UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, DC 20549
FORM N-Q
QUARTERLY SCHEDULE OF PORTFOLIO HOLDINGS OF REGISTERED
MANAGEMENT INVESTMENT COMPANY
_______________________________
Investment Company Act file number 811-21340
DWS RREEF Real Estate Fund II, Inc.
(Exact name of registrant as specified in charter)
One South Street
Baltimore, MD 21202
(Address of principal executive offices) (Zip code)
Paul Schubert
345 Park Avenue
New York, NY 10154
(Name and address of agent for service)
Registrant's telephone number, including area code: (212) 454-7190
Date of fiscal year end: 12/31
Date of reporting period: 3/31/07
ITEM 1. SCHEDULE OF INVESTMENTS
|
Investment Portfolio |
as of March 31, 2007 (Unaudited) |
DWS RREEF Real Estate Fund II, Inc.
|
|
Shares |
|
Value ($) | ||||
|
| |||||||
|
|
Common Stocks 118.2% |
| |||||
|
Real Estate Investment Trusts (“REITs”) 117.6% | |||||||
|
Apartments 14.0% |
| ||||||
|
American Campus Communities, Inc. |
|
540,102 |
|
16,359,689 | |||
|
Apartment Investment & Management Co. "A" |
|
1,288,859 |
|
74,354,276 | |||
|
BRE Properties, Inc. "A" |
|
229,900 |
|
14,518,185 | |||
|
Home Properties, Inc. |
|
321,700 |
|
16,988,977 | |||
|
| |||||||
|
|
122,221,127 | ||||||
|
Diversified 2.8% |
| ||||||
|
iStar Financial, Inc. |
|
381,700 |
|
17,875,011 | |||
|
NorthStar Realty Finance Corp. |
|
397,300 |
|
6,042,933 | |||
|
| |||||||
|
|
23,917,944 | ||||||
|
Health Care 11.4% |
| ||||
|
Health Care REIT, Inc. |
|
78,300 |
|
3,437,370 | |
|
LTC Properties, Inc. |
|
248,300 |
|
6,433,453 | |
|
National Health Investors, Inc. |
|
287,600 |
|
9,013,384 | |
|
OMEGA Healthcare Investors, Inc. |
|
792,450 |
|
13,590,517 | |
|
Senior Housing Properties Trust |
|
1,386,900 |
|
33,146,910 | |
|
Ventas, Inc. |
|
810,200 |
|
34,133,726 | |
|
| |||||
|
|
99,755,360 | ||||
|
Hotels 16.4% |
| ||||
|
Ashford Hospitality Trust |
|
1,903,900 |
|
22,732,566 | |
|
Canyon Ranch Holdings LLC (Units) |
|
864,000 |
|
23,617,234 | |
|
DiamondRock Hospitality Co. |
|
921,900 |
|
17,516,100 | |
|
Eagle Hospitality Properties Trust, Inc. |
|
418,850 |
|
4,670,177 | |
|
FelCor Lodging Trust, Inc. |
|
49,400 |
|
1,282,918 | |
|
Hersha Hospitality Trust |
|
2,744,400 |
|
32,329,032 | |
|
Highland Hospitality Corp. |
|
109,300 |
|
1,945,540 | |
|
Hospitality Properties Trust |
|
581,250 |
|
27,202,500 | |
|
Innkeepers USA Trust |
|
696,309 |
|
11,335,911 | |
|
| |||||
|
|
142,631,978 | ||||
|
Industrial 12.7% |
| ||||
|
First Industrial Realty Trust, Inc. (a) |
|
1,119,500 |
|
50,713,350 | |
|
Liberty Property Trust (a) |
|
1,234,500 |
|
60,144,840 | |
|
| |||||
|
|
110,858,190 | ||||
|
Office 23.1% |
| ||||
|
American Financial Realty Trust |
|
2,079,400 |
|
20,960,352 | |
|
Digital Realty Trust, Inc. |
|
791,000 |
|
31,560,900 | |
|
Duke Realty Corp. |
|
309,100 |
|
13,436,577 | |
|
Highwoods Properties, Inc. |
|
754,800 |
|
29,807,052 | |
|
HRPT Properties Trust |
|
4,221,700 |
|
51,926,910 | |
|
Lexington Realty Trust (a) |
|
1,775,700 |
|
37,520,541 | |
|
Mack-Cali Realty Corp. |
|
343,482 |
|
16,360,048 | |
|
| |||||
|
|
201,572,380 | ||||
|
Other 2.2% |
| ||||
|
Crystal River Capital, Inc. 144A |
|
332,500 |
|
8,924,300 | |
|
Deerfield Triarc Capital Corp. (a) |
|
695,900 |
|
10,431,541 | |
|
| |||||
|
|
19,355,841 | ||||
|
Regional Malls 17.7% |
| ||||
|
Feldman Mall Properties, Inc. |
|
835,450 |
|
10,142,363 | |
|
Glimcher Realty Trust (a) |
|
2,062,753 |
|
55,735,586 | |
|
Pennsylvania Real Estate Investment Trust |
|
656,839 |
|
29,117,673 | |
|
Simon Property Group, Inc. |
|
533,800 |
|
59,385,250 | |
|
| |||||
|
|
154,380,872 | ||||
|
Shopping Centers 9.8% |
| ||||
|
Inland Real Estate Corp. (a) |
|
706,900 |
|
12,964,546 | |
|
National Retail Properties, Inc. |
|
395,750 |
|
9,573,193 | |
|
Ramco-Gershenson Properties Trust (a) |
|
754,800 |
|
26,953,908 | |
|
Realty Income Corp. (a) |
|
1,289,200 |
|
36,355,440 | |
|
| |||||
|
|
85,847,087 | ||||
|
Specialty Services 2.2% |
| ||||
|
Entertainment Properties Trust |
|
265,400 |
|
15,990,350 | |
|
One Liberty Properties, Inc. |
|
150,000 |
|
3,421,500 | |
|
| |||||
|
|
19,411,850 | ||||
|
Storage 5.3% |
| |||||||||||
|
Extra Space Storage, Inc. |
|
2,416,203 |
|
45,762,885 |
| |||||||
|
|
| |||||||||||
|
Total Real Estate Investment Trusts (“REITs”) |
|
1,025,715,514 |
| |||||||||
|
|
|
|
| |||||||||
|
Other 0.6% |
|
|
| |||||||||
|
Quadra Realty Trust, Inc. * (a) |
428,000 |
5,581,120 |
| |||||||||
|
|
| |||||||||||
|
Total Common Stocks (Cost $740,789,504) |
|
1,031,296,634 |
| |||||||||
|
|
Preferred Stocks 20.4% |
| ||||||||||
|
Real Estate Investment Trusts 20.4% |
| |||||||||||
|
Apartments 1.7% |
| |||||||||||
|
Apartment Investment & Management Co., 8.0%, Series T |
|
136,200 |
|
3,456,756 |
| |||||||
|
Associated Estates Realty Corp., 8.70%, Series II |
|
429,000 |
|
11,188,320 |
| |||||||
|
|
| |||||||||||
|
|
14,645,076 |
| ||||||||||
|
Diversified Financial Services 0.3% |
| |||||||||||
|
Northstar Realty Finance Corp., 8.25%, Series B |
|
131,600 |
|
3,191,300 |
| |||||||
|
Health Care 0.9% |
| |||||||||||
|
LTC Properties, Inc., 8.0%, Series F |
|
300,000 |
|
7,650,000 |
| |||||||
|
Hotels 7.0% |
| |||||||||||
|
Eagle Hospitality Properties Trust, Inc., 8.25%, Series A |
|
348,200 |
|
8,552,662 |
| |||||||
|
Equity Inns, Inc. 8.0%, Series C (a) |
|
380,000 |
|
10,461,400 |
| |||||||
|
FelCor Lodging Trust, Inc., 8.0%, Series C |
|
75,000 |
|
1,908,000 |
| |||||||
|
Host Hotels & Resorts, Inc., 8.875%, Series E |
|
204,400 |
|
5,518,800 |
| |||||||
|
LaSalle Hotel Properties, 8.375%, Series B |
|
270,000 |
|
6,966,000 |
| |||||||
|
Strategic Hotels & Resorts, Inc. 8.25%, Series B |
|
115,400 |
|
2,931,887 |
| |||||||
|
Strategic Hotels & Resorts, Inc. 8.5%, 144A |
|
332,500 |
|
8,437,188 |
| |||||||
|
Sunstone Hotel Investors, Inc., 8.0%, Series A |
|
633,500 |
|
16,292,860 |
| |||||||
|
|
| |||||||||||
|
|
61,068,797 |
| ||||||||||
|
Manufactured Homes 0.1% |
| |||||||||||
|
American Land Lease, Inc., 7.75%, Series A |
|
51,000 |
|
1,276,530 |
| |||||||
|
Office 3.3% |
| |||||||||||
|
Digital Realty Trust, Inc., 8.5%, Series A |
|
356,700 |
|
9,240,777 |
| |||||||
|
SL Green Realty Corp., 7.625%, Series C |
|
775,000 |
|
19,669,500 |
| |||||||
|
|
| |||||||||||
|
|
28,910,277 |
| ||||||||||
|
Regional Malls 1.0% |
| |||||||||||
|
Taubman Centers, Inc., 8.0%, Series G |
|
329,253 |
|
8,504,605 |
| |||||||
|
Shopping Centers 6.1% |
| |||||||||||
|
Cedar Shopping Centers, Inc., 8.875% |
|
300,000 |
|
7,872,000 |
| |||||||
|
The Mills Corp., 8.75%, Series E |
|
1,720,000 |
|
45,081,200 |
| |||||||
|
|
| |||||||||||
|
|
52,953,200 |
| ||||||||||
|
|
| |||||||||||
|
Total Preferred Stocks (Cost $173,781,295) |
|
178,199,785 |
| |||||||||
|
|
Securities Lending Collateral 14.7% |
| ||||||||||
|
Daily Assets Fund Institutional, 5.35% (b) (c) |
|
|
127,657,275 |
|
127,657,275 |
| ||||||
|
|
% of |
|
Value ($) |
| ||||||||
|
|
| |||||||||||
|
Total Investment Portfolio (Cost $ 1,042,228,074) |
153.3 |
|
1,337,153,694 |
| ||||||||
|
Other Assets and Liabilities, Net |
(13.2) |
|
(114,872,341) |
| ||||||||
|
Preferred Stock, at Liquidation Value |
(40.1) |
|
(350,000,000) |
| ||||||||
|
|
| |||||||||||
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Net Assets Applicable to Common Shareholders |
100.0 |
|
872,281,353 |
| ||||||||
|
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For information on the Fund's policies regarding the valuation of investments and other significant accounting policies, please refer to the Fund's most recent semi-annual or annual financial statements. |
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* |
Non-income producing security. |
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(a) |
All or a portion of these securities were on loan amounting to $113,026,782. In addition, included in other assets & liabilities are pending sales amounting to $11,315,655, that is also on loan. The value of all securities loaned at March 31, 2007 amounted to $124,342,437 which is 14.3% of net assets. | ||||||||||
|
(b) |
Daily Assets Fund Institutional, an affiliated fund, is managed by Deutsche Investment Management Americas Inc. The rate shown is the annualized seven-day yield at period end. | ||||||||||
|
(c) |
Represents collateral held in connection with securities lending. | ||||||||||
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144A: Security exempt from registration under Rule 144A of the Securities Act of 1933. These securities may be resold in transactions exempt from registration, normally to qualified institutional buyers. | |||||||||||
|
At March 31, 2007, open interest rate swaps were as follows: | |||||||||||
|
Effective/ |
|
Notional |
|
Cash Flows Paid |
|
Cash Flows |
|
Net Unrealized | |||
|
| |||||||||||
|
| |||||||||||
|
7/14/2004 |
|
87,500,000 1 |
|
Fixed — 2.992% |
|
USD—Floating LIBOR BBA |
|
1,577,074 |
| ||
|
5/26/2004 |
|
87,500,000 2 |
|
Fixed — 3.589% |
|
USD—Floating LIBOR BBA |
|
1,987,405 |
| ||
|
5/26/2004 |
|
87,500,000 3 |
|
Fixed — 4.064% |
|
USD—Floating LIBOR BBA |
|
2,419,734 |
| ||
|
| |||||||||||
|
Total net unrealized appreciation |
|
5,984,213 |
| ||||||||
Counterparties:
|
1 UBS |
|
2 Bank of America |
|
3 Goldman Sachs & Co. |
|
BBA: British Bankers’ Association |
|
LIBOR: Represents the London InterBank Offered Rate |
|
REIT: Real Estate Investment Trust |
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ITEM 2. |
CONTROLS AND PROCEDURES |
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(a) The Chief Executive and Financial Officers concluded that the Registrant’s Disclosure Controls and Procedures are effective based on the evaluation of the Disclosure Controls and Procedures as of a date within 90 days of the filing date of this report. |
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(b) There have been no changes in the registrant’s internal control over financial reporting that occurred during the registrant’s last half-year (the registrant’s second fiscal half-year in the case of the annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal controls over financial reporting. |
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ITEM 3. |
EXHIBITS |
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Certification pursuant to Rule 30a-2(a) under the Investment Company Act of 1940 (17 CFR 270.30a-2(a)) is filed and attached hereto as Exhibit 99.CERT. |
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.
|
Registrant: |
DWS RREEF Real Estate Fund II, Inc. |
|
By: |
/s/Michael G. Clark |
|
|
Michael G. Clark |
President
|
Date: |
May 23, 2007 |
Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, this report has been signed below by the following persons on behalf of the registrant and in the capacities and on the dates indicated.
|
Registrant: |
DWS RREEF Real Estate Fund II, Inc. |
|
By: |
/s/Michael G. Clark |
|
|
Michael G. Clark |
President
|
Date: |
May 23, 2007 |
|
By: |
/s/Paul Schubert |
|
|
Paul Schubert |
Chief Financial Officer and Treasurer
Date: May 23, 2007