Neuberger Berman Real Estate Securities Income Fund Announces Decrease in Distribution Rate and Declaration Of Distribution
Neuberger Berman Investment Advisers LLC
NEW YORK, October 31, 2018 — Neuberger Berman Real Estate Securities Income Fund Inc. (NYSE American: NRO) (the “Fund”) has announced a decrease in its monthly distribution rate and declared its next monthly distribution at the new rate. The distribution announced today is payable on November 30, 2018, with a record date of November 15, 2018 and an ex-date of November 14, 2018.
The Fund decreased its monthly distribution rate to $0.040 per share of common stock from the prior monthly distribution rate of $0.045 per share. The Fund’s annual distribution per share of common stock is now $0.48 versus the prior annual amount of $0.54. The new amount per share represents an annualized distribution rate of approximately 9.40% based on the Fund’s net asset value of $5.11 per share on October 30, 2018.
The decrease in the Fund’s distribution rate is the result of numerous factors, including increased volatility and general price pressure on real estate investment trusts as interest rates have moved higher; reductions in the Fund’s leverage and level of leverage that the Fund will likely have in the near future; and the resultant overall reduction in the amount of investment income earned, and expected to be earned in the near future, by the Fund.
Under the Fund’s level distribution policy, the Fund endeavors to establish a distribution rate that its Board of Directors believes is sustainable for a reasonable time period, subject to market conditions. There is no assurance that the Fund will always be able to pay a distribution of any particular size, or that a distribution will consist of only net investment income. The Fund’s continuing ability to maintain a stable distribution will depend on a number of factors, including the stability of income received and potential appreciation from its investments, availability of capital gains and the level of Fund expenses, including expenses related to leverage.
The distributions announced today, as well as future distributions, may consist of net investment income, realized capital gains and return of capital. In compliance with Section 19 of the Investment Company Act of 1940, as amended, a notice would be provided for any distribution that does not consist solely of net investment income. The notice would be for informational purposes, and would disclose, among other things, estimated portions of the distribution, if any, consisting of net investment income, capital gains and return of capital.
About Neuberger Berman
Neuberger Berman, founded in 1939, is a private, independent, employee-owned investment manager. The firm manages a range of strategies—including equity, fixed income, quantitative and multi-asset class, private equity and hedge funds—on behalf of institutions, advisors and individual investors globally. With offices in 20 countries, Neuberger Berman’s team is more than 2,000 professionals. For four consecutive years, the company has been named first or second in Pensions & Investments Best Places to Work in Money Management survey (among those with 1,000 employees or more). Tenured, stable and long-term in focus, the firm fosters an investment culture of fundamental research and independent thinking. It manages $315 billion in client assets as of September 30, 2018. For more information, please visit our website at www.nb.com.