Neuberger Berman Real Estate Securities Income Fund Announces Decrease In Distribution Rate And Declaration Of Distribution

Rhea-AI Summary

Neuberger Berman Real Estate Securities Income Fund (NRO) has announced a reduction in its monthly distribution rate from $0.04 to $0.0312 per share, effective from January 29, 2021. The new annual distribution totals $0.3744 per share, reflecting an annualized rate of approximately 8.45% based on a net asset value of $4.43 as of December 30, 2020. This decrease results from lowered leverage and overall investment income. Future distributions may involve net investment income, capital gains, or return of capital, subject to market conditions.

Positive

• Annual distribution rate remains attractive at ~8.45%.
• Ongoing monthly distributions anticipated, maintaining investor interest.

Negative

• Decrease in monthly distribution indicates potential income instability.
• Reduced leverage may limit future investment income.

NEW YORK, Dec. 31, 2020 /PRNewswire/ -- 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 January 29, 2021, with a record date of January 15, 2021 and an ex-date of January 14, 2021.

The Fund decreased its monthly distribution rate to $0.0312 per share of common stock from the prior monthly distribution rate of $0.04 per share. The Fund's annual distribution per share of common stock is now $0.3744 versus the prior annual amount of $0.48. The new amount per share represents an annualized distribution rate of approximately 8.45% based on the Fund's net asset value of $4.43 per share on December 30, 2020.

The decrease in the Fund's distribution rate is the result of numerous factors, including reductions in the amount of leverage employed by the Fund 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 its level distribution policy, the Fund anticipates that it will make regular monthly distributions, subject to market conditions, of $0.0312 per share of common stock, unless further action is taken to determine another amount. There is no assurance that the Fund will always be able to pay a distribution of any particular amount, or that a distribution will consist of only net investment income. The Fund's ability to maintain its current distribution rate will depend on a number of factors, including the amount and stability of income received from its investments, availability of capital gains, the amount of leverage employed by the Fund, the cost of leverage and the level of other Fund expenses.

The distribution 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 not for tax reporting 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. The final determination of the source and tax characteristics of all distributions paid in 2021 will be made after the end of the year.

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, real estate and hedge funds—on behalf of institutions, advisors and individual investors globally. With offices in 24 countries, Neuberger Berman's diverse team has over 2,300 professionals. For seven 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). In 2020, the PRI named Neuberger Berman a Leader, a designation awarded to fewer than 1% of investment firms for excellence in Environmental, Social and Governance (ESG) practices. The PRI also awarded Neuberger Berman an A+ in every eligible category for our approach to ESG integration across asset classes. The firm manages $374 billion in client assets as of September 30, 2020. For more information, please visit our website at www.nb.com.

Statements made in this release that look forward in time involve risks and uncertainties. Such risks and uncertainties include, without limitation, the adverse effect from a decline in the securities markets or a decline in the Fund's performance, a general downturn in the economy, competition from other closed end investment companies, changes in government policy or regulation, inability of the Fund's investment adviser to attract or retain key employees, inability of the Fund to implement its investment strategy, inability of the Fund to manage rapid expansion and unforeseen costs and other effects related to legal proceedings or investigations of governmental and self-regulatory organizations.

Contact:                                                                                 
Neuberger Berman Investment Advisers LLC                                                 
Investor Information
(877) 461-1899

 

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SOURCE Neuberger Berman

FAQ

What is the new monthly distribution rate for NRO?

The new monthly distribution rate for Neuberger Berman Real Estate Securities Income Fund (NRO) is $0.0312 per share.

When will the next distribution for NRO be paid?

The next distribution for NRO will be paid on January 29, 2021.

What is the annual distribution amount for NRO now?

The annual distribution amount for NRO is now $0.3744 per share.

What factors led to the decrease in NRO's distribution rate?

The decrease in NRO's distribution rate is due to reductions in leverage and a resultant decrease in overall investment income.

How does the new distribution rate affect NRO's annualized yield?

The new distribution rate results in an annualized yield of approximately 8.45% based on the net asset value of $4.43.