NEUBERGER BERMAN REAL ESTATE SECURITIES INCOME FUND ANNOUNCES MONTHLY DISTRIBUTION

Rhea-AI Summary

Neuberger Berman Real Estate Securities Income Fund Inc. (NRO) declares a distribution of $0.0312 per share of common stock, payable on April 30, 2024. The Fund anticipates regular monthly distributions under its level distribution policy, subject to market conditions.

Insights

Financial Analyst

The distribution declaration by Neuberger Berman Real Estate Securities Income Fund Inc. is a reflection of the fund's operational strategy and financial health. A steady distribution can signal stability and could potentially attract income-focused investors. However, the caveat that the distribution might not always consist of net investment income is significant. This suggests that distributions could, in part, be a return of capital, which might not be as favorable for long-term growth as it effectively reduces the investment's principal.

Investors should closely monitor the Fund's performance, particularly the stability of income from investments and the impact of leverage costs. Leverage can amplify returns but also increases risk and costs. If leverage becomes too costly, or if investment income decreases, maintaining the current distribution rate could be challenging. This could influence the fund's share price negatively, as market conditions and investor sentiment react to changes in distribution levels.

Tax Advisor

From a tax perspective, the composition of the Fund's distribution is important for shareholders. Distributions that are classified as return of capital are not taxed immediately but reduce the cost basis of the investment, which can affect capital gains tax upon sale of the shares. It's important for shareholders to understand that the final tax characteristics of the distributions will only be determined at the end of the year, which requires careful tax planning and might impact the attractiveness of the fund for tax-sensitive investors.

Moreover, the compliance with Section 19 of the Investment Company Act of 1940 ensures transparency in distribution composition, which aids investors in making informed decisions. However, the complexity of tax implications necessitates that investors consult with tax professionals to fully understand the impact on their individual tax situations.

Market Research Analyst

Looking at the broader market, the real estate securities sector can be influenced by various macroeconomic factors, including interest rates, real estate market trends and economic cycles. The Fund's distribution policy and its ability to maintain it can serve as an indicator of how well it is navigating these factors. A consistent distribution policy could be perceived as a positive sign, potentially making the Fund more attractive compared to its peers.

However, investors should be aware that the real estate market has its unique risks and cycles, which can affect the income generated by such funds. It's important to evaluate the Fund's portfolio diversification, asset quality and management's ability to adapt to changing market conditions when considering the Fund's long-term prospects.

NEW YORK, March 28, 2024 /PRNewswire/ -- Neuberger Berman Real Estate Securities Income Fund Inc. (NYSE American: NRO) (the "Fund") has announced a distribution declaration of $0.0312 per share of common stock. The distribution announced today is payable on April 30, 2024, has a record date of April 15, 2024, and has an ex-date of April 12, 2024.

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 fees and expenses.

The distribution announced today, as well as future distributions, may consist of net investment income, net 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 2024 will be made after the end of the year.

About Neuberger Berman

Neuberger Berman is an employee-owned, private, independent investment manager founded in 1939 with 2,800 employees in 26 countries. The firm manages $463 billion of equities, fixed income, private equity, real estate and hedge fund portfolios for global institutions, advisors and individuals. Neuberger Berman's investment philosophy is founded on active management, fundamental research and engaged ownership. UNPRI named the firm a Leader, a designation awarded to fewer than 1% of investment firms for excellence in environmental, social and governance practices. Neuberger Berman has been named by Pensions & Investments as the #1 or #2 Best Place to Work in Money Management for each of the last ten years (firms with more than 1,000 employees). Visit www.nb.com for more information. Data as of December 31, 2023.

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 distribution amount per share announced by Neuberger Berman Real Estate Securities Income Fund Inc. (NRO)?

The distribution declared is $0.0312 per share of common stock.

When is the distribution payable?

The distribution is payable on April 30, 2024.

What is the record date for the distribution?

The record date is April 15, 2024.

What is the ex-date for the distribution?

The ex-date is April 12, 2024.

What types of income may the distributions consist of?

The distributions may consist of net investment income, net realized capital gains, and return of capital.

What factors determine the Fund's ability to maintain its distribution rate?

Factors include income stability from investments, availability of capital gains, leverage costs, and Fund fees.

What does compliance with Section 19 of the Investment Company Act of 1940 entail for distributions?

Compliance involves providing notice for distributions not solely consisting of net investment income, disclosing distribution components.

When will the final determination of distribution sources and tax characteristics be made for 2024?

The final determination will be made after the end of the year.