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