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(Unaudited) January 31, 2018

NUMBER OF SHARES			VALUE		†
Common Stocks 81.7%
Apartments 5.4%
187,200		Education Realty Trust, Inc.	$	6,183,216	(a)
79,100		Mid-America Apartment Communities, Inc.		7,543,767	(a)
			13,726,983
Commercial Financing 7.8%
280,100		Blackstone Mortgage Trust, Inc. Class A		8,683,100	(a)
548,500		Starwood Property Trust, Inc.		11,183,915	(a)
			19,867,015
Data Centers 6.3%
74,000		CoreSite Realty Corp.		8,015,680	(a)
135,400		CyrusOne, Inc.		7,811,226	(a)
			15,826,906
Diversified 2.6%
311,400		Colony NorthStar, Inc. Class A		2,796,372	(a)
425,100		Lexington Realty Trust		3,834,402	(a)
			6,630,774
Health Care 9.2%
389,266		Medical Properties Trust, Inc.		5,091,599	(a)
278,900		Omega Healthcare Investors, Inc.		7,541,456	(a)
102,400		Ventas, Inc.		5,731,328	(a)
83,200		Welltower, Inc.		4,989,504	(a)
			23,353,887
Home Financing 5.4%
185,100		AGNC Investment Corp.		3,478,029	(a)
968,200		Annaly Capital Management, Inc.		10,204,828	(a)
			13,682,857
Industrial 4.4%
69,850		Prologis, Inc.		4,547,934	(a)
262,100		STAG Industrial, Inc.		6,636,372	(a)
			11,184,306
Infrastructure 11.7%
85,200		American Tower Corp.		12,584,040	(a)
151,600		Crown Castle International Corp.		17,095,932	(a)
			29,679,972
Lodging/Resorts 3.4%
139,500		LaSalle Hotel Properties		4,260,330	(a)
145,900		Park Hotels & Resorts, Inc.		4,217,969	(a)
			8,478,299
Manufactured Homes 2.6%
75,200		Sun Communities, Inc.		6,680,768	(a)
Office 5.6%
39,600		Boston Properties, Inc.		4,898,916	(a)
191,680		Highwoods Properties, Inc.		9,177,638	(a)
			14,076,554
Real Estate Management & Development 3.6%
418,500		Brookfield Property Partners LP		9,144,225	(a)
Regional Malls 3.6%
56,000		Simon Property Group, Inc.		9,148,720	(a)

NUMBER OF SHARES			VALUE		†
Self Storage 2.9%
86,500		Extra Space Storage, Inc.	$	7,221,020	(a)
Shopping Centers 3.2%
253,665		DDR Corp.		2,059,760	(a)
373,100		Kimco Realty Corp.		5,936,021	(a)
			7,995,781
Specialty 2.2%
56,865		EPR Properties		3,358,447	(a)
64,700		Iron Mountain, Inc.		2,266,441	(a)
			5,624,888
Timber 1.8%
119,600		Weyerhaeuser Co.		4,489,784	(a)
Total Common Stocks (Cost $220,404,056)			206,812,739
Preferred Stocks 60.8%
Data Centers 1.3%
125,000		Digital Realty Trust, Inc., Ser. C, 6.63%		3,312,500
Diversified 8.0%
194,139		Colony NorthStar, Inc., Ser. B, 8.25%		4,890,361	(a)
16,212		Colony NorthStar, Inc., Ser. H, 7.13%		372,876
533,591		Colony NorthStar, Inc., Ser. I, 7.15%		12,272,593	(a)
125,000		Colony NorthStar, Inc., Ser. J, 7.13%		2,863,750
			20,399,580
Free Standing 1.2%
128,922		National Retail Properties, Inc., Ser. F, 5.20%		3,025,799	(a)
Home Financing 3.2%
325,000		Annaly Capital Management, Inc., Ser. F, 6.95%		8,238,750	(a)
Industrial 5.9%
100,000		PS Business Parks, Inc., Ser. U, 5.75%		2,508,000
255,500		Rexford Industrial Realty, Inc., Ser. A, 5.88%		6,037,465	(a)
75,000		STAG Industrial, Inc., Ser. B, 6.63%		1,892,250
175,000		STAG Industrial, Inc., Ser. C, 6.88%		4,492,250
			14,929,965
Lodging/Resorts 10.9%
379,000		Ashford Hospitality Trust, Inc., Ser. G, 7.38%		8,921,660	(a)
185,800		Eagle Hospitality Properties Trust, Inc., Ser. A, 8.25%		0	*(b)(c)
349,300		Pebblebrook Hotel Trust, Ser. D, 6.38%		8,662,640
192,000		Sunstone Hotel Investors, Inc., Ser. E, 6.95%		4,915,200	(a)

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(Unaudited) (cont’d)

NUMBER OF SHARES			VALUE		†
200,000		Sunstone Hotel Investors, Inc., Ser. F, 6.45%	$	5,064,000
			27,563,500
Office 2.9%
6,000		Highwoods Properties, Inc., Ser. A, 8.63%		7,321,179	(a)
Regional Malls 11.3%
323,015		CBL & Associates Properties, Inc., Ser. D, 7.38%		6,489,371	(a)
185,000		CBL & Associates Properties, Inc., Ser. E, 6.63%		3,437,300
292,289		Pennsylvania Real Estate Investment Trust, Ser. C, 7.20%		6,918,481	(a)
227,439		Taubman Centers, Inc., Ser. J, 6.50%		5,731,463	(a)
255,000		Washington Prime Group, Inc., Ser. H, 7.50%		6,053,700
			28,630,315
Self Storage 3.5%
70,500		Public Storage, Ser. E, 4.90%		1,621,500	(a)
275,000		Public Storage, Ser. Y, 6.38%		7,136,250	(a)
			8,757,750
Shopping Centers 6.5%
45,678		Cedar Realty Trust, Inc., Ser. B, 7.25%		1,143,777
124,100		Cedar Realty Trust, Inc., Ser. C, 6.50%		2,871,674
250,000		DDR Corp., Ser. K, 6.25%		6,072,500	(a)
41,800		Kimco Realty Corp., Ser. K, 5.63%		993,586
120,225		Saul Centers, Inc., Ser. C, 6.88%		3,022,457
90,000		Urstadt Biddle Properties, Inc., Ser. G, 6.75%		2,336,400	(a)
			16,440,394
Single Family Homes 6.1%
100,000		American Homes 4 Rent, Ser. C, 5.50%		2,841,000	(a)
223,000		American Homes 4 Rent, Ser. D, 6.50%		5,711,030
40,000		American Homes 4 Rent, Ser. E, 6.35%		1,022,000
116,700		American Homes 4 Rent, Ser. F, 5.88%		2,882,490	(a)
120,900		American Homes 4 Rent, Ser. G, 5.88%		2,960,841	(a)
			15,417,361
Total Preferred Stocks (Cost $162,012,484)			154,037,093
Short-Term Investments 1.1%
Investment Companies 1.1%
2,803,866		State Street Institutional U.S. Government Money Market Fund Premier Class, 1.25%(d) (Cost  $2,803,866)		2,803,866

		VALUE		†
Total Investments 143.6% (Cost $385,220,406)		$	363,653,698
Liabilities Less Other Assets (43.6)%			(110,336,848)
Net Assets Applicable to Common Stockholders 100.0%		$	253,316,850

*		Non-income producing security.
(a)		All or a portion of this security is pledged with the custodian in connection with the Fund's loans payable outstanding.
(b)		Defaulted security.
(c)		Illiquid security.
(d)		Represents 7-day effective yield as of January 31, 2018.

 

 

 

 

 

 

The following is a summary, categorized by Level (see Notes to Schedule of Investments), of inputs used to value the Fund's investments as of January 31, 2018:

 

 

As of the period ended January 31, 2018, no securities were transferred from one level (as of October 31, 2017) to another.

 

 

 

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January 31, 2018

†      In accordance with Accounting Standards Codification (“ASC”) 820 “Fair Value Measurement” (“ASC 820”), all investments held by Neuberger Berman Real Estate Securities Income Fund Inc. (the “Fund”) are carried at the value that Neuberger Berman Investment Advisers LLC ("Management") believes the Fund would receive upon selling an investment in an orderly transaction to an independent buyer in the principal or most advantageous market for the investment under current market conditions. Various inputs, including the volume and level of activity for the asset or liability in the market, are considered in valuing the Fund's investments, some of which are discussed below. Significant Management judgment may be necessary to value investments in accordance with ASC 820.

ASC 820 established a three-tier hierarchy of inputs to create a classification of value measurements for disclosure purposes. The three-tier hierarchy of inputs is summarized in the three broad Levels listed below.

•

Level 1 – quoted prices in active markets for identical investments

•

Level 2 – other observable inputs (including quoted prices for similar investments, interest rates, prepayment speeds, credit risk, amortized cost, etc.)

•

Level 3 – unobservable inputs (including the Fund's own assumptions in determining the fair value of investments)

The inputs or methodology used for valuing an investment are not necessarily an indication of the risk associated with investing in those securities.

Management has developed a process to periodically review information provided by independent pricing services for all types of securities.

Investments in non-exchange traded investment companies are valued using the respective fund’s daily calculated net asset value per share (Level 2 inputs).

If a valuation is not available from an independent pricing service, or if Management has reason to believe that the valuation received does not represent the amount the Fund might reasonably expect to receive on a current sale in an orderly transaction, Management seeks to obtain quotations from brokers or dealers (generally considered Level 2 or Level 3 inputs depending on the number of quotes available). If such quotations are not readily available, the security is valued using methods the Fund’s Board of Directors (the “Board”) has approved in the good-faith belief that the resulting valuation will reflect the fair value of the security. Numerous factors may be considered when determining the fair value of a security based on Level 2 or Level 3 inputs, including available analyst, media or other reports, securities within the same industry with recent highly correlated performance, trading in futures or American Depositary Receipts and whether the issuer of the security being fair valued has other securities outstanding.

The value of the Fund’s investments in foreign securities is generally determined using the same valuation methods and inputs as other Fund investments, as discussed above. Foreign security prices expressed in local currency values are normally translated from the local currency into U.S. dollars using the exchange rates as of 4:00 p.m., Eastern Time on days the New York Stock Exchange is open for business. The Board has approved the use of Interactive Data Pricing and

Reference Data LLC (“Interactive”) to assist in determining the fair value of foreign equity securities when changes in the value of a certain index suggest that the closing prices on the foreign exchanges may no longer represent the amount that the Fund could expect to receive for those securities or on days when foreign markets are closed and U.S. markets are open. In each of these events, Interactive will provide adjusted prices for certain foreign equity securities using a statistical analysis of historical correlations of multiple factors (Level 2 inputs). In the absence of precise information about the market values of these foreign securities as of the time as of which a Fund’s share price is calculated, the Board has determined on the basis of available data that prices adjusted in this way are likely to be closer to the prices the Fund could realize on a current sale than are the prices of those securities established at the close of the foreign markets in which the securities primarily trade.

Fair value prices are necessarily estimates, and there is no assurance that such a price will be at or close to the price at which the security is next quoted or next trades.

 

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