UNITED
STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM N-CSR
CERTIFIED SHAREHOLDER REPORT OF REGISTERED MANAGEMENT
INVESTMENT COMPANIES
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: September 30, 2017
Form N-CSR is to be used by management investment companies to file reports with the Commission not later than 10 days after the transmission to stockholders of any report that is required to be transmitted to stockholders under Rule 30e-1 under the Investment Company Act of 1940 (17 CFR 270.30e-1). The Commission may use the information provided on Form N-CSR in its regulatory, disclosure review, inspection, and policymaking roles.
A registrant is required to disclose the information specified by Form N-CSR, and the Commission will make this information public. A registrant is not required to respond to the collection of information contained in Form N-CSR 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 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
Semi-Annual Report
September 30, 2017
VERSUS CAPITAL ADVISORS, LLC
This report is for shareholders of Versus Capital Multi-Manager Real Estate Income Fund LLC. It is not authorized for distribution unless preceded or accompanied by a current prospectus for the Fund. Shares of the Fund are distributed by Foreside Funds Distributors LLC, Berwyn, Pennsylvania.
TABLE OF CONTENTS
Portfolio of Investments ...................................................................... 2-5
Statement of Assets and Liabilities ........................................................... 6
Statement of Operations .................................................................... 7
Statements of Changes in Net Assets .......................................................... 8
Statement of Cash Flows .................................................................... 9
Financial Highlights ....................................................................... 10-11
Notes to Financial Statements ................................................................ 12-17
Additional Information ...................................................................... 18
Economic and market conditions change frequently.
There is no assurance that the trends described in this report will continue or commence.
Privacy Notice
This notice describes the Fund's privacy policy. The Fund is committed to protecting the personal information that it collects about individuals who are prospective, former or current investors. The Fund collects personal information for business purposes to process requests and transactions and to provide customer service. “Personal Information” is obtained from the following sources:
• Investor applications and other forms, which may include your name(s), address, social security number or tax identification number.
• Written and electronic correspondence, including telephone contacts; and
• Transaction history, including information about the Fund's transactions and balances in your accounts with the Fund or its affiliates or other holdings of the Fund and any affiliation with the Adviser and its subsidiaries.
The Fund limits access to Personal Information to those employees who need to know that information in order to process transactions and service accounts. Employees are required to maintain and protect the confidentiality of Personal Information. The Fund maintains physical, electronic and procedural safeguards to protect Personal Information.
The Fund may share Personal Information described above with the Adviser and its various other affiliates or service providers for business purposes, such as to facilitate the servicing of accounts. The Fund may share the Personal Information described above for business purposes with a non-affiliated third party only if the entity is under contract to perform transaction processing, servicing or maintaining investor accounts on behalf of the Fund. The Fund may also disclose Personal Information to regulatory authorities or otherwise as permitted by law. The Fund endeavors to keep its customer files complete and accurate. The Fund should be notified if any information needs to be corrected or updated.
VERSUS CAPITAL MULTI-MANAGER REAL ESTATE INCOME FUND LLC
Portfolio of Investments – September 30, 2017 (Unaudited)
Shares |
Value |
Shares |
|
Value |
|
Private Investment Funds * - 70.0% (Note 7) |
|
|
Diversified (continued) |
|
|
|
Diversified – 70.0% |
|
11,653 |
Fonciere Des Regions, REIT (France)........................ |
$1,210,474 |
|
AEW Core Property Trust (U.S.), Inc., REIT.............. |
|
|
Frasers Logistics & Industrial Trust, REIT |
|
111,329 |
Class A Shares....................................................... |
$ 109,482,072 |
635,900 |
(Singapore)............................................................... |
501,613 |
37,805 |
Class B Shares....................................................... |
37,177,822 |
6,953 |
Gecina SA, REIT (France)........................................... |
1,127,469 |
546,875 |
AEW Value Investors US LP........................................ |
546,875 |
|
Hispania Activos Inmobiliarios SOCIMI SA, REIT |
|
562,619 |
Barings Core Property Fund LP.................................... |
70,951,820 |
33,368 |
(Spain)...................................................................... |
601,421 |
130,862 |
Clarion Lion Properties Fund LLC............................... |
184,453,146 |
82,294 |
Inmobiliaria Colonial SA (Spain)................................ |
816,423 |
30,915 |
Harrison Street Core Property Fund............................. |
40,747,536 |
53,402 |
Interxion Holding NV***(Netherlands)..................... |
2,719,764 |
98,704 |
Heitman America Real Estate LP................................. |
117,083,086 |
26,220 |
Klepierre, REIT (France)............................................. |
1,029,153 |
7,734 |
Heitman Core Real Estate Debt Income Trust LP....... |
7,874,978 |
19,404 |
LEG Immobilien AG (Germany)................................... |
1,962,875 |
489 |
Invesco Core Real Estate USA..................................... |
85,054,372 |
146,400 |
Leopalace21 Corp. (Japan)............................................. |
1,020,019 |
|
Invesco Real Estate Asia Fund (Cayman) Unit Trust |
|
124,985 |
Liberty Property Trust, REIT......................................... |
5,131,884 |
486,961 |
Class A Units......................................................... |
61,576,217 |
|
Londonmetric Property, PLC, REIT |
|
|
J.P. Morgan U.S. Real Estate Income and |
|
524,266 |
(United Kingdom)..................................................... |
1,167,580 |
16,293,493 |
Growth Domestic, LP........................................... |
24,114,370 |
152,196 |
Merlin Properties Socimi SA, REIT (Spain)................ |
2,108,187 |
|
LaSalle Property Fund LP............................................. |
|
34,400 |
Mitsubishi Estate Co., Ltd. (Japan)............................. |
598,121 |
66,094 |
Class A Shares....................................................... |
103,995,370 |
126,600 |
Mitsui Fudosan Co., Ltd. (Japan)................................ |
2,745,203 |
24,628 |
Class B Shares....................................................... |
38,750,839 |
1,081,000 |
New World Development Co., Ltd. (Hong Kong)..... |
1,552,668 |
29,840 |
Mesa Core Lending Fund LP Class A ......................... |
31,455,788 |
2,796,938 |
Propertylink Group (Australia).................................... |
2,040,344 |
32,793 |
Met Life Commercial Mortgage Income Fund............ |
33,451,151 |
520,000 |
RHT Health Trust (Singapore)..................................... |
327,767 |
1,343,646 |
RREEF America Reit II, LP......................................... |
157,972,441 |
32,202 |
Secure Income REIT, PLC (United Kingdom)........... |
161,815 |
7,523 |
Trumbull Property Fund, LP......................................... |
81,288,402 |
170,156 |
Segro, PLC, REIT (United Kingdom)......................... |
1,222,126 |
4,911 |
Trumbull Property Income Fund, LP |
59,196,398 |
571 |
Sekisui House Reit, Inc. (Japan).................................. |
659,676 |
— |
US Government Building, LP**................................... |
46,440,000 |
726,500 |
SOHO China, Ltd. (Cayman Islands).......................... |
415,722 |
|
Total Private Investment Funds................................ |
1,291,612,683 |
345,499 |
Spirit Realty Capital, Inc., REIT................................. |
2,960,926 |
|
(Cost $1,224,649,962 |
|
1,305,000 |
Spring Real Estate Investment Trust (Hong Kong).... |
581,366 |
|
|
|
141,836 |
STORE Capital Corp., REIT....................................... |
3,527,461 |
Common Stocks – 15.1% |
|
91,000 |
Sun Hung Kai Properties, Ltd. (Hong Kong)............. |
1,478,301 |
|
|
Apartments – 2.1% |
|
30,935 |
TLG Immobilien AG (Germany)................................. |
713,322 |
146,550 |
American Homes 4 Rent, REIT Class A shares........ |
3,181,600 |
69,400 |
Tokyo Tatemono Co., Ltd. (Japan)............................. |
887,506 |
|
Apartment Investment & Management Co., |
|
388,378 |
Viva Energy REIT (Australia)..................................... |
642,798 |
113,432 |
REIT Class A shares............................................ |
4,975,128 |
66,075 |
Vornado Realty Trust, REIT........................................ |
5,079,846 |
40,250 |
AvalonBay Communities, Inc., REIT.......................... |
7,181,405 |
10,983 |
Weyerhaeuser Co., REIT............................................. |
373,751 |
92,700 |
Equity Residential, REIT.............................................. |
6,111,711 |
23,927 |
Wihlborgs Fastigheter AB (Sweden)........................... |
585,183 |
28,459 |
Essex Property Trust, Inc., REIT................................. |
7,229,440 |
|
|
80,371,368 |
179,241 |
Independence Realty Trust, Inc., REIT....................... |
1,822,881 |
|
Health Care – 1.0% |
|
47,290 |
Invitation Homes, Inc., REIT....................................... |
1,071,118 |
123,100 |
HCP, Inc., REIT............................................................ |
3,425,873 |
|
Japan Rental Housing Investments, Inc., REIT........... |
|
|
Healthcare Trust of America, Inc., REIT |
|
590 |
(Japan)....................................................................... |
416,316 |
32,687, |
Class A shares............................................................ |
974,073 |
86,374 |
Starwood Waypoint Homes, REIT............................... |
3,141,422 |
44,815 |
Physicians Realty Trust, REIT..................................... |
794,570 |
68,275 |
UDR, Inc., REIT............................................................ |
2,596,498 |
11,343 |
Sabra Health Care, Inc., REIT..................................... |
248,865 |
58,887 |
UNITE Group, PLC, REIT (United Kingdom)............ |
542,496 |
161,967 |
Senior Housing Properties Trust, REIT |
3,166,455 |
|
|
38,270,015 |
66,700 |
Ventas, Inc., REIT........................................................ |
4,344,171 |
|
Diversified – 4.4% |
|
85,181 |
Welltower, Inc., REIT.................................................. |
5,986,521 |
46,936 |
ADO Properties SA (Luxembourg).............................. |
2,319,618 |
|
|
18,940,528 |
3,326 |
Altarea SCA, REIT (France)........................................ |
774,599 |
|
Hotels – 0.8% |
|
112,529 |
Arena, REIT (Austalia)................................................. |
203,016 |
1,452,500 |
Far East Hospitality Trust, REIT (Singapore)............ |
717,443 |
104,365 |
Aroundtown SA (Luxembourg).................................... |
747,491 |
11,592 |
Hilton Grand Vacations, Inc.***................................. |
447,799 |
90,936 |
Atrium European Real Estate, Ltd. (Jersey)................ |
425,715 |
6,223 |
Hilton Worldwide Holdings, Inc................................. |
432,187 |
793,900 |
Capitaland Commercial Trust, REIT (Singapore)...... |
968,635 |
83 |
Hoshino Resorts REIT, Inc. (Japan)............................ |
413,064 |
131,787 |
Capitaland Commercial Trust, REIT (Singapore)...... |
28,370 |
37,975 |
Hospitality Properties Trust, REIT.............................. |
1,081,908 |
69,853 |
Castellum AB (Sweden)................................................ |
1,096,049 |
202,225 |
Host Hotels & Resorts, Inc., REIT.............................. |
3,739,140 |
189,229 |
Charter Hall Group, REIT (Australia).......................... |
797,076 |
2,545 |
Japan Hotel REIT Investment Corp. (Japan).............. |
1,608,083 |
28,150 |
Coresite Realty Corp., REIT......................................... |
3,149,985 |
47,125 |
LaSalle Hotel Properties, REIT................................... |
1,367,567 |
739,400 |
Croesus Retail Trust (Singapore).................................. |
635,041 |
72,991 |
Park Hotels & Resorts, Inc., REIT.............................. |
2,011,632 |
1,462,642 |
Cromwell Property Group, REIT (Australia).............. |
1,095,668 |
51,225 |
Pebblebrook Hotel Trust, REIT................................... |
1,851,271 |
41,365 |
Crown Castle International Corp., REIT...................... |
4,135,673 |
58,331 |
Sunstone Hotel Investors, Inc., REIT.......................... |
937,379 |
48,841 |
Deutsche Wohnen SE (Germany)................................. |
2,073,477 |
|
|
14,607,473 |
380,549 |
Dexus, REIT (Australia)............................................... |
2,835,775 |
|
Mortgages – 0.1% |
|
18,800 |
Digital Realty Trust, Inc., REIT................................... |
2,224,604 |
127,389 |
CYS Investments, Inc., REIT...................................... |
1,100,641 |
|
Empiric Student Property, PLC, REIT (United |
|
|
|
|
139,846 |
Kingdom).................................................................. |
189,736 |
|
Office Properties – 1.4% |
|
47,598 |
Entra ASA (Norway)..................................................... |
651,413 |
44,190 |
Alexandria Real Estate Equities, Inc., REIT.............. |
5,257,284 |
18,911 |
EPR Properties, REIT.................................................... |
1,318,853 |
31,300 |
Boston Properties, Inc., REIT...................................... |
3,846,144 |
18,259 |
Equinix, Inc., REIT........................................................ |
8,148,992 |
41,030 |
Brandywine Realty Trust, REIT................................ |
717,615 |
29,303 |
Fabege AB (Sweden)..................................................... |
600,818 |
527,000 |
Champion REIT (Hong Kong)................................... |
363,630 |
|
|
|
|
|
|
See accompanying notes to Portfolio of Investments
2
VERSUS CAPITAL MULTI-MANAGER REAL ESTATE INCOME FUND LLC
Portfolio of Investments – September 30, 2017 (Unaudited) (continued)
Shares |
|
Value |
Shares |
|
Value |
|
Office Properties – (continued) |
|
|
Warehouse / Industrial – (continued) |
|
132,425 |
City Office REIT, Inc............................................... |
$ 1,823,492 |
|
WPT Industrial Real Estate Investment Trust |
|
82 |
Daiwa Office Investment Corp., REIT (Japan)...... |
410,273 |
126,419 |
(Canada)........................................................... |
$ 1,690,412 |
83,350 |
Douglas Emmett, Inc., REIT.................................... |
3,285,657 |
|
|
27,939,591 |
121,880 |
Hudson Pacific Properties, Inc., REIT.................... |
4,086,636 |
|
Total Common Stocks |
279,117,209 |
159,603 |
Investa Office Fund, REIT (Australia).................... |
563,367 |
|
(Cost $269,587,765) |
|
56,200 |
Kilroy Realty Corp., REIT....................................... |
3,996,944 |
|
|
|
388 |
MCUBS MidCity Investment Corp., REIT (Japan) |
1,182,706 |
Preferred Stock – 2.5% |
|
|
666,900 |
Viva Industrial Trust, REIT (Singapore)................ |
464,610 |
|
Apartments – 0.4% |
|
|
|
25,998,358 |
|
American Homes 4 Rent, REIT |
|
|
Regional Malls – 1.3% |
|
137,221 |
Series D, 6.50% |
3,787,300 |
81,175 |
GGP, Inc., REIT....................................................... |
1,686,005 |
55,475 |
Series E, 6.35%.................................................. |
1,474,525 |
77,150 |
Macerich Co., The, REIT......................................... |
4,240,935 |
|
Apartment Investment & Management Co., REIT, |
|
17,899 |
Pennsylvania Real Estate Investment Trust, REIT |
187,761 |
60,425 |
Series A, 6.88%............................................... |
1,597,637 |
109,230 |
Simon Property Group, Inc., REIT......................... |
17,587,122 |
|
|
6,859,462 |
22,325 |
Taubman Centers, Inc., REIT.................................. |
1,109,552 |
|
Diversified – 0.3% |
|
|
|
24,811,375 |
|
Digital Realty Trust, Inc., REIT, |
|
|
Residential – 0.2% |
|
24,350 |
Series H, 7.38%............................................... |
660,372 |
53,323 |
Sun Communities, Inc., REIT................................. |
4,568,715 |
4,825 |
Series J, 5.25%................................................ |
121,011 |
|
|
|
|
PS Business Parks, Inc., REIT, |
|
|
Shopping Centers – 1.4% |
|
80,325 |
Series T, 6.00%................................................ |
2,020,977 |
48,125 |
Brixmor Property Group, Inc., REIT...................... |
904,750 |
6,525 |
Series U, 5.75%.............................................. |
164,104 |
514,122 |
Citycon OYJ (Finland)............................................. |
1,352,601 |
|
Retail Properties of America, Inc., REIT, |
|
375,562 |
DDR Corp., REIT..................................................... |
3,440,148 |
35,250 |
Series A, 7.00%............................................... |
898,875 |
|
Eurocommercial Properties NV, REIT |
|
|
Vornado Realty Trust, REIT, |
|
12,489 |
(Netherlands) |
534,041 |
44,350 |
Series G, 6.63%............................................... |
1,132,256 |
12,975 |
Federal Realty Investment Trust, REIT.................. |
1,611,625 |
4,100 |
Series K, 5.70%.............................................. |
103,238 |
327,000 |
Fortune, REIT (Singapore)...................................... |
383,864 |
|
|
5,100,833 |
363 |
Kenedix Retail REIT Corp. (Japan)........................ |
754,227 |
|
Health Care – 0.0% |
|
122,000 |
Kimco Realty Corp., REIT...................................... |
2,385,100 |
11,350 |
Sabra Health Care, Inc., REIT, Series A, 7.13% |
291,128 |
120,485 |
Kite Realty Group Trust, REIT............................... |
2,439,821 |
3,650 |
Senior Housing Properties Trust, REIT 6.25%.... |
98,988 |
323,000 |
Link REIT (Hong Kong) |
2,617,377 |
|
|
390,116 |
407,212 |
Newriver REIT, PLC (United Kingdom).............. |
1,848,163 |
|
Hotels – 0.1% |
|
43,375 |
Regency Centers Corp., REIT................................. |
2,690,985 |
40,275 |
LaSalle Hotel Properties, REIT Series J, 6.30%. |
1,031,040 |
12,005 |
Vastned Retail NV, REIT (Netherlands)................ |
534,911 |
|
Sunstone Hotel Investors, Inc., REIT, |
|
112,445 |
Weingarten Realty Investors, REIT |
3,569,004 |
7,625 |
Series F, 6.45%............................................... |
198,402 |
|
|
25,066,617 |
|
|
1,229,442 |
|
|
|
|
Office Properties – 0.4% |
|
|
Storage – 0.9% |
|
151,456 |
SL Green Realty Corp., REIT, Series I, 6.50%... |
3,831,837 |
177,600 |
CubeSmart, REIT..................................................... |
4,610,496 |
145,400 |
VEREIT, Inc., Series F, 6.70%............................. |
3,741,142 |
49,422 |
Extra Space Storage, Inc., REIT.............................. |
3,949,806 |
|
|
7,572,979 |
41,675 |
Life Storage, REIT................................................... |
3,409432 |
|
Regional Malls – 0.7% |
|
25,575 |
Public Storage, REIT............................................... |
5,472,794 |
|
CBL & Associates Properties Inc., REIT, |
|
|
|
17,442,528 |
75,246 |
Series D, 7.38%................................................ |
1,839,012 |
|
Warehouse / Industrial – 1.5% |
|
81,500 |
GGP, Inc., REIT, Series A, 6.38%....................... |
2,092,920 |
525,600 |
AIMS AMP Capital Industrial, REIT, (Singapore) |
546,350 |
|
Pennsylvania Real Estate Investment Trust, REIT |
|
29,625 |
CyrusOne, Inc., REIT............................................... |
1,745,801 |
57,362 |
Series A, 8.25%................................................ |
1,443,228 |
211,151 |
Goodman Group, REIT (Australia)......................... |
1,364,765 |
2,150 |
Series B, 7.38%................................................ |
54,288 |
28,940 |
Granite Real Estate Investment Trust (Canada)..... |
1,161,311 |
65,750 |
Series C, 7.20%................................................ |
1,708,842 |
|
Industrial & Infrastructure Fund |
|
|
Taubman Centers Inc., REIT, |
|
246 |
Investment Corp., REIT (Japan)....................... |
1,042,808 |
188,200 |
Series J, 6.50%.................................................. |
4,735,112 |
533 |
Japan Logistics Fund, Inc., REIT (Japan)............... |
992,344 |
24,775 |
Series K, 6.25%................................................ |
621,109 |
|
Macquarie Mexico Real Estate Management SA |
|
|
Washington Prime Group, Inc., REIT, |
|
757,740 |
de CV, REIT (Mexico)...................................... |
1,002,414 |
1,800 |
Series H, 7.50%............................................... |
45,378 |
|
PLA Administradora Industrial S de RL de CV, |
|
11,400 |
Series I, 6.88%................................................. |
285,912 |
740,170 |
REIT (Mexico)................................................... |
1,274,263 |
|
|
12,825,801 |
|
Prologis Property Mexico SA de CV, REIT |
|
|
Residential – 0.0% |
|
197,530 |
(Mexico)............................................................. |
390,721 |
7,000 |
Sun Communities, Inc., REIT, Series A, 7.13% |
176,750 |
219,836 |
Prologis, Inc., REIT.................................................. |
13,950,793 |
|
|
|
|
Safestore Holdings, PLC, REIT (United |
|
|
Shopping Centers – 0.5% |
|
161,908 |
Kingdom)......................................................... |
947,448 |
|
DDR Corp., REIT, |
|
66,624 |
STAG Industrial, Inc., REIT.................................... |
1,830,161 |
69,800 |
Series A, 6.38%................................................ |
1,818,290 |
|
|
|
111,975 |
Series J, 6.50%.................................................. |
2,806,093 |
See accompanying notes to financial statements
3
VERSUS CAPITAL MULTI-MANAGER REAL ESTATE INCOME FUND LLC
Portfolio of Investments – September 30, 2017 (Unaudited) (continued)
Shares |
|
Value |
Par |
|
Value |
|
Shopping Centers – (continued) |
|
|
Reginal Malls – 0.1% |
|
3,000 |
DDR Corp., REIT, Series K, 6.25%.................... |
$ 75,900 |
|
CBL & Associates LP, REIT |
|
|
Kimco Realty Corp., REIT, |
|
369,000 |
5.25%, 12/1/2023................................................ |
373,771 |
6,900 |
Series J, 5.50%.................................................. |
174,984 |
881,000 |
4.60%, 10/15/2024.............................................. |
841,064 |
14,150 |
Series K, 5.63%................................................ |
359,693 |
|
|
1,214,835 |
20,825 |
Saul Centers, Inc., REIT, Series C, 6.88%........... |
534,578 |
|
Shopping Centers – 0.2% |
|
|
Urstadt Biddle Properties, Inc., REIT, |
|
|
Brixmor Operating Partnership LP, REIT |
|
79,375 |
Series F, 7.13%................................................. |
2,013,744 |
1,061,000 |
3.88%, 8/15/2022.............................................. |
1,094,325 |
20,950 |
Series G, 6.75%................................................ |
551,299 |
|
DDR Corp., REIT, |
|
64,475 |
Series H, 6.25%................................................ |
1,666,034 |
267,000 |
4.63%, 7/15/2022.............................................. |
283,265 |
|
|
10,000,615 |
|
Regency Centers Corp., REIT, |
|
|
Storage – 0.1% |
|
93,000 |
3.75%, 11/15/2022............................................ |
95,947 |
|
Public Storage, REIT, |
|
|
Retail Opportunity Investments Partnership LP, |
|
52,425 |
Series V, 5.38%............................................... |
1,326,352 |
|
REIT, |
|
11,925 |
Series Y, 6.38%............................................... |
321,379 |
16,000 |
5.00%, 12/15/2023............................................ |
16,681 |
|
|
1,647,731 |
|
Retail Properties of America, Inc., REIT, |
|
|
Warehouse / Industrial – 0.0% |
|
1,513,000 |
4.00%, 3/15/2025..................................... |
1,461,596 |
2,400 |
Rexford Industrial Realty, Inc., REIT, Series A, 5.88% |
61,320 |
|
|
2,951,814 |
|
Total Preferred Stock......................................... |
45,865,049 |
|
Total Corporate Debt.............................................. |
22,167,616 |
|
(Cost $45,566,420) |
|
|
(Cost $21,902,932) |
|
|
|
|
|
|
|
Par |
|
|
Shares |
|
|
Corporate Debt – 1.2% |
|
Commercial Mortgage Backed Securities – 2.2% |
| ||
|
Apartments – 0.0% |
|
|
Banc of America Commercial Mortgage Trust, |
|
$ 764,0000 |
Select Income, REIT, 2.85%, 2/1/2018................ |
765,789 |
2,375,000 |
3.25%, 2/15/2050 Ser 2017-BNK3, Class D..... |
1,937,929 |
|
|
|
|
BANK 2017-BNK4, |
|
|
Diversified – 0.2% |
|
23,924,258 |
1.46%, 5/15/2050 Ser 2017-BNK4, Class XA.. |
2,385,894 |
|
Liberty Property LP, REIT, |
|
2,000,000 |
3.36%, 5/15/2050 Ser 2017-BNK4, Class D..... |
1,673,086 |
112,0000 |
4.75%, 10/1/2020............................................... |
118,921 |
|
BANK 2017-BNK5, |
|
|
Corporate Office Properties LP, REIT, |
|
3,000,000 |
4.26%, 6/15/2060 Ser 2017-BNK5, Class E..... |
1,998,424 |
129,000 |
2.50%, 6/30/2019............................................... |
129,822 |
|
CGMS Commercial Mortgage Trust 2017-B1, |
|
2,418,000 |
5.00%, 1/15/2022............................................... |
2,613,546 |
2,000,000 |
3.00%, 8/1/2050.................................................. |
1,584,532 |
|
|
2,862,289 |
|
Citigroup Commercial Mortgage Trust, |
|
|
Health Care – 0.3% |
|
2,500,000 |
3.23%, 9/15/2048 Ser 2015-PI, Class D............ |
2,038,747 |
|
Senior Housing Properties Trust, REIT, |
|
|
Comm 2014-UBS2 Mortgage Trust, |
|
3,455,000 |
3.25%, 5/01/2019................................................. |
3,495,287 |
2,432,500 |
5.01%, 3/1/2047.................................................. |
2,098,436 |
2,150,000 |
6.75%, 4/15/2020................................................. |
2,318,439 |
|
Comm Mortgage Trust, |
|
154,000 |
6.75%, 12/15/2021............................................... |
172,213 |
2,000,000 |
3.65%, 10/10/2048 Ser 2015-LC23, Class D.... |
1,774,774 |
|
|
5,985,939 |
|
GS Mortgage Securities Trust, |
|
|
Office Properties – 0.4% |
|
2,000,000 |
4.76%, 8/10/2046 Ser 2013-GC14, Class F...... |
1,556,640 |
|
Alexandria Real Estate Equities, Inc., REIT, |
|
3,150,000 |
4.86%, 4/1/2047 Series 2014-GC20, Class D... |
2,258,343 |
54,000 |
2.75%, 1/15/2020................................................ |
54,565 |
1,750,000 |
3.58%, 6/10/2047 Series 2014-GC22, Class E.. |
1,132,381 |
315,0000 |
4.60%, 4/1/2022.................................................. |
336,453 |
|
JPMCC Commercial Mortgage Securities Trust, |
|
|
Brandywine Operating Partnership LP, REIT, |
|
7,250,000 |
3.45%, 9/1/2050 Ser 2017-JP7, Class A5.......... |
7,466,267 |
17,000 |
4.95%, 4/15/2018............................................... |
17,231 |
|
JPMDB Commercial Mortgage Securities Trust, |
|
|
Corporate Office Properties LP, REIT, |
|
1,500,000 |
4.58%, 3/15/2050 Ser 2017-C5, Class D........... |
1,477,259 |
1,044,000 |
3.70%, 6/15/2021............................................... |
1,071,337 |
|
Morgan Stanley Bank of America Merrill Lynch |
|
2,441,000 |
3.60%, 5/15/2023............................................... |
2,454,203 |
|
Trust, |
|
|
Equity Commonwealth, REIT, |
|
2,153,000 |
4.13%, 5/15/2046 Ser 2013-C9, Class D........... |
1,992,309 |
587,000 |
5.88%, 9/15/2020.............................................. |
626,583 |
3,576,000 |
4.41%, 10/15/2048 Ser 2015-C26, Class E...... |
2,517,812 |
|
Government Properties Income Trust, REIT, |
|
|
SG Commercial Mortgage Securities Trust, |
|
532,000 |
3.75%, 8/15/2019.............................................. |
539,785 |
13,854,896 |
2.02%, 12/10/2048 Ser 2016-C5, Class XA...... |
1,673,020 |
2,824,000 |
4.00%, 7/15/2022.............................................. |
2,851,122 |
|
UBS-Barclays Commercial Mortgage Trust, |
|
|
Piedmont Operating Partnership LP, REIT, |
|
25,433,884 |
1.74%, 12/10/2045 Ser 2012-C4, Class XA...... |
1,698,928 |
51,000 |
3.40%, 6/1/2023................................................ |
50,571 |
2,000,000 |
5.04%, 8/10/2049 Ser 2012-C3, Class D........... |
2,017,195 |
299,000 |
Select Income, REIT, 4.15%, 2/1/2022............... |
304,090 |
|
Wells Fargo Commercial Mortgage Trust, |
|
|
SL Green Realty Corp., REIT, |
|
2,000,000 |
3.37%, 1/15/2059 Ser 2016-NXS5, Class A5... |
2,047,557 |
78,000 |
4.50%, 12/1/2022.............................................. |
81,010 |
|
|
41,329,533 |
|
|
8,386,950 |
|
Total Commercial Mortgage Backed Securities |
41,329,533 |
|
|
|
|
(Cost $40,888,401) |
See accompanying notes to financial statements
4
VERSUS CAPITAL MULTI-MANAGER REAL ESTATE INCOME FUND LLC
Portfolio of Investments – September 30, 2017 (Unaudited) (continued)
Shares |
|
|
|
|
% of Net |
Short-Term Investment – 8.3% |
|
|
Industry |
Assets |
|
|
Morgan Stanley Institutional Liquidity Fund- |
|
|
Diversified................................................................ |
74.9% |
153,395,485 |
Treasury Securities Portfolio.............................. |
153,395,485 |
|
Short-Term Investments.......................................... |
8.3% |
|
(Cost $153,395,485) |
|
|
Apartments................................................................ |
2.5% |
|
|
|
|
Office Properties...................................................... |
2.2% |
|
Total Investments – 99.3%.................................... |
$1,833,487,575 |
|
Commercial Mortgage Backed Securities.............. |
2.2% |
|
(Cost $1,755,990,965) |
|
|
Regional Malls......................................................... |
2.1% |
|
|
|
|
Shopping Centers..................................................... |
2.1% |
|
Other Assets Net of Liabilities – 0.7% .......... |
13,165,006 |
|
Warehouse/Industrial............................................... |
1.5% |
|
Net Assets – 100.0%............................................... |
$1,846,652,581 |
|
Health Care............................................................... |
1.3% |
|
|
|
|
Storage...................................................................... |
1.0% |
|
|
|
|
Hotels........................................................................ |
0.9% |
* |
Non-Tradable Securities |
|
|
Residential................................................................ |
0.2% |
** |
Partnership is not designated in units. The Fund owns approximately 2.5% |
|
Mortgages................................................................. |
0.1% |
|
*** |
Non-income producing security |
|
|
Other Assets Net of Liabilities................................ |
0.7% |
|
|
|
|
Total.......................................................................... |
100.0% |
|
Portfolio Abbreviations: |
|
|
|
|
|
LP – Limited Partnership |
|
|
|
|
|
PLC – Public Limited Company |
|
|
|
|
|
REIT – Real Estate Investment Trust |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
See accompanying notes to financial statements
5
VERSUS CAPITAL MULTI-MANAGER REAL ESTATE INCOME FUND LLC
Statement of Assets and Liabilities
September 30, 2017 (Unaudited)
|
|
ASSETS: |
|
Investments: |
|
..... Investment in securities at cost................................................................................................................ |
$ 1,755,990,965 |
..... Net unrealized appreciation..................................................................................................................... |
77,496,610 |
..... Total investment in securities, at fair value.............................................................................................. |
1,833,487,575 |
Foreign Currency (cost $37,158).................................................................................................................. |
37,139 |
|
|
Receivables for: |
|
Investments sold....................................................................................................................................... |
242,072 |
Dividends and interest.............................................................................................................................. |
14,046,303 |
Fund shares sold....................................................................................................................................... |
5,041,941 |
Reclaims.................................................................................................................................................. |
72,410 |
Total receivables.......................................................................................................................................... |
19,402,726 |
Prepaid expenses |
120,404 |
Total Assets............................................................................................................................................ |
1,853,047,844 |
|
|
LIABILITIES: |
|
Due to custodian |
723,779 |
|
|
Payables for: |
|
Investments purchased.............................................................................................................................. |
153,157 |
Adviser fees, net....................................................................................................................................... |
4,958,519 |
Administrative fees.................................................................................................................................. |
193,195 |
Audit and tax fees.................................................................................................................................... |
28,880 |
Custodian fees.......................................................................................................................................... |
26,668 |
Legal fees................................................................................................................................................ |
26,988 |
Registration fees....................................................................................................................................... |
36,096 |
Printing fees............................................................................................................................................. |
20,883 |
Transfer agent fees |
32,935 |
Accrued expenses and other liabilities....................................................................................................... |
194,163 |
Total Liabilities...................................................................................................................................... |
6,395,263 |
Commitments and Contingent Liabilities (Note 7) |
|
NET ASSETS............................................................................................................................................. |
$ 1,846,652,581 |
|
|
NET ASSETS consist of: |
|
Paid-in capital.............................................................................................................................................. |
1,776,093,428 |
Distributions in excess of net investment income.......................................................................................... |
(16,247,543) |
Accumulated net realized gain on investments and foreign currency.............................................................. |
9,307,972 |
Net unrealized appreciation on investments and foreign currency.................................................................. |
77,498,724 |
|
|
TOTAL NET ASSETS............................................................................................................................... |
$ 1,846,652,581 |
|
|
Class F-Shares |
|
Net Assets................................................................................................................................................ |
$ 25,623,742 |
Shares of beneficial interest outstanding (unlimited authorization)............................................................. |
929,099 |
|
$ 27.58 |
Net asset value price per share (Net Assets/Shares Outstanding) *.......................................................... |
|
|
|
Class I-Shares |
|
Net Assets................................................................................................................................................ |
$ 1,821,028,839 |
Shares of beneficial interest outstanding (unlimited authorization)............................................................. |
65,851,937 |
|
$ 27.65 |
Net asset value price per share (Net Assets/Shares Outstanding) ............................................................ |
|
* Redemption price per share is subject to an early withdrawal charge if redeemed within one year of purchase.
See accompanying notes to financial statements.
6
VERSUS CAPITAL MULTI-MANAGER REAL ESTATE INCOME FUND LLC
Statement of Operations
For the Six Months Ended September 30, 2017 (Unaudited)
| ||
Investment Income: |
| |
Dividends income.................................................................................................................................... |
$ 28,832,953 | |
Interest income......................................................................................................................................... |
1,078,288 | |
Less: foreign taxes withheld..................................................................................................................... |
(99,144) | |
Total Investment Income........................................................................................................................... |
29,812,097 | |
| ||
Expenses: |
| |
Adviser fees (Note 3)............................................................................................................................... |
8,767,777 | |
Administrative fees.................................................................................................................................. |
281,334 | |
Distribution fees, Class F-Shares (Note 3)................................................................................................. |
35,808 | |
Director's fees (Note 3)............................................................................................................................. |
61,460 | |
Transfer agent fees, Class F-Shares........................................................................................................... |
2,512 | |
Transfer agent fees, Class I-Shares............................................................................................................ |
172,538 | |
Custodian fees.......................................................................................................................................... |
103,541 | |
Registration fees....................................................................................................................................... |
52,437 | |
Audit and tax fees.................................................................................................................................... |
36,370 | |
Legal fees................................................................................................................................................ |
145,086 | |
Printing.................................................................................................................................................... |
124,526 | |
Insurance fees.......................................................................................................................................... |
23,287 | |
Other expenses......................................................................................................................................... |
215,953 | |
|
10,022,629 | |
|
| |
Net Investment Income.............................................................................................................................. |
19,789,468 | |
|
| |
Net Realized and Unrealized Gain on Investments |
| |
Net realized gain on investments............................................................................................................... |
837,956 | |
Net realized gain on foreign currency transactions..................................................................................... |
67,083 | |
Net change in unrealized appreciation on investment securities and foreign currency.................................. |
22,822,732 | |
Net Realized and Unrealized Gain on Investments.................................................................................... |
23,727,771 | |
|
| |
Net Increase in Net Assets Resulting from Operations.............................................................................. |
$ 43,517,239 | |
|
| |
See accompanying notes to financial statements.
7
VERSUS CAPITAL MULTI-MANAGER REAL ESTATE INCOME FUND LLC
Statements of Changes in Net Assets
|
|
|
|
Six Months Ended |
|
|
September 30, 2017 |
Year Ended |
Increase in Net Assets: |
(Unaudited) |
March 31, 2017 |
From Operations: |
| |
Net investment income........................................................................................................................................ |
$ 19,789,468 |
$ 24,923,927 |
Net realized gain on investment securities and foreign currency................................................................ |
905,039 |
5,630,799 |
Net change in unrealized appreciation on investments and foreign currency........................................... |
22,822,732 |
24,968,303 |
Net Increase in Net Assets Resulting from Operations................................................................................ |
43,517,239 |
55,523,029 |
|
|
|
Distributions to Shareholders from: |
|
|
Net investment income, Class F-Shares........................................................................................................... |
(502,998) |
(400,336) |
Net investment income, Class I-Shares............................................................................................................ |
(35,269,533) |
(25,899,727) |
Return of Capital, Class F-Shares..................................................................................................................... |
– . |
(290,965) |
Return of Capital, Class I-Shares...................................................................................................................... |
– . |
(18,824,003) |
Total Distributions................................................................................................................................................. |
(35,772,531) |
(45,415,031) |
|
|
|
Capital Share Transactions: |
|
|
Class F-Shares: |
|
|
Shares issued......................................................................................................................................................... |
6,448,0336 |
11,961,122 |
Reinvested dividends........................................................................................................................................... |
98,956 |
106,525 |
Shares redeemed.................................................................................................................................................. |
(2,397,873) |
(3,278,629) |
Total Class F-Shares |
4,149,119 |
8,789,018 |
|
|
|
Class I-Shares: |
|
|
Shares issued......................................................................................................................................................... |
456,531,525 |
737,484,561 |
Reinvested dividends........................................................................................................................................... |
6,591,434 |
7,036,296 |
Shares redeemed.................................................................................................................................................. |
(39,883,055) |
(53,221,125) |
Total Class I-Shares |
423,239,907 |
691,299,732 |
|
|
|
Net Increase in Net Assets Resulting from Capital Share Transactions |
427,389,023 |
700,088,750 |
Total Increase in Net Assets |
435,133,731 |
710,196,748 |
|
|
|
Net Assets: |
| |
Beginning of Period............................................................................................................................................. |
$ 1,411,518,850 |
$ 701,322,102 |
End of Period........................................................................................................................................................ |
$ 1,846,652,581 |
$ 1,411,518,850 |
Distributions in excess of net investment income.......................................................................................... |
$ (16,247,543) |
$ (264,480) |
|
|
|
Share Transactions: |
|
|
Class F-Shares: |
|
|
Shares sold............................................................................................................................................................ |
234,891 |
438,797 |
Shares issued in reinvestment of dividends..................................................................................................... |
3,617 |
3,926 |
Shares redeemed.................................................................................................................................................. |
(87,658) |
(120,396) |
Net Increase in Class F-Shares |
150,850 |
322,327 |
|
|
|
Class I-Shares: |
|
|
Shares sold............................................................................................................................................................ |
16,561,857 |
26,963,718 |
Shares issued in reinvestment of dividends..................................................................................................... |
240,382 |
258,661 |
Shares redeemed.................................................................................................................................................. |
(1,455,430) |
(1,954,866) |
Net Increase in Class I-Shares |
15,346,809 |
25,267,513 |
Net Increase in Shares of Beneficial Interest Outstanding......................................................................... |
15,497,659 |
25,589,840 |
|
|
|
See accompanying notes to financial statements.
8
VERSUS CAPITAL MULTI-MANAGER REAL ESTATE INCOME FUND LLC
Statement of Cash Flows
For the Six Months Ended September 30, 2017 (Unaudited)
| |
Cash Flows Provided by Operating Activities: |
|
Net increase in net assets resulting from operations............................................................................... |
$ 43,517,239 |
| |
Adjustments to Reconcile Net Increase in Net Assets Resulting |
|
From Operations to Net Cash Used in Operating Activities: |
|
Purchases of investment securities........................................................................................................ |
(486,775,619) |
Proceeds from disposition of investment securities............................................................................... |
57,658,194 |
Net proceeds from short-term investment securities.............................................................................. |
10,066,992 |
Change in net unrealized appreciation on securities.............................................................................. |
(22,822,732) |
Net realized gain from investments sold............................................................................................... |
(837,956) |
Net realized gain from foreign currency transactions............................................................................. |
(67,083) |
Net amortization/(accretion) of premium/(discount).............................................................................. |
359,257 |
Increase in dividends and interest receivable......................................................................................... |
(4,381,281) |
Increase in other assets........................................................................................................................ |
(31,325) |
Increase in due to custodian |
723,779 |
Increase in prepaid expenses................................................................................................................ |
(102,621) |
Increase in Advisor fees payable, net.................................................................................................... |
1,860,026 |
Increase in administration fees payable................................................................................................. |
78,410 |
Decrease in audit and tax fees payable.................................................................................................. |
(21,905) |
Decrease in legal fees payable.............................................................................................................. |
(48,979) |
Increase in custodian fees payable |
26,668 |
Decrease in registration fees payable.................................................................................................... |
(6,473) |
Increase in printing fees payable.......................................................................................................... |
11,169 |
Increase in transfer agent fees payable.................................................................................................. |
32,935 |
Increase in accrued expenses and other liabilities.................................................................................. |
85,376 |
Net Cash Used in Operating Activities.............................................................................................. |
(400,675,929) |
Effect of exchange rate changes on foreign currency............................................................................. |
68,919 |
|
|
Cash Flows from Financing Activities: |
|
Proceeds from shares sold...................................................................................................... |
471,945,705 |
Payment of shares redeemed.................................................................................................. |
(42,280,928) |
Dividends paid (net of reinvestment of dividends).................................................................. |
(29,082,141) |
Net Cash Provided by Financing Activities |
400,582,636 |
Net Increase in Cash....................................................................................................... |
(24,374) |
|
|
Cash and Foreign Currency: |
|
Beginning of the period......................................................................................................... |
61,513 |
End of the period................................................................................................................... |
$ 37,139 |
Supplemental Disclosure of Cash Flow Information: |
|
Reinvestment of dividends..................................................................................................... |
$ 6,690,390 |
|
|
See accompanying notes to financial statements.
9
VERSUS CAPITAL MULTI-MANAGER REAL ESTATE INCOME FUND LLC
Financial Highlights Class F-Shares
|
|
Six-Months |
|
|
|
|
|
|
|
Ended |
|
|
|
|
|
|
|
September 30. |
Year Ended |
Year Ended |
Year Ended |
Year Ended |
Year Ended |
|
|
2017 |
March 31, |
March 31, |
March 31, |
March 31, |
March 31, |
|
|
(Unaudited) |
2017 |
2016 |
2015 |
2014 |
2013 |
Net Asset Value, Beginning of Period |
|
$ 27.45 |
$ 27.23 |
$ 26.39 |
$ 25.41 |
$ 25.78 |
$ 25.00 |
Income from investment operations..................................................................................................................... |
|
|
|
|
|
|
|
Net investment income (a)..................................................................................................................................... |
|
0.29 |
0.57 |
0.57 |
0.45 |
0.50 |
1.00 |
Net realized and unrealized gain.......................................................................................................................... |
|
0.43 |
0.87 |
1.45 |
1.61 |
0.20 |
0.36 |
Total from investment operations..................................................................................................................... |
|
0.72 |
1.44 |
2.02 |
2.06 |
0.70 |
1.36 |
|
|
|
|
|
|
|
|
Distribution from Net Investment Income............................................................................................................ |
|
(0.59) |
(0.71) |
(0.36) |
(0.81) |
(0.62) |
(0.58) |
Return of Capital.................................................................................................................................................. |
|
– . |
(0.51) |
(0.82) |
(0.27) |
(0.45) |
– . |
Early withdrawal charges..................................................................................................................................... |
|
– (b) |
– (b) |
– (b) |
– (b) |
– (b) |
– (b) |
Net Asset Value, End of Period |
|
$ 27.58 |
$ 27.44 |
$ 27.23 |
$ 26.39 |
$ 25.41 |
$ 25.78 |
|
|
|
|
|
|
|
|
Total Return Based on Net Asset Value............................................................................................................ |
|
2.35%(c) |
5.45% |
8.27% |
7.92% |
2.80% |
5.48% |
|
|
|
|
|
|
|
|
Ratios and Supplemental Data: |
|
|
|
|
|
|
|
Net Assets at end of period (000’s)...................................................................................................................... |
|
$ 25,624 |
$ 21,367 |
$ 12,416 |
$ 1,689 |
$ 1,112 |
$ 562 |
Ratios of gross expenses to average net assets..................................................................................................... |
|
1.53%(d) |
1.57% |
1.66% |
2.64% |
4.05% |
30.66% |
Ratios of net expenses to average net assets......................................................................................................... |
|
1.53%(d) |
1.57% |
1.64% |
2.21% |
2.05% |
0.66% |
Ratios of net investment income to average |
|
|
|
|
|
|
|
net assets......................................................................................................................................................... |
|
2.08%(d) |
2.10% |
2.13% |
1.75% |
2.01% |
3.99% |
Portfolio turnover rate.......................................................................................................................................... |
|
3.76%(c) |
24.97% |
20.93% |
39.83% |
62.38% |
23.54% |
|
|
|
|
|
|
|
|
(a) Per Share amounts are calculated based on average outstanding shares.
(b) Less than $0.005 per share
(c) Not annualized
(d) Annualized
See accompanying notes to financial statements.
10
VERSUS CAPITAL MULTI-MANAGER REAL ESTATE INCOME FUND LLC
Financial Highlights Class I-Shares
|
|
|
|
|
|
|
|
|
|
Six Months |
|
|
|
|
|
|
|
Ended |
Year |
Year |
Year |
Year |
Period |
|
|
September 30, |
Ended |
Ended |
Ended |
Ended |
Ended |
|
|
2017 |
March 31, |
March 31, |
March 31, |
March 31, |
March 31, |
|
|
(Unaudited) |
2017 |
2016 |
2015 |
2014 |
2013 |
Net Asset Value, Beginning of Period |
|
$ 27.52 |
$ 27.30 |
$ 26.47 |
$ 25.47 |
$ 25.83 |
$ 24.91 |
Income from investment operations..................................................... |
|
|
|
|
|
|
|
Net investment income (a)................................................................................................ |
|
0.34 |
0.67 |
0.65 |
0.64 |
0.67 |
0.83 |
Net realized and unrealized gain..................................................... |
|
0.42 |
0.85 |
1.46 |
1.62 |
0.22 |
0.74 |
Total from investment operations..................................................... |
|
0.76 |
1.52 |
2.11 |
2.26 |
0.89 |
1.57 |
|
|
|
|
|
|
|
|
Distribution from Net Investment Income........................................... |
|
(0.63) |
(0.75) |
(0.39) |
(0.95) |
(0.73) |
(0.65) |
Return of Capital................................................................................. |
|
– . |
(0.55) |
(0.89) |
(0.31) |
(0.52) |
– . |
Net Asset Value, End of Period |
|
$ 27.65 |
$ 27.52 |
$ 27.30 |
$ 26.47 |
$ 25.47 |
$ 25.83 |
|
|
|
|
|
|
|
|
Total Return Based on Net Asset Value |
|
2.53% |
5.79% |
8.58% |
8.74% |
3.56% |
6.37%(b) |
|
|
|
|
|
|
|
|
Ratios and Supplemental Data: |
|
|
|
|
|
|
|
Net Assets at end of period (000’s)...................................................... |
|
$ 1,821,029 |
$ 1,390,152 |
$ 88,906 |
$ 156,577 |
$ 47,512 |
$ 9,678 |
Ratios of gross expenses to average net assets..................................... |
|
1.23%(c) |
1.27% |
1.35% |
1.89% |
3.30% |
29.91%(c) |
Ratios of net expenses to average net assets......................................... |
|
1.23%(c) |
1.27% |
1.34% |
1.46% |
1.30% |
0.17%(c) |
Ratios of net investment income to average net assets |
|
2.44%(c) |
2.45% |
2.44% |
2.50% |
2.68% |
4.48%(c) |
Portfolio turnover rate......................................................................... |
|
3.76(b) |
24.97% |
20.93% |
39.83% |
62.38% |
23.54%(c) |
|
|
|
|
|
|
|
|
* The Fund began issuing shares on July 10, 2012
(a) Per Share amounts are calculated based on average outstanding shares.
(b) Not annualized.
(c) Annualized.
See accompanying notes to financial statements.
11
VERSUS CAPITAL MULTI-MANAGER REAL ESTATE INCOME FUND LC
Notes to Financial Statements
September 30, 2017
NOTE 1. ORGANIZATION
Versus Capital Multi-Manager Real Estate Income Fund LLC (the “Fund”) is a Delaware limited liability company registered under the Investment Company Act of 1940, as amended (the “1940 Act”), as a non-diversified, continuously offered, closed-end management investment company that provides liquidity through a quarterly repurchase policy. The Fund’s investment objectives are to seek consistent current income, capital preservation and long-term capital appreciation. The Fund attempts to achieve these objectives by allocating its capital among a select group of institutional asset managers (the “Investment Managers”) with expertise in managing portfolios of real estate and real estate-related investments. The Fund was originally authorized to issue an unlimited number of shares of beneficial interest without par value up to a total of $750,000,000. On February 2, 2016, the Fund registered additional shares allowing it to issue an unlimited number of shares of beneficial interest without par value up to a total of $2 billion. On April 18, 2017, the registered additional shares allowing it to issue an unlimited number of shares of beneficial interest without par value to a total of $4 billion. The Fund was declared effective by the U.S. Securities and Exchange Commission (the “SEC”) on December 9, 2011, (the “Effective Date”) and accordingly, the Fund commenced its investment operations.
The Fund is currently registered to offer two classes of shares, the F-Share Class (the “F-Shares”) and the I-Share Class (“the I-Shares”). The F-Shares are subject to an early withdrawal charge of 2.00% of the aggregate net asset value (“NAV”) of Class F-Shares repurchased during the first year following an initial purchase. F-Shares had early withdrawal charges of approximately $2,000, for the six months ended September 30, 2017.
NOTE 2. SIGNIFICANT ACCOUNTING POLICIES
The Fund is an investment company that follows the accounting and reporting guidance of Accounting Standards Codification Topic 946 applicable to investment companies. The following is a summary of significant accounting policies followed by the Fund in the preparation of its financial statements.
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.
12
VERSUS CAPITAL MULTI-MANAGER REAL ESTATE INCOME FUND LC
Notes to Financial Statements
September 30, 2017
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)
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 six months ended September 30, 2017, there were no transfers between levels. A summary of inputs used to value the Fund’s investments as of September 30, 2017 is as follows:
|
|
|
Level 2 |
Level 3 |
|
Total Market |
Level 1 |
Significant |
Significant |
|
Value at |
Quoted |
Observable |
Unobservable |
|
09/30/2017 |
Price |
Inputs |
Inputs |
|
|
|
|
|
Common Stocks *........................................... |
$ 279,117,209 |
$ 279,117,209 |
$ – . |
$ – . |
Preferred Stocks *........................................... |
45,865,049 |
45,865,049 |
– . |
– . |
Corporate Debt *............................................. |
22,167,616 |
– . |
22,167,616 |
– . |
Commercial Mortgage Backed Securities*....... |
41,329,533 |
– . |
41,329,533 |
– . |
Short-Term Investments*................................ |
153,395,485 |
153,395,485 |
– . |
– . |
Subtotal.......................................................... |
$ 541,874,892 |
$ 478,377,743 |
$ 63,497,149 |
$ – . |
Private Investment Funds*.............................. |
$ 1,291,612,683 |
|
|
|
Total............................................................... |
$ 1,833,487,575 |
|
|
|
* See Schedule of Investments for industry breakout.
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 six months ended September 30, 2017.
Investment Income and Securities Transactions - Dividend income is recorded on the ex-dividend date, except for certain dividends from foreign securities where the ex-dividend date may have passed, which are recorded as soon as the Fund is informed of the ex-dividend date. Dividend income is recorded net of applicable withholding taxes. Interest income is accrued daily. Premiums and discounts are amortized or accreted on an effective yield method on fixed income securities. The Fund may be subject to foreign taxes on income, gains on investments or currency repatriation, a portion of which may be recoverable. The Fund will accrue such taxes and reclaims as applicable, based upon their current interpretation of tax rules and regulations that exist in the markets in which the Fund invests. Securities are accounted for on a trade date basis. The cost of securities sold is determined and gain (losses) are based upon the specific identification method.
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.
Dividends and Distributions to Shareholders - The Fund will make regular quarterly distributions to shareholders of all or a portion of any dividends or investment income it earns on investments. In addition, the Fund will make regular distributions to the shareholders of all or a portion of capital gains distributed to the Fund by Investment Funds and capital gains earned by the Fund from the disposition of Investment Funds, together with any dividends or interest income earned from such investments. A portion of any dividend may be a return of capital or from other capital sources.
Allocation - Investment income earned, realized capital gains and losses, and unrealized appreciation and depreciation for the Fund are allocated daily to each class of shares based upon its proportionate share of total net assets of the Fund. Class-specific expenses are charged directly to the class incurring the expense. Common expenses, which are not attributable to a specific class, are allocated daily to each class of shares based upon their proportionate share of total net assets of the Fund.
13
VERSUS CAPITAL MULTI-MANAGER REAL ESTATE INCOME FUND LC
Notes to Financial Statements
September 30, 2017
U.S. Federal Income Tax Information - The Fund intends to qualify each year as a “regulated investment company” under the Internal Revenue Code of 1986, as amended. By so qualifying, the Fund will not be subject to federal income taxes to the extent that it distributes substantially all of its net investment income and any realized capital gains. This policy may cause multiple distributions during the course of the year, which are recorded on the ex-dividend date.
As of and during the six months ended September 30, 2017, the Fund did not have a liability for any unrecognized tax benefits. The Fund recognizes interest and penalties, if any, related to unrecognized tax benefits as income tax expense in the statement of operations. During the period, the Fund did not incur any interest or penalties. The Fund is not subject to examination by the U.S. federal tax authorities for the fiscal years before 2012. The Fund identifies its major tax jurisdiction as U.S. Federal.
The Regulated Investment Company Modernization Act of 2010 (“Modernization Act”) was signed into law on December 22, 2010. Under the Modernization Act, the Fund will be permitted to carry forward capital losses incurred in taxable years beginning after December 22, 2010 indefinitely. As a result, pre-enactment capital loss carryforwards may be more likely to expire unused. Additionally, post-enactment capital losses that are carried forward will retain their character as either short-term or long-term capital losses rather than being considered all short-term under previous law.
Dividends from net investment income and distributions from realized gains are determined in accordance with federal income tax regulations, which may differ from net investment income and realized gains recognized for financial reporting purposes. Accordingly, the character of distributions and composition of net assets for tax purposes may differ from those reflected in the accompanying financial statements. To the extent these differences are permanent, such amounts are reclassified within the capital accounts at fiscal year-end based on the tax treatment; temporary differences do not require such reclassification.
For the year ended March 31, 2017, tax character of the distribution paid by the Fund was approximately $18,998,000 of ordinary income dividends, approximately $7,302,000 of long-term capital gains and approximately $19,115,000 of return of capital. For the year ended March 31, 2016, tax character of the distribution paid by the Fund were approximately $3,463,000 of ordinary income dividends, approximately $992,000 of long-term capital gains and approximately $9,984,000 of return of capital. Distribution from net investment income and short-term capital gains are treated as ordinary income for federal income tax purposes.
As of March 31, 2017, the Fund had no capital loss carryovers available to offset possible future capital gains.
Under federal tax law, capital losses realized after October 31may be deferred and treated as having arisen on the first day of the following fiscal year. For the fiscal year ended March 31, 2017, the Fund incurred no qualified late year losses.
As of September 30, 2017, the gross unrealized appreciation and depreciation and net unrealized appreciation on a tax basis were approximately $85,374,000, ($7,877,000) and $77,497,000, respectively. The aggregate cost of securities for federal income tax purposes at September 30, 2017, was approximately $1,755,991,000.
Guarantees and Indemnifications – In the normal course of business, the Fund enters into contracts with service providers that contain general indemnification clauses. The Fund's maximum exposure under these arrangements is unknown and this would involve future claims against the Fund that have not yet occurred. Based on experience, the Fund would expect the risk of loss to be remote.
Use of Estimates - The preparation of financial statements in accordance with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities (disclosure of contingent assets and liabilities) at the date of the financial statements and the reported amounts of increases and decreases in net assets from operations during the reporting period. Actual results could differ from those estimates.
NOTE 3. FEES AND OTHER TRANSACTIONS WITH AFFILIATES
Pursuant to an Investment Management Agreement, Versus Capital Advisors LLC (the “Adviser”) serves as the investment adviser to the Fund. For its services under this agreement, the Fund pays the Adviser an Investment Management Fee at an annual rate of 0.95% of the Fund's NAV, which accrues daily based on the average daily net assets of the Fund and is paid quarterly. The Fund accrued fees to the Adviser of approximately $7,721,000 for the six months ended September 30, 2017.
The Adviser engaged Callan Associates Inc. (the “Sub-Adviser”) to act as the Fund's investment Sub-Adviser for the selection of Investment Managers. The Sub-Adviser fee is paid by the Adviser. The Adviser, with the assistance of the Sub-Adviser, allocates the Fund's assets and, thereafter, evaluates regularly each Investment Manager to determine whether its investment program is consistent with the Fund's investment objective and whether its investment performance is satisfactory. The Adviser may, at its discretion, reallocate the Fund's assets among the Investment Managers.
The Adviser and Sub-Adviser have retained the services of the following Investment Managers for the Fund: Security Capital Research & Management, Inc., La Francaise Forum Securities Limited and effective November 2, 2016, Principal Real Estate Investors, LLC. The Investment Managers will either (i) manage investment funds that invest in real estate-related debt, consisting of mezzanine and first mortgage debt, and directly in real estate through entities that qualify as real estate investment trusts for federal income tax purposes (“REITs”) or investment vehicles treated similarly as private REITs for tax purposes (collectively, the “Investment Funds”) as described further below (see “Taxes”), or (ii) sub-advise a specified portion of the Fund's assets to be invested in domestic and international publicly traded real estate securities, such as common and preferred stock of publicly listed REITs, commercial mortgage-backed securities, commercial real estate collateralized debt obligations, and senior unsecured
14
VERSUS CAPITAL MULTI-MANAGER REAL ESTATE INCOME FUND LC
Notes to Financial Statements
September 30, 2017
debt of REITs (referred to hereafter as the “Real Estate Securities” and together with the Investment Funds as “Real Estate-Related Investments”). Fees paid to investment managers are based on the average net assets of the fund at an annual rate between 0.05% and 0.08%. The Fund incurred fees to the Investment Managers of approximately $1,047,000 for the six months ended September 30, 2017.
Foreside Funds Distributors LLC, (the “Distributor”) serves as the Fund's statutory underwriter and facilitates the distribution of Shares. For its services, the Fund pays to the Distributor a Distribution Fee that accrues on the basis of the average daily NAV of the Fund's F-Class shares only, at an annual rate of 0.30%.
The Fund pays each Independent Director a fee per annum. In addition, the Fund reimburses each of the Independent Directors for travel and other expenses incurred in connection with attendance at meetings; provided, however, that if more than three board meetings require out-of-town travel time, such additional travel time may be billed at the rate set forth in the Board of Directors Retainer Agreement or as amended by action of the Board from time to time. Each of the Independent Directors is a member of the Audit Committee and/or Nominating Committee. The Chairman of the Audit Committee receives an additional fee per annum. Other members of the Board and executive officers of the Fund receive no compensation.
NOTE 4. INVESTMENT TRANSACTIONS
For the six months ended September 30, 2017, the purchases and sales of investment securities, excluding short-term investments and U.S. Government securities were approximately $485,731,000 and $55,931,000, respectively.
NOTE 5. REPURCHASE OFFERS
The Fund has a fundamental policy that it will make quarterly Repurchase Offers for no less than 5% of its shares outstanding at NAV, unless suspended or postponed in accordance with regulatory requirements (as discussed below), and that each quarterly repurchase pricing shall occur no later than the 14th day after the Repurchase Request Deadline (defined below), or the next Business Day if the 14th is not a Business Day (each a “Repurchase Pricing Date”). In general, the Repurchase Pricing Date occurs on the Repurchase Payment Deadline and settlement occurs 3 days later. Shares will be repurchased at the NAV per Share determined as of the close of regular trading on the NYSE on the Repurchase Pricing Date. Repurchase tenders made during the six months ended September 30, 2017 cumulatively were approximately $42,281,000.
Shareholders will be notified in writing about each quarterly Repurchase Offer, how they may request that the Fund repurchase their shares and the Repurchase Request Deadline, which is the date the Repurchase Offer ends. The Repurchase Request Deadline will be determined by the Board. The time between the notification to shareholders and the Repurchase Request Deadline may vary from no more than 42 days to no less than 21 days. The repurchase price of the shares will be the NAV as of the close of regular trading on the NYSE on the Repurchase Pricing Date. Payment pursuant to the repurchase will be made to the shareholders within seven days of the Repurchase Pricing Date (the “Repurchase Payment Deadline”). Certain authorized institutions, including custodians and clearing platforms, may set times prior to the Repurchase Request Deadline by which they must receive all documentation they may require relating to repurchase requests and may require additional information. In addition, certain clearing houses may allow / require you to submit your tender request only on the Repurchase Request Deadline.
Shares tendered for repurchase by shareholders prior to any Repurchase Request Deadline will be repurchased subject to the aggregate repurchase amounts established for that Repurchase Request Deadline. Repurchase proceeds, net of any repurchase fee, will be paid to shareholders prior to the Repurchase Payment Deadline.
The Board, or a committee thereof, in its sole discretion, will determine the number of shares that the Fund will offer to repurchase (the “Repurchase Offer Amount”) for a given Repurchase Request Deadline. The Repurchase Offer Amount, however, will be no less than 5% of the total number of shares outstanding on the Repurchase Request Deadline.
If Share repurchase requests exceed the number of Shares in the Fund's Repurchase Offer, the Fund may, in its sole discretion (i) repurchase the tendered Shares on a pro rata basis or (ii) increase the number of Shares to be repurchased by up to 2.0% of the Fund's outstanding Shares. As a result, tendering shareholders may not have all of their tendered Shares repurchased by the Fund.
A shareholder who tenders some, but not all, of such shareholder's Shares for repurchase as of a Repurchase Pricing Date will be required to maintain a minimum aggregate NAV of shares equal to $2,000. The Fund reserves the right to reduce the amount to be repurchased from a shareholder as of a Repurchase Pricing Date so that the required minimum aggregate NAV of shares is maintained. Upon request by a shareholder, the Board may permit a shareholder to cancel a shareholder's tender of Shares, if such cancellation is determined by the Board to be in the best interest of the Fund.
A shareholder who tenders for repurchase such shareholder's Shares during the first year following such shareholder's initial capital contribution will be subject to a fee of 2.00% of the value of the F-Shares repurchased by the Fund, payable to the Fund (an “Early Withdrawal Charge”). The Board may, in certain limited instances where the Board has determined that the remaining shareholders will not be materially and adversely affected or prejudiced, waive the Early Withdrawal Charge. Any such waiver does not imply that the Early Withdrawal Charge will be waived at any time in the future or that such Early Withdrawal Charge will be waived for any other shareholder.
15
VERSUS CAPITAL MULTI-MANAGER REAL ESTATE INCOME FUND LC
Notes to Financial Statements
September 30, 2017
NOTE 6. LINE OF CREDIT
The Fund has entered into a secured $130,000,000 line of credit through ZB, N.A. dba Vectra Bank Colorado (“Vectra”) for the purpose of liquidity subject to the limitations of the 1940 Act for borrowings (the “LOC”). Borrowings, if any, under the Vectra arrangement bear interest at the one month LIBOR/Swap Rate plus 150 basis points at the time of borrowing. In addition, the Fund incurs a Non-Utilization Fee equal to 38 basis points on the portion of the LOC not being used. The Fund expensed loan fees of approximately $160,000 during the six months ended September 30, 2017. As collateral for the lines of credit, the Fund would grant Vectra a first position security interest in and lien on securities held by the Fund in the collateral account. As of September 30, 2017, the Fund had not utilized this line of credit.
NOTE 7. 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 April 18, 2017.
As of September 30, 2017, 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 |
111,329 |
$ 103,952 |
$ 109,482 |
$ 20,000 |
6.0% |
45 Days |
Class B Shares |
7/2/2013 |
37,805 |
35,298 |
37,178 |
— |
2.0% |
45 Days |
AEW Value Investors U.S. LP |
8/17/17 |
546,875 |
547 |
547 |
— |
0.0% |
30 Days |
Barings Core Property Funds LP |
9/30/13 |
562,619 |
66,625 |
70,952 |
— |
3.9% |
30 Days |
Clarion Lion Properties Fund LLC |
7/1/2013 |
130,862 |
171,180 |
184,453 |
— |
10.0% |
90 Days |
Harrison Street Core Property Fund |
8/13/2014 |
30,915 |
38,000 |
40,748 |
50,000 |
2.2% |
45 Days |
Heitman America Real Estate LP |
4/1/2017 |
98,704 |
109,887 |
117,083 |
69,820 |
6.3% |
90 Days |
Heitman Core Real Estate Debt Income Trust LP |
12/2/2014 |
7,734 |
7,875 |
7,875 |
92,120 |
0.4% |
90 Days |
Invesco Core Real Estate USA |
12/31/2013 |
489 |
79,500 |
85,054 |
5,000 |
4.6% |
45 Days |
Invesco Real Estate Asia Fund (Cayman) |
|
|
|
|
|
|
|
Unit Trust - Class A Units (d) |
9/30/2014 |
486,961 |
60,000 |
61,576 |
25,000 |
3.4% |
45 Days |
J.P. Morgan U.S. Real Estate |
|
|
|
|
|
|
|
Income and Growth Domestic LP |
12/31/2013 |
16,293,493 |
22,133 |
24,114 |
— |
1.3% |
60 Days |
LaSalle Property Fund LP, |
|
|
|
|
|
|
|
Class A Shares |
8/31/2015 |
66,094 |
99,600 |
103,995 |
46,840 |
5.6% |
45 Days |
Class B Shares |
8/31/2015 |
24,628 |
37,101 |
38,751 |
— |
2.1% |
45 Days |
Mesa Core Lending Fund LP, |
|
|
|
|
|
|
|
Class A Shares |
7/15/2015 |
29,840 |
31,067 |
31,456 |
49,140 |
1.7% |
30 Days |
Met Life Commercial Mortgage |
|
|
|
|
|
|
|
Income Fund (d) |
10/1/2015 |
32,793 |
33,315 |
33,451 |
16,780 |
1.8% |
90 Days |
RREEF America REIT II, LP |
9/30/2013 |
1,343,646 |
148,070 |
157,973 |
36,130 |
8.6% |
45 Days |
Trumbull Property Fund, LP |
9/30/2013 |
7,523 |
80,000 |
81,289 |
5,000 |
4.4% |
60 Days |
Trumbull Property Income Fund, LP |
4/1/2016 |
4,911 |
57,500 |
59,196 |
50,000 |
3.2% |
60 Days |
US Government Building, LP |
5/1/2014 |
(e) |
43,000 |
46,440 |
50,000 |
2.5% |
60 Days |
Total |
|
|
$ 1,224,650 |
$ 1,291,613 |
$ 540,250 |
70.0% |
|
(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 10/02/2017.
(e) Partnership is not designated in units. The Fund owns approximately 2.5% at September 30, 2017
16
VERSUS CAPITAL MULTI-MANAGER REAL ESTATE INCOME FUND LC
Notes to Financial Statements
September 30, 2017
NOTE 8. SUBSEQUENT EVENTS
On October 12, 2017, the Fund increased its line of credit with ZB, N.A. dba Vectra Bank Colorado to $130 million facility (see Note 6). Management has evaluated the impact of all subsequent events on the Fund through the date the financial statements were issued and has determined that there are no additional subsequent events to report.
17
VERSUS CAPITAL MULTI-MANAGER REAL ESTATE INCOME FUND LC
Notes to Financial Statements
Additional Information (Unaudited)
SECURITY PROXY VOTING
The Fund’s policy is to vote its proxies in accordance with the recommendations of management. A description of the policies and procedures that the Fund uses to determine how to vote proxies relating to portfolio securities is available without charge upon request by calling (866) 280-1952 and on the SEC’s website at http://www.sec.gov.
PORTFOLIO HOLDINGS
The Fund will file its complete schedule of portfolio holdings with the SEC for the first and third quarters of each fiscal year on Form N-Q within 60 days after the end of the period. Copies of the Fund’s Forms N-Q will be available without a charge, upon request, by contacting the Fund at (866) 459-2772 and on the SEC’s website at http://www.sec.gov. You may also review and copy Form N-Q at the SEC’s Public Reference Room in Washington, D.C. For more information about the operation of the Public Reference Room, please call the SEC at 800-SEC-0330.
DIVIDEND REINVESTMENT PLAN
All distributions paid by the Fund will be reinvested in additional Shares of the Fund unless a shareholder “opts out” (elects not to reinvest in Shares), pursuant to the Fund's Dividend Reinvestment Policy. A shareholder may elect initially not to reinvest by indicating that choice on a shareholder certification. Thereafter, a shareholder is free to change his, her or its election on a quarterly basis by contacting BNY Mellon (or, alternatively, by contacting the Selling Agent that sold such shareholder his, her or its Shares, who will inform the Fund). Shares purchased by reinvestment will be issued at their NAV on the ex-dividend date. There is no sales load or other charge for reinvestment. The Fund reserves the right to suspend or limit at any time the ability of shareholders to reinvest distributions. The automatic reinvestment of dividends and capital gain distributions does not relieve participants of any U.S. federal income tax that may be payable (or required to be withheld) on such distributions.
Item 2. Code of Ethics.
Not applicable.
Item 3. Audit Committee Financial Expert.
Not applicable.
Item 4. Principal Accountant Fees and Services.
Not applicable.
Item 5. Audit Committee of Listed Registrants.
Not applicable.
Item 6. Investments.
(a) Schedule of Investments in securities of unaffiliated issuers as of the close of the reporting period is included as part of the report to shareholders filed under Item 1 of this form.
(b) Not applicable.
Item 7. Disclosure of Proxy Voting Policies and Procedures for Closed-End Management Investment Companies.
Not applicable.
Item 8. Portfolio Managers of Closed-End Management Investment Companies.
(a)(1) Identification of Portfolio Manager(s) or Management Team Members and Description of Role of Portfolio Manager(s) or Management Team Members
Casey Frazier – Chief Investment Officer – Since Inception
(a)(2) Other Accounts Managed by Portfolio Manager(s) or Management Team Member and Potential Conflicts of Interest
Other Accounts Managed by Portfolio Manager(s) or Management Team Member
Name of Portfolio Manager or Team Member |
Type of Accounts |
Total No. of Accounts Managed |
Total Assets (in 1,000,000) |
No. of Accounts where Advisory Fee is Based on Performance |
Total Assets in Accounts where Advisory Fee is Based on Performance |
Casey Frazier |
Registered Investment Companies: |
1 |
$430 |
0 |
N/A |
Casey Frazier |
Other Pooled Investment Vehicles: |
6 |
$2 |
0 |
N/A |
|
Other Accounts: |
0 |
N/A |
0 |
N/A |
Potential Conflicts of Interests
The Adviser, the asset managers managing Institutional Investment Funds, the Securities Sub-Advisers and their respective affiliates manage the assets of and/or provide advice to registered investment companies, Institutional Investment Funds and individual accounts (collectively, “Institutional Clients”), as well as to the Fund. The Fund has no interest in the activities of the other Institutional Clients. In addition, the Adviser, the institutional asset managers managing Institutional Investment Funds, the Securities Sub-Advisers, and their respective affiliates, and any of their respective officers, directors, partners, members or employees, may invest for their own accounts in various investment opportunities, including in investment funds, private investment companies or other investment vehicles in which the Fund will have no interest. However, there are no affiliations or arrangements between the Institutional Clients, the Institutional Investment Funds, the managers of such funds and the Securities Sub-Advisers.
(a)(3) Compensation Structure of Portfolio Manager(s) or Management Team Members
CIO receives a fixed salary.
(a)(4) Disclosure of Securities Ownership
None
Item 9. Purchases of Equity Securities by Closed-End Management Investment Company and Affiliated Purchasers.
Not applicable.
Item 10. Submission of Matters to a Vote of Security Holders.
There have been no material changes to the procedures by which the shareholders may recommend nominees to the registrant’s board of directors, where those changes were implemented after the registrant last provided disclosure in response to the requirements of Item 407(c)(2)(iv) of Regulation S-K (17 CFR 229.407) (as required by Item 22(b)(15) of Schedule 14A (17 CFR 240.14a-101)), or this Item.
Item 11. 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 has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting.
Item 12. Disclosure of Securities Lending Activities for Closed-End Management Investment Companies.
Not applicable.
Item 13. Exhibits.
(a)(1) Not applicable.
(a)(2) Certifications pursuant to Rule 30a-2(a) under the 1940 Act and Section 302 of the Sarbanes-Oxley Act of 2002 are attached hereto.
(a)(3) Not applicable.
(a)(4) Not applicable.
(b) Certifications pursuant to Rule 30a-2(b) under the 19340 Act and Section 906 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 11/28/2017
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 11/28/2017
By (Signature and Title)* /s/ John Gordon
John Gordon, Chief
Financial Officer
(principal financial officer)
Date 11/28/2017
* Print the name and title of each signing officer under his or her signature.
Certification Pursuant to Rule 30a-2(a) under the 1940 Act and Section 302 of the Sarbanes-Oxley Act
I, Mark D. Quam, certify that:
1. I have reviewed this report on Form N-CSR of Versus Capital Multi-Manager Real Estate Income Fund LLC;
2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;
3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations, changes in net assets, and cash flows (if the financial statements are required to include a statement of cash flows) of the registrant as of, and for, the periods presented in this report;
4. The registrant's other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Rule 30a-3(c) under the Investment Company Act of 1940) and internal control over financial reporting (as defined in Rule 30a-3(d) under the Investment Company Act of 1940) for the registrant and have:
(a) Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;
(b) Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;
(c) Evaluated the effectiveness of the registrant's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of a date within 90 days prior to the filing date of this report based on such evaluation; and
(d) Disclosed in this report any change in the registrant's internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter that has materially affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting; and
5. The registrant's other certifying officer(s) and I have disclosed to the registrant's auditors and the audit committee of the registrant's board of directors (or persons performing the equivalent functions):
(a) All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant's ability to record, process, summarize, and report financial information; and
(b) Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal control over financial reporting.
Date: 11/28/2017 /s/ Mark D. Quam
Mark D. Quam, Chief Executive Officer
(principal executive officer)
Certification Pursuant to Rule 30a-2(a) under the 1940 Act and Section 302 of the Sarbanes-Oxley Act
I, John Gordon, certify that:
1. I have reviewed this report on Form N-CSR of Versus Capital Multi-Manager Real Estate Income Fund LLC;
2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;
3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations, changes in net assets, and cash flows (if the financial statements are required to include a statement of cash flows) of the registrant as of, and for, the periods presented in this report;
4. The registrant's other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Rule 30a-3(c) under the Investment Company Act of 1940) and internal control over financial reporting (as defined in Rule 30a-3(d) under the Investment Company Act of 1940) for the registrant and have:
(a) Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;
(b) Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;
(a) Evaluated the effectiveness of the registrant's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of a date within 90 days prior to the filing date of this report based on such evaluation; and
(d) Disclosed in this report any change in the registrant's internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter that has materially affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting; and
5. The registrant's other certifying officer(s) and I have disclosed to the registrant's auditors and the audit committee of the registrant's board of directors (or persons performing the equivalent functions):
(a) All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant's ability to record, process, summarize, and report financial information; and
(b) Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal control over financial reporting.
Date: 11/28/2017 /s/ John Gordon
John Gordon, Chief Financial Officer
(principal financial officer)
Certification Pursuant to Rule
30a-2(b) under the 1940 Act and Section 906 of the Sarbanes-Oxley Act
I, Mark D. Quam, Chief Executive Officer of Versus Capital Multi-Manager Real Estate Income Fund LLC (the “Registrant”), certify that:
1. The Form N-CSR of the Registrant (the “Report”) fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934, as amended; and
2. The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Registrant.
Date: 11/28/2017 /s/ Mark D. Quam
Mark D. Quam, Chief Executive Officer
(principal executive officer)
I, John Gordon, Chief Financial Officer of Versus Capital Multi-Manager Real Estate Income Fund LLC (the “Registrant”), certify that:
1. The Form N-CSR of the Registrant (the “Report”) fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934, as amended; and
2. The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Registrant.
Date: 11/28/2017 /s/ John Gordon
John Gordon, Chief Financial Officer
(principal financial officer)
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