NUMBER OF SHARES				VALUE		†
Regional Malls 6.4%
	413,100		Brookfield Property Partners LP	$	7,518,420	(a)
	46,400		Simon Property Group, Inc.		8,450,368	(a)
				15,968,788
Self Storage 3.4%
	85,400		Extra Space Storage, Inc.		8,421,294	(a)
Shopping Centers 2.0%
	294,200		Kimco Realty Corp.		5,004,342	(a)
Specialty 0.9%
	63,900		Iron Mountain, Inc.		2,377,080	(a)
Timber 1.2%
	118,100		Weyerhaeuser Co.		3,098,944	(a)
Total Common Stocks (Cost $210,636,797)				217,948,036
Preferred Stocks 52.4%
Data Centers 0.5%
	45,000		Digital Realty Trust, Inc., Ser. C, 6.63%		1,165,500
Diversified 7.6%
	194,139		Colony Capital, Inc., Ser. B, 8.25%		4,898,127
	16,212		Colony Capital, Inc., Ser. H, 7.13%		338,831
	533,591		Colony Capital, Inc., Ser. I, 7.15%		11,258,770	(a)
	125,000		Colony Capital, Inc., Ser. J, 7.13%		2,637,500	(a)
				19,133,228
Free Standing 0.9%
	98,922		National Retail Properties, Inc., Ser. F, 5.20%		2,280,152	(a)
Home Financing 3.3%
	325,000		Annaly Capital Management, Inc., Ser. F, 6.95%		8,206,250	(a)
Industrial 4.5%
	100,000		PS Business Parks, Inc., Ser. U, 5.75%		2,335,000
	255,500		Rexford Industrial Realty, Inc., Ser. A, 5.88%		5,902,050	(a)
	125,600		STAG Industrial, Inc., Ser. C, 6.88%		3,222,896	(a)
				11,459,946
Lodging/Resorts 10.7%
	379,000		Ashford Hospitality Trust, Inc., Ser. G, 7.38%		8,095,440
	185,800		Eagle Hospitality Properties Trust, Inc., Ser. A, 8.25%		—	*(b)(c)
	349,300		Pebblebrook Hotel Trust, Ser. D, 6.38%		8,935,094	(a)
	192,000		Sunstone Hotel Investors, Inc., Ser. E, 6.95%		5,030,400	(a)
	200,000		Sunstone Hotel Investors, Inc., Ser. F, 6.45%		4,798,000	(a)
				26,858,934

 

 

 

 

^  A balance indicated with a “-“, either reflects a zero balance or an amount that rounds to less than 1.

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†

In accordance with Accounting Standards Codification 820 “Fair Value Measurement” (“ASC 820”), all investments held by Neuberger Berman Real Estate Securities Income Fund Inc. (the “Fund”) are carried at the value that Neuberger Berman Investment Advisers 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 observable inputs (including quoted prices for similar investments, interest rates, prepayment speeds, credit risk, amortized cost, etc.)

•

Level 3 – 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.

The value of the Fund’s investments in equity securities and certain preferred stocks, for which market quotations are readily available, is generally determined by Management by obtaining valuations from independent pricing services based on the latest sale price quoted on a principal exchange or market for that security (Level 1 inputs). Securities traded primarily on the NASDAQ Stock Market are normally valued at the NASDAQ Official Closing Price (“NOCP”) provided by NASDAQ each business day. The NOCP is the most recently reported price as of 4:00:02 p.m., Eastern Time, unless that price is outside the range of the “inside” bid and asked prices (i.e., the bid and asked prices that dealers quote to each other when trading for their own accounts); in that case, NASDAQ will adjust the price to equal the inside bid or asked price, whichever is closer. Because of delays in reporting trades, the NOCP may not be based on the price of the last trade to occur before the market closes. If there is no sale of a security on a particular day, the independent pricing services may value the security based on market quotations.

Management has developed a process to periodically review information provided by independent pricing services for all types of securities.

Investments in non-exchange traded investment companies are valued using the respective 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, Management seeks to obtain quotations from brokers or dealers (generally considered Level 2 or Level 3 inputs depending on the number of quotes available). If such quotations are not readily available, the security is valued using methods the Fund’s Board of Directors has approved in the good-faith belief that the resulting valuation will reflect the fair value of the security. Numerous factors may be considered when determining the fair value of a security based on Level 2 or Level 3 inputs, including available analyst, media or other reports, securities within the same industry with recent highly correlated performance, trading in futures or American Depositary Receipts and whether the issuer of the security being fair valued has other securities outstanding.

Fair value prices are necessarily estimates, and there is no assurance that such a price will be at or close to the price at which the security is next quoted or next trades.

In August 2018, FASB issued Accounting Standards Update No. 2018-13, “Fair Value Measurement (Topic 820: Disclosure Framework—Changes to the Disclosure Requirements for Fair Value Measurement” (“ASU 2018-13”).  ASU 2018-13 eliminates the requirement to disclose the amount of and reasons for transfers between Level 1 and Level 2 of the fair value hierarchy, the timing of transfers between levels of the fair value hierarchy and the valuation processes for Level 3 fair value measurements. ASU 2018-13 will require the need to disclose the range and weighted average used to develop significant unobservable inputs for Level 3 fair value measurements and the changes in unrealized gains and losses for recurring Level 3 fair value measurements. ASU 2018-13 will also require that information is provided about the measurement uncertainty of Level 3 fair value measurements as of the reporting date. The guidance is effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2019 and allows for early adoption of

 

For information on the Fund’s significant accounting policies, please refer to the Fund’s most recent stockholder reports.