Neuberger Berman Real Estate Securities Income Fund Inc. [NRO] Stock Forecast

U.S. equity markets notched a fifth-straight week of gains as benchmark interest rates continued a decisive retreat after economic data and comments from Fed officials fueled bets on a pending pivot. Advancing for a fifth-straight week since dipping into "correction territory" at the end of October, the S&P 500 gained another 0.8% on the week, while Mid-Caps and Small-Caps gained 2%. Lifted by the rate retreat, real estate equities were again the leaders this week. The Equity REIT Index rallied 5.0% this week, extending their rebound since late-October to nearly 20%.

Major private equity groups are investing in the REIT sector. They are buying apartment REITs at 60-70 cents on the dollar. So am I and here's why.

U.S. equity markets continued their November rally into the Thanksgiving week, while benchmark interest rates held steady around two-month lows as investors weighed easing geopolitical tensions alongside mixed economic data. Gaining for a fourth straight week since dipping into "correction territory" at the end of October, the S&P 500 gained another 1.0% this week, while the tech-heavy Nasdaq 100 advanced 0.9%. Following a nearly 5% surge in the prior week, real estate equities also finished modestly higher this week. The Equity REIT Index advanced another 0.8%, but Mortgage REITs slipped 0.2%.

U.S. equity markets extended their rebound to a third-straight week as benchmark interest rates dipped on economic data and corporate earnings reports showing a more distinct cooldown in economic activity. Gaining for a third-straight week and extending its rebound to nearly 10% since dipping into "correction territory" at the end of October, the S&P 500 gained another 2.4% this week. Lifted by the retreat in benchmark interest rates, real estate equities have roared back to life over the past three weeks. Equity REITs and Mortgage REITs each gained another 4.7%.

Neuberger Berman Real Estate Securities Income Fund Inc is a REIT common and preferred equity CEF. The fund has outperformed its peers in 2023 but has still posted a negative total return so far this year. The fund's 14% yield is unsupported, with a high ROC utilization. Unless the wider markets recover in the next few months expect a cut here.

Why Warren Buffett And Charlie Munger Don't Like REITs But You Should

REITs are currently facing widespread dislike among investors. The negative sentiment towards REITs is due to the high-interest rates. I explain why I believe that most investors are misguided and highlight some opportunities to consider.

Amidst the bearish sentiment towards real estate, a compelling opportunity to own REITs has emerged. The deeply discounted REIT market has largely priced in the challenges for real estate of higher rates and tighter credit markets. Areas of concern for real estate - office properties or too much leverage - are well-contained in public REIT markets. REITs generally possess high-quality balance sheets and have minimal exposure to traditional office space.

The Neuberger Berman Real Estate Securities Income Fund Inc provides a high level of current income and acts as a store of wealth against inflation. The fund's portfolio consists primarily of common stock and preferred securities, which offer higher yields than other investments. The fund has a low exposure to the struggling commercial office sector and employs leverage to boost its effective yield.

I hold a significant allocation towards quality REITs. In this article, I share my bullish thesis for investing in the sector. I also highlight catalysts that could take quality REITs to new all-time highs in as little as 12 months.

Neuberger Berman Real Estate Securities Income Fund Inc. is a US stock , located in New york of Ny and trading under the symbol NRO

Neuberger Berman Real Estate Securities Income Fund Inc. stock price is $3.02 today.

Yes, Neuberger Berman Real Estate Securities Income Fund Inc. is a publicly traded company.