N-Q 1 p73180nvq.htm N-Q nvq
Table of Contents

UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, DC 20549
FORM N-Q
QUARTERLY SCHEDULE OF PORTFOLIO HOLDINGS OF REGISTERED
MANAGEMENT INVESTMENT COMPANY
Investment Company Act file number        811-21404
 
ING Clarion Real Estate Income Fund
 
(Exact name of registrant as specified in charter)
259 N. Radnor-Chester Road, Radnor, PA 19087
 
(Address of principal executive offices)   (Zip code)
T. Ritson Ferguson, President and Chief Executive Officer
ING Clarion Real Estate Income Fund
259 N. Radnor-Chester Road
Radnor, PA 19087
 
(Name and address of agent for service)
Registrant’s telephone number, including area code: 1-888-711-4CRA          
Date of fiscal year end: December 31          
Date of reporting period: September 30, 2006
      Form N-Q is to be used by management investment companies, other than small business investment companies registered on Form N-5 (§§ 239.24 and 274.5 of this chapter), to file reports with the Commission, not later than 60 days after the close of the first and third fiscal quarters, pursuant to rule 30b1-5 under the Investment Company Act of 1940 (17 CFR 270.30b1-5). The Commission may use the information provided on Form N-Q in its regulatory, disclosure review, inspection, and policymaking roles.
      A registrant is required to disclose the information specified by Form N-Q, and the Commission will make this information public. A registrant is not required to respond to the collection of information contained in Form N-Q unless the Form displays a currently valid Office of Management and Budget (“OMB”) control number. Please direct comments concerning the accuracy of the information collection burden estimate and any suggestions for reducing the burden to the Secretary, Securities and Exchange Commission, 450 Fifth Street, NW, Washington, DC 20549-0609. The OMB has reviewed this collection of information under the clearance requirements of 44 U.S.C. § 3507.

 

Table of Contents

ING Clarion Real Estate Income Fund
Portfolio of Investments / September 30, 2006 (unaudited)
             
        Market
Shares       Value
 
 
   Common Stock--106.9%        
 
   Real Estate Investment Trusts ("REIT") - 106.9%        
77,700
   AMB Property Corp.   $ 4,282,047  
24,800
   AvalonBay Communities, Inc.     2,985,920  
190,400
   BioMed Realty Trust, Inc.     5,776,736  
25,000
   Boston Properties, Inc.     2,583,500  
326,253
   Brandywine Realty Trust     10,619,535  
206,600
   CBL & Associates Properties, Inc.     8,658,606  
356,400
   Camden Property Trust     27,089,964  
218,100
   Colonial Properties Trust     10,427,361  
80,600
   Developers Diversified Realty Corp.     4,494,256  
215,000
   Digital Realty Trust, Inc.     6,733,800  
186,429
   EastGroup Properties, Inc.     9,295,350  
150,000
   Extra Space Storage, Inc.     2,596,500  
33,000
   Federal Realty Investment Trust     2,451,900  
310,700
   First Industrial Realty Trust, Inc.     13,670,800  
250,300
   GMH Communities Trust     3,158,786  
245,200
   Health Care REIT, Inc.     9,810,452  
289,500
   Highwoods Properties, Inc.     10,772,295  
40,100
   Hospitality Properties Trust     1,892,720  
190,900
   iStar Financial, Inc.     7,960,530  
435,810
   Liberty Property Trust     20,827,360  
44,500
   Mack-Cali Realty Corp.     2,305,100  
787,500
   Maguire Properties, Inc.     32,082,750  
194,900
   Mid-America Apartment Communities, Inc.     11,931,778  
350,100
   National Retail Properties, Inc.     7,562,160  
350,600
   Nationwide Health Properties, Inc.     9,375,044  
499,000
   New Plan Excel Realty Trust     13,497,950  
245,100
   Newcastle Investment Corp.     6,718,191  
324,700
   OMEGA Healthcare Investors, Inc.     4,873,747  
256,753
   Pennsylvania Real Estate Investment Trust     10,929,975  
100,000
   Post Properties, Inc.     4,752,000  
106,400
   Reckson Associates Realty Corp.     4,553,920  
65,000
   Regency Centers Corp.     4,469,400  
64,500
   SL Green Realty Corp.     7,204,650  
216,000
   Senior Housing Properties Trust     4,609,440  
92,600
   Sovran Self Storage, Inc.     5,143,930  
168,900
   Spirit Finance Corp.     1,960,929  
324,700
   Strategic Hotels & Resorts, Inc.     6,455,036  
171,600
   Trustreet Properties, Inc.     2,146,716  
225,000
   U-Store-It Trust     4,828,500  
120,000
   Ventas, Inc.     4,624,800  
 
 
   Total Common Stock        
 
   (cost $233,611,854)     316,114,434  
 
See previously submitted notes to financial statements for the semi-annual period ended June 30, 2006.

 

Table of Contents

             
        Market
Shares       Value
 
 
   Preferred Stock - 21.3%        
 
   Real Estate Investment Trusts ("REIT") - 21.3%        
80,000
   Apartment Investment & Management Co., Series V     2,038,400  
51,000
   CBL & Associates Properties, Inc., Series C     1,320,900  
65,000
   Cedar Shopping Centers, Inc.     1,728,350  
200,000
   Corporate Office Properties Trust, Series J     5,200,000  
50,500
   Equity Inns, Inc., Series C     1,282,700  
59,600
   Federal Realty Investment Trust     1,516,820  
50,000
   First Industrial Realty Trust     1,257,500  
20,000
   Glimcher Realty Trust, Series F     507,200  
85,000
   Glimcher Realty Trust, Series G     2,132,650  
130,000
   Innkeepers USA Trust, Series C     3,291,600  
150,000
   iStar Financial, Inc., Series F     3,837,000  
170,000
   LaSalle Hotel Properties, Series B     4,353,700  
76,800
   LaSalle Hotel Properties, Series E     1,981,440  
50,000
   Maguire Properties, Inc., Series A     1,233,000  
35,000
   Nationwide Health Properties, Inc.     3,557,750  
80,000
   NorthStar Realty Finance Corp., Series A     2,052,000  
80,000
   PS Business Parks, Inc., Series O     2,032,000  
82,200
   Pennsylvania Real Estate Investment Trust     4,537,440  
129,000
   Public Storage, Inc., Series I     3,343,680  
80,000
   Public Storage, Inc., Series K     2,060,800  
80,000
   SL Green Realty Corp., Series C     2,024,800  
120,000
   Strategic Hotels & Resorts, Inc., Series B     3,127,500  
90,900
   Strategic Hotels & Resorts, Inc., Series C     2,331,585  
100,000
   Sunstone Hotel Investors, Inc., Series A     2,540,000  
179,200
   The Mills Corp., Series E     3,716,608  
 
 
   Total Preferred Stock        
 
   (cost $62,716,537)     63,005,423  
 
 
   Convertible Preferred Stock - 0.8%        
 
   Real Estate Investment Trusts ("REIT") - 0.8%        
80,000
   Windrose Medical Properties Trust, 7.50%, Series A        
 
   (cost $1,963,564)     2,240,000  
 
Principal
            
Amount
            
 
 
   Mortgage-Related Securities - 9.7%        
 
   Chase Commercial Mortgage Securities Corp.,        
$1,000,000
   Series 1997-1, Class F     1,054,102  
 
   7.37%, 6/19/29 (a)        
 
   Commercial Mortgage Acceptance Corp.,        
2,500,000
   Series 1998-C2, Class G     2,493,945  
 
   5.44%, 9/15/30 (a)        
 
   CS First Boston Mortgage Securities Corp.        
2,000,000
       Series 2002-CP3, Class J     1,989,844  
 
       6.00%, 7/15/35 (a)        
3,500,000
       Series 2002-CP3, Class K     3,391,309  
 
       6.00%, 7/15/35 (a)        
2,000,000
       Series 2003-C5, Class K     1,742,109  
 
       5.23%, 12/15/36 (a)        
2,000,000
       Series 2003-C5, Class L     1,534,219  
 
       5.23%, 12/15/36 (a)        
 
   DLJ Commercial Mortgage Corp.,        
2,600,000
   Series 1998-CF1, Class B7     1,987,070  
 
   6.41%, 2/18/31 (a)        
See previously submitted notes to financial statements for the semi-annual period ended June 30, 2006.

 

Table of Contents

             
        Market
Shares       Value
 
 
   GS Mortgage Securities Trust,        
 
   Commercial Mortgage Pass Through-Certificates        
2,500,000
       Series 2006-GG6, Class L     2,144,824  
 
       5.23%, 4/10/38 (a)        
1,000,000
       Series 2006-GG6, Class P      666,680  
 
       5.23%, 4/10/38 (a)        
 
   J.P. Morgan Chase Commercial Mortgage Securities,        
3,250,000
   Series 2002-C3, Class J     2,118,280  
 
   5.06%, 7/12/35 (a)        
 
   Wachovia Bank Commercial Mortgage Trust        
3,668,000
       Series 2003-C4, Class L     3,095,305  
 
       4.93%, 4/15/35 (a)        
4,000,000
       Series 2003-C7, Class L     3,017,969  
 
       5.44%, 10/15/35 (a)        
3,800,000
       Series 2003-C8, Class K     3,293,680  
 
       5.03%, 11/15/35 (a)        
77,267,021
       Series 2004-C12, Class IO        
 
       2.64%, 7/15/41 (a)(b)     317,816  
 
 
   Total Mortgage-Related Securities        
 
   (cost $27,285,044)     28,847,152  
 
 
   Corporate Bonds - 5.2%        
650,000
   Ashton Woods USA LLC        
 
   9.50%, 10/01/15     565,500  
850,000
   Denny's Corp./Holdings, Inc.        
 
   10.00%, 10/01/12     884,000  
 
   K. Hovnanian Enterprises, Inc.        
1,750,000
   7.50%, 5/15/16     1,642,812  
500,000
   8.625%, 1/15/17     496,250  
997,000
   Ingles Markets, Inc.        
 
   8.875%, 12/01/11     1,044,358  
500,000
   KB Home        
 
   9.50%, 2/15/11     513,125  
2,500,000
   Meritage Homes Corp.        
 
   7.00%, 5/01/14     2,253,125  
1,000,000
   O'Charley's, Inc.        
 
   9.00%, 11/01/13     1,045,000  
2,500,000
   Petro Stopping Centers, LP        
 
   9.00%, 2/15/12     2,543,750  
1,000,000
   Standard Pacific Corp.        
 
   9.25%, 4/15/12     970,000  
1,000,000
   Stanley-Martin Communities LLC        
 
   9.75%, 8/15/15     797,500  
1,500,000
   Trustreet Properties, Inc.        
 
   7.50%, 4/01/15     1,496,250  
1,400,000
   WCI Communities, Inc.        
 
   9.125%, 5/01/12     1,260,000  
 
 
   Total Corporate Bonds        
 
   (cost $16,529,177)     15,511,670  
 
 
   Total Investments - 143.9%        
 
   (cost $342,106,176)     425,718,679  
 
   Liabilities in Excess of Other Assets - (8.4%)     (24,907,495 )
 
   Preferred Shares, at redemption value - (35.5%)     (105,000,000 )
 
 
   Net Assets Applicable to        
 
   Common Shares - 100.0% (c)   $ 295,811,184  
 
(a)   Securities are exempt from registration under Rule 144A of the Securities Act of 1933. These securities are considered liquid, and may be resold in transactions that are exempt from registration, normally to qualified institutional buyers. At September 30, 2006, these securities amounted to $28,847,152 or 9.7% of net assets.
 
(b)   Interest-only security. Rate shown is effective yield as of September 30, 2006.
 
(c)   Portfolio percentages are calculated based on Net Assets Applicable to Common Shares.
See previously submitted notes to financial statements for the semi-annual period ended June 30, 2006.

 

Table of Contents

Interest Rate Swaps
                                         
            Notional                    
    Termination     Amount     Fixed   Floating   Unrealized  
Counterparty   Date     (000)     Rate   Rate   Appreciation  
 
Citigroup
     4/30/2007     $ 42,000       3.30 %   1 Month LIBOR   $ 487,756  
Citigroup
     4/30/2009       42,000       4.08 %   1 Month LIBOR     888,672  
 
                                      
 
                                   $ 1,376,428  
 
                                      
For each swap noted, the Trust pays a fixed rate and receives a floating rate.

 

Table of Contents

Item 2. Controls and Procedures.
  (a)   The Trust’s principal executive officer and principal financial officer have evaluated the Trust’s disclosure controls and procedures within 90 days of this filing and have concluded that the Trust’s disclosure controls and procedures were effective, as of that date, in ensuring that information required to be disclosed by the Trust in this Form N-Q was recorded, processed, summarized, and reported timely.
 
  (b)   The Trust’s principal executive officer and principal financial officer are aware of no changes in the Trust’s internal control over financial reporting that occurred during the Trust’s most recent quarter that has materially affected, or is reasonably likely to materially affect, the Trust’s internal control over financial reporting.
Item 3. Exhibits.
      Certification of chief executive officer and chief financial officer pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.

Table of Contents

SIGNATURES
      Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.
(Registrant) ING Clarion Real Estate Income Fund
By: /s/ T. Ritson Ferguson          
    T. Ritson Ferguson
    President and Chief Executive Officer
Date: November 16, 2006          
      Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, this report has been signed below by the following persons on behalf of the registrant and in the capacities and on the dates indicated.
By: /s/ T. Ritson Ferguson          
    T. Ritson Ferguson
    President and Chief Executive Officer
Date: November 16, 2006          
By: /s/ Jonathan A. Blome          
    Jonathan A. Blome
    Treasurer and Chief Financial Officer
Date: November 16, 2006