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Nuveen Real Estate Income Fund (JRS)

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

Valuation Snapshot

Stable Growth$6.88 - $9.52$8.21
Multi-Stage$13.64 - $14.94$14.28
Blended Fair Value$11.24
Current Price$7.78
Upside44.51%
DecisionBuy

Dividend History & Growth Metrics (10Y)

Metric5Y CAGR10Y CAGR2024202320222021202020192018201720162015
DPS-2.20%-2.59%0.680.680.840.760.760.760.851.000.980.96
YoY Growth--0.00%-18.66%10.00%0.00%0.00%-10.06%-15.50%2.04%2.08%8.63%
Dividend Yield--7.88%8.70%11.06%5.93%9.00%7.16%9.99%8.90%9.10%9.04%

Stable Growth Model (Adjusted)

(USD in Millions except Per Share Data)
Net Income To Common (M)35.65
(-) Cash Dividends Paid (M)32.01
(=) Cash Retained (M)3.64
MetricLOWBASEHIGH
Required Retention Ratio20.0%12.5%7.5%
(=) Cash Required (M)7.134.462.67
Cash Retained (M)3.643.643.64
(-) Cash Required (M)-7.13-4.46-2.67
(=) Excess Retained (M)-3.49-0.820.97
(/) Shares Outstanding (M)28.8928.8928.89
(=) Excess Retained per Share-0.12-0.030.03
LTM Dividend per Share1.111.111.11
(+) Excess Retained per Share-0.12-0.030.03
(=) Adjusted Dividend0.991.081.14
WACC / Discount Rate9.10%9.10%9.10%
Growth Rate-4.59%-3.59%-2.59%
Fair Value$6.88$8.21$9.52
Upside / Downside-11.53%5.49%22.31%

Multi-Stage Model: Projections

(USD in Millions)
MetricTTMDec-27Dec-28Dec-29Dec-30Dec-31Terminal
Net Income (M)35.6534.3733.1431.9530.8129.7030.59
Payout Ratio89.79%89.83%89.87%89.91%89.96%90.00%92.50%
Projected Dividends (M)32.0130.8829.7828.7327.7126.7328.30

Multi-Stage Valuation

MetricLOWBASEHIGH
WACC / Discount Rate9.10%9.10%9.10%
Growth Rate-4.59%-3.59%-2.59%
Year 1 PV (M)28.0128.3028.60
Year 2 PV (M)24.5125.0225.55
Year 3 PV (M)21.4422.1222.82
Year 4 PV (M)18.7619.5620.39
Year 5 PV (M)16.4217.3018.21
PV of Terminal Value (M)285.00300.25316.14
Equity Value (M)394.14412.56431.70
Shares Outstanding (M)28.8928.8928.89
Fair Value$13.64$14.28$14.94
Upside / Downside75.34%83.53%92.05%

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