#United States #New York #Neuberger Berman #Real Estate Income Fund #Leverage Facility

Neuberger Berman Adjusts Leverage Arrangements for Income Fund

In a strategic move aimed at optimizing its financial operations, the Neuberger Berman Real Estate Securities Income Fund Inc., traded on NYSE American as NRO, has announced an amendment to its leverage arrangements. This change is significant in the context of the Fund's efforts to align its financial capabilities with its asset levels and growth objectives.

Restructuring of the Leverage Facility

The most notable change is the conversion of the existing revolving credit facility into a margin facility. This decision allows the Fund to boost its borrowing capabilities, escalating the committed debt financing from a previous $70 million to an impressive $90 million. Such an increase is intended to provide the Fund with greater flexibility in managing its portfolio and responding to market conditions.

The Fund's management emphasized that this modification is a proactive step to ensure that the leverage facility can adequately support the current scale and operational needs of the Fund. By restructuring the leverage arrangements, Neuberger Berman seeks to enhance the Fund's investment strategy and capitalize on potential opportunities in the real estate sector.

About Neuberger Berman

Neuberger Berman stands as a key player in the investment management industry, known for its employee-owned model and a strong reputation that dates back to its founding in 1939. With a workforce exceeding 2,800 across 26 countries, the firm manages assets totaling approximately $515 billion, encompassing equities, fixed income, private equity, real estate, and hedge fund portfolios.

The investment philosophy of Neuberger Berman is founded on principles of active management, thorough research, and engaged ownership, allowing them to adapt to evolving market dynamics. Consistently ranked among the top workplaces in money management by Pension & Investments, the firm showcases its commitment to creating a conducive environment for its employees while delivering robust investment solutions to its clients.

Risk Factors and Considerations

In the accompanying statement, the Fund's management also acknowledged that forward-looking statements involve inherent risks and uncertainties. Potential challenges may arise from fluctuating securities markets, general economic downturns, and increased competition from other investment entities. Strategies aimed at managing rapid growth, alongside operational costs and regulatory scrutiny, have been highlighted as critical factors on which the Fund needs to maintain a proactive approach.

As the real estate investment landscape continues to evolve, Neuberger Berman’s revised leverage arrangements signal a commitment to adapting its financing strategies to better align with market expectations and the growing needs of its investors.

Through these enhancements, the Firm is positioning itself to maximize value for its shareholders while navigating the complexities of the investment environment.