Boards of Neuberger Berman Real Estate Securities Income Fund Inc. and Neuberger Berman Realty Income Fund Inc. Announce Extensi
17 January 2008 - 11:34AM
Business Wire
Neuberger Berman Real Estate Securities Income Fund Inc. (AMEX:
NRO) and Neuberger Berman Realty Income Fund Inc. (NYSE: NRI)
announced today that in order to move the deadline beyond the
scheduled vote to reorganize NRI into NRO, the Boards of Directors
have extended to February 15, 2008 the deadline by which
stockholder nominations and proposals must be received to be
considered at the 2008 annual stockholder meeting. The Boards made
this determination to simplify the dynamics of corporate governance
relating to the potential reorganization of the Funds. In light of
the current real estate market conditions and the upcoming
stockholder vote on the reorganization, the Investment Performance
Committees and Closed-End Fund Committees of the Funds� Boards of
Directors today held the latest in a series of meetings to review,
among other things, performance of real estate funds managed by
Neuberger Berman Management Inc. (�Neuberger Berman�). Among the
factors that the Committees considered were the current real estate
markets, the tightness of credit, the general economic climate and
concerns over the possibility of a recession. The Committees, each
of which contains a majority of independent directors, noted that
for the three-year period and the quarter ending December 31, 2007,
the Funds outperformed the Lipper Real Estate Closed-End Funds
Category average on both an NAV and a market basis, and for the
year ended December 31, outperformed the peer group on a market
basis. The Committees also found that for the same periods, both
Funds outperformed on both a market and an NAV basis a group of 12
real estate closed-end funds selected by Neuberger Berman as being
more comparable than the Lipper group. Finally, the Committees
considered performance of exchange traded funds (�ETFs�) relative
to that of the Funds and concluded that such a comparison is
inappropriate because ETFs, unlike NRI and NRO, generally do not
invest to provide significant income nor do they typically make
significant use of leverage. The Committees discussed strategies,
alternatives, and the advisability of taking actions that would
require significant selling of portfolio securities into the
current market. The Committees, including all of the independent
members, continue to be satisfied with Neuberger Berman�s
appropriately careful and thoughtful approach to a difficult
market. The Boards determined to continue to recommend the
reorganization of NRI into NRO, which would result in a
significantly larger domestic real estate closed-end fund managed
by Neuberger Berman. Neuberger Berman Management Inc., each Fund�s
investment manager, is a subsidiary of Neuberger Berman Inc., an
investment advisory company serving individuals, families, and
taxable and non-taxable institutions with a broad range of
investment products, services and strategies. A Lehman Brothers
company, Neuberger Berman engages in wealth management services
including private asset management, tax and financial planning, and
personal and institutional trust services; mutual funds,
institutional management and alternative investments; and
professional securities services. For further information about
Neuberger Berman please visit www.nb.com. Lehman Brothers (ticker
symbol: LEH), an innovator in global finance, serves the financial
needs of corporations, governments and municipalities,
institutional clients and high-net-worth individuals worldwide.
Founded in 1850, Lehman Brothers maintains leadership positions in
equity and fixed income sales, trading and research, investment
banking, private investment management, asset management and
private equity. The Firm is headquartered in New York, with
regional headquarters in London and Tokyo, and operates in a
network of offices around the world. For further information about
Lehman Brothers� services, products and recruitment opportunities,
visit the Firms' web site at www.lehman.com. Statements made in
this release that look forward in time involve risks and
uncertainties and are forward-looking statements within the meaning
of the Private Securities Litigation Reform Act of 1995. Such risks
and uncertainties include, without limitation, the adverse effect
from a decline in the securities markets or a decline in a Fund's
performance, a general downturn in the economy, competition from
other closed-end investment companies, changes in government policy
or regulation, inability of a Fund�s investment adviser to attract
or retain key employees, inability of a Fund to implement its
investment strategy, inability of a Fund to manage rapid expansion
and unforeseen costs and other effects related to legal proceedings
or investigations of governmental and self-regulatory
organizations. A Fund�s past performance is no guarantee of its
future performance on either an absolute or a relative basis.
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