NPORT-EX 1 NPORT_11181594113307384.htm

 

Schedule of Investments Real Estate Securities Income Fund Inc.^

(Unaudited) July 31, 2019

 

NUMBER OF
SHARES

 

 

 

VALUE†

 

Common Stocks 87.3%

 

 

 

Apartments 6.2%

 

 

 

151,900

 

American Campus Communities, Inc.

 

$

7,101,325

(a)

78,100

 

Mid-America Apartment Communities, Inc.

 

9,203,304

(a)

 

 

 

 

16,304,629

 

Commercial Financing 8.5%

 

 

 

276,500

 

Blackstone Mortgage Trust, Inc. Class A

 

9,821,280

(a)

541,400

 

Starwood Property Trust, Inc.

 

12,576,722

(a)

 

 

 

 

22,398,002

 

Data Centers 5.8%

 

 

 

73,000

 

CoreSite Realty Corp.

 

7,651,130

(a)

67,100

 

Digital Realty Trust, Inc.

 

7,673,556

(a)

 

 

 

 

15,324,686

 

Diversified 1.6%

 

 

 

419,700

 

Lexington Realty Trust

 

4,142,439

 

 

 

 

 

Free Standing 4.2%

 

 

 

155,050

 

Four Corners Property Trust, Inc.

 

4,177,047

(a)

59,200

 

National Retail Properties, Inc.

 

3,092,608

(a)

84,800

 

Spirit Realty Capital, Inc.

 

3,741,376

 

 

 

 

 

11,011,031

 

Health Care 12.9%

 

 

 

529,166

 

Medical Properties Trust, Inc.

 

9,260,405

(a)

275,300

 

Omega Healthcare Investors, Inc.

 

9,993,390

(a)

81,100

 

Ventas, Inc.

 

5,457,219

(a)

113,600

 

Welltower, Inc.

 

9,442,432

(a)

 

 

 

 

34,153,446

 

Home Financing 4.7%

 

 

 

182,700

 

AGNC Investment Corp.

 

3,131,478

(a)

955,700

 

Annaly Capital Management, Inc.

 

9,126,935

(a)

 

 

 

 

12,258,413

 

Industrial 5.0%

 

 

 

68,950

 

Prologis, Inc.

 

5,558,060

(a)

258,700

 

STAG Industrial, Inc.

 

7,688,564

(a)

 

 

 

 

13,246,624

 

Infrastructure 13.7%

 

 

 

76,300

 

American Tower Corp.

 

16,146,606

(a)

149,600

 

Crown Castle International Corp.

 

19,935,696

(a)

 

 

 

 

36,082,302

 

Lodging/Resorts 1.4%

 

 

 

144,000

 

Park Hotels & Resorts, Inc.

 

3,803,040

(a)

 

 

 

 

Manufactured Homes 3.7%

 

 

 

74,300

 

Sun Communities, Inc.

 

9,867,783

 

 

 

 

 

Office 6.5%

 

 

 

57,800

 

Alexandria Real Estate Equities, Inc.

 

8,459,608

(a)

189,180

 

Highwoods Properties, Inc.

 

8,575,529

(a)

 

 

 

 

17,035,137

 

Regional Malls 5.5%

 

 

 

365,600

 

Brookfield Property Partners LP

 

7,063,392

(a)

46,400

 

Simon Property Group, Inc.

 

7,526,080

(a)

 

 

 

 

14,589,472

 

Self Storage 3.6%

 

 

 

85,400

 

Extra Space Storage, Inc.

 

9,598,106

(a)

 

 

 

 

Shopping Centers 2.2%

 

 

 

294,200

 

Kimco Realty Corp.

 

5,651,582

(a)

 

 

 

 

Specialty 0.7%

 

 

 

63,900

 

Iron Mountain, Inc.

 

1,879,299

(a)

 

 

 

 

Timber 1.1%

 

 

 

118,100

 

Weyerhaeuser Co.

 

3,000,921

(a)

Total Common Stocks
(Cost $206,780,949)

 

230,346,912

 

 

 

 

 

Preferred Stocks 50.3%

 

 

 

Data Centers 0.5%

 

 

 

45,000

 

Digital Realty Trust, Inc., Ser. C, 6.63%

 

1,197,900

 

 

 

 

 

Diversified 7.9%

 

 

 

194,139

 

Colony Capital, Inc., Ser. B, 8.25%

 

4,981,607

 

16,212

 

Colony Capital, Inc., Ser. H, 7.13%

 

378,550

 

533,591

 

Colony Capital, Inc., Ser. I, 7.15%

 

12,614,091

(a)

125,000

 

Colony Capital, Inc., Ser. J, 7.13%

 

2,951,250

(a)

 

 

 

 

20,925,498

 

Free Standing 0.9%

 

 

 

98,922

 

National Retail Properties, Inc., Ser. F, 5.20%

 

2,492,834

(a)

 

 

 

 

Home Financing 3.2%

 

 

 

325,000

 

Annaly Capital Management, Inc., Ser. F, 6.95%

 

8,359,000

(a)

 

 

 

 

Industrial 4.8%

 

 

 

100,000

 

PS Business Parks, Inc., Ser. U, 5.75%

 

2,589,000

 

255,500

 

Rexford Industrial Realty, Inc., Ser. A, 5.88%

 

6,591,900

(a)

125,600

 

STAG Industrial, Inc., Ser. C, 6.88%

 

3,417,576

(a)

 

 

 

 

12,598,476

 

Lodging/Resorts 10.3%

 

 

 

379,000

 

Ashford Hospitality Trust, Inc., Ser. G, 7.38%

 

7,273,010

 

185,800

 

Eagle Hospitality Properties Trust, Inc., Ser. A, 8.25%

 

—

*(b)(c)

349,300

 

Pebblebrook Hotel Trust, Ser. D, 6.38%

 

9,483,495

(a)

192,000

 

Sunstone Hotel Investors, Inc., Ser. E, 6.95%

 

5,184,000

(a)

200,000

 

Sunstone Hotel Investors, Inc., Ser. F, 6.45%

 

5,224,000

(a)

 

 

 

 

27,164,505

 

 

See Notes to Schedule of Investments

 

 

NUMBER OF
SHARES

 

 

 

VALUE†

 

Manufactured Homes 0.5%

 

 

 

55,900

 

UMH Properties, Inc., Ser. C, 6.75%

 

$

1,437,748

 

 

 

 

 

 

 

Office 2.8%

 

 

 

6,000

 

Highwoods Properties, Inc., Ser. A, 8.63%

 

7,350,000

(a)

 

 

 

 

 

 

Regional Malls 8.0%

 

 

 

299,115

 

CBL & Associates Properties, Inc., Ser. D, 7.38%

 

2,273,274

 

185,000

 

CBL & Associates Properties, Inc., Ser. E, 6.63%

 

1,295,000

 

292,289

 

Pennsylvania Real Estate Investment Trust, Ser. C, 7.20%

 

6,398,207

(a)

227,439

 

Taubman Centers, Inc., Ser. J, 6.50%

 

5,867,926

(a)

255,000

 

Washington Prime Group, Inc., Ser. H, 7.50%

 

5,247,900

(a)

 

 

 

 

21,082,307

 

Self Storage 0.4%

 

 

 

40,500

 

Public Storage, Ser. E, 4.90%

 

1,021,410

(a)

 

 

 

 

 

 

Shopping Centers 6.2%

 

 

 

25,788

 

Cedar Realty Trust, Inc., Ser. B, 7.25%

 

646,247

 

124,100

 

Cedar Realty Trust, Inc., Ser. C, 6.50%

 

2,793,491

 

20,000

 

Federal Realty Investment Trust, Ser. C, 5.00%

 

507,000

 

41,800

 

Kimco Realty Corp., Ser. K, 5.63%

 

1,073,424

 

70,131

 

Saul Centers, Inc., Ser. C, 6.88%

 

1,817,796

 

276,750

 

SITE Centers Corp., Ser. K, 6.25%

 

7,198,267

(a)

90,000

 

Urstadt Biddle Properties, Inc., Ser. G, 6.75%

 

2,313,000

 

 

 

 

 

16,349,225

 

Single Family Homes 4.8%

 

 

 

223,000

 

American Homes 4 Rent, Ser. D, 6.50%

 

6,143,650

(a)

15,000

 

American Homes 4 Rent, Ser. E, 6.35%

 

411,900

 

105,700

 

American Homes 4 Rent, Ser. F, 5.88%

 

2,856,014

(a)

120,900

 

American Homes 4 Rent, Ser. G, 5.88%

 

3,270,346

(a)

 

 

 

 

12,681,910

 

Total Preferred Stocks
(Cost $144,186,097)

 

132,660,813

 

 

 

 

 

Short-Term Investments 0.5%

 

 

 

Investment Companies 0.5%

 

 

 

1,399,795

 

State Street Institutional U.S. Government Money Market Fund Premier Class, 2.26%(d) (Cost $1,399,795)

 

1,399,795

 

Total Investments 138.1%
(Cost $352,366,841)

 

 

364,407,520

 

Liabilities Less Other Assets (38.1)%

 

(100,450,307

)

Net Assets Applicable to Common Stockholders 100.0%

 

$

263,957,213

 

 

*

Non-income producing security.

(a)

All or a portion of this security is pledged with the custodian in connection with the Fund’s loans payable outstanding.

(b)

Defaulted security.

(c)

Illiquid security.

(d)

Represents 7-day effective yield as of July 31, 2019.

 

See Notes to Schedule of Investments

 

 

The following is a summary, categorized by Level (see Notes to Schedule of Investments), of inputs used to value the Fund’s investments as of July 31, 2019:

 

Asset Valuation Inputs

 

Level 1

 

Level 2

 

Level 3

 

Total

 

Investments:

 

 

 

 

 

 

 

 

 

Common Stocks(a)

 

$

230,346,912

 

$

—

 

$

—

 

$

230,346,912

 

Preferred Stocks

 

 

 

 

 

 

 

 

 

Lodging/Resorts

 

27,164,505

 

—

 

—

 

27,164,505

 

Other Preferred Stocks(a)

 

105,496,308

 

—

 

—

 

105,496,308

 

Total Preferred Stocks

 

132,660,813

 

—

 

—

 

132,660,813

 

Short-Term Investments

 

—

 

1,399,795

 

—

 

1,399,795

 

Total Investments

 

$

363,007,725

 

$

1,399,795

 

$

—

 

$

364,407,520

 

 

(a)    The Schedule of Investments provides information on the industry categorization for the portfolio.

 

^             A balance indicated with a “-”, either reflects a zero balance or an amount that rounds to less than 1.

 

See Notes to Schedule of Investments

 

 

July 31, 2019

 

Notes to Schedule of Investments Real Estate Securities Income Fund Inc. (Unaudited)

 

†                 In accordance with Accounting Standards Codification 820 “Fair Value Measurement” (“ASC 820”), all investments held by Neuberger Berman Real Estate Securities Income Fund Inc. (the “Fund”) are carried at the value that Neuberger Berman Investment Advisers LLC (“Management”) believes the Fund would receive upon selling an investment in an orderly transaction to an independent buyer in the principal or most advantageous market for the investment under current market conditions. Various inputs, including the volume and level of activity for the asset or liability in the market, are considered in valuing the Fund’s investments, some of which are discussed below. Significant Management judgment may be necessary to value investments in accordance with ASC 820.

 

ASC 820 established a three-tier hierarchy of inputs to create a classification of value measurements for disclosure purposes. The three-tier hierarchy of inputs is summarized in the three broad Levels listed below.

 

·                  Level 1 — quoted prices in active markets for identical investments

·                  Level 2 — other observable inputs (including quoted prices for similar investments, interest rates, prepayment speeds, credit risk, amortized cost, etc.)

·                  Level 3 — unobservable inputs (including the Fund’s own assumptions in determining the fair value of investments)

 

The inputs or methodology used for valuing an investment are not necessarily an indication of the risk associated with investing in those securities.

 

The value of the Fund’s investments in equity securities and certain preferred stocks, for which market quotations are readily available, is generally determined by Management by obtaining valuations from independent pricing services based on the latest sale price quoted on a principal exchange or market for that security (Level 1 inputs). Securities traded primarily on the NASDAQ Stock Market are normally valued at the NASDAQ Official Closing Price (“NOCP”) provided by NASDAQ each business day. The NOCP is the most recently reported price as of 4:00:02 p.m., Eastern Time, unless that price is outside the range of the “inside” bid and asked prices (i.e., the bid and asked prices that dealers quote to each other when trading for their own accounts); in that case, NASDAQ will adjust the price to equal the inside bid or asked price, whichever is closer. Because of delays in reporting trades, the NOCP may not be based on the price of the last trade to occur before the market closes. If there is no sale of a security on a particular day, the independent pricing services may value the security based on market quotations. The value of certain preferred stock is determined by Management by obtaining valuations from independent pricing services which are based on market information which may include benchmark yields, reported trades, broker/dealer quotes, issuer spreads, benchmark securities, bids, offers, and reference data, such as market research publications, when available (generally Level 2 inputs).

 

Management has developed a process to periodically review information provided by independent pricing services for all types of securities.

 

Investments in non-exchange traded investment companies are valued using the respective fund’s daily calculated net asset value per share (Level 2 inputs).

 

If a valuation is not available from an independent pricing service, or if Management has reason to believe that the valuation received does not represent the amount the Fund might reasonably expect to receive on a current sale in an orderly transaction, Management seeks to obtain quotations from brokers or dealers (generally considered Level 2 or Level 3 inputs depending on the number of quotes available). If such quotations are not readily available, the security is valued using methods the Fund’s Board of Directors has approved in the good-faith belief that the resulting valuation will reflect the fair value of the security. Numerous factors may be considered when determining the fair value of a security based on Level 2 or Level 3 inputs, including available analyst, media or other reports, securities within the same industry with recent highly correlated performance, trading in futures or American Depositary Receipts and whether the issuer of the security being fair valued has other securities outstanding.

 

Fair value prices are necessarily estimates, and there is no assurance that such a price will be at or close to the price at which the security is next quoted or next trades.

 

In August 2018, the Financial Accounting Standards Board issued Accounting Standards Update No. 2018-13, “Fair Value Measurement (Topic 820: Disclosure Framework—Changes to the Disclosure Requirements for Fair Value Measurement”) (“ASU 2018-13”).  ASU 2018-13 eliminates the requirement to disclose the amount of and reasons for transfers between Level 1 and Level 2 of the fair value hierarchy, the timing of transfers between levels of the fair value hierarchy and the valuation processes for Level 3 fair value measurements. ASU 2018-13 will require the disclosure of the range and weighted average used to develop significant unobservable inputs for Level 3 fair value measurements and the

 

For information on the Fund’s significant accounting policies, please refer to the Fund’s most recent stockholder reports.

 

 

Notes to Schedule of Investments Real Estate Securities Income Fund Inc. (Unaudited)(cont’d)

 

changes in unrealized gains and losses for recurring Level 3 fair value measurements. ASU 2018-13 will also require that information is provided about the measurement uncertainty of Level 3 fair value measurements as of the reporting date. The guidance is effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2019 and allows for early adoption of either the entire standard or only the provisions that eliminate or modify the disclosure requirements. Management has elected to adopt early the provisions that eliminate the disclosure requirements. Management is still currently evaluating the impact of applying the rest of the guidance.

 

For information on the Fund’s significant accounting policies, please refer to the Fund’s most recent stockholder reports.