N-Q 1 a13-12679_1nq.htm 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

811-22260

 

RMR REAL ESTATE INCOME FUND

(Exact name of registrant as specified in charter)

 

Two Newton Place, 255 Washington Street, Suite 300

Newton, Massachusetts

 

02458

(Address of principal executive offices)

 

(Zip code)

 

Adam D. Portnoy, President

RMR Real Estate Income Fund

Two Newton Place, 255 Washington Street, Suite 300

Newton, Massachusetts 02458

(Name and address of agent for service)

 

Copy to:

 

Mark Berman

State Street Bank and Trust Company

4 Copley Place, 5th Floor

Boston, Massachusetts 02116

 

Julie A. Tedesco, Esq.

State Street Bank and Trust Company

4 Copley Place, 5th Floor

Boston, Massachusetts 02116

 

Registrant’s telephone number, including area code:

(617) 332-9530

 

 

Date of fiscal year end:

December 31

 

 

Date of reporting period:

March 31, 2013

 

 



 

RMR REAL ESTATE INCOME FUND

Portfolio of Investments  —  March 31, 2013 (unaudited)

 

Company

 

Shares

 

Value

 

COMMON STOCKS — 83.3%

 

 

 

 

 

REAL ESTATE INVESTMENT TRUSTS — 79.4%

 

 

 

 

 

APARTMENTS — 12.0%

 

 

 

 

 

American Campus Communities, Inc. (a)

 

25,900

 

$

1,174,306

 

Apartment Investment & Management Co. (a)

 

28,745

 

881,322

 

Associated Estates Realty Corp. (a)

 

192,628

 

3,590,586

 

AvalonBay Communities, Inc. (a)

 

25,575

 

3,239,585

 

BRE Properties, Inc. (a)

 

24,800

 

1,207,264

 

Camden Property Trust

 

5,000

 

343,400

 

Campus Crest Communities, Inc.

 

1,000

 

13,900

 

Colonial Properties Trust (a)

 

57,800

 

1,306,858

 

Education Realty Trust, Inc. (a)

 

16,737

 

176,241

 

Equity Residential (a)

 

74,000

 

4,074,440

 

Essex Property Trust, Inc. (a)

 

10,500

 

1,581,090

 

Home Properties, Inc. (a)

 

8,000

 

507,360

 

Mid-America Apartment Communities, Inc. (a)

 

18,000

 

1,243,080

 

Post Properties, Inc. (a)

 

14,600

 

687,660

 

UDR, Inc. (a)

 

39,000

 

943,410

 

 

 

 

 

20,970,502

 

DIVERSIFIED — 8.9%

 

 

 

 

 

CapLease, Inc.

 

149,498

 

952,302

 

Digital Realty Trust, Inc. (a)

 

26,000

 

1,739,660

 

DuPont Fabros Technology, Inc. (a)

 

16,000

 

388,320

 

EPR Properties (a)

 

83,650

 

4,353,983

 

Investors Real Estate Trust

 

25,700

 

253,659

 

Lexington Realty Trust (a)

 

269,058

 

3,174,884

 

One Liberty Properties, Inc.

 

44,712

 

971,145

 

Retail Properties of America, Inc.

 

30,000

 

444,000

 

Vornado Realty Trust (a)

 

39,335

 

3,289,979

 

Whitestone REIT

 

2,229

 

33,747

 

 

 

 

 

15,601,679

 

FREE STANDING — 4.0%

 

 

 

 

 

Getty Realty Corp. (a)

 

22,000

 

444,620

 

National Retail Properties, Inc. (a)

 

134,400

 

4,861,248

 

Realty Income Corp. (a)

 

23,900

 

1,083,865

 

Spirit Realty Capital, Inc.

 

35,000

 

665,000

 

 

 

 

 

7,054,733

 

HEALTH CARE — 15.1%

 

 

 

 

 

HCP, Inc. (a)

 

116,530

 

5,810,186

 

Health Care REIT, Inc. (a)

 

29,200

 

1,982,972

 

Healthcare Realty Trust, Inc. (a)

 

13,100

 

371,909

 

LTC Properties, Inc. (a)

 

48,600

 

1,979,478

 

Medical Properties Trust, Inc. (a)

 

324,320

 

5,202,093

 

National Health Investors, Inc. (a)

 

47,958

 

3,138,851

 

OMEGA Healthcare Investors, Inc. (a)

 

15,498

 

470,519

 

Sabra Health Care REIT, Inc. (a)

 

51,500

 

1,494,015

 

Ventas, Inc. (a)

 

81,397

 

5,958,260

 

 

 

 

 

26,408,283

 

INDUSTRIAL — 3.2%

 

 

 

 

 

DCT Industrial Trust, Inc. (a)

 

149,500

 

1,106,300

 

EastGroup Properties, Inc. (a)

 

13,300

 

774,060

 

First Potomac Realty Trust (a)

 

15,000

 

222,450

 

ProLogis, Inc. (a)

 

43,088

 

1,722,658

 

STAG Industrial, Inc. (a)

 

81,209

 

1,727,316

 

 

 

 

 

5,552,784

 

LODGING/RESORTS — 5.2%

 

 

 

 

 

Ashford Hospitality Trust, Inc. (a)

 

55,000

 

679,800

 

Chatham Lodging Trust

 

46,000

 

810,060

 

Chesapeake Lodging Trust (a)

 

71,700

 

1,644,798

 

DiamondRock Hospitality Co. (a)

 

55,603

 

517,664

 

FelCor Lodging Trust, Inc. (b)

 

10,000

 

59,500

 

Hersha Hospitality Trust (a)

 

390,583

 

2,281,005

 

Host Hotels & Resorts, Inc. (a)

 

24,000

 

419,760

 

LaSalle Hotel Properties (a)

 

10,000

 

253,800

 

Pebblebrook Hotel Trust (a)

 

43,100

 

1,111,549

 

RLJ Lodging Trust (a)

 

39,400

 

896,744

 

Summit Hotel Properties, Inc. (a)

 

36,600

 

383,202

 

Supertel Hospitality, Inc. (b)

 

84,642

 

93,952

 

 

 

 

 

9,151,834

 

MANUFACTURED HOME — 1.5%

 

 

 

 

 

Sun Communities, Inc. (a)

 

52,256

 

2,577,788

 

 

 

 

 

 

 

MIXED OFFICE/INDUSTRIAL — 2.1%

 

 

 

 

 

Duke Realty Corp. (a)

 

46,100

 

782,778

 

Gladstone Commercial Corp.

 

10,477

 

203,987

 

Liberty Property Trust (a)

 

69,737

 

2,772,046

 

 

 

 

 

3,758,811

 

MORTGAGE — 1.0%

 

 

 

 

 

Annaly Capital Management, Inc. (a)

 

85,000

 

1,350,650

 

ARMOUR Residential REIT, Inc.

 

60,000

 

391,800

 

 

 

 

 

1,742,450

 

OFFICE — 9.7%

 

 

 

 

 

Alexandria Real Estate Equities, Inc. (a)

 

29,000

 

2,058,420

 

BioMed Realty Trust, Inc. (a)

 

50,000

 

1,080,000

 

Boston Properties, Inc. (a)

 

20,500

 

2,071,730

 

Brandywine Realty Trust (a)

 

145,300

 

2,157,705

 

Corporate Office Properties Trust (a)

 

48,500

 

1,293,980

 

Douglas Emmett, Inc. (a)

 

39,322

 

980,298

 

Franklin Street Properties Corp. (a)

 

41,695

 

609,581

 

Highwoods Properties, Inc. (a)

 

40,000

 

1,582,800

 

Kilroy Realty Corp. (a)

 

28,600

 

1,498,640

 

Mack-Cali Realty Corp. (a)

 

58,030

 

1,660,238

 

MPG Office Trust, Inc. (b)

 

24,000

 

66,000

 

SL Green Realty Corp. (a)

 

22,900

 

1,971,919

 

 

 

 

 

17,031,311

 

REGIONAL MALLS — 6.9%

 

 

 

 

 

CBL & Associates Properties, Inc. (a)

 

84,000

 

1,982,400

 

Glimcher Realty Trust (a)

 

201,700

 

2,339,720

 

Pennsylvania Real Estate Investment Trust (a)

 

72,118

 

1,398,368

 

Simon Property Group, Inc. (a)

 

28,227

 

4,475,673

 

The Macerich Co. (a)

 

28,470

 

1,832,899

 

 

 

 

 

12,029,060

 

SHOPPING CENTERS — 8.2%

 

 

 

 

 

Cedar Realty Trust, Inc. (a)

 

115,810

 

707,599

 

DDR Corp. (a)

 

47,000

 

818,740

 

Equity One, Inc. (a)

 

29,500

 

707,115

 

Excel Trust, Inc. (a)

 

113,568

 

1,550,203

 

Inland Real Estate Corp. (a)

 

136,300

 

1,375,267

 

Kimco Realty Corp. (a)

 

110,000

 

2,464,000

 

Kite Realty Group Trust (a)

 

155,503

 

1,048,090

 

Ramco-Gershenson Properties Trust (a)

 

137,128

 

2,303,751

 

Regency Centers Corp. (a)

 

15,100

 

798,941

 

Urstadt Biddle Properties (a)

 

41,800

 

909,568

 

Weingarten Realty Investors (a)

 

57,000

 

1,798,350

 

 

 

 

 

14,481,624

 

 

See notes to portfolio of investments.

 



 

Company

 

Shares

 

Value

 

COMMON STOCKS — CONTINUED

 

 

 

 

 

REAL ESTATE INVESTMENT TRUSTS — CONTINUED

 

 

 

 

 

STORAGE — 1.6%

 

 

 

 

 

CubeSmart (a)

 

25,000

 

$

395,000

 

Public Storage, Inc. (a)

 

15,900

 

2,421,888

 

 

 

 

 

2,816,888

 

Total Real Estate Investment Trusts (Cost $107,528,698)

 

 

 

139,177,747

 

 

 

 

 

 

 

OTHER — 3.9%

 

 

 

 

 

Beazer Homes USA, Inc. (b)

 

7,000

 

110,880

 

Carador PLC

 

5,496,600

 

5,833,267

 

Hyatt Hotels Corp. (a)(c)

 

12,500

 

540,375

 

Las Vegas Sands Corp.

 

5,000

 

281,750

 

The St. Joe Co. (a)(b)

 

5,000

 

106,250

 

Total Other (Cost $8,517,259)

 

 

 

6,872,522

 

Total Common Stocks (Cost $116,045,957)

 

 

 

146,050,269

 

 

 

 

 

 

 

PREFERRED STOCKS — 51.9%

 

 

 

 

 

REAL ESTATE INVESTMENT TRUSTS — 50.8%

 

 

 

 

 

APARTMENTS — 0.2%

 

 

 

 

 

Apartment Investment & Management Co., Series Z (a)

 

15,000

 

399,750

 

 

 

 

 

 

 

DIVERSIFIED — 9.6%

 

 

 

 

 

CapLease, Inc., Series A (a)

 

52,177

 

1,332,079

 

CapLease, Inc., Series B

 

8,840

 

238,768

 

CapLease, Inc., Series C

 

62,900

 

1,652,383

 

Coresite Realty Corp., Series A

 

30,000

 

786,000

 

Cousins Properties, Inc., Series A

 

19,900

 

510,236

 

Cousins Properties, Inc., Series B

 

20,800

 

528,216

 

Digital Realty Trust, Inc., Series F (a)

 

25,000

 

674,000

 

DuPont Fabros Technology, Inc., Series A (a)

 

10,000

 

269,300

 

DuPont Fabros Technology, Inc., Series B (a)

 

40,394

 

1,090,234

 

EPR Properties, Series E (d)

 

16,400

 

532,016

 

EPR Properties, Series F

 

30,000

 

771,000

 

Investors Real Estate Trust, Series B

 

70,000

 

1,841,700

 

LBA Realty LLC, Series B (b)

 

73,179

 

1,459,921

 

Lexington Realty Trust, Series D (a)

 

91,594

 

2,297,178

 

Retail Properties of America, Inc.

 

70,000

 

1,771,700

 

Winthrop Realty Trust

 

40,000

 

1,040,000

 

 

 

 

 

16,794,731

 

HEALTH CARE — 0.9%

 

 

 

 

 

Sabra Health Care REIT, Inc., Series A

 

60,600

 

1,533,180

 

 

 

 

 

 

 

INDUSTRIAL — 1.5%

 

 

 

 

 

First Potomac Realty Trust, Series A

 

80,000

 

2,080,000

 

Terreno Realty Corp., Series A

 

20,000

 

530,600

 

 

 

 

 

2,610,600

 

LODGING/RESORTS — 17.8%

 

 

 

 

 

Ashford Hospitality Trust, Series A

 

95,482

 

2,415,695

 

Ashford Hospitality Trust, Series D

 

205,756

 

5,189,166

 

Ashford Hospitality Trust, Series E

 

45,000

 

1,242,450

 

Chesapeake Lodging Trust, Series A

 

65,000

 

1,809,600

 

FelCor Lodging Trust, Inc., Series A (d)

 

73,000

 

1,812,590

 

FelCor Lodging Trust, Inc., Series C

 

124,139

 

3,125,820

 

Hersha Hospitality Trust, Series B (a)

 

80,498

 

2,115,487

 

Hersha Hospitality Trust, Series C

 

46,000

 

1,179,440

 

LaSalle Hotel Properties, Series G (a)

 

73,220

 

1,839,286

 

LaSalle Hotel Properties, Series I

 

30,000

 

743,100

 

Pebblebrook Hotel Trust, Series A (a)

 

14,500

 

388,818

 

Pebblebrook Hotel Trust, Series B (a)

 

23,500

 

642,725

 

Pebblebrook Hotel Trust, Series C

 

45,000

 

1,109,250

 

Strategic Hotels & Resorts, Inc., Series A (a)

 

65,654

 

1,624,936

 

Strategic Hotels & Resorts, Inc., Series B (a)

 

77,100

 

1,905,141

 

Summit Hotel Properties, Inc.

 

24,500

 

619,360

 

Summit Hotel Properties, Inc., Series A

 

10,000

 

274,400

 

Summit Hotel Properties, Inc., Series B

 

8,000

 

207,600

 

Sunstone Hotel Investors, Inc., Series D (a)

 

108,739

 

2,901,157

 

 

 

 

 

31,146,021

 

MANUFACTURED HOMES — 1.2%

 

 

 

 

 

Sun Communities, Inc., Series A

 

40,000

 

1,022,000

 

UMH Properties, Inc., Series A

 

37,500

 

997,500

 

 

 

 

 

2,019,500

 

MIXED OFFICE/INDUSTRIAL — 0.1%

 

 

 

 

 

Duke Realty Corp., Series J (a)

 

5,218

 

132,172

 

 

 

 

 

 

 

MORTGAGE — 1.3%

 

 

 

 

 

ARMOUR Residential REIT, Inc., Series B

 

30,000

 

750,000

 

MFA Financial, Inc. (a)

 

20,000

 

530,600

 

NorthStar Realty Finance Corp., Series B

 

11,160

 

278,107

 

RAIT Financial Trust, Series A

 

32,285

 

790,983

 

 

 

 

 

2,349,690

 

OFFICE — 4.4%

 

 

 

 

 

Brandywine Realty Trust, Series E (a)

 

23,000

 

608,005

 

Corporate Office Properties Trust, Series J

 

7,100

 

177,713

 

Corporate Office Properties Trust, Series L

 

110,000

 

2,894,100

 

Hudson Pacific Properties, Inc., Series B

 

20,000

 

537,500

 

Kilroy Realty Corp., Series G (a)

 

65,000

 

1,759,550

 

Parkway Properties, Inc., Series D

 

30,680

 

769,147

 

SL Green Realty Corp., Series I

 

40,000

 

1,035,200

 

 

 

 

 

7,781,215

 

REGIONAL MALLS — 4.7%

 

 

 

 

 

CBL & Associates Properties, Inc., Series D (a)

 

60,761

 

1,538,469

 

CBL & Associates Properties, Inc., Series E

 

15,000

 

378,600

 

Glimcher Realty Trust (e)

 

30,000

 

746,100

 

Glimcher Realty Trust, Series G (a)

 

111,307

 

2,802,710

 

Glimcher Realty Trust, Series H

 

45,000

 

1,181,700

 

Pennsylvania Real Estate Investment Trust, Series A

 

20,000

 

531,400

 

Pennsylvania Real Estate Investment Trust, Series B

 

40,000

 

1,027,600

 

 

 

 

 

8,206,579

 

SHOPPING CENTERS — 9.1%

 

 

 

 

 

Cedar Realty Trust, Inc., Series B

 

119,664

 

3,009,549

 

DDR Corp., Series H (a)

 

75,572

 

1,905,926

 

 

See notes to portfolio of investments.

 



 

Company

 

Shares

 

Value

 

PREFERRED STOCKS — CONTINUED

 

 

 

 

 

REAL ESTATE INVESTMENT TRUSTS — CONTINUED

 

 

 

 

 

DDR Corp., Series J

 

40,000

 

$

1,011,600

 

DDR Corp., Series K

 

45,000

 

1,118,250

 

Excel Trust, Inc.

 

65,000

 

1,695,850

 

Inland Real Estate Corp., Series A

 

100,000

 

2,682,000

 

Kimco Realty Corp., Series I (a)

 

27,944

 

727,103

 

Kite Realty Group Trust, Series A

 

77,000

 

1,997,380

 

Saul Centers, Inc., Series C

 

27,000

 

706,590

 

Urstadt Biddle Properties, Series D

 

22,423

 

583,783

 

Urstadt Biddle Properties, Series F

 

20,000

 

539,200

 

 

 

 

 

15,977,231

 

STORAGE — 0.0%

 

 

 

 

 

CubeSmart, Series A (a)

 

1,400

 

37,730

 

Total Real Estate Investment Trusts (Cost $81,383,597)

 

 

 

88,988,399

 

 

 

 

 

 

 

OTHER — 1.1%

 

 

 

 

 

Forest City Enterprises, Inc.

 

77,449

 

1,969,528

 

Total Other (Cost $1,884,929)

 

 

 

1,969,528

 

Total Preferred Stocks (Cost $83,268,526)

 

 

 

90,957,927

 

 

 

 

 

 

 

INVESTMENT COMPANIES — 1.5%

 

 

 

 

 

Blackrock Credit Allocation Income Trust

 

19,451

 

272,314

 

Cohen & Steers Infrastructure Fund, Inc. (a)

 

30,278

 

626,452

 

Cohen & Steers Quality Income Realty Fund, Inc. (a)

 

100,297

 

1,162,442

 

Eaton Vance Enhanced Equity Income Fund II

 

35,388

 

401,654

 

Nuveen Real Estate Income Fund (a)

 

3,700

 

46,287

 

Total Investment Companies (Cost $2,538,730)

 

 

 

2,509,149

 

 

 

 

 

 

 

SHORT-TERM INVESTMENTS — 1.8%

 

 

 

 

 

MONEY MARKET FUNDS — 1.8%

 

 

 

 

 

Dreyfus Cash Management Fund, Institutional Shares, 0.05% (f) (Cost $3,230,399)

 

3,230,399

 

3,230,399

 

 

 

 

 

 

 

Total Investments — 138.5% (Cost $205,083,612)

 

 

 

242,747,744

 

 

 

 

 

 

 

Other assets less liabilities — (0.5)%

 

 

 

(773,863

)

 

 

 

 

 

 

Revolving credit facility — (28.5)%

 

 

 

(50,000,000

)

 

 

 

 

 

 

Preferred Shares, at liquidation preference — (9.5)%

 

 

 

(16,675,000

)

Net Assets applicable to common shareholders — 100.0%

 

 

 

$

175,298,881

 

 


Notes to Portfolio of Investments

(a)

As of March 31, 2013, the Fund has pledged portfolio securities with a market value of $129,516,137 as collateral in connection with its revolving credit facility. All or a portion of these shares were pledged as of March 31, 2013.

(b)

As of March 31, 2013, this security had discontinued paying distributions.

(c)

Non-dividend paying security.

(d)

Convertible into common stock.

(e)

As of March 31, 2013, the Fund held $746,100 of securities fair valued in accordance with policies adopted by the board of trustees, which represents 0.3% of the Fund’s total investments. See Note A(2) to the notes to portfolio of investments.

(f)

Rate reflects 7 day yield as of March 31, 2013.

 



 

Notes to Portfolio of Investments

September 30, 2012 (unaudited)

 

Note A

 

(1) Portfolio Valuation

 

Investment securities of the Fund are valued as of the close of trading at the latest sales price whenever that price is readily available on that day; securities for which no sales were reported on that day, unless otherwise noted, are valued at the average of the closing bid and ask prices on that day. Securities traded primarily on the NASDAQ Stock Market, or NASDAQ, are normally valued by the Fund at the NASDAQ Official Closing Price, or NOCP, provided by NASDAQ each business day. The NOCP is the most recently reported price as of 4:00:02 p.m., eastern time, unless that price is outside the range of the ‘‘inside’’ bid and asked prices (i.e., the bid and asked prices that dealers quote to each other when trading for their own accounts); in that case, NASDAQ will adjust the price to equal the inside bid or asked price, whichever is closer to the most recently reported price as of 4:00:02 p.m. Some fixed income securities may be valued using values provided by a pricing service.

 

To the extent the Fund holds foreign securities in its portfolio, those are valued at the latest sales price reflected on the consolidated tape of the exchange that reflects the principal market for such securities whenever that price is readily available on that day; securities for which no sales were reported on that day, unless otherwise noted, are valued at the average of the closing bid and ask prices on that day. Some foreign markets close before the close of customary trading sessions on the New York Stock Exchange, or NYSE (usually 4:00 p.m. eastern time). Often, events occur after the principal foreign exchange on which foreign securities trade has closed, but before the NYSE closes, that the Fund determines could affect the value of the foreign securities the Fund owns or cause their earlier trading prices to be unreliable as a basis for determining value. If these events are expected to materially affect the Fund’s net asset value, or NAV, the prices of such securities are adjusted to reflect their estimated fair value as of the close of the NYSE, as determined in good faith under procedures established by the Fund’s board of trustees.

 

Any of the Fund’s securities which are not readily marketable, which are not traded or which have other characteristics of illiquidity are valued by the Fund at fair value as determined in good faith under procedures established by the Fund’s board of trustees. Numerous factors may be considered when determining fair value of a security, including cost at date of purchase, type of security, the nature and duration of restrictions on disposition of the security and whether the issuer of the security being fair valued has other securities of the same type outstanding. See Note A (2) for a further description of fair value measurements. Short term debt securities with less than 60 days until maturity may be valued at amortized cost plus interest accrued, which typically approximates fair value.

 

(2) Fair Value Measurements

 

The Fund reports the value of its securities at their fair value. Fair value is defined as the price that the Fund would receive upon selling an investment in a timely transaction to an independent buyer in the principal or most advantageous market for the investment. When valuing portfolio securities, the Fund uses observable market data when possible and otherwise uses other significant observable or unobservable inputs for fair value measurements. Inputs refer broadly to the assumptions the Fund believes that market participants would use in valuing the asset or liability, including assumptions about risk; for example, the risk inherent in using a particular valuation technique to measure fair value and the risk inherent in the inputs to the valuation technique. Inputs may be observable or unobservable. Observable inputs are inputs that reflect the assumptions market participants would use in valuing the asset or liability developed based on market data obtained from independent sources. Unobservable inputs are inputs that reflect the Fund’s own assumptions about the assumptions market participants would use in valuing the asset or liability developed based on the best information available in the circumstances. The three tier hierarchy of inputs used to value securities reported in these financial statements is summarized below:

 

·                  Level 1 – quoted prices in active markets for identical investments.

·                  Level 2 – other significant observable inputs (including quoted prices for similar investments, interest rates, credit risk, etc.).

·                  Level 3 – significant unobservable inputs (including the Fund’s own assumptions in determining the fair value of investments).

 

The following is a summary of the inputs used on March 31, 2013, in valuing the Fund’s investments:

 



 

Notes to Portfolio of Investments

March 31, 2013 (unaudited)

 

Description

 

Level 1

 

Level 2

 

Level 3

 

Total

 

Common Stocks

 

 

 

 

 

 

 

 

 

Real Estate Investment Trusts

 

 

 

 

 

 

 

 

 

Apartments

 

$

20,970,502

 

$

 

$

 

$

20,970,502

 

Diversified

 

15,601,679

 

 

 

15,601,679

 

Free Standing

 

7,054,733

 

 

 

7,054,733

 

Health Care

 

26,408,283

 

 

 

26,408,283

 

Industrial

 

5,552,784

 

 

 

5,552,784

 

Lodging/Resorts

 

9,151,834

 

 

 

9,151,834

 

Manufactured Home

 

2,577,788

 

 

 

2,577,788

 

Mixed Office/Industrial

 

3,758,811

 

 

 

3,758,811

 

Mortgage

 

1,742,450

 

 

 

1,742,450

 

Office

 

17,031,311

 

 

 

17,031,311

 

Regional Malls

 

12,029,060

 

 

 

12,029,060

 

Shopping Centers

 

14,481,624

 

 

 

14,481,624

 

Storage

 

2,816,888

 

 

 

2,816,888

 

Total Real Estate Investment Trusts

 

139,177,747

 

 

 

139,177,747

 

Other

 

6,872,522

 

 

 

6,872,522

 

Total Common Stocks

 

146,050,269

 

 

 

146,050,269

 

Preferred Stocks

 

 

 

 

 

 

 

 

 

Real Estate Investment Trusts

 

 

 

 

 

 

 

 

 

Apartments

 

399,750

 

 

 

399,750

 

Diversified

 

16,794,731

 

 

 

16,794,731

 

Health Care

 

1,533,180

 

 

 

1,533,180

 

Industrial

 

2,610,600

 

 

 

2,610,600

 

Lodging/Resorts

 

31,146,021

 

 

 

31,146,021

 

Manufactured Home

 

2,019,500

 

 

 

2,019,500

 

Mixed Office/Industrial

 

132,172

 

 

 

132,172

 

Mortgage

 

2,349,690

 

 

 

2,349,690

 

Office

 

7,781,215

 

 

 

7,781,215

 

Regional Malls

 

7,460,479

 

746,100

 

 

8,206,579

 

Shopping Centers

 

15,977,231

 

 

 

15,977,231

 

Storage

 

37,730

 

 

 

37,730

 

Total Real Estate Investment Trusts

 

88,242,299

 

746,100

 

 

88,988,399

 

Other

 

1,969,528

 

 

 

1,969,528

 

Total Preferred Stocks

 

90,211,827

 

746,100

 

 

90,957,927

 

Investment Companies

 

2,509,149

 

 

 

2,509,149

 

Short-Term Investments

 

 

 

 

 

 

 

 

 

Money Market Funds

 

3,230,399

 

 

 

3,230,399

 

Total Investments

 

$

242,001,644

 

$

746,100

 

$

 

$

242,747,744

 

 

The Fund uses broker quotes, cost at the date of purchase, issuer company financial information and other market indicators to value the securities whose prices were not readily available. The types of inputs used to value a security may change as the markets fluctuate and/or the availability of data used in an investment’s valuation changes.

 

When the S&P 500 Index (an unmanaged index published as Standard & Poor’s Composite Index of 500 common stocks) fluctuates more than 0.75% from the previous day close, the Fund believes that the closing price of foreign securities on the principal foreign exchange on which they trade may no longer represent the fair value of those securities at the time the U.S. market closes, in which case, the Fund fair values those foreign securities. In such circumstances, the Fund reports holdings in foreign securities at their fair values as determined by an independent security pricing service. The service uses a multi-factor model that includes such information as the security’s local closing price, relevant general and sector indices, currency fluctuations, depository receipts and futures, as applicable. The model generates an adjustment factor for each security that is applied to the local closing price to adjust it for post closing events, resulting in the security’s reported fair value. The adjustment factor is applied to a security only if the minimum confidence interval is 0.75% or more. The types of inputs may change as the markets fluctuate and/or the availability of data used in an investment’s valuation changes.

 



 

Notes to Portfolio of Investments - continued

March 31, 2013 (unaudited)

 

The Fund recognizes interperiod transfers between the input levels as of the end of the period. As of March 31, 2013, securities with a total value of approximately $746,100 were valued at Level 2 due to lack of quoted market prices. As of March 31, 2013, there were no transfers between Level 1 and Level 3 and no investments in securities characterized as Level 3.

 

(3) Tax Information

 

Although subject to adjustments, the Fund’s investments for federal income tax purposes as of March 31, 2013, were as follows:

 

Cost

 

$

206,827,813

 

Gross unrealized appreciation

 

$

41,283,656

 

Gross unrealized depreciation

 

(5,363,725

)

Net unrealized appreciation

 

$

35,919,931

 

 



 

Item 2.  Controls and Procedures.

 

(a)  The registrant’s principal executive officer and principal financial officer have concluded that the registrant’s disclosure controls and procedures (as defined in Rule 30a-3(c) under the Investment Company Act of 1940, as amended (the “1940 Act”)), are effective, as of a date within 90 days of the filing date of this report, based on their evaluation of these controls and procedures required by Rule 30a-3(b) under the 1940 Act and Rules 13a-15(b) or 15d-15(b) under the Securities Exchange Act of 1934, as amended.

 

(b)  There were no changes in the registrant’s internal control over financial reporting (as defined in Rule 30a-3(d) under the 1940 Act) that occurred during the registrant’s last fiscal quarter that have materially affected, or are reasonably likely to materially affect, the registrant’s internal control over financial reporting.

 

Item 3. Exhibits.

 

(a)(1) Certification of Principal Executive Officer, as required by Rule 30a-2(a) under the 1940 Act.

(a)(2) Certification of Principal Financial Officer, as required by Rule 30a-2(a) under the 1940 Act.

 



 

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.

 

RMR REAL ESTATE INCOME FUND

 

 

 

 

By:

/s/ Adam D. Portnoy

 

 

Adam D. Portnoy

 

 

President

 

 

 

 

Date:

May 17, 2013

 

 

 

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/ Adam D. Portnoy

 

 

Adam D. Portnoy

 

 

President

 

 

 

 

Date:

May 17, 2013

 

 

 

 

 

 

 

By:

/s/ Mark L. Kleifges

 

 

Mark L. Kleifges

 

 

Treasurer

 

 

 

 

Date:

May 17, 2013