N-Q 1 formnq_6302016.htm FORM N-Q 6-30-2016 formnq_6302016.htm - Generated by SEC Publisher for SEC Filing  

UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549

 

FORM N-Q

 

QUARTERLY SCHEDULE OF PORTFOLIO HOLDINGS OF REGISTERED MANAGEMENT INVESTMENT COMPANY

 

Investment Company Act file number           811-22534                              

 

            Versus Capital Multi-Manager Real Estate Income Fund LLC        
(Exact name of registrant as specified in charter)

 

5555 DTC Parkway, Suite 330

                Greenwood Villager, CO 80111                
(Address of principal executive offices) (Zip code)


Mark D. Quam

c/o Versus Capital Advisors LLC

5555 DTC Parkway, Suite 330

                            Greenwood Villager, CO 80111                            
 (Name and address of agent for service)

 

COPY TO:

Alan Hoffman, Esq.

Winston & Strawn LLP

200 Park Avenue

New York, New York 10166-4193

 

Registrant's telephone number, including area code: (303) 895-3773

 

Date of fiscal year end: March 31

 

Date of reporting period: June 30, 2016

 

Form N-Q is to be used by management investment companies, other than small business investment companies registered on Form N-5 (§§ 239.24 and 274.5 of this chapter), to file reports with the Commission, not later than 60 days after the close of the first and third fiscal quarters, pursuant to rule 30b1-5 under the Investment Company Act of 1940 (17 CFR 270.30b1-5). The Commission may use the information provided on Form N-Q in its regulatory, disclosure review, inspection, and policymaking roles.

 

A registrant is required to disclose the information specified by Form N-Q, and the Commission will make this information public. A registrant is not required to respond to the collection of information contained in Form N-Q unless the Form displays a currently valid Office of Management and Budget ("OMB") control number. Please direct comments concerning the accuracy of the information collection burden estimate and any suggestions for reducing the burden to the Secretary, Securities and Exchange Commission, 450 Fifth Street, NW, Washington, DC 20549-0609. The OMB has reviewed this collection of information under the clearance requirements of 44 U.S.C. § 3507.

 
 

Item 1. Schedule of Investments.

The Schedules of Investments are attached herewith.

 

 
 

VERSUS CAPITAL MULTI-MANAGER REAL ESTATE INCOME FUND LLC

Portfolio of Investments – June 30, 2016 (Unaudited)

Shares

Value

Shares

 

Value

Private Investment Funds * - 68.7% (Note 6)

 

 

Diversified (continued)

 

 

Diversified – 68.7%

 

554,500

Mapletree Greater China Commercial Trust,

 

 

AEW Core Property Trust (U.S.), Inc. ......................

 

 

    REIT (Singapore).................................................

$      415,741

78,277

        Class A Shares.....................................................

$ 75,463,798

582,200

Mapletree Logistics Trust, REIT (Singapore)........

432,188

   19,435

        Class B Shares.....................................................

18,736,424

18,620

Mercialys SA, (France)............................................

396,845

76,269

Clarion Lion Properties Fund LLC.............................

102,109,997

39,506

Merlin Properties Socimi SA, REIT

412,684

318,554

Cornerstone Patriot Fund LP.......................................

38,213,752

11,177

Outfront Media, Inc., REIT

270,148

15,110

Harrison Street Core Property Fund...........................

18,866,470

657,300

Religare Health Trust (Singapore)

480,618

49,865

Heitman America Real Estate LP...............................

56,672,431

476,400

Soilbuild Business Space, REIT (Singapore)

242,249

193

Invesco Core Real Estate USA...................................

31,733,818

45,529

Spirit Realty Capital, Inc., REIT

581,405

 

Invesco Real Estate Asia Fund (Cayman) Unit Trust

 

151,118

Stockland, REIT (Australia)

530,836

43,624

        Class A Units.......................................................

5,503,110

36,400

Vornado Realty Trust, REIT...................................

3,644,368

 

J.P. Morgan U.S. Real Estate Income and

 

574,000

Yuexiu Real Estate Investment Trust, REIT

 

12,941,978

         Growth Domestic, LP.........................................

18,336,194

 

   (Hong Kong) ........................................................

324,804

 

LaSalle Property Fund LP...........................................

 

 

 

22,110,588

39,728

        Class A Shares.....................................................

60,376,442

 

Health Care – 1.1%

 

10,720

        Class B Shares.....................................................

16,291,613

20,300

Care Capital Properties, Inc., REIT........................

532,063

8,043

Mesa Core Lending Fund LP Class A .......................  

8,290,587

61,600

HCP, Inc., REIT.......................................................

2,179,408

13,836

Met Life Commercial Mortgage Income Fund..........

14,119,316

15,835

Omega Healthcare Investors, Inc., REIT................

537,585

638,666

RREEF America Reit II, LP.......................................

71,939,332

25,425

Sabra Health Care, Inc., REIT................................

524,645

1,657

Trumbull Income Property Fund, LP.........................

19,633,474

117,500

Senior Housing Properties Trust, REIT..................

2,447,525

3,321

Trumbull Property Fund, LP

35,259,400

2,167

Ventas, Inc., REIT....................................................

157,801

US Government Building, LP**.................................

13,499,746

42,274

Welltower,Inc., REIT...............................................

3,220,011

 

Total Private Investment Funds..............................

605,045,904

 

 

9,599,038

 

     (Cost $575,197,818)

 

 

Hotels – 0.6%

 

 

 

 

322,900

CDL Hospitality Trusts, REIT (Singapore)...........

337,977

Common Stocks – 10.5%

 

15,569

Chatham Lodging Trust, REIT...............................

342,207

 

Apartments – 1.3%

 

21,400

Chesapeake Lodging Trust, REIT

497,550

 

Apartment Investors & Management Co.,

 

22,450

Hospitality Properties Trust, REIT

646,560

39,769

         REIT Class A shares..........................................

1,756,200

112,433

Host Hotels & Resorts, Inc., REIT.........................

1,822,539

15,075

AvalonBay Communities, Inc., REIT........................

2,719,379

62,492

InnVest Real Estate Investment Trust, REIT

 

33,794

Bluerock Residential Growth REIT, Inc....................

439,322

 

   (Canada)

337,141

63,975

Equity Residential, REIT............................................

4,406,598

710,500

Langham Hospitality Investments, Ltd..................

 

8,128

Essex Property Trust, Inc., REIT...............................

1,853,916

 

   (Hong Kong).........................................................

250,018

76

Kenedix Residential Investment Corp., REIT (Japan)......

204,968

22,925

Pebblebrook Hotel Trust, REIT..............................

601,781

 

 

11,380,383

17,525

RLJ Lodging Trust, REIT........................................

375,911

 

Diversified – 2.5%

 

 

 

5,211,684

85,100

ARA Asset Management, Ltd. (Bermuda)............

87,178

 

Mortgages – 0.2%

 

56,410

Atrium European Real Estate, Ltd. (Jersey)..........

241,453

41,013

Apollo Commercial Real Estate Finance, Inc.,

 

79,751

The British Land Co., PLC, REIT (United Kingdom)

644,446

 

     REIT....................................................................

659,079

5,900

Coresite Realty Corp., REIT.......................................

523,271

33,241

Starwood Property Trust, Inc., REIT......................

688,754

11,880

Crombie Real Estate Investment Trust, REIT

 

 

 

1,347,833

 

    (Canada)...................................................................

141,149

 

Office Properties – 1.2%

 

486,600

Cromwell Property Group, REIT (Australia)............

368,350

16,125

Alexandria Real Estate Equities, Inc., REIT..........

1,669,260

17,522

Digital Realty Trust, Inc., REIT.................................

1,909,723

31,620

alstria office REIT-AG (Germany) ........................

425,998

23,645

Dream Office Real Estate Investment Trust, REIT

 

13,600

Boston Properties, Inc., REIT.................................

1,793,840

 

    (Canada)...................................................................

340,047

30,050

Columbia Property Trust, Inc., REIT.....................

643,070

33,663

Duke Realty Corporation, REIT.................................

897,456

61,675

Douglas Emmett, Inc., REIT...................................

2,190,696

7,156

EPR Properties, REIT..................................................

577,346

12,200

Equity Commonwealth, REIT***..........................

355,386

6,775

Equinix, Inc., REIT......................................................

2,626,871

60,300

Hudson Pacific Properties, Inc., REIT....................

1,759,554

783,900

Frasers Logistics & Industrial Trust, REIT***.........

552,821

132,004

Industria REIT, (Austria) ........................................

210,680

151

Fukuoka REIT Corporation (Japan)...........................

297,423

500,400

Keppel, REIT (Singapore) ......................................

390,038

8,595

GEO Group, Inc. REIT................................................

293,777

238

ORIX JREIT, Inc., REIT (Japan) ...........................

408,632

18,216

H&R Real Estate Investment Trust, REIT (Canada)

317,382

216

Premier Investment Corp., REIT (Japan) ..............

282,589

30,610

Hamborner REIT AG, REIT (Germany)....................

330,490

980,000

Prosperity, REIT (Hong Kong)...............................

401,696

167,000

Hang Lung Properties, Ltd. (Hong Kong).................

336,234

28,753

VEREIT, Inc., REIT................................................

291,555

828,000

Hui Xian Real Estate Investment Trust, REIT

 

 

 

10,822,994

 

     (Hong Kong)...........................................................

395,081

 

Regional Malls – 1.3%

 

258,657

Immobiliare Grande Distribuzione SIIQ SPA,

 

239,260

CapitaLand Retail China Trust, REIT (Singapore)

266,417

 

     REIT (Italy).............................................................

210,692

97,500

General Growth Properties, Inc., REIT..................

2,907,450

82

Kenedix Office Investment Corp, REIT (Japan).......

486,767

16,175

Macerich Company, The, REIT..............................

1,381,183

193,612

Kiwi Property Group, Ltd., (New Zealand)...............

205,976

28,400

Simon Property Group, Inc., REIT.........................

6,159,960

7,997

Klepierre, REIT (France)............................................

353,657

33,400

WP Glimcher, Inc., REIT........................................

373,746

47,333

Lexington Realty Trust, REIT....................................

478,537

 

 

11,088,756

44,375

Liberty Property Trust, REIT......................................

1,762,575

 

Residential – 0.1%

 

 

 

 

14,775

Sun Communities, Inc., REIT...............................

1,132,356

 

 

 

See accompanying notes to Portfolio of Investments

1


 

VERSUS CAPITAL MULTI-MANAGER REAL ESTATE INCOME FUND LLC

Portfolio of Investments – June 30, 2016 (Unaudited) (continued)

Shares

 

Value

Shares

 

Value

 

Shopping Centers – 1.0%

 

 

Hotels –(continued)

 

42,200

Brixmor Property Group, Inc., REIT.......................

$   1,116,612

 

LaSalle Hotel Properties, REIT,

 

79,292

Charter Hall Retail, REIT (Australia)......................

281,488

2,900

       Series H, 7.50%

$       73,370

160,116

Citycon OYJ (Finland)...........................................

363,553

40,275

       Series J, 6.30%

1,041,512

99,850

DDR Corp., REIT.....................................................

1,811,279

1,150

Pebblebrook Hotel Trust, REIT, Series B, 8.00%

29,141

253

Eurocommercial Properties NV, REIT (Netherlands)

10,788

300

Summit Hotel Properties, Inc., REIT,

 

276,000

Fortune, REIT (Hong Kong)....................................

329,075

 

        Series A, 9.25%...............................................

7,800

73,210

Hammerson PLC, REIT (United Kingdom)...........

524,342

7,625

Sunstone Hotel Investors, Inc., REIT,

 

149

Japan Retail Fund Investment Corp., REIT (Japan)

378,181

 

       Series F, 6.45%.................................................

198,098

41,750

Kimco Realty Corp., REIT....................................

1,310,115

 

 

2,086,482

421,871

Redefine Properties, Ltd., REIT (South Africa)

324,252

 

 

 

9,675

Regency Centers Corp., REIT.................................

810,088

 

Office Properties – 0.6%

 

68,738

Vicinity Centres, REIT............................................

170,199

6,950

Alexandria Real Estate Equities, Inc., REIT,

 

28,425

Weingarten Realty Investors, REIT........................

1,160,308

 

       Series E, 6.45%.................................................

183,758

8,613

Wereldhave NV, REIT.............................................

389,501

25,294

Brandywine Realty Trust, REIT, Series E, 6.90%

653,850

 

 

8,979,781

18,300

Corporate Office Properties Trust, REIT

 

 

Storage – 0.6%

 

 

       Series L, 7.38%.................................................

475,434

33,625

CubeSmart, REIT...................................................

1,038,340

 

Kilroy Realty Corp., REIT,

 

13,675

Public Storage, REIT...........................................

3,495,193

18,200

       Series G, 6.88%................................................

483,938

9,225

Sorvan Self Storage, Inc., REIT............................

967,887

17,250

       Series H, 6.38%................................................

445,050

 

 

5,501,420

106,381

SL Green Realty Corp., REIT, Series I, 6.50%.....

2,782,927

 

Warehouse / Industrial – 0.6%

 

 

 

5,024,957

303,700

AIMS AMP Capital Industrial, REIT, (Singapore)

314,499

 

Regional Malls – 0.6%

 

6,175

CyrusOne, Inc., REIT.............................................

343,700

13,696

CBL & Associates Properties Inc., REIT,

 

464,134

Mexico Real Estate Management SA de CV,

 

 

     Series D, 7.38%...................................................

341,441

 

      REIT (Mexico)

608,774

62,225

General Growth Properties, Inc., REIT,

 

70,798

Prologis, Inc., REIT................................................

3,471,934

 

     Series A, 6.38%...................................................

1,665,763

6,786

QTS Realty Trust, Inc., REIT, Class A Shares.....

379,880

 

Pennsylvania Real Estate Investment Trust, REIT

 

17,354

STAG Industrial Inc., REIT...................................

413,199

19,537

     Series A, 8.25%...................................................

515,386

 

 

5,531,986

500

     Series B, 7.38%...................................................

13,100

 

Total Common Stocks..........................................

92,706,819

 

Taubman Centers Inc., REIT,

 

 

     (Cost $86,791,754)

 

89,350

     Series J, 6.50%....................................................

2,323,994

 

 

 

5,425

     Series K, 6.25%...................................................

141,321

Preferred Stock – 3.7%

 

11,600

WP Glimcher, Inc., REIT, Series I, 6.88%          

300,672

 

Apartments – 0.5%

 

 

 

5,301,677

 

American Homes 4 Rent, REIT

 

 

 

 

86,721

        Series D, 6.50%...............................................

2,278,161

 

Residential – 0.1%

 

55,475

       Series E, 6.35%...............................................

1,391,868

39,250

Equity LifeStyle Properties, Inc., REIT,

 

 

Apartment Investment & Management Co., REIT,

 

 

     Series C, 6.75%...................................................

1,038,947

27,600

        Series A, 6.88%...............................................

745,200

300

Sun Communities, Inc., REIT, Series A, 7.13%

7,890

18,525

        Series Z, 7.00%...............................................

464,329

 

 

1,046,837

 

 

4,879,558

 

 

 

 

Diversified – 0.6%

 

 

Shopping Centers – 0.5%

 

 

Digital Realty Trust, Inc., REIT

 

7,231

Akelius Residential Property AB, 5.0% (Sweden)

254,261

325

       Series H, 7.38%...............................................

9,409

46,900

DDR Corp., REIT, Series J, 6.50%.........................

1,222,214

19,275

       Series I,  6.35%................................................

511,751

 

Regency Centers Corporation, REIT,

 

32,650

National Retail Properties, Inc., REIT,

 

48,650

     Series 6, 6.63%....................................................

1,266,360

 

        Series D, 6.63%...............................................

855,430

300

     Series 7, 6.00........................................................

7,800

 

PS Business Parks, Inc. REIT,

 

8,400

Saul Centers Inc., REIT, Series C, 6.88%...............

224,280

47,325

        Series S, 6.45%................................................

1,218,619

 

Urstadt Biddle Properties, Inc., REIT,

 

54,300

       Series T, 6.00%................................................

1,417,230

46,450

        Series F, 7.13%..................................................

1,238,357

24,600

Retail Properties of America, Inc., REIT,

 

20,950

        Series G, 6.75%.................................................

584,505

 

       Series A, 7.00%............................................

644,766

1,800

WP Glimcher, Inc., REIT Series H, 7.50%............

46,152

 

Vornado Realty Trust, REIT,

 

 

 

4,843,929

4,150

       Series G, 6.63%...............................................

108,688

 

 

 

4,650

       Series J, 6.88%.................................................

122,202

 

Storage – 0.3%

 

4,100

       Series K, 5.70%...............................................

106,764

58,700

CubeSmart, REIT Series A, 7.75%...............................

1,517,982

 

 

4,994,859

 

Public Storage, REIT,

 

 

Health Care – 0.1%

 

19,000

       Series R, 6.35%.......................................................

478,420

11,350

Sabra Health Care, Inc., REIT, Series A, 7.13%..

297,143

11,925

       Series Y, 6.38%.......................................................

336,643

3,650

Senior Housing Properties Trust, REIT 6.25%.....

96,068

 

 

2,333,045

3,450

Welltower, Inc., REIT, Series J, 6.50%................

90,286

 

Warehouse / Industrial – 0.2%

 

 

 

483,497

32,692

STAG Industrial Inc., REIT, Series A, 9.00%.............

849,011

 

Hotels – 0.2%

 

21,088

Terreno Realty Corp., REIT, Series A, 7.75%.............

554,404

25,710

Ashford Hospitality Trust Inc., REIT,

 

 

 

1.403.415

 

   Series E, 9.00%....................................................

660,747

 

Total Preferred Stock..................................................

32,398,256

2,875

Chesapeake Lodging Trust, REIT, Series A, 7.75%

75,814

 

(Cost $31,950,908)

 

 

             

See accompanying notes to financial statements

2


 

 VERSUS CAPITAL MULTI-MANAGER REAL ESTATE INCOME FUND LLC

Portfolio of Investments – June 30, 2016 (Unaudited) (continued)

Par

 

Value

Shares

 

Value

Corporate Debt – 3.3%

 

 

Shopping Centers – (continued)

 

 

Apartments – 0.1%

 

 

Kimco Realty Corp., REIT,

 

319,000

Camden Property Trust, REIT, 5.70%, 5/15/2017......

$         330,034

26,000

     5.70%, 5/1/2017................................................

$          26,940

20,000

EPR Operating LP, REIT, 5.75%, 6/15/2017..............

20,824

1,473,000

     4.30%, 2/1/2018................................................

1,525,979

2,000

Post Apartment Homes LP, REIT, 4.75%, 10/15/2017....

2,065

 

Regency Centers LP, REIT,

 

285,000

Select Income, REIT, 2.85%, 2/01/2018.....................

287,337

57,000

     5.88%, 6/15/2017..............................................

59,258

 

 

640,260

127,000

     6.00%, 6/15/2020..............................................

144,311

 

Diversified – 0.2%

 

 

 

6,089,701

1,864,000

First Industrial LP, 7.50%, 12/1/2017........................

1,998,773

 

Storage – 0.1%

 

133,000

Liberty Property LP, 6.63%, 10/1/2017.....................

141,003

702,000

Cubesmart LP, REIT, 4.80%, 7/15/2022

780,817

 

 

2,139,776

 

Total Corporate Debt..........................................

29,150,502

 

Health Care – 1.2%

 

 

     (Cost $28,839,732)

 

 

HCP Inc., REIT,

 

 

 

 

213,000

     6.00%, 1/30/2017 ..................................................

218,608

 

 

125,000

     5.63%, 5/01/2017 ..................................................

129,146

     Exchange Traded Fund – 1.3%

 

1,258,000

     2.63%, 2/01/2020 ..................................................

1,269,088

125,243

Vanguard REIT ETF.................................................

    11,105,297

 

Senior Housing Properties Trust, REIT,

 

 

      (Cost $9,999,927)

 

4,167,000

     3.25%, 5/01/2019...................................................

4,186,885

 

 

 

20,000

     6.75%, 4/15/2020...................................................

22,020

    Short-Term Investments – 10.6%

 

41,000

     6.75%, 12/15/2021.................................................

46,485

734,379

BlackRock Liquidity Funds TempFund Portfolio

 

 

Ventas Realty LP / Ventas Capital Corp., REIT

 

 

     Institutional Shares

734,379

2,498,000

     2.00%, 2/15/2018...................................................

2,511,702

93,156,712

Goldman Sachs Financial Square Funds – Prime

 

126,000

     2.70%, 4/1/2020.....................................................

128,698

 

     Obligations Fund Institutional Shares.................

93,156,712

2,000,000

Welltower, Inc., REIT, 4.70%, 9/15/2017..............

2,073,502

 

Total Short-Term Investments

93,891,091

 

 

10,586,134

 

      (Cost $93,891,091)

 

 

Office Properties – 0.8%

 

 

 

 

184,000

Alexandria Real Estate Equities, Inc., REIT

 

 

Total Investments – 98.1%.....................................

$  864,297,869

 

     4.60%, 4/1/2022..................................................

199,294

 

   (Cost $826,671,230)

 

 

Brandywine Operating Partnership LP, REIT

 

 

 

 

1,421,000

     5.70%, 5/1/2017..................................................

1,468,034

 

Other Assets Net of Liabilities 1.9%                 

16,667,910

17,000

     4.95%, 4/15/2018................................................

17,846

 

 

 

400,000

Columbia Property Trust Operating

 

 

Net Assets – 100.0%

$ 880,965,779

 

     Partnership LP, REIT, 5.88%, 4/1/2015............

424,396

 

 

 

 

Equity Commonwealth, REIT

 

 

 

 

121,000

     6.25%, 6/15/2017................................................

123,407

 

*     Non-Tradable Securities.

 

 

578,000

     5.88%, 9/15/2020................................................

642,387

 

**   Partnership is not designated in units. The Fund owns less than 1%. 

 

532,000

Government Properties Income Trust, REIT

 

 

*** Non-income producing security.

 

 

 

     3.75%, 8/15/2019................................................

546,089

 

 

 

 

1,844,000

Highwoods Realty LP, REIT, 7.50%, 4/15/2018...

2,012,982

 

Portfolio Abbreviations:

 

 

596,000

Mack-Cali Realty LP, REIT, 7.75%, 8/15/2019

673,206

 

ETF – Exchange Traded Fund

 

 

500,000

National Retail Properties, Inc., REIT,

 

 

LP – Limited Partnership

 

 

 

     6.88%, 10/15/2017..............................................

532,330

 

PLC – Public Limited Company

 

 

299,000

Select Income, REIT, 4.15%, 2/1/2022..................

300,760

 

REIT – Real Estate Investment Trust

 

 

 

SL Green Realty Corp., REIT,

 

 

 

% of

 

15,000

     7.75%, 3/15/2020................................................

17,550

 

Industry

Net Assets

 

53,000

     4.50%, 12/1/2022................................................

55,478

 

Diversified.......................................................................

    72.0%

 

 

    

7,013,759

 

Short-Term Investments.................................................

    10.6%

 

 

Real Estate Operation / Development – 0.2%

 

 

Office Properties.............................................................

    2.6%

 

1,500,000

Prologis LP, REIT, 4.00%, 1/15/2018..................

1,549,443

 

Health Care.....................................................................

    2.4%

 

 

 

 

 

Shopping Centers............................................................

    2.2%

 

 

Reginal Malls – 0.0%

 

 

Apartments......................................................................

    1.9%

 

369,000

CBL & Associates LP, REIT, 5.25%, 12/01/2023

350,612

 

Regional Malls................................................................

    1.9%

 

 

 

 

 

Exchange Traded Fund..................................................

    1.3%

 

 

Shopping Centers – 0.7%

 

 

Storage.............................................................................

    1.0%

 

770,000

Brixmor Operating Partnership LP, REIT

 

 

Hotels..............................................................................

    0.8%

 

 

     3.88%, 8/15/2022................................................

791,326

 

Warehouse/Industrial.....................................................

    0.8%

 

 

DDR Corp., REIT,

 

 

Residential.......................................................................

    0.2%

 

2,935,000

     7.50%, 4/1/2017................................................

3,060,154

 

Real Estate Operation / Development...........................

    0.2%

 

95,000

     3.50%, 1/15/2021..............................................

97,978

 

Mortgages.......................................................................

    0.2%

 

267,000

     4.63%, 7/15/2022..............................................

289,088

 

Other Assets Net of Liabilities......................................

     1.9%

 

93,000

Equity One, Inc. REIT, 3.75%, 11/15/2022.........

94,667

 

 

 100.0%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

               

See accompanying notes to financial statements

3


 
 

VERSUS CAPITAL MULTI-MANAGER REAL ESTATE INCOME FUND LC

Notes to Portfolio of Investments

For the Period Ended June 30, 2016 (Unaudited)

 

Securities Valuation - Consistent with Section 2(a)(41) of the 1940Act, the Funds price their securities as follows: Investments in securities that are listed on the New York Stock Exchange (the “NYSE”) are valued, except as indicated below, at the last sale price reflected at the close of the NYSE. If there has been no sale on such day, the securities are valued at the mean of the closing bid and ask prices for the day or, if no ask price is available, at the bid price.  Securities not listed on the NYSE but listed on other domestic or foreign securities exchanges are valued in a similar manner. Securities traded on more than one securities exchange are valued at the last sale price as reflected on the tape at the close of the exchange representing the principal market for such securities. If, after the close of a foreign market, but prior to the NYSE close, market conditions change significantly, certain foreign securities may be valued pursuant to procedures established by the Board of Directors (the “Board”).

 

Debt securities are valued at their bid prices by an independent pricing service using valuation methods that are designed to represent fair value, such as matrix pricing and other analytical pricing models, market transactions and dealer quotations.  Debt securities purchased with a remaining maturity of 60 days or less are valued at acquisition cost, plus or minus any amortized discount or premium which approximates fair value.

 

Securities for which market prices are unavailable, or securities for which the Adviser determines that the bid and/or ask price does not reflect market value, will be valued at fair value pursuant to procedures approved by the Board. Circumstances in which market prices may be unavailable include, but are not limited to, trading in a security is suspended, the exchange on which the security is traded is subject to an unscheduled close or disruption or material events occur after the close of the exchange on which the security is principally traded. In these circumstances, the Fund determines fair value in a manner that fairly reflects the market value of the security on the valuation date based on consideration of any information or factors it deems appropriate.  These may include recent transactions in comparable securities, information relating to the specific security and developments in the markets. Short-term debt securities, which have a maturity date of 60 days or less, are valued at amortized cost, which approximates fair value. Investments in open-end mutual funds are valued at their closing NAV.

 

As a general matter, the Fund records the fair value of its interests in certain investment funds based on the NAV provided by the Investment Managers and their agents.  These fair value calculations will involve significant professional judgment by the Investment Managers in the application of both observable and unobservable attributes, the calculated net asset values of the Investment Funds' assets may differ from their actual realizable value or future fair value. Valuations will be provided to the Fund based on the interim unaudited financial records of Investment Funds, and, therefore, will be estimates subject to adjustment (upward or downward) upon the auditing of such financial records and may fluctuate as a result. Furthermore, the Board and the Adviser may not have the ability to assess the accuracy of these valuations.

 

The Fund's use of fair value pricing may cause the NAV of the Shares to differ from the NAV that would be calculated using market quotations. Fair value pricing involves subjective judgments and it is possible that the fair value determined for a security may be materially different than the value that could be realized upon the sale of such security.

 

Due to the inherent uncertainty of determining the fair value of investments that do not have readily available market quotations, the fair value of the Fund’s investments may fluctuate from period to period. Additionally, the fair value of investments may differ significantly from the values that would have been used had a ready market existed for such investments and may differ materially from the values the Fund may ultimately realize. Further, such investments may be subject to legal and other restrictions on resale or otherwise less liquid than publicly traded securities.

 

Fair Value Measurements: The inputs and valuation techniques used to measure fair value of the Fund’s investments are summarized into three levels as described in the hierarchy below:

      Level 1  –    unadjusted quoted prices in active markets for identical securities

      Level 2  –    prices determined using other significant observable inputs (including quoted prices for similar securities, interest rates, prepayment speeds, credit risk, etc.)

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

 

 

 

 

 

4


 
 

VERSUS CAPITAL MULTI-MANAGER REAL ESTATE INCOME FUND LC

Notes to Portfolio of Investments

For the Period Ended June 30, 2016 (Unaudited) (continued)

The inputs or methodology used for valuing securities are not necessarily an indication of the risk associated with investing in those securities. It is the Fund's policy to recognize transfers in and out of the levels at the value at the (end or beginning) of the period. For the three months ended June 30, 2016, there were no transfers between levels.  A summary of inputs used to value the Fund’s investments as of June 30, 2016 is as follows:

 

 

 

Level 2

Level 3

 

Total Market

Level 1

Significant

Significant

 

Value at

Quoted

Observable

Unobservable

 

06/30/2016

Price

Inputs

Inputs

Common Stocks *......................................

$      92,706,819

$      92,706,819

$               –     .

$                –     .   

Preferred Stocks *......................................

32,398,256

32,398,256

           –     .

           –     .   

Corporate Debt *........................................

29,150,502

           –     .   

29,150,502

           –     .   

Exchange Traded Fund*............................

11,105,297

11,105,297

           –     .

           –     .   

Short-Term Investments............................

     93,891,091

     93,891,091

               –     .

               –     .

Subtotal.......................................................

$    259,251,965

$    230,101,463

$      29,150,502

$                –     .

Private Investment Funds*(1).....................

$    605,045,904

 

 

 

Total

$    864,297,869

 

 

 

* See Schedule of Investments for industry breakout.

 (1)    Management has elected to adopt ASU 2015-07, Disclosures for Investments in Certain Entities That Calculate Net Asset Value per Share (or Its Equivalent) — a consensus of the Emerging Issues Task Force issued, on May 1, 2015.  The guidance in this standard is effective for interim and annual periods beginning after December 15, 2015, however early adoption is permitted.  In accordance with Subtopic 820-10, certain investments that are measured at fair value using the net asset value per share (or its equivalent) have not been classified in the fair value hierarchy.  The fair value amount presented in this table is intended to permit reconciliation of the fair value hierarchy to the amounts presented in the statement of assets and liabilities. 

At the end of each calendar quarter, management evaluates the classification of Levels 1, 2 and 3 assets and liabilities. Various factors are considered, such as changes in liquidity from the prior reporting period; whether or not a broker is willing to execute at the quoted price; the depth and consistency of prices from third party pricing services; and the existence of contemporaneous, observable trades in the market. Additionally, management evaluates the classification of Level 1 and Level 2 assets and liabilities on a quarterly basis for changes in listings or delistings on national exchanges. There were no transfers between categories during the three months ended June 30, 2016.

Foreign Currency - Foreign currencies, investments and other assets and liabilities are translated into U.S. dollars at the exchange rates at 4:00 p.m. U.S. ET (Eastern Time).  Fluctuations in the value of the foreign currencies and other assets and liabilities resulting from changes in exchange rates are recorded as unrealized foreign currency gains (losses).  Realized gains (losses) and unrealized appreciation (depreciation) on investment securities and income and expenses are translated on the respective dates of such transactions. The effects of changes in foreign currency exchange rates on investments in securities are not segregated in the Statement of Operations from the effects of changes in market prices of those securities, and are included with the net realized and unrealized gain or loss on investment securities.

Restricted Securities - Restricted securities include securities that have not been registered under the Securities Act of 1933, as amended, and securities that are subject to restrictions on resale. The Fund may invest in restricted securities that are consistent with a Fund’s investment objective and investment strategies. Investments in restricted securities are valued at fair value as determined in good faith in accordance with procedures adopted by the Board. It is possible that the estimated value may differ significantly from the amount that might ultimately be realized in the near term, and the difference could be material.  Each of the following securities can suspend redemptions if its respective Board deems it in the best interest of its shareholders.  None of these securities have suspended redemptions.  This and other important information are described in the Fund’s Prospectus dated February 2, 2016. 

 

5


 
 

VERSUS CAPITAL MULTI-MANAGER REAL ESTATE INCOME FUND LC

Notes to Portfolio of Investments

For the Period Ended June 30, 2016 (Unaudited) (continued)

As of June 30, 2016, the Fund invested in the following restricted securities:

 

 

 

 

 

Unfunded

 

 

 

Acquisition

 

Cost

Value

Commitments

% of Net

Redemption

 

Date (b)

Shares

($1,000s)

 ($1,000s)

($1,000s)

Assets

Notice (c)

AEW Core Property Trust (U.S.), Inc.,

 

 

 

 

 

 

 

       Class A Shares

7/2/2013

 78,277

$    72,308

$    75,464

$       —

8.6%

45 Days

       Class B Shares

7/2/2013

19,435

16,942

18,736

      

2.1%

45 Days

Clarion Lion Properties Fund LLC

7/1/2013

76,269

96,180

102,110

      

11.6%

90 Days

Cornerstone Patriot Fund LP

9/30/2013

318,554

36,625

38,214

      

4.3%

30 Days

Harrison Street Core Property Fund

8/13/2014

15,110

18,000

18,867

20,000

2.1%

45 Days

Heitman America Real Estate LP

12/2/2014

49,865

52,782

56,672

46,218

6.4%

90 Days

Invesco Core Real Estate USA

12/31/2013

193

29,500

31,734

7,000

3.6%

45 Days

Invesco Real Estate Asia Fund (Cayman)

 

 

 

 

 

 

 

       Unit Trust - Class A Units (d)

9/30/2014

43,624

5,000

5,503

20,000

0.6%

45 Days

J.P. Morgan U.S. Real Estate

 

 

 

 

 

 

 

      Income and Growth Domestic LP

12/31/2013

12,941,978

17,344

18,336

      

2.1%

30 Days

LaSalle Property Fund LP,

 

 

 

 

 

 

 

       Class A Shares

8/31/2015

39,728

58,890

60,376

      

6.9%

45 Days

       Class B Shares

8/31/2015

10,720

16,110

16,292

      

1.9%

45 Days

Mesa Core Lending Fund LP,

 

 

 

 

 

 

 

       Class A Shares

7/15/2015

8,043

8,289

8,291

41,710

0.9%

0 Days

Met Life Commercial Mortgage

 

 

 

 

 

 

 

       Income Fund (e)

10/1/2015

13,836

13,978

14,119

18,609

1.6%

90 Days

RREEF America Reit II, LP

9/30/2013

638,666

66,750

71,939

18,750

8.2%

45 Days

Trumbull Property Income Fund, LP

9/30/2013

1,657

18,500

19,634

76,000

2.2%

60 Days

Trumbull Property Fund, LP

 

3,321

35,000

35,259

40,000

4.0%

60 Days

US Government Building, LP

5/1/2014

      

13,000

13,500

29,500

       1.5%

60 Days

Total

 

 

$   575,198

$   605,046

$   317,787  

     68.8%

 

 

(a)   The investment funds are open-ended Investment Funds organized to serve as a collective investment vehicle through which eligible investors may invest in a professionally managed real estate portfolio of equity and debt investments consisting of multi-family, industrial, retail and office properties in targeted metropolitan areas primarily within the continental United States. The principal investment objective of the Investment Funds is to generate attractive, predictable investment returns from a target portfolio of low-risk equity investments in income-producing real estate while maximizing the total return to shareholders through cash dividends and appreciation in the value of shares.

(b)   Represents initial acquisition date as shares are purchased at various dates through the current period.

(c)  The investment funds provide for a quarterly redemption subject to the notice period listed.

(d)   Founding member shares which are subject to a lockup period ending 9/30/2016.

(e)   Founding member shares which are subject to a lockup period ending 10/02/2017.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

6


 
 

Item 2. Controls and Procedures.

 

(a)   The registrant’s principal executive and principal financial officers, or persons performing similar functions, have concluded that the registrant’s disclosure controls and procedures (as defined in Rule 30a-3(c) under the Investment Company Act of 1940, as amended (the “1940 Act”) (17 CFR 270.30a-3(c))) are effective, as of a date within 90 days of the filing date of the report that includes the disclosure required by this paragraph, based on their evaluation of these controls and procedures required by Rule 30a-3(b) under the 1940 Act (17 CFR 270.30a-3(b)) and Rules 13a-15(b) or 15d-15(b) under the Securities Exchange Act of 1934, as amended (17 CFR 240.13a-15(b) or 240.15d-15(b)).

 

(b)   There were no changes in the registrant’s internal control over financial reporting (as defined in Rule 30a-3(d) under the 1940 Act (17 CFR 270.30a-3(d)) that occurred during the registrant’s last fiscal quarter that have materially affected, or are reasonably likely to materially affect, the registrant’s internal control over financial reporting.

 

 

Item 3. Exhibits.

 

Certifications pursuant to Rule 30a-2(a) under the 1940 Act and Section 302 of the Sarbanes-Oxley Act of 2002 are attached hereto.


 
 

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)    Versus Capital Multi-Manager Real Estate Income Fund LLC                    

 

By (Signature and Title)         /s/ Mark D. Quam                                          
                                                Mark D. Quam, Chief Executive Officer

                                                (principal executive officer)

 

Date    08/24/2016                 

 

 

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.

 

 

By (Signature and Title)         /s/ Mark D. Quam                                          
                                                Mark D. Quam, Chief Executive Officer

                                                (principal executive officer)

 

Date    08/24/2016                 

 

 

By (Signature and Title)         /s/ John Gordon                                             
                                                John Gordon, Chief Financial Officer

                                                (principal financial officer)

 

Date    08/24/2016