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 March 28, 2024. The Fund aims to maintain regular monthly distributions, subject to market conditions, but there is no guarantee of specific amounts. Distributions may include net investment income, capital gains, and return of capital.

Insights

Financial Analyst

The announcement of the distribution by Neuberger Berman Real Estate Securities Income Fund Inc. is a reflection of the fund's current financial health and its ability to generate income for its shareholders. The declared distribution of $0.0312 per share represents a tangible return on investment for the shareholders and can be seen as a positive signal of the fund's performance, especially if the distributions are consistent and supported by the fund's underlying earnings and capital gains.

Investors should consider the sustainability of these distributions, which depend on the fund's operational efficiency, the income from its investments and the management's strategy in terms of leverage. The cost of leverage is particularly noteworthy as it can significantly impact net income and consequently, the distribution amounts. High leverage costs could erode distribution levels over time.

The announcement also serves as a forward-looking indicator for the market, suggesting that the fund expects to maintain its distribution policy. However, the caveat that there is no assurance of maintaining a specific distribution amount introduces uncertainty. Investors need to monitor the fund's performance closely for any signs of changing conditions that might affect future distributions.

Market Research Analyst

The real estate sector is subject to cyclical trends and economic variables such as interest rates, which can influence the performance of real estate securities and, by extension, the distributions of funds like Neuberger Berman Real Estate Securities Income Fund Inc. It's important for investors to be aware of the broader market conditions that could impact the fund's investment income and capital gains.

Understanding the composition of the distributions is also crucial. Distributions that are largely a return of capital rather than net investment income or capital gains could indicate that the fund is not generating enough income from its investments. This could potentially reduce the fund's net asset value over time if the trend continues. Therefore, investors should look for the notices as per Section 19 of the Investment Company Act of 1940 to understand the nature of the distributions better.

Comparing the distribution yield with industry benchmarks and other similar funds can provide additional context for investors. If Neuberger Berman's distribution is atypical for its category, it could either signal a competitive advantage or a potential red flag that warrants closer examination.

Tax Expert

From a taxation perspective, the nature of the distributions is significant. Distributions that are classified as net investment income or capital gains are taxed differently than those classified as a return of capital. A return of capital is not taxed immediately but reduces the investor's cost basis in the fund, potentially resulting in higher capital gains taxes when shares are sold.

Investors should be attentive to the tax characteristics of all distributions, which will be determined at the end of the year. The distinction between the types of distributions can affect an investor's tax planning strategy. For example, frequent distributions that are largely return of capital might not be as favorable for tax-sensitive investors as those seeking regular income from net investment income or capital gains.

It is also important for investors to understand that the informational notices provided under Section 19 are for transparency and do not have immediate tax reporting implications. However, they serve as an essential tool for investors to anticipate the tax consequences of the distributions received throughout the year.

NEW YORK, Feb. 29, 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 March 28, 2024, has a record date of March 15, 2024, and has an ex-date of March 14, 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)?

Neuberger Berman Real Estate Securities Income Fund Inc. (NRO) declared a distribution of $0.0312 per share of common stock.

When is the distribution payable?

The distribution announced by Neuberger Berman Real Estate Securities Income Fund Inc. (NRO) is payable on March 28, 2024.

What types of income may the distributions consist of?

The distributions by Neuberger Berman Real Estate Securities Income Fund Inc. (NRO) may consist of net investment income, net realized capital gains, and return of capital.

Is there a guarantee on the specific distribution amounts by Neuberger Berman Real Estate Securities Income Fund Inc. (NRO)?

Neuberger Berman Real Estate Securities Income Fund Inc. (NRO) does not guarantee specific distribution amounts, as they depend on various factors like income stability and expenses.

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

The Fund's ability to maintain its distribution rate depends on factors like income stability, capital gains availability, leverage, expenses, and fees.