Business & Finance
Business and Finance
Business and Finance
Fri, December 19, 2008 Neuberger Berman Real Estate Securities Income Fund Inc. Announces Monthly Distribution and Reduction in Distribution Rate
NEW YORK--([ BUSINESS WIRE ])--The Board of Directors of Neuberger Berman Real Estate Securities Income Fund Inc. (AMEX: NRO) (the "Fund") has declared the Fund's next monthly distribution and reduced the Fund's monthly distribution rate to $0.038 per share, which represents a $0.11508 reduction per share. The $0.038 per share monthly distribution rate is equivalent to 25.3% of the Fund's closing market price per share and 19.2% of the Fund's net asset value per share as of December 17, 2008, on an annualized basis. The monthly distribution being announced today is payable on January 30, 2009, has a record date of January 14, 2009 and an ex-date of January 12, 2009.
In determining that a reduction in the distribution rate was appropriate, the Board considered the continued challenges that the Fund is experiencing in the markets for its portfolio securities, the recent reduction in the Fund's leverage and the level of leverage the Fund will likely have going forward, the Fund's potential to earn net investment income and realize capital gains and the likelihood that the new distribution rate is sustainable, among other things.
Under its level distribution policy, the Fund endeavors to establish a distribution rate that its Board believes is sustainable for a reasonable period of time, subject to market conditions. The Fund's continuing ability to maintain a stable distribution will be dependent on several factors, including the stability of income received from its investments, the degree of cost associated with its leverage and the level of other Fund expenses. There is no assurance that the Fund will always be able to pay a distribution of any particular rate or that a distribution will consist only of net investment income.
The distribution declared, 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. This notice would be for informational purposes, and would disclose, among other things, estimated portions of the distributions, if any, consisting of net investment income, capital gain and return of capital.
Neuberger Berman Management LLC, the Fund's investment manager, is a subsidiary of Neuberger Berman Holdings LLC, an investment advisory company serving individuals, families, and taxable and non-taxable institutions with a broad range of investment products, services and strategies. Neuberger Berman engages in wealth management services including private asset management, mutual funds, institutional management and alternative investments. For further information about Neuberger Berman please visit [ www.nb.com ].
Statements made in this release that look forward in time involve risks and uncertainties and are forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. 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.
