Brookfield/Oaktree Real Estate Income Fund

We get a 1.25 management fee and performance fees on top. Trophy Class 1 properties only:

Thanks for posting. I looked it up and it's a closed end ETF with ticker symbol RA. Ouch! Price is down 20% today!

Distrib amount was cut from 0.199 to 0.118 monthly.

Before today's plunge, the distribution yield as 0.199*12/16.88 = 14.14%. I think this was a warning sign that it's unsustainable. Especially because only 38% of the distribution amount came from income, the other 62% was return of capital. It was also trading at a 15% premium to NAV, no idea why!

The distribution yield going forward is 0.118*12/13.43 = 10.54%, but even here only 32% is coming from income, the other 68% comping from return of capital. So the yield based on actual income is only 3.38%. Buyer beware with closed end ETFs. You have to pay attention to the actual earning power, not just the superficial distribution amount.

It's not accurate to say trophy class 1 properties only. This is not a fund that actually owns any properties. It's just an Oaktree bond fund which invests in Corporate and Securitized Credit.

Anyway, thanks again for posting. Please continue to post anything negative you can find about anything Brookfield related and I sincerely mean that.

Portfolio Composition page shows:

Corporate Credit
  infrastructure 16%
  real estate 16%
  natural resources 9.1%
Securitized Credit
  real estate - rmbs 25%
  real estate - cmbs 11%
Equities
  infrastructure - 2.6%
  other - 0.3%
Cash - 4.5%


Top Ten Holdings:
CCO Holdings LLC / CCO Holdings Capital Corp
2.0
Nomura Resecuritization Trust 2014-1R
1.5
Tenet Healthcare Corp
1.1
Hilton USA Trust 2016-HHV
1.0
Alternative Loan Trust 2005-84
0.9
Holly Energy Partners LP / Holly Energy Finance Corp
0.9
Whitewater Whistler Holdings LLC
0.8
EQM Midstream Partners LP
0.8
Altice France SA/France
0.8
Continental Resources Inc/OK
0.8

https://finance.yahoo.com/quote/RA/

https://www.cefconnect.com/fund/RA

https://www.brookfieldoaktree.com/fund/brookfield-...

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