#USA #New York #Rights Offering #Neuberger Berman #Real Estate Fund

Neuberger Berman's Successful Rights Offering

On February 25, 2025, Neuberger Berman Real Estate Securities Income Fund Inc. (NYSE American: NRO) announced the results of its recent rights offering, which concluded on February 19, 2025, at 5 PM ET. This offering was designed to allow existing shareholders to purchase more shares at a favorable price. The subscription price was set at $3.25 per share, aligning with 90% of the Fund's net asset value at the time of closing.

The overwhelming interest in this rights offering is reflected in the facts that it was over-subscribed, leading to the issuance of 15,840,458 shares of Common Stock. It’s estimated that the gross proceeds from this offering will be around $51.5 million. Investors who submitted applications are expected to receive their shares by February 26, 2025. Additionally, any excess payments made by investors will be fully refunded.

Due to the high demand, the available shares for over-subscription exceeded the requests received. This led to a pro-rata allocation of shares, ensuring that all investors who participated by submitting over-subscription requests had an equitable chance to increase their holdings according to the initial rights they were granted.

Understanding the Investment Objective

Neuberger Berman Real Estate Securities Income Fund aims to generate high current income while capital appreciation is a secondary goal. The fund predominantly invests at least 90% of its assets in income-producing equities, preferred securities, and a variety of debt securities linked to real estate entities, including real estate investment trusts (REITs). Notably, the fund is also allowed to allocate up to 20% for lower-grade debt securities and 10% in non-U.S. investments from developed countries. This structured approach allows the fund to navigate market fluctuations while striving for consistent returns for its investors.

Company Background

Founded in 1939, Neuberger Berman is a distinguished employee-owned investment manager with a workforce of over 2,800 across 26 countries, managing a robust portfolio valued at approximately $508 billion. The firm’s assets encompass various sectors, including equities, fixed income, and private equity. The investment strategy they adhere to is characterized by active portfolio management, rigorous research, and a commitment to engaged ownership. Recognized for excellence in sustainable investing, Neuberger Berman has received accolades for maintaining high reporting standards in stewardship practices.

The firm has also earned distinction in the investment management landscape, having been named by Pensions & Investments as one of the best workplaces in money management over the past decade. Renowned for their strategic foresight and empirical approach, Neuberger Berman stands out as a leader in the financial services sector.

For investors seeking information about the offering or further details on the Fund, copies of the prospectus and related documents can be obtained through the Securities and Exchange Commission’s EDGAR database or by reaching out directly to the Fund’s Information Agent, EQ Fund Solutions, LLC.

Conclusion

The successful conclusion of Neuberger Berman’s rights offering indicates strong investor confidence and demand within the real estate market sector. As more traditional sources for yield diminish, funds like NRO present a compelling option for income-seeking investors. Those interested should keep a keen eye on market trends and fund performance to make informed decisions regarding future investments in real estate securities.