N-Q 1 d573747dnq.htm N-Q N-Q

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM N-Q

QUARTERLY SCHEDULE OF PORTFOLIO HOLDINGS OF REGISTERED

MANAGEMENT INVESTMENT COMPANY

Investment Company Act file number            811-21465                               

                             CBRE Clarion Global Real Estate Income Fund                                

(Exact name of registrant as specified in charter)

201 King of Prussia Road, Suite 600

            Radnor, PA 19087                  

(Address of principal executive offices) (Zip code)

T. Ritson Ferguson, President and Chief Executive Officer

CBRE Clarion Global Real Estate Income Fund

201 King Of Prussia Road, Suite 600

                                         Radnor, PA 19087                                                  

(Name and address of agent for service)

Registrant’s telephone number, including area code:    1-877-711-4272        

Date of fiscal year end:    December 31            

Date of reporting period:  March 31, 2018

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.


Item 1. Schedule of Investments.

Attached hereto.


CBRE Clarion Global Real Estate Income Fund

Portfolio of Investments (unaudited)

March 31, 2018

 

 

 

 

 

 

 

Shares        Market
Value ($)

 

 

 

 

 

 

 

  Real Estate Securities*- 118.1%  
  Common Stock - 96.7%  
  Australia - 4.6%  

6,448,626

  Aventus Retail Property Fund Ltd.   $ 10,634,800      

14,107,802

  Mirvac Group     23,265,987      

3,688,725

  Scentre Group     10,836,742      

 

 

 

 

 

 

 

      44,737,529      
   

 

 

 

  Canada - 1.8%  

420,800

  Chartwell Retirement Residences     5,108,024      

574,700

  SmartCentres Real Estate Investment Trust     12,976,162      

 

 

 

 

 

 

 

      18,084,186      
   

 

 

 

  France - 5.6%  

68,681

  Altarea     17,358,042      

39,301

  Gecina SA     6,819,977      

459,446

  Klepierre SA     18,505,383      

51,979

  Unibail-Rodamco SE     11,867,936      

 

 

 

 

 

 

 

      54,551,338      
   

 

 

 

  Germany - 3.5%  

323,723

  ADO Properties SA     18,202,543      

2,096,267

  Aroundtown SA     16,241,998      

 

 

 

 

 

 

 

      34,444,541      
   

 

 

 

  Hong Kong - 8.5%  

6,082,500

  CK Asset Holdings Ltd.     51,034,317      

2,386,000

  Link REIT     20,368,997      

732,000

  Sun Hung Kai Properties Ltd.     11,565,307      

 

 

 

 

 

 

 

      82,968,621      
   

 

 

 

  Ireland - 1.2%  

6,662,164

  Hibernia REIT PLC     11,700,269      

 

 

 

 

 

 

 

  Japan - 11.0%  

777,500

  Hulic Co. Ltd.     8,392,760      

14,766

  Japan Hotel REIT Investment Corp.     10,441,027      

1,395

  Kenedix Office Investment Corp.     8,486,742      

1,696,800

  Mitsui Fudosan Co., Ltd.     40,397,721      

4,960

  Nippon Prologis REIT, Inc.     10,731,509      

570,700

  Nomura Real Estate Holdings, Inc.     13,233,156      

10,382

  Orix JREIT, Inc.     16,126,999      

 

 

 

 

 

 

 

      107,809,914      
   

 

 

 

  Mexico - 1.2%  

6,043,300

  Prologis Property Mexico SA de CV     11,508,210      

 

 

 

 

 

 

 

  Singapore - 2.0%  

1,144,000

  City Developments Ltd.     11,341,417      

8,487,600

  Mapletree Logistics Trust     7,961,373      

 

 

 

 

 

 

 

      19,302,790      
   

 

 

 

 

 

 

 

 

 

 

Shares        Market
Value ($)

 

 

 

 

 

 

 

  Spain - 1.8%  

339,457

  Hispania Activos Inmobiliarios Socimi SA   $ 7,214,077      

915,218

  Inmobiliaria Colonial Socimi SA     10,580,464      

 

 

 

 

 

 

 

      17,794,541      
   

 

 

 

  Sweden - 0.9%  

520,773

  Castellum AB     8,488,025      

 

 

 

 

 

 

 

  United Kingdom - 7.6%  

153,816

  Derwent London PLC     6,693,281      

6,172,911

  Segro PLC     52,060,069      

1,408,534

  UNITE Group PLC (The)     15,639,181      

 

 

 

 

 

 

 

      74,392,531      
   

 

 

 

  United States - 47.0%  

179,093

  Alexandria Real Estate Equities, Inc.     22,366,925      

693,803

  Brandywine Realty Trust     11,017,592      

501,223

  Columbia Property Trust, Inc.     10,255,023      

707,503

  CubeSmart     19,951,585      

386,766

  CyrusOne, Inc.     19,806,287      

206,612

  DCT Industrial Trust, Inc.     11,640,520      

57,616

  Equinix, Inc.     24,091,554      

203,546

  Equity Residential     12,542,504      

140,638

  Extra Space Storage, Inc.     12,286,136      

516,126

 

Forest City Realty Trust, Inc.,

Class A

    10,456,713      

1,188,263

  GGP, Inc.     24,311,861      

789,671

  Healthcare Trust of America, Inc., Class A     20,886,798      

94,593

  Hilton Worldwide Holdings, Inc.     7,450,145      

1,163,556

  Invitation Homes, Inc.     26,563,983      

719,133

  Iron Mountain, Inc.     23,630,710      

248,472

  Macerich Co. (The)     13,919,401      

192,241

  Marriott International, Inc., Class A     26,140,931      

543,616

  MGM Growth Properties LLC, Class A     14,427,569      

172,262

  Prologis, Inc.     10,850,783      

578,260

  Regency Centers Corp.     34,105,775      

436,655

  Retail Opportunity Investments Corp.     7,715,694      

197,441

  Simon Property Group, Inc.     30,475,018      

155,872

  SL Green Realty Corp.     15,093,086      

233,653

  STORE Capital Corp.     5,799,267      

228,724

  Sun Communities, Inc.     20,898,512      

320,621

  Taubman Centers, Inc.     18,246,541      

297,101

  VICI Properties, Inc.     5,442,890      

 

 

 

 

 

 

 

      460,373,803      
   

 

 

 

 

Total Common Stock

 

(cost $972,589,278)

    946,156,298      

 

 

 

 

 

 

 

 

 

See previously submitted notes to financial statements for the annual period ended December 31, 2017.


CBRE Clarion Global Real Estate Income Fund

Portfolio of Investments (unaudited) concluded

 

 

 

 

 

 

 

 

Shares        Market
Value ($)

 

 

 

 

 

 

 

  Preferred Stock - 21.4%  
  United States - 21.4%  

  525,265

  American Homes 4 Rent, Series D, 6.500%   $ 13,136,878      

100,000

  CBL & Associates Properties, Inc., Series D, 7.375%     1,718,000      

369,474

  DDR Corp., Series J, 6.500%     8,538,544      

500,302

  Digital Realty Trust, Inc., Series C, 6.625%     13,573,193      

245,403

  Digital Realty Trust, Inc., Series J, 5.250%     5,870,040      

280,000

  EPR Properties, Series G, 5.750%     6,316,800      

282,200

  Federal Realty Investment Trust, Series C, 5.000%     6,431,338      

741,000

  GGP, Inc., Series A, 6.375%     18,332,340      

767,325

  iStar, Inc., Series I, 7.500%     18,952,927      

400,000

  LaSalle Hotel Properties, Series I, 6.375%     9,776,000      

500,000

  LaSalle Hotel Properties, Series J, 6.300%     12,137,500      

284,500

  National Storage Affiliates Trust, Series A, 6.000%     6,967,405      

500,000

  Pebblebrook Hotel Trust, Series D, 6.375%     12,355,000      

272,000

  Pennsylvania Real Estate Investment Trust, Series B, 7.375%     5,712,000      

341,100

  Pennsylvania Real Estate Investment Trust, Series C, 7.200%     7,074,414      

600,000

  Public Storage, Series B, 5.400%     15,150,000      

143,517

  Rexford Industrial Realty, Inc., Series B, 5.875%     3,494,639      

150,000

  STAG Industrial, Inc., Series C, 6.875%     3,810,000      

225,000

  Summit Hotel Properties, Inc., Series D, 6.450%     5,535,000      

287,077

  Summit Hotel Properties, Inc., Series E, 6.250%     6,901,044      

600,000

  Sunstone Hotel Investors, Inc., Series E, 6.950%     15,066,000      

379,377

  Sunstone Hotel Investors, Inc., Series F, 6.450%     9,385,787      

120,000

  Taubman Centers, Inc., Series K, 6.250%     2,884,800      

 

 

 

 

 

 

 

 

Total Preferred Stock

 

(cost $216,985,082)

    209,119,649      

 

 

 

 

 

 

 

 

Total Investments - 118.1%

(cost $1,189,574,360)

    1,155,275,947      

 

 

 

 

 

 

 

 

Liabilities in Excess of Other

Assets - (18.1)%

    (177,142,120)     

 

 

 

 

 

 

 

  Net Assets - 100.0%   $ 978,133,827      

 

 

 

 

 

 

 

 

* Includes U.S. Real Estate Investment Trusts (“REIT”) and Real Estate Operating Companies (“REOC”) as well as entities similarly formed under the laws of non-U.S. countries.

    

 

 

See previously submitted notes to financial statements for the annual period ended December 31, 2017.


Notes to Portfolio of Investments (unaudited)

(A) Securities Valuation

U.S. generally accepted accounting principles (“U.S. GAAP”) provides guidance on fair value measurements. In accordance with the standard, fair value is defined as the price that the Trust would receive to sell an investment or pay to transfer a liability in a timely transaction with an independent buyer in the principal market, or in the absence of a principal market the most advantageous market for the investment or liability. It establishes a single definition of fair value, creates a three-tier hierarchy as a framework for measuring fair value based on inputs used to value the Trust’s investments, and requires additional disclosure about fair value. The hierarchy of inputs is summarized below:

 

• Level 1   -   unadjusted quoted prices in active markets for identical investments
• Level 2   -   other significant observable inputs (including quoted prices for similar investments, interest rates, prepayment speeds, credit risk, etc.)
• Level 3   -   significant unobservable inputs (including the Trust’s own assumptions in determining the fair value of investments)

For Level 1 inputs, the Trust uses unadjusted quoted prices in active markets for assets or liabilities with sufficient frequency and volume to provide pricing information as the most reliable evidence of fair value.

The Trust’s Level 2 valuation techniques include inputs other than quoted prices within Level 1 that are observable for an asset or liability, either directly or indirectly. Level 2 observable inputs may include quoted prices for similar assets and liabilities in active markets or quoted prices for identical or similar assets or liabilities in markets that are not active in which there are few transactions, the prices are not current, or price quotations vary substantially over time or among market participants. Inputs that are observable for the asset or liability in Level 2 include such factors as interest rates, yield curves, prepayment speeds, credit risk, and default rates for similar liabilities.

For Level 3 valuation techniques, the Trust uses unobservable inputs that reflect assumptions market participants would be expected to use in pricing the asset or liability. Unobservable inputs are used to measure fair value to the extent that observable inputs are not available and are developed based on the best information available under the circumstances. In developing unobservable inputs, market participant assumptions are used if they are reasonably available without undue cost and effort.

The inputs or methodology used for valuing securities are not necessarily an indication of the risk associated with investing in those securities. The following is a summary of the inputs used as of March 31, 2018 in valuing the Trust’s investments carried at fair value:

 

        Assets    Level 1              Level 2      Level 3      Total  

Investments in Real Estate Securities

           

Common Stock

           

Australia

     $    44,737,529        $                  –        $                –        $        44,737,529  

Canada

     18,084,186                      18,084,186  

France

     54,551,338                      54,551,338  

Germany

     34,444,541                      34,444,541  

Hong Kong

     82,968,621                      82,968,621  

Ireland

     11,700,269                      11,700,269  

Japan

     107,809,914                      107,809,914  

Mexico

     11,508,210                      11,508,210  

Singapore

     19,302,790                      19,302,790  

Spain

     17,794,541                      17,794,541  

Sweden

     8,488,025                      8,488,025  

United Kingdom

     74,392,531                      74,392,531  

United States

     460,373,803                      460,373,803  

Total Common Stock

     946,156,298                      946,156,298  

Preferred Stock

           

United States

     187,596,362        21,523,287               209,119,649  

Total Investments in Real Estate Securities

     $1,133,752,660        $    21,523,287        $                –        $    1,155,275,947  

 

See previously submitted notes to financial statements for the annual period ended December 31, 2017.


Notes to Portfolio of Investments (unaudited) (continued)

 

The primary third party pricing vendor for the Trust’s listed preferred stock investments is FT Interactive Data (“IDC”). When available, the Trust will obtain a closing exchange price to value the preferred stock investments and, in such instances, the investment will be classified as Level 1 since an unadjusted quoted price was utilized. When a closing price is not available for the listed preferred stock investments, IDC will produce an evaluated mean price (midpoint between the bid and the ask evaluation) and such investments will be classified as Level 2 since other observable inputs were used in the valuation. Factors used in the IDC evaluation include trading activity, the presence of a two-sided market, and other relevant market data.

The Trust’s policy is to recognize transfers in and transfers out at the fair value as of the beginning of the period. The portfolio may hold securities which are periodically fair valued in accordance with the Trust’s fair value procedures. This may result in movements between Levels 1, 2 and 3 throughout the period. $12,870,000 was transferred out of Level 1 into Level 2 during the period ended March 31, 2018 due to the unavailability of significant observable pricing inputs. $3,651,072 was transferred out of level 2 into level 1 during the period ended March 31, 2018 due to the availability of significant observable pricing inputs. Pursuant to the Trust’s fair value procedures noted previously, equity securities (including exchange traded securities and open-end regulated investment companies) and exchange traded derivatives (i.e. futures contracts and options) are generally categorized as Level 1 securities in the fair value hierarchy. Fixed income securities, non-exchange traded derivatives and money market instruments are generally categorized as Level 2 securities in the fair value hierarchy. Investments for which there are no such quotations, or for which quotations do not appear reliable, are valued at fair value as determined in accordance with procedures established by and under the general supervision of the Trustees. These valuations are typically categorized as Level 2 or Level 3 securities in the fair value hierarchy.

For the period ended March 31, 2018, there have been no significant changes to the Trust’s fair valuation methodology.

(B) Forward Foreign Currency Contracts

The Trust enters into forward foreign currency contracts in order to hedge its exposure to changes in foreign currency exchange rates on its foreign portfolio holdings, to hedge certain Trust purchase and sales commitments denominated in foreign currencies and for investment purposes. A forward foreign currency contract is a commitment to purchase or sell a foreign currency on a future date at a negotiated forward rate. The gain or loss arising from the difference between the original contracts and the closing of such contracts would be included in net realized gain or loss on foreign currency transactions.

Fluctuations in the value of open forward foreign currency contracts are recorded for financial reporting purposes as unrealized appreciation and depreciation by the Trust.

The Trust’s custodian will place and maintain cash not available for investment or other liquid assets in a separate account of the Trust having a value at least equal to the aggregate amount of the Trust’s commitments under forward foreign currency contracts entered into with respect to position hedges.

Risks may arise from the potential inability of counterparty to meet the terms of a contract and from unanticipated movements in the value of a foreign currency relative to the U.S. dollar. The face or contract amount, in U.S. dollars, reflects the total exposure the Trust has in that particular currency contract. As of March 31, 2018, the Trust did not hold any forward foreign currency contracts.

(C) Options

The Trust may purchase or sell (write) options on securities and securities indices which are listed on national securities exchange or in the over-the-counter (“OTC”) market as a means of achieving additional return or of hedging the value of the Trust’s portfolio.

An option on a security is a contract that gives the holder of the option, in return for a premium, the right to buy from (in the case of a call) or sell to (in the case of a put) the writer of the option the security underlying the option at a specified exercise or “strike” price. The writer of an option on a security has an obligation upon exercise of the option to deliver the underlying security upon payment of the exercise price (in the case of a call) or to pay the exercise price upon delivery of the underlying security (in the case of a put).

There are several risks associated with transactions in options on securities. As the writer of a covered call option, the Trust forgoes, during the option’s life, the opportunity to profit from increases in the market value of the security covering the call option above the sum of the premium and the strike price of the call but has retained the risk of loss should the price of the underlying security decline.

 

See previously submitted notes to financial statements for the annual period ended December 31, 2017.


Notes to Portfolio of Investments (unaudited) (concluded)

 

The writer of an option has no control over the time when it may be required to fulfil its obligation as writer of the option. Once an option writer has received an exercise notice, it cannot effect a closing purchase transaction in order to terminate its obligation under the option and must deliver the underlying security at the exercise price. As of March 31, 2018, the Trust did not hold any options contracts.

 

See previously submitted notes to financial statements for the annual period ended December 31, 2017.


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.


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)    CBRE Clarion Global Real Estate Income Fund

By (Signature and Title)*        /s/ T. Ritson Ferguson                                                                             

 

                                                T. Ritson Ferguson

 

                                                President and Chief Executive Officer

Date: May 21, 2018

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 (Signature and Title)*        /s/ T. Ritson Ferguson                                                                             

  

                                T. Ritson Ferguson

  

                                President and Chief Executive Officer

Date: May 21, 2018

By (Signature and Title)*        /s/ Jonathan A. Blome                                                                             

  

                               Jonathan A. Blome

  

                               Chief Financial Officer

Date: May 21, 2018

* Print the name and title of each signing officer under his or her signature.