|
Number of Shares
|
Value ($)†
|
|||||
|
Common Stocks (87.4%)
|
||||||
|
Apartments (7.1%)
|
||||||
|
56,900
|
AvalonBay Communities, Inc.
|
7,385,051
|
||||
|
43,200
|
Essex Property Trust, Inc.
|
6,643,296
|
||||
|
117,501
|
Mid-America Apartment Communities, Inc.
|
7,681,040
|
||||
|
21,709,387
|
||||||
|
Commercial Financing (7.2%)
|
||||||
|
409,423
|
Apollo Commercial Real Estate Finance, Inc.
|
7,148,526
|
||||
|
583,100
|
Starwood Property Trust, Inc.
|
14,950,684
|
||||
|
22,099,210
|
||||||
|
Diversified (6.9%)
|
||||||
|
122,100
|
American Assets Trust, Inc.
|
3,528,690
|
||||
|
164,586
|
Digital Realty Trust, Inc.
|
11,177,035
|
ØØ
|
|||
|
125,265
|
Entertainment Properties Trust
|
5,869,918
|
||||
|
7,700
|
Vornado Realty Trust
|
650,342
|
||||
|
21,225,985
|
||||||
|
Health Care (17.1%)
|
||||||
|
248,600
|
HCP, Inc.
|
11,532,554
|
||||
|
121,450
|
Health Care REIT, Inc.
|
7,631,918
|
||||
|
100,000
|
LTC Properties, Inc.
|
3,724,000
|
||||
|
359,700
|
OMEGA Healthcare Investors, Inc.
|
9,193,932
|
||||
|
309,552
|
Ventas, Inc.
|
20,520,202
|
||||
|
52,602,606
|
||||||
|
Home Financing (1.8%)
|
||||||
|
376,500
|
Annaly Capital Management, Inc.
|
5,598,555
|
||||
|
Industrial (5.6%)
|
||||||
|
153,722
|
EastGroup Properties, Inc.
|
8,614,581
|
||||
|
212,586
|
ProLogis, Inc.
|
8,482,181
|
||||
|
17,096,762
|
||||||
|
Lodging/Resorts (1.4%)
|
||||||
|
203,800
|
RLJ Lodging Trust
|
4,261,458
|
||||
|
Mixed (1.4%)
|
||||||
|
112,900
|
Liberty Property Trust
|
4,422,293
|
||||
|
Office (6.0%)
|
||||||
|
46,000
|
Boston Properties, Inc.
|
4,842,880
|
||||
|
168,700
|
Corporate Office Properties Trust
|
4,463,802
|
||||
|
133,180
|
Highwoods Properties, Inc.
|
4,794,480
|
||||
|
224,500
|
Piedmont Office Realty Trust, Inc. Class A
|
4,339,585
|
||||
|
18,440,747
|
||||||
|
Real Estate Management & Development (2.9%)
|
||||||
|
553,100
|
Brookfield Office Properties, Inc.
|
9,098,495
|
||||
|
Regional Malls (9.5%)
|
||||||
|
195,500
|
CBL & Associates Properties, Inc.
|
4,201,295
|
||||
|
210,378
|
Macerich Co.
|
12,563,774
|
||||
|
47,061
|
Simon Property Group, Inc.
|
7,538,231
|
||||
|
431,200
|
Westfield Group
|
5,027,145
|
||||
|
29,330,445
|
||||||
|
Self Storage (7.0%)
|
||||||
|
54,200
|
Public Storage
|
8,343,006
|
||||
|
200,865
|
Sovran Self Storage, Inc.
|
13,104,433
|
||||
|
21,447,439
|
||||||
|
Shopping Centers (11.1%)
|
||||||
|
171,100
|
Equity One, Inc.
|
3,868,571
|
||||
|
42,300
|
Federal Realty Investment Trust
|
4,477,455
|
||||
|
199,000
|
Kimco Realty Corp.
|
4,133,230
|
||||
|
95,000
|
Regency Centers Corp.
|
4,733,850
|
||||
|
232,270
|
Tanger Factory Outlet Centers
|
8,227,004
|
||||
|
425,693
|
Urstadt Biddle Properties, Inc. Class A
|
8,616,026
|
||||
|
34,056,136
|
||||||
|
Timber (2.4%)
|
||||||
|
135,500
|
Rayonier, Inc.
|
7,295,320
|
||||
|
Total Common Stocks
(Cost $189,864,967)
|
268,684,838
|
|||||
|
Preferred Stocks (46.6%)
|
||||||
|
Commercial Financing (7.5%)
|
||||||
|
131,915
|
iStar Financial, Inc., Ser. E, 7.88%
|
3,160,683
|
||||
|
185,000
|
iStar Financial, Inc., Ser. G, 7.65%
|
4,336,400
|
||||
|
185,000
|
iStar Financial, Inc., Ser. I, 7.50%
|
4,578,750
|
||||
|
444,484
|
NorthStar Realty Finance Corp., Ser. B, 8.25%
|
11,067,652
|
||||
|
23,143,485
|
||||||
|
Diversified (3.9%)
|
||||||
|
160,600
|
Cousins Properties, Inc., Ser. B, 7.50%
|
4,023,030
|
||||
|
302,000
|
DuPont Fabros Technology, Inc., Ser. A, 7.88%
|
8,075,480
|
||||
|
12,098,510
|
||||||
|
Industrial (0.8%)
|
||||||
|
100,000
|
Terreno Realty Corp., Ser. A, 7.75%
|
2,614,000
|
||||
|
Lodging/Resorts (9.6%)
|
||||||
|
370,000
|
Ashford Hospitality Trust, Inc., Ser. D, 8.45%
|
9,446,100
|
||||
|
185,800
|
Eagle Hospitality Properties, Inc., Ser. A, 8.25%
|
186
|
*
|
|||
|
179,900
|
Hersha Hospitality Trust, Ser. A, 8.00%
|
4,551,470
|
||||
|
97,050
|
LaSalle Hotel Properties, Ser. G, 7.25%
|
2,462,158
|
||||
|
250,000
|
Pebblebrook Hotel Trust, Ser. A, 7.88%
|
6,467,500
|
||||
|
50,265
|
Sunstone Hotel Investors, Inc., Ser. A, 8.00%
|
1,271,202
|
||||
|
200,000
|
Sunstone Hotel Investors, Inc., Ser. D, 8.00%
|
5,280,000
|
||||
|
29,478,616
|
||||||
|
Manufactured Homes (1.3%)
|
||||||
|
150,000
|
Equity Lifestyle Properties, Inc., Ser. C, 6.75%
|
3,858,000
|
||||
|
Office (10.4%)
|
||||||
|
200,000
|
Corporate Office Properties Trust, Ser. L, 7.38%
|
5,196,000
|
||||
|
6,000
|
Highwoods Properties, Inc., Ser. A, 8.63%
|
7,368,750
|
||||
|
175,000
|
Kilroy Realty Corp., Ser. H, 6.38%
|
4,375,000
|
||||
|
347,930
|
Parkway Properties, Inc., Ser. D, 8.00%
|
8,826,984
|
||||
|
240,000
|
SL Green Realty Corp., Ser. I, 6.50%
|
6,086,400
|
||||
|
31,853,134
|
||||||
|
Regional Malls (10.9%)
|
||||||
|
398,015
|
CBL & Associates Properties, Inc., Ser. D, 7.38%
|
10,037,939
|
||||
|
165,000
|
CBL & Associates Properties, Inc., Ser. E, 6.63%
|
4,169,550
|
||||
|
451,760
|
Glimcher Realty Trust, Ser. G, 8.13%
|
11,429,528
|
||||
|
100,000
|
Glimcher Realty Trust, Ser. H, 7.50%
|
2,573,000
|
||||
|
200,000
|
Taubman Centers, Inc., Ser. J, 6.50%
|
5,158,000
|
||||
|
33,368,017
|
||||||
|
Shopping Centers (2.2%)
|
||||||
|
26,966
|
Cedar Realty Trust, Inc., Ser. A, 8.88%
|
693,835
|
||||
|
150,000
|
Cedar Realty Trust, Inc., Ser. B, 7.25%
|
3,675,000
|
||||
|
99,000
|
Saul Centers, Inc., Ser. C, 6.88%
|
2,472,030
|
Ø
|
|||
|
6,840,865
|
||||||
|
Total Preferred Stocks
(Cost $135,768,843)
|
143,254,627
|
|||||
|
Short-Term Investments (0.7%)
|
||||||
|
2,291,552
|
State Street Institutional Liquid Reserves Fund Institutional Class (Cost $2,291,552)
|
2,291,552
|
||||
|
Total Investments (134.7%)
(Cost $327,925,362)
|
414,231,017 |
## |
||||
|
Liabilities, less cash, receivables and other assets [(26.6%)]
|
(81,834,446)
|
|||||
|
Liquidation Value of Mandatory Redeemable Preferred Shares [(8.1%)]
|
(25,000,000)
|
|||||
|
Total Net Assets Applicable to Common Shareholders (100.0%)
|
|
$ 307,396,571
|
||||
|
†
|
In accordance with Accounting Standards Codification (“ASC”) 820 “Fair Value Measurements and Disclosures” (“ASC 820”), all investments held by Neuberger Berman Real Estate Securities Income Fund Inc. (the “Fund”) are carried at the value that Neuberger Berman Management LLC (“Management”) believes the Fund would receive upon selling an investment in an orderly transaction to an independent buyer in the principal or most advantageous market for the investment under current market conditions. Various inputs, including the volume and level of activity for the asset or liability in the market, are considered in valuing the Fund’s investments, some of which are discussed below. Significant management judgment may be necessary to value investments in accordance with ASC 820.
|
|
|
ASC 820 established a three-tier hierarchy of inputs to create a classification of value measurements for disclosure purposes. The three-tier hierarchy of inputs is summarized in the three broad Levels listed below.
|
|
|
●
|
Level 1 – 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, amortized cost, 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 an investment are not necessarily an indication of the risk associated with investing in those securities.
|
|
|
Investments in investment companies are valued using the fund’s daily calculated net asset value per share (Level 2 inputs).
|
|
|
If a valuation is not available from an independent pricing service, or if Management has reason to believe that the valuation received does not represent the amount the Fund might reasonably expect to receive on a current sale in an orderly transaction, the Fund seeks to obtain quotations from principal market makers (generally considered Level 3 inputs). If such quotations are not readily available, the security is valued using methods the Fund’s Board of Directors (the “Board”) has approved on the belief that they reflect fair value. Numerous factors may be considered when determining the fair value of a security based on Level 2 or 3 inputs, including available analyst, media or other reports, trading in futures or ADRs and whether the issuer of the security being fair valued has other securities outstanding.
|
|
|
The value of the Fund’s investments in foreign securities is generally determined using the same valuation methods and inputs as other Fund investments, as discussed above. Foreign security prices expressed in local currency values are translated from the local currency into U.S. dollars using the exchange rate as of 4:00 p.m., Eastern time. The Board has approved the use of Interactive Data Pricing and Reference Data, Inc. (“Interactive”) to assist in determining the fair value of foreign equity securities when changes in the value of a certain index suggest that the closing prices on the foreign exchanges may no longer represent the amount that the Fund could expect to receive for those securities or on days when foreign markets are closed and U.S. markets are open. In each of these events, Interactive will provide adjusted prices for certain foreign equity securities using a statistical analysis of historical correlations of multiple factors (Level 2 inputs). In the absence of precise information about the market values of these foreign securities as of the close of the New York Stock Exchange, the Board has determined on the basis of available data that prices adjusted in this way are likely to be closer to the prices the Fund could realize on a current sale than are the prices of those securities established at the close of the foreign markets in which the securities primarily trade.
|
|
Asset Valuation Inputs
Investments:
|
Level 1
|
Level 2
|
Level 3
|
Total
|
||||||||||||
|
Common Stocks^
|
$ | 268,684,838 | $ | — | $ | — | $ | 268,684,838 | ||||||||
|
Preferred Stocks
|
||||||||||||||||
|
Commercial Financing
|
23,143,485 | — | — | 23,143,485 | ||||||||||||
|
Diversified
|
12,098,510 | — | — | 12,098,510 | ||||||||||||
|
Industrial
|
2,614,000 | — | — | 2,614,000 | ||||||||||||
|
Lodging/Resorts
|
29,478,616 | — | — | 29,478,616 | ||||||||||||
|
Manufactured Homes
|
3,858,000 | — | — | 3,858,000 | ||||||||||||
|
Office
|
24,484,384 | 7,368,750 | — | 31,853,134 | ||||||||||||
|
Regional Malls
|
33,368,017 | — | — | 33,368,017 | ||||||||||||
|
Shopping Centers
|
4,368,835 | 2,472,030 | — | 6,840,865 | ||||||||||||
|
Total Preferred Stocks
|
133,413,847 | 9,840,780 | — | 143,254,627 | ||||||||||||
|
Short-Term Investments
|
— | 2,291,552 | — | 2,291,552 | ||||||||||||
|
Total Investments
|
$ | 402,098,685 | $ | 12,132,332 | $ | — | $ | 414,231,017 | ||||||||
|
##
|
At January 31, 2013, the cost of investments for U.S. federal income tax purposes was $327,009,672. Gross unrealized appreciation of investments was $92,567,679 and gross unrealized depreciation of investments was $5,346,334 resulting in net unrealized appreciation of $87,221,345 based on cost for U.S. federal income tax purposes.
|
|
Ø
|
All or a portion of this security was purchased on a when-issued basis. At January 31, 2013 these securities amounted to $2,472,030 or 0.8% of net assets applicable to common shareholders.
|
|
ØØ
|
All or a portion of this security is segregated in connection with when-issued purchase commitments.
|
|
*
|
Security did not produce income during the last twelve months.
|
|
(a)
|
Based on an evaluation of the disclosure controls and procedures (as defined in Rule 30a-3(c) under the Investment Company Act of 1940, as amended (“1940 Act”)), as of a date within 90 days of the filing date of this document, the Chief Executive Officer and Treasurer and Principal Financial and Accounting Officer of the Registrant have concluded that such disclosure controls and procedures are effectively designed to ensure that information required to be disclosed by the Registrant on Form N-CSR and Form N-Q is accumulated and communicated to the Registrant’s management to allow timely decisions regarding required disclosure.
|
|
(b)
|
There were no significant changes in the Registrant’s internal controls over financial reporting (as defined in Rule 30a-3(d) under the 1940 Act) that occurred during the Registrant’s last fiscal quarter that have materially affected, or are reasonably likely to materially affect, the Registrant’s internal control over financial reporting.
|