N-Q

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, 2017

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

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


Item 1. Schedule of Investments.

Attached hereto.


CBRE Clarion Global Real Estate Income Fund

Portfolio of Investments (unaudited)

September 30, 2017

 

 

 

 

 

 

 
Shares      

 Market

Value ($)

 

 

 

 

 

 

 

 
  Real Estate Securities*- 113.3%  
  Common Stock - 90.4%  
  Australia - 7.3%  

6,448,626

  Aventus Retail Property Fund Ltd.   $ 11,435,403      

2,314,868

  Dexus     17,255,425      

  12,859,732

  Mirvac Group     23,106,983      

3,688,725

  Scentre Group     11,374,823      

3,500,000

  Stockland     11,808,979      

 

 

 

 

 

 

 
      74,981,613      
   

 

 

 
  Canada - 3.3%  

648,700

  H&R Real Estate Investment Trust     11,172,588      

457,200

  RioCan Real Estate Investment Trust     8,748,088      

585,600

  Smart Real Estate Investment Trust     13,784,883      

 

 

 

 

 

 

 
      33,705,559      
   

 

 

 
  France - 4.9%  

72,903

  Altarea     16,982,928      

85,927

  Gecina SA     13,937,166      

503,212

  Klepierre SA     19,756,527      

 

 

 

 

 

 

 
      50,676,621      
   

 

 

 
  Germany - 5.2%  

262,460

  ADO Properties SA     12,974,360      

3,246,720

  Aroundtown SA     23,221,536      

398,559

  Vonovia SE     16,962,344      

 

 

 

 

 

 

 
      53,158,240      
   

 

 

 
  Hong Kong - 6.8%  

2,651,500

  CK Asset Holdings Ltd.     21,946,750      

8,877,000

  Hang Lung Properties Ltd.     21,071,041      

1,490,500

  Link REIT     12,079,410      

934,000

  Sun Hung Kai Properties Ltd.     15,174,645      

 

 

 

 

 

 

 
      70,271,846      
   

 

 

 
  Ireland - 1.2%  

6,662,164

  Hibernia REIT PLC     12,050,290      

 

 

 

 

 

 

 
  Japan - 6.6%  

1,626,900

  Mitsui Fudosan Co., Ltd.     35,265,278      

2,320

  Nippon Prologis REIT, Inc.     4,886,705      

570,700

  Nomura Real Estate Holdings, Inc.     12,157,763      

10,382

  Orix JREIT, Inc.     14,895,332      

33,000

  Sumitomo Realty & Development Co., Ltd.     998,223      

 

 

 

 

 

 

 
      68,203,301      
   

 

 

 

 

 

 

 

 

 

 
Shares      

 Market

Value ($)

 

 

 

 

 

 

 

 
  Mexico - 1.2%  

6,043,300

  Prologis Property Mexico SA de CV   $  11,987,261      

 

 

 

 

 

 

 
  Netherlands - 0.7%  

159,983

  Eurocommercial Properties NV     6,842,789      

 

 

 

 

 

 

 
  Singapore - 2.5%  

4,714,100

  CapitaLand Commercial Trust     5,745,304      

4,600,000

  CapitaLand Ltd.     12,127,103      

8,487,600

  Mapletree Logistics Trust     7,750,377      

 

 

 

 

 

 

 
      25,622,784      
   

 

 

 
  Spain - 2.0%  

312,633

  Axiare Patrimonio Socimi SA     6,390,289      

258,072

  Inmobiliaria Colonial Socimi SA     2,560,947      

837,143

  Merlin Properties Socimi SA     11,598,932      

 

 

 

 

 

 

 
      20,550,168      
   

 

 

 
  Sweden - 0.8%  

520,773

  Castellum AB     8,153,876      

 

 

 

 

 

 

 
  United Kingdom - 6.4%  

  2,208,137

  British Land Co. PLC (The)     17,834,530      

47,626

  Derwent London PLC     1,785,294      

6,453,481

  Segro PLC     46,408,548      

17,642

  UNITE Group PLC (The)     162,727      

 

 

 

 

 

 

 
      66,191,099      
   

 

 

 
  United States - 41.5%  

60,100

  AvalonBay Communities, Inc.     10,723,042      

96,500

  Boston Properties, Inc. (a)     11,857,920      

448,207

  Brixmor Property Group, Inc.     8,426,291      

440,200

  CubeSmart     11,427,592      

18,600

  Equinix, Inc. (a)     8,301,180      

481,800

  Equity Residential     31,765,074      

1,508,969

  GGP, Inc. (a)     31,341,286      

944,076

  Healthcare Trust of America, Inc., Class A     28,133,465      

767,121

  Hudson Pacific Properties, Inc.     25,721,567      

298,448

  Iron Mountain, Inc.     11,609,627      

649,600

  Kimco Realty Corp.     12,699,680      

209,827

  Liberty Property Trust     8,615,497      

197,400

  Macerich Co. (The) (a)     10,851,078      

566,634

  MGM Growth Properties LLC, Class A     17,118,013      

357,600

  Omega Healthcare Investors, Inc.     11,411,016      
 

 

See previously submitted notes to financial statements for the semi-annual period ended June 30, 2017.


CBRE Clarion Global Real Estate Income Fund

Portfolio of Investments (unaudited) continued

 

 

 

 

 

 

 

 

Shares      

 Market

Value ($)

 

 

 

 

 

 

 

  United States (continued)  

893,400

  Park Hotels & Resorts, Inc.   $ 24,622,104      

111,900

  Prologis, Inc. (a)     7,101,174      

109,600

  QTS Realty Trust, Inc., Class A     5,738,656      

146,015

  Simon Property Group, Inc. (a)     23,509,875      

159,713

  SL Green Realty Corp. (a)     16,182,121      

398,153

  Starwood Waypoint Homes     14,480,825      

271,000

  Sun Communities, Inc.     23,219,280      

172,376

  Ventas, Inc.     11,226,849      

  3,002,300

  VEREIT, Inc.     24,889,067      

593,500

  Weingarten Realty Investors     18,837,690      

242,300

  Welltower, Inc.     17,028,844      

 

 

 

 

 

 

 

      426,838,813      
   

 

 

 

 

Total Common Stock

 

(cost $946,398,888)

    929,234,260      

 

 

 

 

 

 

 

  Preferred Stock - 22.9%  
  United States - 22.9%  

525,265

  American Homes 4 Rent, Series D     14,497,314      

100,000

  CBL & Associates Properties, Inc., Series D     2,444,000      

369,474

  DDR Corp., Series J     9,259,018      

500,000

  Digital Realty Trust, Inc., Series C (b)     14,115,000      

245,403

  Digital Realty Trust, Inc., Series J (b)     6,154,707      

1,050,000

  EPR Properties, Series F     26,764,500      

282,200

  Federal Realty Investment Trust, Series C (b)     6,942,120      

741,000

  GGP, Inc., Series A     19,028,880      

150,000

  iStar, Inc., Series F     3,774,000      

765,000

  iStar, Inc., Series I     19,201,500      

400,000

  LaSalle Hotel Properties, Series I     10,240,000      

500,000

  LaSalle Hotel Properties, Series J     12,800,000      

500,000

  Pebblebrook Hotel Trust, Series D     13,070,000      

272,000

  Pennsylvania Real Estate Investment Trust, Series B     6,868,000      

341,100

  Pennsylvania Real Estate Investment Trust, Series C     8,865,189      

600,000

  Public Storage, Series B     15,900,000      

150,000

  STAG Industrial, Inc., Series C     4,041,000      

225,000

  Summit Hotel Properties, Inc., Series D     5,738,625      

600,000

  Sunstone Hotel Investors, Inc., Series E     16,260,000      

379,377

  Sunstone Hotel Investors, Inc., Series F     9,871,390      

120,000

  Taubman Centers, Inc., Series K     3,008,400      

 

 

 

 

 

 

 

Shares      

 Market

Value ($)

 

 

 

 

 

 

 

 

 

United States (continued)

 

 

280,000

 

 

Urstadt Biddle Properties, Inc., Series F

  $ 7,103,600       

 

 

 

 

 

 

 

 

Total Preferred Stock

(cost $213,117,859)

    235,947,243       

 

 

 

 

 

 

 

  Rights - 0.0% (c)  
  Singapore - 0.0% (c)  

      782,540

  CapitaLand Commercial Trust, expires 10/12/17 (b)  
  (cost $–)     168,270       

 

 

 

 

 

 

 

 

 

Total Investments - 113.3%

 

(cost $1,159,516,747)

    1,165,349,773       

 

 

 

 

 

 

 

  Liabilities in Excess of Other Assets - (13.3)%     (136,792,815)      

 

 

 

 

 

 

 

  Net Assets - 100.0%   $ 1,028,556,958       

 

 

 

 

 

 

 

 

 

See previously submitted notes to financial statements for the semi-annual period ended June 30, 2017.


CBRE Clarion Global Real Estate Income Fund

Portfolio of Investments (unaudited) concluded

 

 

 

 

 

 

 

Number of

Contracts

     

Notional

Amount

 

 Market

Value ($) 

 

 

 

 

 

  Written Call Options - (0.0)% (c)
  United States - (0.0)% (c)

(500)

  Boston Properties, Inc.
Expires 11/17/2017
Strike Price $130.00
  (50,000)    $    (25,000)  

(100)

  Equinix, Inc.
Expires 10/20/2017
Strike Price $480.00
  (10,000)    (5,250)  

(5,000)

  GGP, Inc.
Expires 11/17/2017
Strike Price $23.00
  (500,000)    (155,000)  

    (1,000)

  Macerich Co. (The)
Expires 11/17/2017
Strike Price $60.00
  (100,000)    (57,500)  

(500)

  Prologis, Inc.
Expires 11/17/2017
Strike Price $65.00
  (50,000)    (37,500)  

(750)

  Simon Property Group, Inc.
Expires 10/20/2017
Strike Price $170.00
  (75,000)    (32,250)  

(800)

  SL Green Realty Corp.
Expires 11/17/2017
Strike Price $105.00
  (80,000)    (88,000)  

 

 

 

 

 

  Total Written Call Options
  (Premiums Received $481,139)   $  (400,500)  

 

 

 

 

 

 

* Includes 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) A portion of the security has been pledged for open written option contracts. The aggregate market value of the collateral as of September 30, 2017 is $38,564,750.
(b) Non-income producing security.
(c) Rounds to less than 0.1%.
 

 

See previously submitted notes to financial statements for the semi-annual period ended June 30, 2017.


Notes to Portfolio of Investments (unaudited)

(A) Securities Valuation

U.S. generally accepted accounting principles (“U.S. 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, 2017 in valuing the Trust’s investments carried at fair value:

 

        Assets    Level 1              Level 2      Level 3      Total

Investments in Real Estate Securities

           

Common Stock

           

Australia

     $    74,981,613        $                –        $                –        $     74,981,613  

Canada

     33,705,559                      33,705,559  

France

     50,676,621                      50,676,621  

Germany

     53,158,240                      53,158,240  

Hong Kong

     70,271,846                      70,271,846  

Ireland

     12,050,290                      12,050,290  

Japan

     68,203,301                      68,203,301  

Mexico

     11,987,261                      11,987,261  

Netherlands

     6,842,789                      6,842,789  

Singapore

     25,622,784                      25,622,784  

Spain

     20,550,168                      20,550,168  

Sweden

     8,153,876                      8,153,876  

United Kingdom

     66,191,099                      66,191,099  

United States

     426,838,813                      426,838,813  

Total Common Stock

     929,234,260                      929,234,260  

Preferred Stock

           

United States

     213,395,108        22,552,135               235,947,243  

 

See previously submitted notes to financial statements for the semi-annual period ended June 30, 2017.


Notes to Portfolio of Investments (unaudited) (continued)

 

Rights

                                   

Singapore

            168,270               168,270  

Total Investments in Real Estate Securities

     $        1,142,629,368        $    22,720,405        $                –      $ 1,165,349,773  

Liabilities

           

Other Financial Instruments

           

Written Call Options

     $      (312,750)        $    (87,750)        $                –        $        (400,500)  

Total Liabilities

     $      (312,750)        $    (87,750)        $                –        $        (400,500)     

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. $14,730,062 was transferred out of Level 1 into Level 2 during the period ended September 30, 2017 due to the unavailability of significant observable pricing inputs. $29,861,250 was transferred out of level 2 into level 1 during the period ended September 30, 2017 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 period ended September 30, 2017, there have been no significant changes to the Trust’s fair valuation methodology.

(B) Forward Foreign Currency Contracts

The Trust enters into forward foreign currency contracts in order to hedge its exposure to changes in foreign currency exchange rates on its foreign portfolio holdings, to hedge certain Trust purchase and sales commitments denominated in foreign currencies and for investment purposes. A forward foreign currency contract is a commitment to purchase or sell a foreign currency on a future date at a negotiated forward rate. The gain or loss arising from the difference between the original contracts and the closing of such contracts would be included in net realized gain or loss on foreign currency transactions.

Fluctuations in the value of open forward foreign currency contracts are recorded for financial reporting purposes as unrealized appreciation and depreciation by the Trust.

The Trust’s custodian will place and maintain cash not available for investment or other liquid assets in a separate account of the Trust having a value at least equal to the aggregate amount of the Trust’s commitments under forward foreign currency contracts entered into with respect to position hedges.

Risks may arise from the potential inability of counterparty to meet the terms of a contract and from unanticipated movements in the value of a foreign currency relative to the U.S. dollar. The face or contract amount, in U.S. dollars, reflects the total exposure the Trust has in that particular currency contract. As of September 30, 2017, the Trust did not hold any forward foreign currency contracts.

 

See previously submitted notes to financial statements for the semi-annual period ended June 30, 2017.


Notes to Portfolio of Investments (unaudited) (concluded)

 

(C) Options

The Trust may purchase or sell (write) options on securities and securities indices which are listed on national securities exchange or in the over-the-counter (“OTC”) market as a means of achieving additional return or of hedging the value of the Trust’s portfolio.

An option on a security is a contract that gives the holder of the option, in return for a premium, the right to buy from (in the case of a call) or sell to (in the case of a put) the writer of the option the security underlying the option at a specified exercise or “strike” price. The writer of an option on a security has an obligation upon exercise of the option to deliver the underlying security upon payment of the exercise price (in the case of a call) or to pay the exercise price upon delivery of the underlying security (in the case of a put).

There are several risks associated with transactions in options on securities. As the writer of a covered call option, the Trust forgoes, during the option’s life, the opportunity to profit from increases in the market value of the security covering the call option above the sum of the premium and the strike price of the call but has retained the risk of loss should the price of the underlying security decline. The writer of an option has no control over the time when it may be required to fill its obligation as writer of the option. Once an option writer has received an exercise notice, it cannot effect a closing purchase transaction in order to terminate its obligation under the option and must deliver the underlying security at the exercise price. Written Options for the period ended September 30, 2017, are disclosed in the Fund Portfolio of Investments.

 

See previously submitted notes to financial statements for the semi-annual period ended June 30, 2017.


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  

                         November 20, 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/ T. Ritson Ferguson

 
 

      T. Ritson Ferguson

 
 

      President and Chief Executive Officer

 

 

Date  

                         November 20, 2017

 

 

By (Signature and Title)*

 

      /s/ Jonathan A. Blome

 
 

      Jonathan A. Blome

 
 

      Chief Financial Officer

 

 

Date  

                         November 20, 2017

 

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