NEUBERGER BERMAN REAL ESTATE SECURITIES INCOME FUND ANNOUNCES MONTHLY DISTRIBUTION

Rhea-AI Summary

Neuberger Berman Real Estate Securities Income Fund Inc. (NRO) has declared a distribution of $0.0312 per share of common stock, payable on January 31, 2024. The Fund anticipates making regular monthly distributions, subject to market conditions, of the same amount, but there is no guarantee. The distribution may consist of net investment income, net realized 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.

Positive

• None.

Negative

• The distribution is subject to market conditions, and there is no guarantee that the Fund will always be able to pay a distribution of any particular amount. The final determination of the source and tax characteristics of all distributions paid in 2024 will be made after the end of the year, which may lead to uncertainty for shareholders.

Financial Analyst

The declaration of a monthly distribution by Neuberger Berman Real Estate Securities Income Fund Inc. reflects a commitment to providing consistent income to shareholders. The distribution rate of $0.0312 per share is noteworthy, as it gives investors insight into the fund's current earnings and operational efficiency. Investors typically look at distribution rates as a signal of the fund's performance and the sustainability of income from its investments. The ability to maintain this rate is contingent upon several factors, such as investment income stability, capital gains, leverage costs and overall fund expenses.

For stakeholders, the short-term benefit is the receipt of regular income. However, the long-term implications hinge on the fund's investment strategy and market conditions. A reliable distribution can attract income-focused investors, but there is an inherent risk if the distributions are supplemented by return of capital or if they are substantially supported by realized capital gains instead of net investment income. This could indicate that the fund is eroding capital to maintain its distributions, which is not sustainable in the long run.

Market Research Analyst

Real estate securities funds like NRO are influenced by the broader real estate market and economic conditions. The fund's performance and therefore its ability to maintain distributions, is linked to factors such as interest rate trends, property values and rent income. The distribution stability of $0.0312 per share can be attractive in a low-yield environment, but investors must be cognizant of the real estate cycle and its impact on the fund's underlying assets. The notice compliance with Section 19 of the Investment Company Act of 1940 ensures transparency regarding the composition of distributions, which is critical for investor trust and the fund's reputation.

Investors should be aware that distributions that include a return of capital could suggest that the fund is not generating enough income from its investments. This could potentially affect the fund's NAV (Net Asset Value) over time if the return of capital is a significant portion of the distribution. Monitoring the sources of the distribution is essential to assess the fund's financial health and the sustainability of its income-generating capabilities.

Legal Expert

From a legal standpoint, the fund's adherence to Section 19 of the Investment Company Act of 1940 is crucial. This compliance ensures that investors are informed about the nature of the distributions, particularly if they include anything other than net investment income. The requirement for a notice serves to protect investors from potential misunderstandings regarding the fund's payouts. It's important for investors to understand the tax implications of these distributions, as the return of capital is not taxed in the same way as dividends or capital gains. The final determination of the source and tax characteristics after the end of the year is a critical piece of information that affects investors' tax planning strategies.

NEW YORK, Dec. 29, 2023 /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 January 31, 2024, has a record date of January 16, 2024, and has an ex-date of January 12, 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, founded in 1939, is a private, independent, employee-owned investment manager. The firm manages a range of strategies—including equity, fixed income, quantitative and multi-asset class, private equity, real estate and hedge funds—on behalf of institutions, advisors and individual investors globally. Neuberger Berman's investment philosophy is founded on active management, engaged ownership and fundamental research, including industry-leading research into material environmental, social and governance factors. Neuberger Berman is a PRI Leader, a designation awarded to fewer than 1% of investment firms. With offices in 26 countries, the firm's diverse team has over 2,750 professionals. For nine consecutive years, Neuberger Berman has been named first or second in Pensions & Investments Best Places to Work in Money Management survey (among those with 1,000 employees or more). The firm manages $439 billion in client assets as of September 30, 2023. For more information, please visit our website at www.nb.com.

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

What is the distribution amount declared by Neuberger Berman Real Estate Securities Income Fund Inc. (NRO)?

The distribution declared is $0.0312 per share of common stock.

When is the distribution payable?

The distribution is payable on January 31, 2024.

What does the Fund anticipate regarding future distributions?

The Fund anticipates making regular monthly distributions, subject to market conditions, of $0.0312 per share of common stock.

What may the distribution consist of?

The distribution may consist of net investment income, net realized capital gains, and return of capital.

How will the source and tax characteristics of all distributions paid in 2024 be determined?

The final determination of the source and tax characteristics of all distributions paid in 2024 will be made after the end of the year.