CBRE CLARION GLOBAL REAL ESTATE INCOME FUND

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM N-Q

QUARTERLY SCHEDULE OF PORTFOLIO HOLDINGS OF REGISTERED

MANAGEMENT INVESTMENT COMPANY

Investment Company Act file number            811-21465                                 

CBRE Clarion Global Real Estate Income Fund

 

(Exact name of registrant as specified in charter)

201 King Of Prussia Road, Suite 600

Radnor, PA 19087

 

(Address of principal executive offices) (Zip code)

T. Ritson Ferguson, President and Chief Executive Officer

CBRE Clarion Global Real Estate Income Fund

201 King Of Prussia Road, Suite 600

Radnor, PA 19087

 

(Name and address of agent for service)

Registrant’s telephone number, including area code:      1-877-711-4272        

Date of fiscal year end:      December 31        

Date of reporting period:  September 30, 2015

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

A registrant is required to disclose the information specified by Form N-Q, and the Commission will make this information public. A registrant is not required to respond to the collection of information contained in Form N-Q unless the Form displays a currently valid Office of Management and Budget (“OMB”) control number. Please direct comments concerning the accuracy of the information collection burden estimate and any suggestions for reducing the burden to the Secretary, Securities and Exchange Commission, 100 F Street, NE, Washington, DC 20549. The OMB has reviewed this collection of information under the clearance requirements of 44 U.S.C. § 3507.


Item 1. Schedule of Investments.

Attached hereto.


CBRE Clarion Global Real Estate Income Fund

Portfolio of Investments (unaudited)

September 30, 2015

 

Shares

    

 

   Market
Value ($)
 
   Real Estate Securities*- 111.3%   
   Common Stock - 101.4%   
   Australia - 5.2%   
  11,351,100       Federation Centres    $ 21,841,394   
  11,628,821       Scentre Group      31,848,731   
     

 

 

 
        53,690,125   
     

 

 

 
   Canada - 5.3%   
  1,856,000       H&R Real Estate Investment Trust      28,476,109   
  2,122,900       InnVest Real Estate Investment Trust      7,885,464   
  620,900       RioCan Real Estate Investment Trust      11,795,572   
  310,100       Smart Real Estate Investment Trust      7,073,065   
     

 

 

 
        55,230,210   
     

 

 

 
   France - 6.9%   
  67,789       Altarea      12,371,954   
  549,706       Klepierre      24,845,032   
  135,673       Unibail-Rodamco SE      35,029,212   
     

 

 

 
        72,246,198   
     

 

 

 
   Germany - 0.7%   
  82,809       LEG Immobilien AG (a)      6,822,665   
     

 

 

 
   Hong Kong - 2.1%   
  1,717,000       Sun Hung Kai Properties Ltd.      22,265,469   
     

 

 

 
   Japan - 8.3%   
  18,485       Japan Retail Fund Investment Corp.      35,746,053   
  1,034,800       Mitsui Fudosan Co., Ltd.      28,193,148   
  711,400       Sumitomo Realty & Development Co., Ltd.      22,518,410   
     

 

 

 
        86,457,611   
     

 

 

 
   Mexico - 0.9%   
  6,043,300       Prologis Property Mexico SA de CV (a)      9,268,171   
     

 

 

 
   Netherlands - 3.4%   
  534,659       Eurocommercial Properties NV      23,287,639   
  277,161       Vastned Retail NV      11,982,320   
     

 

 

 
        35,269,959   
     

 

 

 
   Singapore - 3.4%   
  6,735,000       Ascendas Real Estate Investment Trust      11,083,691   
  20,892,000       CapitaLand Commercial Trust      19,688,642   
  4,390,200       Suntec Real Estate Investment Trust      4,631,338   
     

 

 

 
        35,403,671   
     

 

 

 
   United Kingdom - 8.7%   
  4,182,800       British Land Co. Plc      53,126,486   
  1,263,400       Hammerson Plc      11,932,138   
  3,964,910       SEGRO Plc      25,795,113   
     

 

 

 
        90,853,737   
     

 

 

 

 

See previously submitted notes to financial statements for the semi-annual period ended June 30, 2015.


CBRE Clarion Global Real Estate Income Fund

Portfolio of Investments (unaudited) (concluded)

September 30, 2015

 

Shares

    

 

   Market
Value ($)
 
   United States - 56.5%   
  243,800       Boston Properties, Inc.    $ 28,865,920   
  1,825,853       Brandywine Realty Trust      22,494,509   
  1,395,679       CBL & Associates Properties, Inc.      19,190,586   
  366,500       DCT Industrial Trust, Inc.      12,336,390   
  354,400       Digital Realty Trust, Inc.      23,149,408   
  415,300       Douglas Emmett, Inc.      11,927,416   
  668,000       Equity Residential      50,180,160   
  58,500       Essex Property Trust, Inc.      13,070,070   
  1,519,769       General Growth Properties, Inc.      39,468,401   
  448,500       Healthcare Realty Trust, Inc.      11,145,225   
  280,300       Highwoods Properties, Inc.      10,861,625   
  972,700       Host Hotels & Resorts, Inc.      15,378,387   
  945,900       Kimco Realty Corp.      23,108,337   
  381,400       LaSalle Hotel Properties      10,827,946   
  1,703,200       Liberty Property Trust      53,667,832   
  436,600       Prologis, Inc.      16,983,740   
  320,600       Simon Property Group, Inc.      58,900,632   
  262,600       SL Green Realty Corp.      28,402,816   
  3,033,987       Spirit Realty Capital, Inc.      27,730,641   
  826,300       UDR, Inc.      28,490,824   
  3,765,300       VEREIT, Inc.      29,068,116   
  593,415       Welltower, Inc.      40,186,064   
  1,101,900       WP GLIMCHER, Inc.      12,848,154   
     

 

 

 
        588,283,199   
     

 

 

 
   Total Common Stock
(cost $1,114,627,396)
     1,055,791,015   
     

 

 

 
   Preferred Stock - 9.9%   
   United States - 9.9%   
  100,000       CBL & Associates Properties, Inc., Series D      2,503,000   
  320,000       Digital Realty Trust, Inc., Series E      8,163,200   
  1,050,000       EPR Properties, Series F      25,882,500   
  481,300       General Growth Properties, Inc., Series A      11,676,338   
  150,000       iStar, Inc., Series F      3,526,500   
  765,000       iStar, Inc., Series I      17,625,600   
  400,000       LaSalle Hotel Properties, Series I      10,060,000   
  268,000       Pebblebrook Hotel Trust, Series A      6,804,520   
  272,000       Pennsylvania Real Estate Investment Trust, Series B      6,895,200   
  120,000       Taubman Centers, Inc., Series K      2,983,200   
  280,000       Urstadt Biddle Properties, Inc., Series F      7,364,000   
     

 

 

 
   Total Preferred Stock
(cost $92,909,339)
     103,484,058   
     

 

 

 
   Total Investments - 111.3%
(cost $1,207,536,735)
     1,159,275,073   
  

 

  

 

 

 
   Liabilities in Excess of Other Assets - (11.3)%      (117,711,670
  

 

  

 

 

 
   Net Assets - 100.0%    $ 1,041,563,403   
  

 

  

 

 

 

 

* Include U.S. Real Estate Investment Trusts (“REIT”) and Real Estate Operating Companies (“REOC”) as well as entities similarly formed under the laws of non-U.S. Countries.
(a) Non-income producing security.

 

See previously submitted notes to financial statements for the semi-annual period ended June 30, 2015.


Notes to Portfolio of Investments (unaudited)

(A) Fair Value

GAAP provides guidance on fair value measurements. In accordance with the standard, fair value is defined as the price that the Trust would receive to sell an investment or pay to transfer a liability in a timely transaction with an independent buyer in the principal market, or in the absence of a principal market the most advantageous market for the investment or liability. It establishes a single definition of fair value, creates a three-tier hierarchy as a framework for measuring fair value based on inputs used to value the Trust’s investments, and requires additional disclosure about fair value. The hierarchy of inputs is summarized below:

 

•  Level 1 — unadjusted quoted prices in active markets for identical investments

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

•  Level 3 — significant unobservable inputs (including the Trust’s own assumptions in determining the fair value of investments)

For Level 1 inputs, the Trust uses unadjusted quoted prices in active markets for assets or liabilities with sufficient frequency and volume to provide pricing information as the most reliable evidence of fair value.

The Trust’s Level 2 valuation techniques include inputs other than quoted prices within Level 1 that are observable for an asset or liability, either directly or indirectly. Level 2 observable inputs may include quoted prices for similar assets and liabilities in active markets or quoted prices for identical or similar assets or liabilities in markets that are not active in which there are few transactions, the prices are not current, or price quotations vary substantially over time or among market participants. Inputs that are observable for the asset or liability in Level 2 include such factors as interest rates, yield curves, prepayment speeds, credit risk, and default rates for similar liabilities.

For Level 3 valuation techniques, the Trust uses unobservable inputs that reflect assumptions market participants would be expected to use in pricing the asset or liability. Unobservable inputs are used to measure fair value to the extent that observable inputs are not available and are developed based on the best information available under the circumstances. In developing unobservable inputs, market participant assumptions are used if they are reasonably available without undue cost and effort.

The inputs or methodology used for valuing securities are not necessarily an indication of the risk associated with investing in those securities. The following is a summary of the inputs used as of September 30, 2015 in valuing the Trust’s investments carried at fair value:

 

     Level 1      Level 2      Level 3      Total  

Investments in Real Estate Securities

           

Common Stocks

           

Australia

   $ 53,690,125       $       $     –       $ 53,690,125   

Canada

     55,230,210                         55,230,210   

France

     72,246,198                         72,246,198   

Germany

     6,822,665                         6,822,665   

Hong Kong

     22,265,469                         22,265,469   

Japan

     86,457,611                         86,457,611   

Mexico

     9,268,171                         9,268,171   

Netherlands

     35,269,959                         35,269,959   

Singapore

     35,403,671                         35,403,671   

United Kingdom

     90,853,737                         90,853,737   

United States

     588,283,199                         588,283,199   
  

 

 

    

 

 

    

 

 

    

 

 

 

Total Common Stocks

     1,055,791,015                         1,055,791,015   
  

 

 

    

 

 

    

 

 

    

 

 

 

Preferred Stocks

           

United States

     96,120,058         7,364,000                 103,484,058   
  

 

 

    

 

 

    

 

 

    

 

 

 

Total Investment in Real Estate Securities

   $ 1,151,911,073       $ 7,364,000       $       $ 1,159,275,073   
  

 

 

    

 

 

    

 

 

    

 

 

 

 

See previously submitted notes to financial statements for the semi-annual period ended June 30, 2015.


Notes to Portfolio of Investments (unaudited) (continued)

 

The primary third party pricing vendor for the Trust’s listed preferred stock investments is FT Interactive Data (“IDC”). When available, the Trust will obtain a closing exchange price to value the preferred stock investments and, in such instances, the investment will be classified as Level 1 since an unadjusted quoted price was utilized. When a closing price is not available for the listed preferred stock investments, IDC will produce an evaluated mean price (midpoint between the bid and the ask evaluation) and such investments will be classified as Level 2 since other observable inputs were used in the valuation. Factors used in the IDC evaluation include trading activity, the presence of a two-sided market, and other relevant market data.

The Trust’s policy is to recognize transfers in and transfers out at the fair value as of the beginning of the period. The portfolio may hold securities which are periodically fair valued in accordance with the Trust’s fair value procedures. This may result in movements between Levels 1, 2 and 3 throughout the period. The fair value of Level 2 and Level 1 investments at December 31, 2014 was $25,421,505 and $1,251,577,025, respectively. $7,280,000 was transferred out of Level 1 into Level 2 during the period ended September 30, 2015 due to the unavailability of significant observable pricing inputs. $25,421,505 was transferred out of Level 2 into Level 1 during the period ended September 30, 2015 due to the availability of significant observable pricing inputs. Pursuant to the Trust’s fair value procedures noted previously, equity securities (including exchange traded securities and open-end regulated investment companies) and exchange traded derivatives (i.e. futures contracts and options) are generally categorized as Level 1 securities in the fair value hierarchy. Fixed income securities, non-exchange traded derivatives and money market instruments are generally categorized as Level 2 securities in the fair value hierarchy. Investments for which there are no such quotations, or for which quotations do not appear reliable, are valued at fair value as determined in accordance with procedures established by and under the general supervision of the Trustees. These valuations are typically categorized as Level 2 or Level 3 securities in the fair value hierarchy.

For the quarter ended September 30, 2015, there have been no significant changes to the Trust’s fair valuation methodology.

(B) Federal Income Taxes

Information on the tax components of net assets as of September 30, 2015 is as follows:

 

Cost of
Investments

   Gross
Unrealized
Appreciation
   Gross
Unrealized
Depreciation
  Net Unrealized
Depreciation
on Investments
$1,255,169,987    $45,227,186    $(141,122,100)   $(95,894,914)

 

See previously submitted notes to financial statements for the semi-annual period ended June 30, 2015.


Item 2. Controls and Procedures.

 

  (a)

The Trust’s principal executive officer and principal financial officer have evaluated the Trust’s disclosure controls and procedures within 90 days of this filing and have concluded that the Trust’s disclosure controls and procedures were effective, as of that date, in ensuring that information required to be disclosed by the Trust in this Form N-Q was recorded, processed, summarized, and reported timely.

 

  (b)

The Trust’s principal executive officer and principal financial officer are aware of no changes in the Trust’s internal control over financial reporting that occurred during the Trust’s most recent quarter that has materially affected, or is reasonably likely to materially affect, the Trust’s internal control over financial reporting.

Item 3. Exhibits.

Certification of chief executive officer and chief financial officer pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.


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)                         CBRE Clarion Global Real Estate Income Fund                

By (Signature and Title)*        /s/ T. Ritson Ferguson                                                    

                                                  T. Ritson Ferguson

                                                  President and Chief Executive Officer

Date        11/20/2015                                                                                                         

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/ T. Ritson Ferguson                                                    

                                                  T. Ritson Ferguson

                                                  President and Chief Executive Officer

Date        11/20/2015                                                                                                         

By (Signature and Title)*        /s/ Jonathan A. Blome                                                    

                                                  Jonathan A. Blome

                                                  Chief Financial Officer

Date        11/20/2015                                                                                                         

* Print the name and title of each signing officer under his or her signature.