(a) | The Report to Shareholders of CBRE Global Real Estate Income Fund (the “Trust”) is attached herewith. |
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Semiannual report 2024 | Confidential & Proprietary | 1 |
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Six month total returns ending June 30, 2024 | ||
Fund NAV Total Return | -7.7% | |
Fund Market Price Total Return | -0.3% | |
FTSE EPRA Developed Net Return Index 1 | -3.7% | |
MSCI US REIT Preferred Index 2 | 0.2% | |
Blended Index: 90% FTSE EPRA Developed Net Return Index, 10% MSCI US REIT Preferred Index 3 | -3.3% |
Semiannual report 2024 | Confidential & Proprietary | 3 |
GEOGRAPHIC EXPOSURE as of June 30, 2024 | SECTOR EXPOSURE as of June 30, 2024 | |
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Joseph P. Smith, CFA Portfolio Manager President & CEO | Kenneth S. Weinberg, CFA Portfolio Manager | Jonathan D. Miniman, CFA Portfolio Manager |
Footnotes: |
1. | Represented by the FTSE EPRA Nareit Developed Index—Net (USD). The Index is an unmanaged market-weighted index consisting of real estate companies from developed markets, where greater than 75% of constituents’ EBITDA (earnings before interest, taxes, depreciation, and amortization) is derived from relevant real estate activities and is calculated net of withholding taxes. Investors cannot invest directly in an index. |
2. | Represented by the MSCI REIT Preferred Index, a preferred stock market capitalization-weighted index of certain exchange-traded preferred securities issued by U.S. equity and U.S. hybrid REITs. Investors cannot invest directly in an index. |
3. | Effective 1/1/2024, the custom benchmark changed from 80% FTSE EPRA Nareit Developed—Net and 20% MSCI Preferred Index to 90% FTSE EPRA Nareit Developed—Net and 10% MSCI Preferred Index. Investors cannot invest directly in an index. |
4.The | Trust is currently paying distributions in excess of its net investment income and capital gains, which may result in a return of capital. Absent this, the distribution rate would have been lower. The estimated composition of each distribution, including any return of capital, will be provided to shareholders of record and is also available at www.cbreim.com. The final determination of a distribution’s tax character will be made on Form 1099 DIV and sent to shareholders. |
Semiannual report 2024 | Confidential & Proprietary | 6 |
Beginning account value | Ending account value | Annualized expense ratio | Expenses paid during the period | |||||||||||||
January 1, 2024 | June 30, 2024 | Per $1,000 (1) | ||||||||||||||
CBRE GLOBAL REAL ESTATE INCOME FUND | ||||||||||||||||
Actual | $1,000.00 | $ 922.40 | 3.94 | % | $18.83 | |||||||||||
Hypothetical (5% return before expenses) | $1,000.00 | $1,005.27 | 3.94 | % | $19.64 |
(1) | Expenses are equal to the Fund’s annualized expense ratio, multiplied by the average account value over the period, multiplied by 182 (the number of days in the most recent six-month period), then divided by 366. |
Semiannual report 2024 | Confidential & Proprietary | 7 |
Semiannual report 2024 | Confidential & Proprietary | 8 |
– | Retail Properties |
– | Office Properties non-competitiveness. |
– | Hotel Properties |
– | Healthcare Properties |
– | Multifamily Properties |
– | Community Shopping Centers |
– | Self-Storage Properties |
Semiannual report 2024 | Confidential & Proprietary | 9 |
– | Industrial Properties |
– | Towers Companies on-site oroff-site contamination and related personal injury or property damage. |
– | Data Centers Properties |
– | Net Lease Properties |
– | Lack of Insurance |
– | Financial Leverage |
– | Environmental Issues |
– | Recent Events |
– | Acts of God and Geopolitical Risks COVID-19, SARS, H1N1/09 flu, avian flu, other coronavirus, Ebola, or other existing or new pandemic or epidemic diseases), terrorism, social and political discord, geopolitical events, national and international political circumstances, and other unforeseen and/or uncontrollable events with widespread impact. These disruptions may affect the level and volatility of security prices and liquidity of any investments. Unexpected volatility could impair an investment’s profitability or result in it suffering losses. Economies and financial markets throughout the world are becoming increasingly interconnected, which increases the likelihood that events or conditions in one country or region will adversely impact markets or securities industry participants in other countries or regions. |
– | REIT Issues |
Semiannual report 2024 | Confidential & Proprietary | 10 |
– | the likelihood of greater volatility of net asset value and market price of the common shares because changes in the value of the Trust’s portfolio, including securities bought with the proceeds of the leverage, are borne entirely by the holders of common shares; and |
– | the possibility either that common share net investment income will fall if the leverage expense rises or that common share net investment income will fluctuate because the leverage expense varies. |
– | Deferral |
– | Subordination |
– | Liquidity |
– | Limited Voting Rights |
Semiannual report 2024 | Confidential & Proprietary | 11 |
holders generally have no voting rights, except (i) if the issuer fails to pay dividends for a specified period of time or (ii) if a declaration of default occurs and is continuing. In such an event, rights of holders of trust preferred securities generally would include the right to appoint and authorize a trustee to enforce the trust or special purpose entity’s rights as a creditor under the agreement with its operating company. |
– | Special Redemption Rights |
– | New Types of Securities |
Semiannual report 2024 | Confidential & Proprietary | 12 |
Semiannual report 2024 Fund | Confidential & Proprietary | 13 |
Shares | Market value | |||||||||||||||
Real Estate Securities* - 143.4% | ||||||||||||||||
Common Stock – 134.6% | ||||||||||||||||
Australia – 3.4% | ||||||||||||||||
830,420 | Charter Hall Group | $ | 6,200,393 | |||||||||||||
1,525,133 | Dexus | 6,600,279 | ||||||||||||||
2,931,273 | Mirvac Group | 3,660,812 | ||||||||||||||
7,115,139 | Vicinity Centres | 8,790,927 | ||||||||||||||
25,252,411 | ||||||||||||||||
Belgium – 2.1% | ||||||||||||||||
167,362 | Aedifica SA | 10,161,360 | ||||||||||||||
93,958 | Cofinimmo SA | 5,674,437 | ||||||||||||||
15,835,797 | ||||||||||||||||
Canada – 3.9% | ||||||||||||||||
176,498 | Canadian Apartment Properties REIT | 5,733,428 | ||||||||||||||
728,500 | Chartwell Retirement Residences | 6,841,250 | ||||||||||||||
939,900 | H&R Real Estate Investment Trust | 6,147,627 | ||||||||||||||
850,000 | RioCan Real Estate Investment Trust | 10,442,138 | ||||||||||||||
29,164,443 | ||||||||||||||||
France – 3.3% | ||||||||||||||||
169,904 | Carmila SA | 2,847,970 | ||||||||||||||
307,819 | Klepierre SA | 8,241,057 | ||||||||||||||
168,449 | Unibail-Rodamco-Westfield | 13,272,998 | ||||||||||||||
24,362,025 | ||||||||||||||||
Germany – 1.6% | ||||||||||||||||
105,598 | LEG Immobilien SE | 8,630,731 | ||||||||||||||
222,088 | Tag Immobilien AG (a) | 3,253,784 | ||||||||||||||
11,884,515 | ||||||||||||||||
Hong Kong – 5.1% | ||||||||||||||||
1,837,310 | CK Asset Holdings Ltd. | 6,883,382 | ||||||||||||||
4,706,470 | Link REIT | 18,295,638 | ||||||||||||||
2,348,000 | New World Development Co. Ltd. | 2,198,412 | ||||||||||||||
4,382,000 | Swire Properties Ltd. | 6,982,104 | ||||||||||||||
1,422,303 | Wharf Real Estate Investment Co. Ltd. | 3,770,996 | ||||||||||||||
38,130,532 |
Shares | Market value | |||||||||||||||
Japan – 9.1% | ||||||||||||||||
3,139 | Activia Properties, Inc. | $ | 7,122,560 | |||||||||||||
7,321 | AEON REIT Investment Corp. | 6,062,149 | ||||||||||||||
18,326 | Japan Hotel REIT Investment Corp. | 8,851,984 | ||||||||||||||
24,096 | Japan Metropolitan Fund Investment Corp. | 13,556,434 | ||||||||||||||
8,994 | KDX Realty Investment Corp. | 8,750,224 | ||||||||||||||
10,619 | LaSalle Logiport REIT | 9,743,655 | ||||||||||||||
10,122 | Orix JREIT, Inc. | 10,017,546 | ||||||||||||||
275,600 | Tokyo Tatemono Co. Ltd. | 4,350,046 | ||||||||||||||
68,454,598 | ||||||||||||||||
Singapore – 4.9% | ||||||||||||||||
3,822,800 | CapitaLand Ascendas REIT | 7,221,080 | ||||||||||||||
13,702,944 | CapitaLand China Trust | 6,774,376 | ||||||||||||||
9,348,612 | CapitaLand Integrated Commercial Trust | 13,658,182 | ||||||||||||||
5,878,600 | Frasers Logistics & Commercial Trust | 4,120,767 | ||||||||||||||
8,338,000 | Keppel REIT | 5,137,229 | ||||||||||||||
36,911,634 | ||||||||||||||||
Spain – 1.7% | ||||||||||||||||
1,142,990 | Merlin Properties Socimi SA | 12,740,042 | ||||||||||||||
Sweden – 2.3% | ||||||||||||||||
891,381 | Castellum AB (a) | 10,891,645 | ||||||||||||||
69,821 | Catena AB | 3,481,095 | ||||||||||||||
179,425 | Pandox AB, Class B | 3,202,142 | ||||||||||||||
17,574,882 | ||||||||||||||||
United Kingdom – 6.9% | ||||||||||||||||
1,200,719 | British Land Co. PLC (The) | 6,247,357 | ||||||||||||||
2,598,836 | Land Securities Group PLC | 20,351,657 | ||||||||||||||
3,939,857 | Londonmetric Property PLC | 9,632,001 | ||||||||||||||
829,603 | Safestore Holdings PLC | 8,069,721 | ||||||||||||||
2,668,000 | Supermarket Income REIT PLC | 2,445,139 | ||||||||||||||
2,696,061 | Tritax Big Box REIT PLC | 5,285,927 | ||||||||||||||
52,031,802 |
Semiannual report 2024 | Confidential & Proprietary | 15 |
Shares | Market value | |||||||||||||||
United States – 90.3% | ||||||||||||||||
150,935 | Acadia Realty Trust | $ | 2,704,755 | |||||||||||||
178,107 | Alexandria Real Estate Equities, Inc. | 20,833,176 | ||||||||||||||
154,739 | AvalonBay Communities, Inc. | 32,013,952 | ||||||||||||||
880,590 | Brixmor Property Group, Inc. | 20,332,823 | ||||||||||||||
652,710 | Broadstone Net Lease, Inc. | 10,358,508 | ||||||||||||||
139,875 | Camden Property Trust | 15,261,761 | ||||||||||||||
333,020 | Crown Castle, Inc. | 32,536,054 | ||||||||||||||
741,425 | CubeSmart | 33,490,167 | ||||||||||||||
387,845 | Empire State Realty Trust, Inc., Class A | 3,637,986 | ||||||||||||||
72,302 | Equinix, Inc. | 54,703,693 | ||||||||||||||
76,610 | Essex Property Trust, Inc. | 20,853,242 | ||||||||||||||
666,620 | Healthcare Realty Trust, Inc., Class A | 10,985,898 | ||||||||||||||
1,284,701 | Healthpeak Properties, Inc. | 25,180,140 | ||||||||||||||
426,460 | Host Hotels & Resorts, Inc. | 7,667,751 | ||||||||||||||
454,631 | Hudson Pacific Properties, Inc. | 2,186,775 | ||||||||||||||
37,321 | Hyatt Hotels Corp., Class A | 5,669,806 | ||||||||||||||
418,300 | Independence Realty Trust, Inc. | 7,838,942 | ||||||||||||||
1,039,635 | Invitation Homes, Inc. | 37,312,500 | ||||||||||||||
123,551 | Kilroy Realty Corp. | 3,851,085 | ||||||||||||||
451,202 | Kite Realty Group Trust | 10,097,901 | ||||||||||||||
299,087 | Macerich Co. (The) | 4,617,903 | ||||||||||||||
316,068 | National Storage Affiliates Trust | 13,028,323 | ||||||||||||||
800,659 | Park Hotels & Resorts, Inc. | 11,993,872 | ||||||||||||||
696,892 | Piedmont Office Realty Trust, Inc., Class A | 5,052,467 | ||||||||||||||
167,114 | Public Storage | 48,070,342 | ||||||||||||||
1,026,331 | Realty Income Corp. | 54,210,804 | ||||||||||||||
581,300 | Retail Opportunity Investments Corp. | 7,225,559 | ||||||||||||||
652,365 | Rexford Industrial Realty, Inc. | 29,088,955 | ||||||||||||||
67,460 | SBA Communications Corp., Class A | 13,242,398 | ||||||||||||||
333,268 | Simon Property Group, Inc. | 50,590,082 | ||||||||||||||
235,554 | STAG Industrial, Inc. | 8,494,077 | ||||||||||||||
262,148 | Sun Communities, Inc. | 31,546,890 | ||||||||||||||
1,408,200 | Sunstone Hotel Investors, Inc. | 14,729,772 |
Shares | Market value | |||||||||||||||
820,761 | VICI Properties, Inc. | $ | 23,506,595 | |||||||||||||
166,582 | Vornado Realty Trust | 4,379,441 | ||||||||||||||
677,294,395 | ||||||||||||||||
Total Common Stock | ||||||||||||||||
(cost $1,274,640,121) | 1,009,637,076 | |||||||||||||||
Preferred Stock – 8.8% | ||||||||||||||||
United States – 8.8% | ||||||||||||||||
245,403 | Digital Realty Trust, Inc., Series J, 5.250% | 5,312,975 | ||||||||||||||
301,100 | Digital Realty Trust, Inc., Series L, 5.200% | 6,473,650 | ||||||||||||||
282,200 | Federal Realty Investment Trust, Series C, 5.000% | 5,945,954 | ||||||||||||||
405,900 | National Storage Affiliates Trust, Series A, 6.000% | 9,226,107 | ||||||||||||||
383,644 | Pebblebrook Hotel Trust, Series E, 6.375% | 7,772,627 | ||||||||||||||
541,950 | Pebblebrook Hotel Trust, Series F, 6.300% | 10,822,742 | ||||||||||||||
262,125 | Pebblebrook Hotel Trust, Series G, 6.375% | 5,135,029 | ||||||||||||||
143,517 | Rexford Industrial Realty, Inc., Series B, 5.875% | 3,117,189 | ||||||||||||||
287,077 | Summit Hotel Properties, Inc., Series E, 6.250% | 6,152,060 | ||||||||||||||
265,000 | Sunstone Hotel Investors, Inc., Series H, 6.125% | 5,779,650 | ||||||||||||||
Total Preferred Stock | ||||||||||||||||
(cost $75,270,365) | 65,737,983 | |||||||||||||||
Total Investments – 143.4% | ||||||||||||||||
(cost $1,349,910,486) | 1,075,375,059 | |||||||||||||||
Liabilities in Excess of Other Assets – (43.4)% | (325,237,236 | ) | ||||||||||||||
Net Assets – 100.0% | $ | 750,137,823 |
* | Includes U.S. Real Estate Investment Trusts (“REIT”) and Real Estate Operating Companies (“REOC”) as well as entities similarly formed under the laws of non-U.S. countries. |
(a) | Non-income producing security. |
Semiannual report 2024 | Confidential & Proprietary | 16 |
Securities Valuation The following is a summary of various inputs used in determining the value of the Trust’s investments. These inputs are summarized in three broad levels. Level 1 includes quoted prices in active markets for identical investments. Level 2 includes other significant observable inputs (including quoted prices for similar investments, interest rates, prepayment speeds, credit risk, etc.). Level 3 includes significant unobservable inputs (including the Trust’s own assumptions in determining the fair value of investments). The level assigned to the securities valuations may not be an indication of the risk or liquidity associated with investing in those securities. The following is a summary of inputs used as of June 30, 2024. For information on the Trust’s policy regarding the valuation of investments, please refer to the Security Valuation section of Note 2 in the accompanying Notes to Financial Statements. | ||||||||||||||||
Assets | Level 1 | Level 2 | Level 3 | Total | ||||||||||||
INVESTMENT IN REAL ESTATE SECURITIES | ||||||||||||||||
Common Stock | ||||||||||||||||
Australia | $25,252,411 | $ - | $ - | $25,252,411 | ||||||||||||
Belgium | 15,835,797 | - | - | 15,835,797 | ||||||||||||
Canada | 29,164,443 | - | - | 29,164,443 | ||||||||||||
France | 24,362,025 | - | - | 24,362,025 | ||||||||||||
Germany | 11,884,515 | - | - | 11,884,515 | ||||||||||||
Hong Kong | 38,130,532 | - | - | 38,130,532 | ||||||||||||
Japan | 68,454,598 | - | - | 68,454,598 | ||||||||||||
Singapore | 36,911,634 | - | - | 36,911,634 | ||||||||||||
Spain | 12,740,042 | - | - | 12,740,042 | ||||||||||||
Sweden | 17,574,882 | - | - | 17,574,882 | ||||||||||||
United Kingdom | 52,031,802 | - | - | 52,031,802 | ||||||||||||
United States | 677,294,395 | - | - | 677,294,395 | ||||||||||||
Total Common Stock | 1,009,637,076 | - | - | 1,009,637,076 | ||||||||||||
Preferred Stock | ||||||||||||||||
United States | 65,737,983 | - | - | 65,737,983 | ||||||||||||
TOTAL INVESTMENT IN REAL ESTATE SECURITIES | $1,075,375,059 | $ - | $ - | $1,075,375,059 |
Semiannual report 2024 | Confidential & Proprietary | 17 |
June 30, 2024 | ||||
Assets | ||||
Investments, at value (cost $1,349,910,486) | $ | 1,075,375,059 | ||
Cash and cash equivalents | 9,381 | |||
Dividends and interest receivable | 12,022,924 | |||
Dividend withholding reclaims receivable | 1,263,937 | |||
Other assets | 112,793 | |||
Total assets | 1,088,784,094 | |||
Liabilities | ||||
Line of credit payable | 335,431,700 | |||
Line of credit interest payable | 1,815,441 | |||
Management fees payable | 774,857 | |||
Dividend and distributions payable | 288,671 | |||
Accrued expenses | 335,602 | |||
Total liabilities | 338,646,271 | |||
NET ASSETS | $ | 750,137,823 | ||
Composition of Net Assets | ||||
$0.001 par value per share; | ||||
Unlimited number of shares authorized | ||||
139,968,594 shares issued and outstanding | $ | 139,969 | ||
Additional paid-in capital | 1,027,856,818 | |||
Distributable earnings / (accumulated loss) | (277,858,964) | |||
NET ASSETS | $ | 750,137,823 | ||
NET ASSET VALUE | ||||
(BASED ON 139,968,594 SHARES OUTSTANDING) | $ | 5.36 |
Semiannual report 2024 | Confidential & Proprietary | 18 |
For the six months ended June 30, 2024 | ||||
Investment Income | ||||
Dividends (net of foreign withholding taxes of $1,149,378) | $21,914,735 | |||
Interest | 917 | |||
Total investment income | 21,915,652 | |||
Expenses | ||||
Interest expense on line of credit | 9,808,290 | |||
Management fees | 4,659,647 | |||
Legal fees | 183,931 | |||
Printing and mailing fees | 145,191 | |||
Administration fees | 114,612 | |||
Trustees’ fees and expenses | 110,610 | |||
Custodian fees | 93,503 | |||
Insurance fees | 83,104 | |||
NYSE listing fee | 67,356 | |||
Audit and tax fees | 31,948 | |||
Transfer agent fees | 24,868 | |||
Miscellaneous expenses | 20,363 | |||
Total expenses | 15,343,423 | |||
NET INVESTMENT INCOME | 6,572,229 | |||
Net Realized and Unrealized Gain (Loss) on Investments, Written Options, and Foreign Currency Transactions | ||||
Net realized gain (loss) on: | ||||
Investments | 26,269,755 | |||
Foreign currency transactions | (106,921) | |||
Total Net Realized Gain | 26,162,834 | |||
Net change in unrealized appreciation (depreciation) on: | ||||
Investments | (99,428,148) | |||
Foreign currency denominated assets and liabilities | (54,298) | |||
Total Net Change in Unrealized Depreciation | (99,482,446) | |||
NET REALIZED AND UNREALIZED LOSS ON INVESTMENTS, AND FOREIGN CURRENCY TRANSACTIONS | (73,319,612) | |||
NET DECREASE IN NET ASSETS RESULTING FROM OPERATIONS | $(66,747,383) |
Semiannual report 2024 | Confidential & Proprietary | 19 |
For the six months ended June 30, 2024 (unaudited) | For the year ended December 31, 2023 | |||||||
Change in Net Assets Resulting from Operations | ||||||||
Net investment income | $6,572,229 | $12,784,010 | ||||||
Net realized gain on investments, and foreign currency transactions | 26,162,833 | 47,636,431 | ||||||
Net change in unrealized appreciation (depreciation) on investments, and foreign currency denominated assets and liabilities | (99,482,445) | 51,719,068 | ||||||
Net increase (decrease) in net assets resulting from operations | (66,747,383) | 112,139,509 | ||||||
Distributions on Common Shares | ||||||||
Distributions from distributable earnings | (33,972,565) | (85,517,072) | ||||||
Distribution of return of capital | (16,416,129) | (11,052,258) | ||||||
Total distributions on common shares | (50,388,694) | (96,569,330) | ||||||
Capital Share transactions | ||||||||
Proceeds from shares sold | - | 117,591,843 | ||||||
Offering costs for common shares charged to paid-in capital | - | (1,898,934) | ||||||
Net increase from capital share transactions | - | 115,692,909 | ||||||
Net Increase (Decrease) in Net Assets | (117,136,077) | 131,263,088 | ||||||
Net Assets | ||||||||
Beginning of period | 867,273,900 | 736,010,812 | ||||||
End of period | $750,137,823 | $867,273,900 |
Semiannual report 2024 | Confidential & Proprietary | 20 |
For the Six Months Ended June 30, 2024 | ||||
Cash Flows from Operating Activities | ||||
Net decrease in net assets resulting from operations | $(66,747,383) | |||
Adjustments to Reconcile Net Decrease in Net Assets Resulting from Operations to Net Cash Provided by Operating Activities | ||||
Net change in unrealized appreciation/depreciation on investments | 99,273,020 | |||
Net realized gain on investments | (26,114,627) | |||
Cost of securities purchased | (347,333,437) | |||
Proceeds from sale of securities | 286,100,277 | |||
Decrease in receivable for investment securities sold | 63,375,760 | |||
Increase in dividends and interest receivable | (4,307,852) | |||
Increase in dividend withholding reclaims receivable | (165,106) | |||
Decrease in unrealized appreciation on spot contracts | 17,334 | |||
Decrease in other assets | 6,992 | |||
Decrease in management fees payable | (59,410) | |||
Increase in line of credit interest payable | 90,930 | |||
Decrease in accrued expenses | (16,908) | |||
NET CASH PROVIDED BY OPERATING ACTIVITIES | 4,119,590 | |||
Cash Flows from Financing Activities: | ||||
Cash distributions paid on Common Shares | (50,379,742) | |||
Proceeds from borrowing on line of credit | 325,901,500 | |||
Payments on line of credit borrowings | (279,911,700) | |||
NET CASH USED IN FINANCING ACTIVITIES | (4,389,942) | |||
Net decrease in cash | (270,352) | |||
Cash and Cash Equivalents at Beginning of Year | 279,733 | |||
CASH AND CASH EQUIVALENTS AT END OF YEAR | $9,381 | |||
Supplemental Disclosure | ||||
Interest paid on line of credit borrowings | $9,717,360 |
Semiannual report 2024 | Confidential & Proprietary | 21 |
For the Six Months Ended June 30, 2024 (unaudited) | For the Year Ended December 31, 2023 | For the Year Ended December 31, 2022 | For the Year Ended December 31, 2021 | For the Year Ended December 31, 2020 | For the Year Ended December 31, 2019 | |||||||||||||||||||
Per share operating performance for a share outstanding throughout the period | ||||||||||||||||||||||||
Net asset value, beginning of period | $6.20 | $6.31 | $10.48 | $8.11 | $8.86 | $7.55 | ||||||||||||||||||
Income from investment operations | ||||||||||||||||||||||||
Net investment income (1) | 0.05 | 0.10 | 0.20 | 0.22 | 0.17 | 0.16 | ||||||||||||||||||
Net realized and unrealized gain (loss) on investments, written options and foreign currency transactions | (0.53) | 0.74 | (3.67) | 2.75 | (0.32) | 1.75 | ||||||||||||||||||
Total from investment operations | (0.48) | 0.84 | (3.47) | 2.97 | (0.15) | 1.91 | ||||||||||||||||||
Common Share transactions | ||||||||||||||||||||||||
Dilutive effect on net asset value as a result of rights offering (2) | - | (0.22) | - | - | - | - | ||||||||||||||||||
Offering costs charged to paid-in-capital | - | (0.01) | - | - | - | - | ||||||||||||||||||
Total from Common Share transactions | - | (0.23) | - | - | - | - | ||||||||||||||||||
Distributions on Common Shares | ||||||||||||||||||||||||
Net investment income | (0.07) | (0.34) | (0.21) | (0.08) | (0.21) | (0.30) | ||||||||||||||||||
Net realized gains | (0.17) | (0.30) | (0.49) | (0.52) | - | - | ||||||||||||||||||
Return of capital | (0.12) | (0.08) | - | - | (0.39) | (0.30) | ||||||||||||||||||
Total distributions to common shareholders | (0.36) | (0.72) | (0.70) | (0.60) | (0.60) | (0.60) | ||||||||||||||||||
NET ASSET VALUE, END OF PERIOD | $5.36 | $6.20 | $6.31 | $10.48 | $8.11 | $8.86 | ||||||||||||||||||
MARKET VALUE, END OF PERIOD | $5.04 | $5.43 | $5.73 | $9.79 | $6.88 | $8.02 | ||||||||||||||||||
Total investment return (3) | ||||||||||||||||||||||||
Net asset value | (7.74)% | 11.03% | (33.97)% | 37.88% | (0.74)% | 25.74% | ||||||||||||||||||
Market value | (0.34)% | 8.66% | (35.54)% | 52.66% | (5.52)% | 40.87% | ||||||||||||||||||
Ratios and supplemental data | ||||||||||||||||||||||||
Net assets, applicable to common shares, end of period (thousands) | $750,138 | $867,274 | $736,011 | $1,221,609 | $945,194 | $1,032,890 | ||||||||||||||||||
Borrowings (senior securities) outstanding, end of period (thousands) | $335,432 | $289,442 | $345,209 | $320,489 | $289,727 | $121,020 | ||||||||||||||||||
Asset Coverage per $1,000 (4) | $3,236 | $3,996 | $3,132 | $4,812 | $4,262 | $9,535 | ||||||||||||||||||
Ratios to average net assets applicable to common shares of: | ||||||||||||||||||||||||
Net expenses | 3.94% (5) | 3.86% | 2.29% | 1.46% | 1.53% | 1.57% | ||||||||||||||||||
Net expenses, excluding interest on line of credit | 1.42% (5) | 1.40% | 1.39% | 1.24% | 1.26% | 1.16% | ||||||||||||||||||
Net investment income | 1.69% (5) | 1.63% | 2.49% | 2.37% | 2.25% | 1.89% | ||||||||||||||||||
Portfolio turnover rate | 25.73% | 50.69% | 53.88% | 78.44% | 72.50% | 44.97% | ||||||||||||||||||
(1) | Based on average shares outstanding. |
(2) | Shares issued at a 5% discount on a 5-day average market price from 3/31/2023 to 4/6/2023. |
(3) | Total investment return does not reflect brokerage commissions. Dividends and distributions are assumed to be reinvested at the prices obtained under the Trust’s Dividend Reinvestment Plan. Net Asset Value (“NAV”) total return is calculated assuming reinvestment of distributions at NAV on the date of the distribution. |
(4) | Asset Coverage per $1,000: Asset coverage per $1,000 of debt is calculated by subtracting the Trust’s liabilities and indebtedness not represented by senior securities from the Trust’s total assets, dividing the result by the aggregate amount of the Trust’s senior securities representing indebtedness then outstanding, and multiplying the result by 1,000. |
(5) | Annualized. |
Semiannual report 2024 | Confidential & Proprietary | 22 |
1 | FUND ORGANIZATION |
2 | SIGNIFICANT ACCOUNTING POLICIES |
Semiannual report 2024 | Confidential & Proprietary | 24 |
(i) | market value of investment securities, other assets and liabilities – at the current rates of exchange; |
(ii) | purchases and sales of investment securities, income and expenses – at the rate of exchange prevailing on the respective dates of such transactions. |
Semiannual report 2024 | Confidential & Proprietary | 25 |
Semiannual report 2024 | Confidential & Proprietary | 26 |
3 | DERIVATIVE INSTRUMENTS |
4 | CONCENTRATION OF RISK |
5 | INVESTMENT MANAGEMENT AGREEMENT AND OTHER AGREEMENTS |
6 | PORTFOLIO SECURITIES |
Semiannual report 2024 | Confidential & Proprietary | 27 |
7 | FEDERAL INCOME TAXES |
Cost of investments for tax purposes | Gross tax unrealized appreciation | Gross tax unrealized depreciation | Net tax unrealized depreciation on investments | Net tax unrealized depreciation on foreign currency | Qualified late year ordinary losses | Qualified post- October capital deferral | Undistributed ordinary income | Undistributed long-term Capital gains / (accumulated capital loss) | ||||||||
$1,264,436,327 | $24,614,091 | $(201,750,126) | $(177,136,035) | $(2,981) | $0 | $0 | $0 | $0 |
Semiannual report 2024 | Confidential & Proprietary | 28 |
8 | BORROWINGS |
9 | CAPITAL |
10 | INDEMNIFICATIONS |
11 | SUBSEQUENT EVENTS |
Semiannual report 2024 | Confidential & Proprietary | 29 |
Name, address and age | Term of office and length of time served (1) | Title | Principal occupations during the past five years | Number of portfolios in the Trust complex overseen by Trustee | Other directorships held by trustee | |||||
Trustees: | ||||||||||
T. Ritson Ferguson (2) 555 East Lancaster Ave. Suite 120 Radnor, PA 19087 Age: 65 | 3 years/ since inception | Trustee | Senior Fellow Wharton Real Estate Center (since 2022); Managing Director of TRF3 Advisors (since 2022); Independent Investment Committee Member of CBRE Investment Management Listed Real Assets LLC (since 2021); Vice Chairman (2021) and Chief Executive Officer and Co-Chief Investment Officer (1995—2020) of CBRE Investment Management Listed Real Assets LLC; Chief Executive Officer, Chief Investment Officer and Global Chief Investment Officer of CBRE Global Investors (2015— 2019) | 1 | Templeton World Charity Foundation (since 2023); Duke Management Company (DUMAC) (since 2018) | |||||
Asuka Nakahara 555 East Lancaster Ave. Suite 120 Radnor, PA 19087 Age: 68 | 3 years/ since inception | Trustee | Associate Director of the Zell-Lurie Real Estate Center at the Wharton School, University of Pennsylvania (since 1999); Practice Professor of Real Estate at the Wharton School, University of Pennsylvania (since 1999); Partner of Triton Atlantic Partners (since 2009) | 1 | Incompass Labs (since 2022); Rice Management Company (2022— 2023); Comcast Corporation (since 2017) | |||||
John R. Bartholdson 555 East Lancaster Ave. Suite 120 Radnor, PA 19087 Age: 79 | 3 years/ 20 years | Trustee/ Audit Committee Financial Expert | Senior Vice President, CFO and Treasurer, and a Director of Triumph Group, Inc. (1993—2007) (Retired) | 1 | Berwyn Cornerstone Fund, Berwyn Income Fund, and Berwyn Fund (2013—2016) | |||||
Leslie E. Greis 555 East Lancaster Ave. Suite 120 Radnor, PA 19087 Age: 65 | 3 years/ 5 1 ⁄2 years | Trustee | Founder and Managing Member of Perennial Capital Advisors, LLC (since 2003) | 1 | AIM Mutual, Inc. (2016), Kinefac Corporation (since 2009) |
Semiannual report 2024 | Confidential & Proprietary | 31 |
Name, address and age | Term of office and length of time served (1) | Title | Principal occupations during the past five years | Number of portfolios in the Trust complex overseen by Trustee | Other directorships held by trustee | |||||
Trustees: | ||||||||||
Heidi Stam 555 East Lancaster Ave. Suite 120 Radnor, PA 19087 Age 67 | 3 years/ 5 years | Trustee | Managing Director and General Counsel, The Vanguard Group, Inc. (2005-2016) (Retired) | 1 | Bridge Builder Trust (since 2022); Edward Jones Money Market Fund (since 2022); Investor Advisory Committee, U.S. Securities and Exchange Commission (2017— 2021); National Adjudicatory Council, FINRA (2017—2021) |
(1) | Each Trustee is elected to serve a three-year term concurrent with the class of Trustees to which he or she belongs. Mr. Nakahara, as Class II Trustee, is currently serving a term expiring at the Trust’s 2024 annual meeting of shareholders. Ms. Greis, as Class III Trustee, is currently serving a term expiring at the Trust’s 2025 annual meeting of shareholders. Mr. Ferguson and Ms. Stam, as Class I Trustees, are currently serving a term expiring at the Trust’s 2026 annual meeting of shareholders. Mr. Bartholdson has informed the Board that he intends to retire from the Board upon the conclusion of his term and, therefore, will not stand for re-election at the 2025 annual meeting of shareholders. |
(2) | Mr. Ferguson is deemed to be an interested person of the Trust as defined in the Investment Company Act of 1940 (the “1940 ACT”), as amended, due to his previous position with the Adviser, and his engagement as an external consultant to the Adviser, which began on January 1, 2022. |
Name, Address, Age and Position(s) Held with Registrant Officers: | Length of Time Served | Principal Occupations During the Past Five Years and Other Affiliations | ||
Joseph P. Smith 555 East Lancaster Ave, Suite 120 Radnor, PA 19087 Age: 56 President and Chief Executive Officer | Since 2022 | Chief Investment Officer (since 2021) and Co-Chief Investment Officer (since 2011) of CBRE Investment Management Listed Real Assets LLC (formerly CBRE Clarion Securities LLC) | ||
Jonathan A. Blome 555 East Lancaster Ave, Suite 120 Radnor, PA 19087 Age: 47 Chief Financial Officer | since 2006 | Chief Operating Officer (since 2021) and Chief Financial Officer and Director of Operations (since 2011) of CBRE Investment Management Listed Real Assets LLC (formerly CBRE Clarion Securities LLC) | ||
Jeff Chang 555 East Lancaster Ave, Suite 120 Radnor, PA 19087 Age: 50 Chief Compliance Officer and Secretary | since 2023 1 | Chief Compliance Officer of CBRE Investment Management Listed Real Assets LLC (since 2023); Chief Compliance Officer of First Quadrant, LP (2012-2022) |
1 | Effective January 1, 2023, Mr. Chang assumed responsibilities as the Chief Compliance Officer and Secretary of the Trust. |
Semiannual report 2024 | Confidential & Proprietary | 32 |
Semiannual report 2024 | Confidential & Proprietary | 33 |
Semiannual report 2024 | Confidential & Proprietary | 34 |
Semiannual report 2024 | Confidential & Proprietary | 35 |
![LOGO](https://capedge.com/proxy/N-CSRS/0001193125-24-204266/g750539g67w40.jpg)
(b) | Not applicable. |
Item 2. Code of Ethics.
Not applicable for semi-annual reporting period.
Item 3. Audit Committee Financial Expert.
Not applicable for semi-annual reporting period.
Item 4. Principal Accountant Fees and Services.
Not applicable for semi-annual reporting period.
Item 5. Audit Committee of Listed Registrants.
Not applicable for semi-annual reporting period.
Item 6. Investments.
(a) | The Schedule of Investments is included as part of the report to shareholders filed under Item 1 of this form. |
(b) | Not applicable. |
Item 7. Financial Statements and Financial Highlights for Open-End Management Investment Companies.
(a) | Not applicable. |
(b) | Not applicable. |
Item 8. Changes in and Disagreements with Accountants for Open-End Management Investment Companies.
Not applicable.
Item 9. Proxy Disclosures for Open-End Management Investment Companies.
Not applicable.
Item 10. Remuneration Paid to Directors, Officers, and Others of Open-End Management Investment Companies.
Not applicable.
Item 11. Statement Regarding Basis for Approval of Investment Advisory Contract.
Not applicable for semi-annual reporting period.
Item 12. Disclosure of Proxy Voting Policies and Procedures for Closed-End Management Investment Companies.
Not applicable for semi-annual reporting period.
Item 13. Portfolio Managers of Closed-End Management Investment Companies.
(a) | Not applicable for the semi-annual reporting period. |
(b) | There has been no change, as of the date of this filing, in any of the portfolio managers identified in response to paragraph (a)(1) of this Item in the registrant’s most recently filed annual report on Form N-CSR. |
Item 14. Purchases of Equity Securities by Closed-End Management Investment Company and Affiliated Purchasers.
(a) | Not applicable. |
(b) | Not applicable. |
Item 15. Submission of Matters to a Vote of Security Holders.
There have been no material changes to the procedures by which the shareholders may recommend nominees to the registrant’s board of directors, where those changes were implemented after the registrant last provided disclosure in response to the requirements of Item 407(c)(2)(iv) of Regulation S-K (17 CFR 229.407) (as required by Item 22(b)(15) of Schedule 14A (17 CFR 240.14a-101)), or this Item.
Item 16. Controls and Procedures.
(a) | The Trust’s principal executive officer and principal financial officer have evaluated the Trust’s disclosure controls and procedures within 90 days of this filing and have concluded that the Trust’s disclosure controls and procedures were effective, as of that date, in ensuring that information required to be disclosed by the Trust in this Form N-CSR was recorded, processed, summarized, and reported timely. |
(b) | The Trust’s principal executive officer and principal financial officer are aware of no changes in the Trust’s internal control over financial reporting that occurred during the period covered by this report that has materially affected, or is reasonably likely to materially affect, the Trust’s internal control over financial reporting. |
Item 17. Disclosure of Securities Lending Activities for Closed-End Management Investment Companies.
(a) | Not applicable. |
(b) | Not applicable. |
Item 18. Recovery of Erroneously Awarded Compensation.
(a) | Not applicable. |
(b) | Not applicable. |
Item 19. Exhibits.
(a)(1) | Not applicable for semi-annual reporting period. |
(a)(2) | Not applicable. |
(a)(3) |
(a)(3)(1) | There were no written solicitations to purchase securities under Rule 23c-1 under the Act sent or given during the period covered by the report by or on behalf of the Registrant to 10 or more persons. |
(a)(3)(2) | There was no change in the Registrant’s independent public accountant during the period covered by the report. |
(b) |
(c) |
1 | The Trust has received exemptive relief from the Securities and Exchange Commission permitting it to make periodic distributions of long-term capital gains with respect to its outstanding common stock as frequently as twelve times each year. This relief is conditioned, in part, on an undertaking by the Trust to make the disclosures to the holders of the Trust’s common shares, in addition to the information required by Section 19(a) of the Investment Company Act and Rule 19a-1 thereunder. The Trust is likewise obligated to file with the Commission the information contained in any such notice to shareholders and, in that regard, has attached hereto copies of each such notice made during the period. |
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.
(Registrant) CBRE Global Real Estate Income Fund
By (Signature and Title)*: | /s/ Joseph P. Smith | |||
Joseph P. Smith | ||||
President and Chief Executive Officer | ||||
Date: August 21, 2024 |
Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, this report has been signed below by the following persons on behalf of the registrant and in the capacities and on the dates indicated.
By (Signature and Title)*: | /s/ Joseph P. Smith | |||
Joseph P. Smith | ||||
President and Chief Executive Officer | ||||
Date: August 21, 2024 | ||||
By (Signature and Title)*: | /s/ Jonathan A. Blome | |||
Jonathan A. Blome | ||||
Chief Financial Officer | ||||
Date: August 21, 2024 |
* | Print the name and title of each signing officer under his or her signature. |