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Cohen & Steers Quality Income Realty Fund, Inc. (RQI)

Company Dividend Discount ModelIndustry: Asset Management - IncomeSector: Financial Services

Valuation Snapshot

Stable Growth$25.66 - $42.30$33.04
Multi-Stage$32.72 - $35.69$34.18
Blended Fair Value$33.61
Current Price$12.45
Upside169.97%
DecisionBuy

Dividend History & Growth Metrics (10Y)

Metric5Y CAGR10Y CAGR2024202320222021202020192018201720162015
DPS4.51%4.49%0.961.190.950.960.970.770.780.780.790.78
YoY Growth---19.11%25.16%-1.10%-0.69%25.36%-1.19%-0.03%-0.78%0.83%25.93%
Dividend Yield--7.85%9.70%8.25%5.26%7.79%5.18%7.53%6.20%6.44%6.38%

Stable Growth Model (Adjusted)

(USD in Millions except Per Share Data)
Net Income To Common (M)296.36
(-) Cash Dividends Paid (M)258.08
(=) Cash Retained (M)38.28
MetricLOWBASEHIGH
Required Retention Ratio20.0%12.5%7.5%
(=) Cash Required (M)59.2737.0522.23
Cash Retained (M)38.2838.2838.28
(-) Cash Required (M)-59.27-37.05-22.23
(=) Excess Retained (M)-20.991.2416.06
(/) Shares Outstanding (M)134.43134.43134.43
(=) Excess Retained per Share-0.160.010.12
LTM Dividend per Share1.921.921.92
(+) Excess Retained per Share-0.160.010.12
(=) Adjusted Dividend1.761.932.04
WACC / Discount Rate9.11%9.11%9.11%
Growth Rate2.09%3.09%4.09%
Fair Value$25.66$33.04$42.30
Upside / Downside106.07%165.41%239.75%

Multi-Stage Model: Projections

(USD in Millions)
MetricTTMDec-27Dec-28Dec-29Dec-30Dec-31Terminal
Net Income (M)296.36305.52314.95324.68334.71345.05355.40
Payout Ratio87.08%87.67%88.25%88.83%89.42%90.00%92.50%
Projected Dividends (M)258.08267.83277.94288.43299.29310.55328.75

Multi-Stage Valuation

MetricLOWBASEHIGH
WACC / Discount Rate9.11%9.11%9.11%
Growth Rate2.09%3.09%4.09%
Year 1 PV (M)243.10245.48247.86
Year 2 PV (M)228.97233.48238.03
Year 3 PV (M)215.66222.06228.59
Year 4 PV (M)203.12211.19219.51
Year 5 PV (M)191.29200.85210.78
PV of Terminal Value (M)3,315.933,481.543,653.71
Equity Value (M)4,398.074,594.604,798.48
Shares Outstanding (M)134.43134.43134.43
Fair Value$32.72$34.18$35.69
Upside / Downside162.78%174.52%186.70%

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