26 PM
From: MoominoidRead Replies (1) of 306849
 
Thanks. What I am wondering is as the fund grows in value due to receiving rent and reinvesting it, will this offset the fall in value of their investments... Could dig into their accounts and find what their current yield is. There is little to no borrowing. They tend to own large apartment complexes and a few prestige apartment buildings. For example they owned the Longwood Apartments in Brookline MA but recently sold them. They have the most allocated to offices.

A 17% decline over several years would likely be offset by rents received.

Since 2002 using monthly data the fund has a Sharpe ratio greater than 5 which is of course just totally off the scale for risk adjusted returns.

It's only 3% or so of my total portfolio and even if the price per unit falls I will be dollar cost averaging into it in a 403b account.

tiaa-cref.org

PS - net income yield is about 4.5% of net asset value currently.
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