RMR Asia Pacific Real Estate Fund NCSR Certified annual shareholder report (management investment company)

QuickLinks -- Click here to rapidly navigate through this document

UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549

FORM N-CSR
CERTIFIED SHAREHOLDER REPORT OF REGISTERED
MANAGEMENT INVESTMENT COMPANIES
Investment Company Act file number: 811-21856

RMR ASIA PACIFIC REAL ESTATE FUND
(Exact name of registrant as specified in charter)

400 CENTRE STREET
NEWTON, MASSACHUSETTS 02458
(Address of principal executive offices)(Zip code)

(Name and Address of Agent for Service)
Adam D. Portnoy, President
RMR Asia Pacific Real Estate Fund
400 Centre Street
Newton, Massachusetts 02458

Copy to:
Robert N. Hickey, Esq.
Sullivan & Worcester LLP
1666 K Street, NW
Washington, DC 20006

Julie A. Tedesco, Esq.
State Street Bank and Trust Company
Two Avenue de Lafayette, 6th Floor
Boston, Massachusetts 02111

Registrant's telephone number, including area code: (617) 332-9530
Date of fiscal year end: December 31
Date of reporting period: June 30, 2007

Item 1. Reports to Shareholders.


SEMI -ANNUAL REPORTS JUNE 30, 2007

RMR Real Estate Fund

RMR Hospitality and Real Estate Fund

RMR F.I.R.E. Fund

RMR Preferred Dividend Fund

RMR Asia Pacific Real Estate Fund

RMR Asia Real Estate Fund

About information contained in this report:

•: Performance data is historical and reflects historical expenses and historical changes in net asset value. Historical results are not indicative of future results.
•: If RMR Advisors had not waived fees or paid all of each fund's organizational costs and a portion of each fund's offering costs, each fund's returns would have been reduced.
•: Please consider the investment objectives, strategies, risks, charges and expenses before investing in any of the funds. An investment in each fund's shares is subject to material risks, including but not limited to those described in each fund's prospectus, the registration statements and other documents filed with the SEC. Each fund's declaration of trust contains provisions which limit ownership of fund shares by any person or group of persons acting together and limit any persons ability to control a fund or to convert a fund to an open end fund. For more information about any of our funds please visit www.rmrfunds.com or call our investor relations group at 1-866-790-3165.

NOTICE CONCERNING LIMITED LIABILITY

THE AGREEMENTS AND DECLARATIONS OF TRUST OF RMR REAL ESTATE FUND, RMR HOSPITALITY AND REAL ESTATE FUND, RMR F.I.R.E. FUND, RMR PREFERRED DIVIDEND FUND, RMR ASIA PACIFIC REAL ESTATE FUND AND RMR ASIA REAL ESTATE FUND, COPIES OF WHICH, TOGETHER WITH ALL AMENDMENTS AND SUPPLEMENTS THERETO, ARE DULY FILED IN THE OFFICE OF THE SECRETARY, CORPORATIONS DIVISION, OF THE COMMONWEALTH OF MASSACHUSETTS, PROVIDE THAT THE NAMES "RMR REAL ESTATE FUND", "RMR HOSPITALITY AND REAL ESTATE FUND", "RMR F.I.R.E. FUND", "RMR PREFERRED DIVIDEND FUND", "RMR ASIA PACIFIC REAL ESTATE FUND" AND "RMR ASIA REAL ESTATE FUND" REFER TO THE TRUSTEES UNDER THE AGREEMENTS AND DECLARATIONS COLLECTIVELY AS TRUSTEES, BUT NOT INDIVIDUALLY OR PERSONALLY, AND THAT NO TRUSTEE, OFFICER, SHAREHOLDER, EMPLOYEE OR AGENT OF ANY OF THE FUNDS SHALL BE HELD TO ANY PERSONAL LIABILITY, JOINTLY OR SEVERALLY, FOR ANY OBLIGATION OF, OR CLAIM AGAINST, ANY OF THESE FUNDS. ALL PERSONS DEALING WITH ANY OF THE FUNDS IN ANY WAY, SHALL LOOK ONLY TO THE ASSETS OF THAT FUND WITH WHICH HE OR SHE MAY DEAL FOR THE PAYMENT OF ANY SUM OR THE PERFORMANCE OF ANY OBLIGATION.

RMR Funds June 30, 2007
		August 15, 2007

To our shareholders,

We are pleased to present you with our 2007 semi-annual report for our six funds:

•: RMR Real Estate Fund (AMEX: RMR), which began operations in December 2003, beginning on page 2;
•: RMR Hospitality and Real Estate Fund (AMEX: RHR), which began operations in April 2004, beginning on page 20;
•: RMR F.I.R.E. Fund (AMEX: RFR), which began operations in November 2004, beginning on page 38;
•: RMR Preferred Dividend Fund (AMEX: RDR), which began operations in May 2005, beginning on page 56;
•: RMR Asia Pacific Real Estate Fund (AMEX: RAP), which began operations in May 2006, beginning on page 70; and
•: RMR Asia Real Estate Fund (AMEX: RAF), which began operations in May 2007, beginning on page 84.

We invite you to read through the information contained in this report and to view our website at www.rmrfunds.com.

Sincerely,

Adam D. Portnoy
President

RMR Real Estate Fund
June 30, 2007

To our shareholders,

In the pages that follow, you will find data summarizing our financial results for the six months ended June 30, 2007, and our financial position as of June 30, 2007.

Relevant Market Conditions

Real Estate Industry Fundamentals. The operating environment for real estate companies continued to strengthen during the first half of 2007 as occupancy and rental rates trended higher. We expect real estate fundamentals to remain favorable during the second half of the year because of continued strength in the job market, a favorable supply picture (i.e., limited new development completion) and continued demand for commercial real estate properties by both domestic and foreign institutional investors.

Real Estate Industry Technicals. The first half of the year was marked by increased volatility in the REIT market. REITs' share prices were up almost 14% for 2007 through early February driven by continued M&A activity, then gave back all of their gains and more through June, when the REIT market was down 9% on investor concern about a spillover effect from the sub-prime residential meltdown to commercial real estate, and REITs' share prices finished the first half of 2007 down 6%. While we believe volatility will continue during 2007, the pullback in REITs' share prices has resulted in very attractive valuations for the sector. REITs are trading at discounts to estimated net asset value of 10% to 15%, well below the long term average premium of 5% to 7%. We would not be surprised if the level of M&A activity intensifies for the remainder of 2007 given such discounted valuations. Of course M&A activity depends in large part upon the availability of financing. If the liquidity freeze which began in July (as we are writing this report) continues, M&A activity will cease and underlying net asset value and equity valuations may be challenged.

We believe that over the long term demand for real estate securities will continue to increase given the sector's attractive dividend yield and diversification benefits. These should be attractive features to investors as a larger portion of the U.S. population reaches retirement age.

Fund Strategies, Techniques and Performance

Our primary investment objective is to earn and pay a high level of current income to our common shareholders by investing in real estate companies. Our secondary investment objective is capital appreciation. There can be no assurances that we will meet our investment objectives.

excluding short term investments, as of June 30, 2007, included 71% REIT common stocks and 25% REIT preferred stocks. The S&P 500 Index (an unmanaged index published as Standard and Poor's Composite Index of 500 common stocks) total return for the six months ended June 30, 2007 was 6.9%.

Our investment allocation to the diversified and hotel REITs, which accounted for 19% and 13%, respectively of total investments, contributed positively to the fund's performance. We benefited from our holdings in the hospitality REIT sub-sector because of the high level of M&A activity that took place within this sub-sector during the first half of 2007. Highland Hospitality, Equity Inns and Eagle Hospitality, three of our hospitality REIT holdings, were acquired at premiums of approximately 40% over the closing stock price as of the end of 2006. Crescent Real Estate, a diversified REIT, and one of our largest positions in the fund, was acquired at an 18% premium over its year-end 2006 stock price and contributed positively to our performance. Our security selections in the mortgage REITs detracted from our performance as a result of weakness in the sub-prime related stocks. Our biggest losses were in New Century Financial and Novastar Financial, two mortgage REITs with exposure to sub-prime home loans, which were down 98% and 73%, respectively, very shortly after the sub-prime crisis first surfaced in late February of 2007.

Thank you for your continued support. For more information, please view our website, at www.rmrfunds.com.

Sincerely,

Adam D. Portnoy
President

Portfolio holdings by sub-sector as a percentage of investments
(as of June 30, 2007) *

REITs
	Diversified		19	%
	Health care		15	%
	Hospitality		13	%
	Apartments		10	%
	Mortgage		10	%
	Others, less than 10% each		27	%

		Total REITs	94	%
	Other		4	%
	Short term investments		2	%

		Total investments	100	%

*: These percentages represent the Fund's portfolio holdings by sub-sector as a percentage of total portfolio holdings and do not agree with the percentages included in the Portfolio of Investments schedule which represent the Fund's portfolio holdings by sub-sector as a percentage of the Fund's total net assets.

RMR Real Estate Fund
Portfolio of Investments — June 30, 2007 (unaudited)


Company			Shares	Value

Common Stocks – 102.1% Real Estate Investment Trusts – 97.1%
	Apartments – 11.8%
		Apartment Investment & Management Co.	70,100	$	3,534,442
		Archstone-Smith Trust	600		35,466
		Associated Estates Realty Corp.	105,400		1,643,186
		AvalonBay Communities, Inc.	13,000		1,545,440
		Equity Residential	49,000		2,235,870
		Essex Property Trust, Inc.	2,000		232,600
		Home Properties, Inc.	88,800		4,611,384
		Mid-America Apartment Communities, Inc.	5,000		262,400
		UDR, Inc.	21,000		552,300

					14,653,088
	Diversified – 26.9%
		Colonial Properties Trust	138,700		5,055,615
		Cousins Properties, Inc.	10,100		293,001
		Crescent Real Estate Equities Co.	337,500		7,573,500
		Duke Realty Corp.	7,000		249,690
		Franklin Street Properties Corp.	3,000		49,620
		iStar Financial, Inc.	6,000		265,980
		Lexington Corporate Properties Trust	383,800		7,983,040
		Liberty Property Trust	24,000		1,054,320
		Mission West Properties, Inc.	5,000		69,700
		National Retail Properties, Inc.	352,700		7,710,022
		Spirit Finance Corp.	17,500		254,800
		Vornado Realty Trust	26,000		2,855,840
		Washington Real Estate Investment Trust	300		10,200

					33,425,328
	Health Care – 14.5%
		Care Investment Trust, Inc. (a)	28,200		387,750
		Cogdell Spencer, Inc.	15,000		308,850
		Health Care Property Investors, Inc.	19,080		551,984
		Health Care REIT, Inc.	162,600		6,562,536
		Healthcare Realty Trust, Inc.	16,200		450,036
		Medical Properties Trust, Inc.	64,520		853,600
		Nationwide Health Properties, Inc.	257,600		7,006,720
		OMEGA Healthcare Investors, Inc.	93,200		1,475,356
		Universal Health Realty Income Trust	13,000		432,900

					18,029,732
See notes to financial statements and notes to portfolio of investments.

	Hospitality – 5.4%
		Ashford Hospitality Trust, Inc.	185,500	$	2,181,480
		Eagle Hospitality Properties Trust, Inc.	60,000		789,600
		Entertainment Properties Trust	22,000		1,183,160
		Equity Inns, Inc.	11,000		246,400
		FelCor Lodging Trust, Inc.	17,000		442,510
		Hersha Hospitality Trust	6,100		72,102
		Highland Hospitality Corp.	7,000		134,400
		LaSalle Hotel Properties	7,200		312,624
		Supertel Hospitality, Inc.	161,000		1,363,670

					6,725,946
	Industrial – 8.9%
		AMB Property Corp.	4,000		212,880
		DCT Industrial Trust, Inc.	47,500		511,100
		EastGroup Properties, Inc.	21,400		937,748
		First Industrial Realty Trust, Inc.	211,240		8,187,662
		ProLogis	21,000		1,194,900

					11,044,290
	Manufactured Homes – 1.8%
		Sun Communities, Inc.	75,900		2,259,543
	Mortgage – 9.7%
		Abingdon Investment, Ltd. (b)	550,000		5,214,000
		Alesco Financial, Inc.	558,600		4,541,418
		American Home Mortgage Investment Corp.	12,000		220,560
		American Mortgage Acceptance Co.	22,800		229,140
		Anthracite Capital, Inc.	2,000		23,400
		Arbor Realty Trust, Inc.	1,200		30,972
		CBRE Realty Finance, Inc.	5,000		59,450
		Crystal River Capital, Inc.	26,800		650,704
		Deerfield Triarc Capital Corp.	3,000		43,890
		Newcastle Investment Corp.	21,600		541,512
		NorthStar Realty Finance Corp.	10,000		125,100
		NovaStar Financial, Inc.	45,500		317,590
		Thornburg Mortgage, Inc.	3,500		91,630

					12,089,366
See notes to financial statements and notes to portfolio of investments.

	Office – 9.1%
		American Financial Realty Trust	309,100	$	3,189,912
		Boston Properties, Inc.	18,000		1,838,340
		Brandywine Realty Trust	15,400		440,132
		Corporate Office Properties Trust	15,500		635,655
		Douglas Emmett, Inc.	12,500		309,250
		Highwoods Properties, Inc.	55,000		2,062,500
		Mack-Cali Realty Corp.	11,000		478,390
		Maguire Properties, Inc.	48,000		1,647,840
		Parkway Properties, Inc.	400		19,212
		SL Green Realty Corp.	5,000		619,450

					11,240,681
	Other Financial Services – 0.0%
		Friedman Billings Ramsey Group, Inc.	5,000		27,300
	Retail – 5.8%
		CBL & Associates Properties, Inc.	36,000		1,297,800
		Cedar Shopping Centers, Inc.	5,000		71,750
		Developers Diversified Realty Corp.	2,000		105,420
		Equity One, Inc.	10,000		255,500
		Feldman Mall Properties, Inc.	3,000		34,200
		Glimcher Realty Trust	109,400		2,735,000
		Kimco Realty Corp.	5,000		190,350
		Pennsylvania Real Estate Investment Trust	12,000		531,960
		Ramco-Gershenson Properties Trust	3,000		107,790
		Realty Income Corp.	18,200		458,458
		Simon Property Group, Inc.	12,000		1,116,480
		Tanger Factory Outlet Centers, Inc.	5,000		187,250
		Urstadt Biddle Properties, Inc.	8,900		151,389

					7,243,347
	Specialty – 1.0%
		Getty Realty Corp.	32,600		856,728
		Resource Capital Corp.	27,500		384,450

					1,241,178
See notes to financial statements and notes to portfolio of investments.

	Storage – 2.2%
		Public Storage, Inc.	3,000	$	230,460
		Sovran Self Storage, Inc.	50,000		2,408,000
		U-Store-It Trust	5,000		81,950

					2,720,410
Total Real Estate Investment Trusts (Cost $112,898,450)					120,700,209
	Other – 5.0%
		American Capital Strategies, Ltd.	23,500		999,220
		IndyMac Bancorp, Inc.	8,000		233,360
		Iowa Telecommunication Services, Inc.	50,500		1,147,865
		KKR Financial Holdings LLC	15,500		386,105
		MCG Capital Corp.	11,000		176,220
		Meruelo Maddux Properties, Inc. (a)	24,600		200,736
		Seaspan Corp.	48,200		1,551,076
		Starwood Hotels & Resorts Worldwide, Inc.	17,000		1,140,190
		Thomas Properties Group, Inc.	20,100		321,198
Total Other (Cost $5,253,960)					6,155,970
Total Common Stocks (Cost $118,152,410)					126,856,179
Preferred Stocks – 34.7%
Real Estate Investment Trusts – 34.7%
	Apartments – 1.9%
		Apartment Investment & Management Co., Series G	32,800		838,040
		Apartment Investment & Management Co., Series T	60,000		1,502,400

					2,340,440
	Diversified – 0.2%
		Colonial Properties Trust, Series D	10,000		254,300
	Health Care – 7.0%
		Health Care REIT, Inc., Series G	20,000		595,200
		LTC Properties, Inc., Series F	160,000		3,968,000
		OMEGA Healthcare Investors Inc., Series D	160,000		4,129,600

					8,692,800
See notes to financial statements and notes to portfolio of investments.

Preferred Stocks – continued Real Estate Investment Trusts – continued
	Hospitality – 12.5%
		Ashford Hospitality Trust, Series A	107,900	$	2,773,570
		Eagle Hospitality Properties Trust, Inc., Series A	28,000		650,440
		Equity Inns, Inc., Series B	34,000		806,140
		FelCor Lodging Trust, Inc., Series A (c)	83,000		2,108,200
		FelCor Lodging Trust, Inc., Series C	49,200		1,233,936
		Innkeepers USA Trust, Series C	120,000		2,604,000
		Strategic Hotels & Resorts, Inc., Series B	54,500		1,359,775
		Winston Hotels, Inc., Series B	160,000		4,059,200

					15,595,261
	Manufactured Homes – 5.6%
		Affordable Residential Communities, Series A	280,000		6,958,000
	Mortgage – 4.4%
		Anthracite Capital, Inc., Series D	24,000		559,800
		Gramercy Capital Corp., Series A	80,000		1,980,000
		RAIT Investment Trust, Series A	125,000		2,920,000

					5,459,800
	Office – 0.7%
		Corporate Office Properties Trust, Series J	4,000		100,840
		Kilroy Realty Corp., Series F	30,000		750,300

					851,140
	Retail – 2.4%
		Cedar Shopping Centers, Inc., Series A	24,000		627,360
		Glimcher Realty Trust, Series F	20,000		508,000
		Glimcher Realty Trust, Series G	50,000		1,247,500
		The Mills Corp., Series E	7,100		192,126
		The Mills Corp., Series G	17,000		449,820

					3,024,806
Total Preferred Stocks (Cost $42,488,455)					43,176,547
See notes to financial statements and notes to portfolio of investments.

Other Investment Company – 0.0%
		LMP Real Estate Income Fund, Inc. (Cost $27,491)	1,150	$	24,794
Short-Term Investments – 2.6%
	Other Investment Companies – 2.6%
		SSgA Money Market Fund, 4.98% (d) (Cost $3,240,593)	3,240,593		3,240,593
Total Investments – 139.4% (Cost $163,908,949)					173,298,113
Other assets less liabilities – 0.8%					1,030,580
Preferred Shares, at liquidation preference – (40.2)%					(50,000,000	)
Net Assets applicable to common shareholders – 100%				$	124,328,693

Notes to Portfolio of Investments

(a): As of June 30, 2007, this security had not paid a distribution.
(b): 144A securities. Securities restricted for resale to Qualified Institutional Buyers (4.2% of net assets).
(c): Convertible into common stock.
(d): Rate reflects 7 day yield as of June 30, 2007.

See notes to financial statements.

RMR Real Estate Fund
Financial Statements

Statement of Assets and Liabilities


June 30, 2007 (unaudited)

Assets
	Investments in securities, at value (cost $163,908,949)		$	173,298,113
	Cash			11,626
	Dividends and interest receivable			1,258,494
	Other assets			8,780

		Total assets		174,577,013

Liabilities
	Advisory fee payable			88,348
	Distributions payable – preferred shares			55,560
	Accrued expenses and other liabilities			104,412

		Total liabilities		248,320

Preferred shares, at liquidation preference
	Auction preferred shares, Series T; $.001 par value per share; 2,000 shares issued and outstanding at $25,000 per share liquidation preference			50,000,000

Net assets attributable to common shares			$	124,328,693

Composition of net assets
	Common shares, $.001 par value per share; unlimited number of shares authorized, 6,824,000 shares issued and outstanding		$	6,824
	Additional paid-in capital			96,510,797
	Undistributed net investment income			1,965,660
	Accumulated net realized gain on investment transactions			16,456,248
	Net unrealized appreciation on investments			9,389,164

Net assets attributable to common shares			$	124,328,693

Net asset value per share attributable to common shares (based on 6,824,000 common shares outstanding)			$	18.22

See notes to financial statements.

RMR Real Estate Fund

Financial Statements – continued

Statement of Operations


Six Months Ended June 30, 2007 (unaudited)

Investment Income
	Dividends (cash distributions received or due)			$	7,318,994
	Interest				197,650

		Total investment income			7,516,644

Expenses
	Advisory				778,238
	Preferred share remarketing				63,961
	Administrative				53,965
	Audit and legal				46,065
	Custodian				45,482
	Shareholder reporting				25,090
	Compliance and internal audit				22,817
	Trustees' fees and expenses				10,873
	Other				46,787

		Total expenses			1,093,278
	Less: expense waived by the Advisor				(228,894	)

		Net expenses			864,384

			Net investment income		6,652,260

Realized and unrealized gain (loss) on investments
	Net realized gain on investments				8,006,312
	Net change in unrealized appreciation/(depreciation) on investments				(20,464,154	)

	Net realized and unrealized loss on investments				(12,457,842	)

	Distributions to preferred shareholders from net investment income				(1,274,600	)

		Net decrease in net assets attributable to common shares resulting from operations		$	(7,080,182	)

See notes to financial statements.

RMR Real Estate Fund
Financial Statements – continued

Statements of Changes in Net Assets


				Six Months Ended June 30, 2007 (unaudited)			Year Ended December 31, 2006

Increase (decrease) in net assets resulting from operations
	Net investment income			$	6,652,260		$	6,724,184
	Net realized gain on investments				8,006,312			11,075,804
	Net change in unrealized appreciation/(depreciation) on investments				(20,464,154	)		20,905,533
	Distributions to preferred shareholders from:
		Net investment income			(1,274,600	)		(1,552,028	)
		Net realized gain on investments			—			(813,812	)

			Net increase (decrease) in net assets attributable to common shares resulting from operations		(7,080,182	)		36,339,681

	Distributions to common shareholders from:
		Net investment income			(3,412,000	)		(5,371,982	)
		Net realized gains on investments			—			(2,816,818	)

		Total increase (decrease) in net assets attributable to common shares			(10,492,182	)		28,150,881
Net assets attributable to common shares
	Beginning of period				134,820,875			106,669,994

	End of period (including undistributed net investment income of $1,965,660 and $0, respectively)			$	124,328,693		$	134,820,875

Common shares issued and repurchased
	Shares outstanding, beginning of period				6,824,000			6,824,000
		Shares issued			—			—

	Shares outstanding, end of period				6,824,000			6,824,000

See notes to financial statements.

RMR Real Estate Fund
Financial Highlights

Selected Data For A Common Share Outstanding Throughout Each Period


		Six Months Ended June 30, 2007 (unaudited)			Year Ended December 31, 2006			Year Ended December 31, 2005			Year Ended December 31, 2004			For the Period December 18, 2003(a) to December 31, 2003

Per Common Share Operating Performance (b)
Net asset value, beginning of period		$	19.76		$	15.63		$	16.61		$	14.35		$	14.33	(c)

Income from Investment Operations
Net investment income (d)			.97	(e)		.99			.64			.47			.10
Net realized and unrealized appreciation/(depreciation) on investments			(1.82	)(e)		4.69			(.08	)		3.11			(.05	)
Distributions to preferred shareholders (common stock equivalent basis) from:
	Net investment income		(.19	)(e)		(.23	)		(.10	)		(.05	)		—
	Net realized gain on investments		—	(e)		(.12	)		(.14	)		(.05	)		—

Net increase (decrease) in net asset value from operations			(1.04	)		5.33			.32			3.48			.05
Less: Distributions to common shareholders from:
	Net investment income		(.50	)(e)		(.79	)		(.54	)		(.53	)		—
	Net realized gain on investments		—	(e)		(.41	)		(.76	)		(.57	)		—
Common share offering costs charged to capital			—			—			—			—			(.03	)
Preferred share offering costs charged to capital			—			—			—			(.12	)		—

Net asset value, end of period		$	18.22		$	19.76		$	15.63		$	16.61		$	14.35

Market price, beginning of period		$	17.48		$	13.15		$	14.74		$	15.00		$	15.00

Market price, end of period		$	15.93		$	17.48		$	13.15		$	14.74		$	15.00

Total Return (f)
Total investment return based on:
	Market price (g)		(6.19	)%		43.77	%		(1.96	)%		6.42	%		0.00	%
	Net asset value (g)		(5.42	)%		35.27	%		2.10	%		24.73	%		0.14	%
Ratios/Supplemental Data:
Ratio to average net assets attributable to common shares of:
	Net investment income, before total preferred share distributions (d)		9.96	%(e)(h)		5.60	%		4.02	%		3.22	%		27.45	%(h)
	Total preferred share distributions		1.91	%(h)		1.97	%		1.47	%		0.67	%		0.00	%(h)
	Net investment income, net of preferred share distributions (d)		8.05	%(e)(h)		3.63	%		2.55	%		2.55	%		27.45	%(h)
	Expenses, net of fee waivers		1.29	%(h)		1.50	%		1.50	%		1.69	%		2.40	%(h)
	Expenses, before fee waivers		1.64	%(h)		1.86	%		1.87	%		2.05	%		2.65	%(h)
Portfolio Turnover Rate			20.55	%		36.20	%		22.15	%		35.52	%		17.49	%
Net assets attributable to common shares, end of period (000s)		$	124,329		$	134,821		$	106,670		$	113,357		$	95,776
Preferred shares, liquidation preference ($25,000 per share) (000s)		$	50,000		$	50,000		$	50,000		$	50,000		$	—
Asset coverage per preferred share (i)		$	87,164		$	92,411		$	78,335		$	81,679		$	—

(a): Commencement of operations.
(b): Based on average shares outstanding.
(c): Net asset value at December 18, 2003, reflects the deduction of the average sales load or offering costs of $0.67 per share paid by the holders of common shares from the $15.00 offering price. We paid a sales load of $0.68 per share on 6,660,000 shares sold to the public and no sales load or offering costs on 7,000 common shares sold to affiliates of the RMR Advisors for $15 per share.
(d): Amounts are net of expenses waived by RMR Advisors.
(e): As discussed in Note A (7) to the financial statements, these amounts are subject to change to the extent 2007 distributions by the issuers of the Fund's investments are characterized as capital gains and return of capital.
(f): Total returns for periods of less than one year are not annualized.
(g): Total return based on per share market price assumes the purchase of common shares at the market price on the first day and sales of common shares at the market price on the last day of the period indicated; dividends and distributions, if any, are assumed to be reinvested at market prices on the ex-dividend date. The total return based net asset value, or NAV, assumes the purchase of common shares at NAV on the first day and sales of common shares at NAV on the last day of the period indicated; distributions are assumed to be reinvested at NAV on the ex-dividend date. Results represent past performance and do not guarantee future results. Total return would have been lower if RMR Advisors had not contractually waived a portion of its investment advisory fee.
(h): Annualized.
(i): Asset coverage per share equals net assets attributable to common shares plus the liquidation preference of the preferred shares divided by the total number of preferred shares outstanding at the end of the period.

See notes to financial statements.

RMR Real Estate Fund
Notes to Financial Statements

June 30, 2007 (unaudited)

Note A

(1) Organization

RMR Real Estate Fund, or the Fund, was organized as a Massachusetts business trust on July 2, 2002, and is registered under the Investment Company Act of 1940, as amended, or the 1940 Act, as a non-diversified closed-end management investment company. The Fund had no operations prior to December 18, 2003, other than matters relating to the Fund's establishment and registration of the Fund's common shares under the Securities Act of 1933.

(2) Interim Financial Statements

The accompanying June 30, 2007, financial statements have been prepared without audit. The Fund believes that disclosures made are adequate to make the information presented not misleading. In the opinion of the Fund's management, all adjustments, which include normal recurring adjustments considered necessary for a fair presentation, have been included. The Fund's operating results for this interim period are not necessarily indicative of the results that may be expected in the future.

(3) Use of Estimates

Preparation of these financial statements in conformity with accounting principles generally accepted in the United States requires the Fund's management to make estimates and assumptions that may affect the amounts reported in the financial statements and related notes. The actual results could differ from these estimates particularly for reasons described in Note A (7), and for other reasons.

(4) Portfolio Valuation

Investment securities of the Fund are valued at the latest sales price whenever that price is readily available on that day; securities for which no sales were reported on that day, unless otherwise noted, are valued at the last available bid price on that day. Securities traded primarily on the NASDAQ Stock Market, or NASDAQ, are normally valued by the Fund at the NASDAQ Official Closing Price, or NOCP, provided by NASDAQ each business day. The NOCP is the most recently reported price as of 4:00:06 p.m., eastern time, unless that price is outside the range of the "inside" bid and asked prices (i.e., the bid and asked prices that dealers quote to each other when trading for their own accounts); in that case, NASDAQ will adjust the price to equal the inside bid or asked price, whichever is closer. Because of delays in reporting trades, the NOCP may not be based on the price of the last trade to occur before the market closes. Some fixed income securities may be valued using pricing provided by a pricing service. Any of the Fund's securities which are not readily marketable, which are not traded or which have other characteristics of illiquidity are valued by the Fund at fair value as determined in good faith under the supervision of the Fund's board of trustees. Numerous factors may be considered when determining fair value of a security, including cost at date of purchase, type of security, the nature and duration of restrictions on disposition of the security and whether the issuer of the security being fair valued has other securities of the same type outstanding. Short-term debt securities with less than 60 days until maturity may be valued at cost, which when combined with interest accrued, approximates market value.

(5) Securities Transactions and Investment Income

securities received. Interest income, including accretion of original issue discount, where applicable, and accretion of discount on short-term investments, is recorded on the accrual basis. Realized gains and losses from securities transactions are recorded on the basis of identified cost.

(6) Federal Taxes

The Fund has qualified and intends to qualify in the future as a "regulated investment company" and to comply with the applicable provisions of subchapter M of the Internal Revenue Code of 1986, as amended, so that it will generally not be subject to federal income tax. However, the Fund may be subject to a 4% excise tax to the extent the Fund does not distribute substantially all taxable earnings each year.

(7) Distributable Earnings

The Fund earns income, net of expenses, daily on its investments. It is the policy of the Fund to pay a stable distribution amount to common shareholders on a monthly basis and distributions to Fund shareholders are declared pursuant to this policy. On July 12, 2007, the Fund declared regular monthly distributions of $0.10 per common share payable in August and September, 2007 and a special distribution consisting entirely of long term capital gains of $0.32 per share payable on September 14, 2007. Distributions to shareholders are recorded on the ex-dividend date. The Fund's distributions may consist of ordinary income (net investment income and short term capital gains), long term capital gains and return of capital. To the extent the Fund's net realized capital gains, if any, can be offset by capital loss carry-forwards, it is the policy of the Fund not to distribute such gains. Distributions to preferred shareholders are determined as described in Note D.

The Fund has substantial investments in real estate investment trusts, or REITs, which are generally not subject to federal income taxes. Distributions that the Fund received from REITs can be classified as ordinary income, capital gain income or return of capital by the REITs that make these distributions to the Fund. However, it is not possible to characterize distributions received from REITs during interim periods because the issuers do not report their tax characterization until subsequent to year end. Final characterization of the Fund's 2007 distributions to shareholders is also dependent upon the magnitude or timing of the Fund's securities transactions prior to year end. Therefore it is likely that some portion of the Fund's 2007 investment income and distributions to shareholders will be recharacterized as long term capital gain and return of capital for financial statement and federal income tax purposes subsequent to year end and reflected accordingly in the Fund's year end financial statements.

Although subject to adjustments, the cost, gross unrealized appreciation and unrealized depreciation of the Fund's investments for federal income tax purposes as of June 30, 2007, are as follows:

Cost	$	163,908,949

Gross unrealized appreciation	$	15,839,686
Gross unrealized depreciation		(6,450,522	)

Net unrealized appreciation/(depreciation)	$	9,389,164

(8) Concentration of Risk

Under normal market conditions, the Fund's investments will be concentrated in income producing common shares, preferred shares and debt securities, including convertible preferred and debt securities, issued by real estate companies and REITs. The value of Fund shares may fluctuate more than the shares of a fund not

concentrated in the real estate industry due to economic, legal, regulatory, technological or other developments affecting the United States real estate industry.

(9) Recent Accounting Pronouncements

In June 2006, the Financial Accounting Standards Board, or FASB, issued Interpretation No. 48, "Accounting for Uncertainty in Income Taxes", or FIN 48. FIN 48 was effective for the fiscal years beginning after December 15, 2006. The Securities and Exchange Commission delayed the application of FIN 48 to open and closed end funds to not later than June 29, 2007. FIN 48 prescribes how the Fund should recognize, measure and present in the Fund's financial statements uncertain tax provisions that have been taken or expected to be taken in a tax return. Pursuant to FIN 48 the Fund can recognize a tax benefit only if it is "more likely than not" that a particular tax position will be sustained upon examination or audit. To the extent the "more likely than not" standard has been satisfied the benefits associated with a tax position is measured as the largest amount that is greater than 50% likely of being realized upon settlement. As required, the Fund has adopted FIN 48 effective June 29, 2007, and concluded that the effect is not material to its financial statements.

In September 2006, FASB issued Statement of Accounting Standards No. 157, "Fair Value Measurement", or SFAS 157, which is effective for fiscal years beginning after November 15, 2007. SFAS 157 defines fair value, establishes a framework for measuring fair value and expands required disclosures about fair value measurements. The Fund is currently evaluating the impact, if any, the adoption of SFAS 157 will have on its financial statements.

(10) Other Investment Companies

The Fund may invest in the securities of other investment companies to the extent that such investments are consistent with the Fund's investment objectives and principal investment strategies and permissible under the 1940 Act. Under one provision of the 1940 Act, the Fund may not acquire the securities of other investment companies if, as a result, (i) more than 3% of the total outstanding voting securities of any one investment company would be held by the Fund, (ii) more than 5% of the Fund's total assets would be invested in any one investment company or (iii) more than 10% of the Fund's total assets would be invested in securities of other investment companies. Other provisions of the 1940 Act are less restrictive provided that the Fund is able to meet certain conditions. These limitations do not apply to the acquisition of shares of any investment company in connection with a merger, consolidation, reorganization or acquisition of substantially all of the assets of another investment company and the acquisition of money market instruments. The Fund, as a holder of the securities of other investment companies, will bear its pro rata portion of the other investment companies' expenses, including advisory fees. These expenses will be in addition to the direct expenses incurred by the Fund.

Note B

Advisory and Administration Agreements and Other Transactions with Affiliates

The Fund has an advisory agreement with RMR Advisors, Inc., or RMR Advisors, to provide the Fund with a continuous investment program, to make day-to-day investment decisions and to generally manage the business affairs of the Fund in accordance with its investment objectives and policies. Pursuant to the agreement, RMR Advisors is compensated at an annual rate of 0.85% of the Fund's average daily managed assets. Managed assets means the total assets of the Fund less liabilities other than any indebtedness entered

into for purposes of leverage. For purposes of calculating managed assets, the liquidation preference of preferred shares are not considered liabilities.

RMR Advisors has contractually agreed to waive a portion of its annual fee equal to 0.25% of the Fund's average daily managed assets until December 18, 2008. The Fund incurred net advisory fees of $549,344 during the six months ended June 30, 2007.

RMR Advisors, and not the Fund, has contractually agreed to pay the lead underwriter of the Fund's initial public offering, an annual fee equal to 0.15% of the Fund's managed assets. This fee is paid quarterly in arrears during the term of RMR Advisors' advisory agreement and is paid by RMR Advisors, not the Fund. The aggregate fees paid pursuant to the contract plus reimbursement of legal expenses of the underwriters in that offering will not exceed 4.5% of the total price of the common shares in the initial public offering.

RMR Advisors also performs administrative functions for the Fund pursuant to an administration agreement with the Fund. RMR Advisors has entered into a subadministration agreement with State Street Bank and Trust Company, or State Street, to perform substantially all Fund accounting and other administrative services. Under the administration agreement, RMR Advisors is entitled to reimbursement of the cost of providing administrative services. The Fund reimbursed RMR Advisors for $53,965 of subadministrative fees charged by State Street for the six months ended June 30, 2007.

Each trustee who is not a director, officer or employee of RMR Advisors and who is not an "interested person" of the Fund as defined under the 1940 Act is considered to be a "disinterested trustee". Disinterested trustees are each paid by the Fund an annual fee plus fees for board and committee meetings. The Fund incurred $10,873 of trustee fees and expenses during the six months ended June 30, 2007.

The Fund's board of trustees and separately the disinterested trustees authorized the Fund to make reimbursement payments to RMR Advisors for costs related to the Fund's compliance and internal audit programs. The Fund incurred $22,817 of compliance and internal audit expense during the six months ended June 30, 2007. The Fund also participates in pooled insurance programs with RMR Advisors and other funds managed by RMR Advisors and makes payments of allocated portions of related premiums. The Fund incurred $11,511 of insurance expense during the six months ended June 30, 2007.

Note C

Securities Transactions

During the six months ended June 30, 2007, there were purchases and sales transactions (excluding short term securities) of $40,097,185 and $36,263,466, respectively. Brokerage commissions on securities transactions amounted to $38,449 during the six months ended June 30, 2007.

Note D

Preferred Shares

The Fund's 2,000 outstanding Series T auction preferred shares have a liquidation preference of $25,000 per share plus an amount equal to accumulated but unpaid distributions. The preferred shares are senior to the Fund's common shares and rank on parity with any other class or series of preferred shares of the Fund as to the payment of periodic distributions, including distribution of assets upon liquidation. If the Fund does not

timely cure a failure to (1) maintain asset coverage for the preferred shares as required by rating agencies, or (2) maintain asset coverage, as defined in the 1940 Act, of at least 200%, the preferred shares will be subject to redemption in an amount equal to their liquidation preference plus accumulated but unpaid distributions. The holders of the preferred shares have voting rights equal to the holders of the Fund's common shares and generally vote together with the holders of the common shares as a single class. Holders of the preferred shares, voting as a separate class, also are entitled to elect two of the Fund's trustees. The Fund pays distributions on the preferred shares at a rate set at auctions held generally every seven days. Distributions are generally payable every seven days, on the first business day following the end of a distribution period. The preferred share distribution rate was 5.00% per annum as of June 30, 2007.

Note E

Submission of Proposals to a Vote of Shareholders

The annual meeting of Fund shareholders was held on May 8, 2007. Following is a summary of the proposals submitted to shareholders for vote at the meeting and votes cast:

Proposal		Votes for	Votes withheld	Votes abstained
Common and Preferred shares
	Election of Arthur G. Koumantzelis as trustee until the 2010 annual meeting.	6,353,394	164,448	—
Preferred shares
	Election of Barry M. Portnoy as trustee until the 2010 annual meeting.	1,980	18	—

Proposal			Votes for		Votes against		Votes abstained		Broker Non-Vote
Common and Preferred shares
	Amendment to declaration of trust to explicitly provide that any shareholder that breaches the Fund's declaration of trust or bylaws will indemnify and hold harmless the Fund (and, if applicable, any charitable trustee) from and against all costs, expenses, penalties, fines and other amounts, including attorneys' and other professional fees, arising from the shareholder's breach, together with interest on such amounts.		2,240,930		202,129		59,015		4,015,688

Note F

Portfolio Management Changes

On May 21, 2007, Fernando Diaz and Adam D. Portnoy were appointed co-portfolio managers for the RMR Funds which invest in U.S. domestic securities: RMR Real Estate Fund, RMR Hospitality and Real Estate Fund, RMR F.I.R.E. Fund and RMR Preferred Dividend Fund. Barry M. Portnoy remains a co-portfolio manager for these Funds. Mr. Diaz joined RMR Advisors as a Vice President on May 21, 2007. He also serves as Vice President of each of the RMR Funds. Mr. Adam Portnoy has been with RMR Advisors since 2004 and serves as its President. He also serves as President of each of the RMR Funds.

RMR Hospitality and Real Estate Fund
June 30, 2007

To our shareholders,

In the pages that follow, you will find data summarizing our financial results for the six months ended June 30, 2007, and our financial position as of June 30, 2007.

Relevant Market Conditions

Hospitality Industry Fundamentals. We expect operating fundamentals to remain sound for the remainder of 2007 despite moderating growth in revenue per available room, or RevPAR, and accelerating supply (i.e., new hotel openings) growth. Business transient and group demand remains strong and demand from leisure travelers is still intact, helped by healthy consumer spending and a weaker dollar which has encouraged higher demand from foreign travelers. Privatizations continued during the first half of the year with four publicly traded hospitality REITs taken private; such activity serves as an indication of a valuation discrepancy between the public and private markets.

Fund Strategies, Techniques and Performance

Our primary objective is to earn and pay to our common shareholders a high level of current income by investing in hospitality and real estate companies. Our secondary objective is capital appreciation. There can be no assurance that we will achieve our investment objectives.

During the first six months of 2007, our total return on net asset value, or NAV (including NAV changes and assuming a hypothetical reinvestment of distributions at NAV), was negative 4.5%. During that same period, the total return for the MSCI US REIT Total Return Index (an unmanaged index of REIT common stocks) was negative 6.5% and the total return for the Merrill Lynch REIT Preferred Index (an unmanaged index of REIT preferred stocks) was 0.4%. We believe these two indices are relevant to us because our investments, excluding short term investments, as of June 30, 2007, included 60% REIT common stocks and 31% REIT preferred stocks. The S&P 500 Index (an unmanaged index published as Standard and Poor's Composite Index of 500 common stocks) total return for the first six months of 2007 was 6.9%.

Our investment allocation to hospitality and diversified REITs, which accounted for 35% and 16%, respectively of total investments, contributed positively to the fund's performance. We benefited from our holdings in hospitality REITs because of the high level of M&A activity that took place within this sub-sector during the first half of 2007. Three of our five hotel holdings, Highland Hospitality, Equity Inns and Eagle Hospitality were acquired at premiums of approximately 40% over the closing stock price as of the end of 2006; our other two hotel holdings; Innkeepers and Winston Hotels, were acquired at premiums of approximately 15%. Crescent Real Estate, a diversified REIT and one of our largest positions in the fund, was acquired at an 18% premium over its year end 2006 stock price and contributed positively to our performance. Our security selections in the mortgage REITs detracted from our performance as a result of weakness in the sub-prime related stocks. Our biggest losses were in New Century Financial and Novastar Financial, two mortgage REITs with exposure to sub-prime home loans, which were down 98% and 73%, respectively, very shortly after the sub-prime crisis first surfaced in late February of 2007.

Thank you for your continued support. For more information, please view our website, at www.rmrfunds.com.

Sincerely,

Adam D. Portnoy
President

Portfolio holdings by sub-sector as a percentage of investments
(as of June 30, 2007) *


Hospitality real estate		35	%
Diversified real estate		16	%
Office real estate		12	%
Health care real estate		11	%
Others, less than 10% each		24	%
Short term investments		2	%

	Total investments	100	%

REITs		89	%
Other		9	%
Short term investments		2	%

	Total investments	100	%

*: These percentages represent the Fund's portfolio holdings by sub-sector as a percentage of total portfolio holdings and do not agree with the percentages included in the Portfolio of Investments schedule which represent the Fund's portfolio holdings by sub-sector as a percentage of the Fund's total net assets.

RMR Hospitality and Real Estate Fund
Portfolio of Investments – June 30, 2007 (unaudited)


Company			Shares	Value

Common Stocks – 90.3%
Real Estate Investment Trusts – 85.8%
	Apartments – 5.9%
		Apartment Investment & Management Co.	36,200	$	1,825,204
		Associated Estates Realty Corp.	5,600		87,304
		Equity Residential	8,000		365,040
		Essex Property Trust, Inc.	2,000		232,600
		Home Properties, Inc.	10,500		545,265
		UDR, Inc.	18,100		476,030

					3,531,443
	Diversified – 21.2%
		Colonial Properties Trust	85,900		3,131,055
		Cousins Properties, Inc.	10,000		290,100
		Crescent Real Estate Equities Co.	105,100		2,358,444
		Franklin Street Properties Corp.	3,000		49,620
		iStar Financial, Inc.	6,000		265,980
		Lexington Corporate Properties Trust	128,800		2,679,040
		Liberty Property Trust	26,000		1,142,180
		Mission West Properties, Inc.	3,000		41,820
		National Retail Properties, Inc.	105,850		2,313,881
		Spirit Finance Corp.	12,500		182,000
		Vornado Realty Trust	2,000		219,680
		Washington Real Estate Investment Trust	300		10,200

					12,684,000
	Health Care – 11.1%
		Care Investment Trust, Inc. (a)	14,100		193,875
		Health Care Property Investors, Inc.	6,770		195,856
		Health Care REIT, Inc.	75,740		3,056,866
		Healthcare Realty Trust, Inc.	9,300		258,354
		Medical Properties Trust, Inc.	26,020		344,245
		Nationwide Health Properties, Inc.	86,000		2,339,200
		OMEGA Healthcare Investors, Inc.	5,000		79,150
		Universal Health Realty Income Trust	5,000		166,500

					6,634,046
	Hospitality – 17.1%
		Ashford Hospitality Trust, Inc.	140,000		1,646,400
		Eagle Hospitality Properties Trust, Inc.	51,000		671,160
		Entertainment Properties Trust	18,800		1,011,064
		Equity Inns, Inc.	62,200		1,393,280
		FelCor Lodging Trust, Inc.	20,000		520,600
		Hersha Hospitality Trust	38,100		450,342
		Host Hotels & Resorts, Inc.	24,000		554,880
		Innkeepers USA Trust	18,200		322,686
		LaSalle Hotel Properties	11,200		486,304
See notes to financial statements and notes to portfolio of investments.

	Hospitality – continued
		Marriott International, Inc.	8,000	$	345,920
		Strategic Hotels & Resorts, Inc.	12,000		269,880
		Sunstone Hotel Investors, Inc.	8,000		227,120
		Supertel Hospitality, Inc.	267,130		2,262,591
		Winston Hotels, Inc.	5,000		75,000

					10,237,227
	Industrial – 8.4%
		AMB Property Corp.	1,000		53,220
		DCT Industrial Trust, Inc.	5,300		57,028
		EastGroup Properties, Inc.	6,000		262,920
		First Industrial Realty Trust, Inc.	104,160		4,037,241
		ProLogis	11,000		625,900

					5,036,309
	Manufactured Homes – 0.1%
		Sun Communities, Inc.	2,000		59,540
	Mortgage – 6.7%
		Abingdon Investment, Ltd. (b)	200,000		1,896,000
		Alesco Financial, Inc.	19,000		154,470
		American Mortgage Acceptance Co.	12,700		127,635
		Anthracite Capital, Inc.	10,000		117,000
		Arbor Realty Trust, Inc.	1,100		28,391
		Crystal River Capital, Inc.	26,900		653,132
		JER Investors Trust, Inc.	10,000		150,000
		Newcastle Investment Corp.	21,600		541,512
		NovaStar Financial, Inc.	35,500		247,790
		Thornburg Mortgage, Inc.	3,500		91,630

					4,007,560
	Office – 9.4%
		American Financial Realty Trust	121,500		1,253,880
		Boston Properties, Inc.	6,000		612,780
		Brandywine Realty Trust	49,400		1,411,852
		Corporate Office Properties Trust	11,500		471,615
		Douglas Emmett, Inc.	8,300		205,342
		Highwoods Properties, Inc.	45,000		1,687,500
		Parkway Properties, Inc.	300		14,409

					5,657,378
	Other Financial Services – 0.0%
		Friedman Billings Ramsey Group, Inc.	5,000		27,300
See notes to financial statements and notes to portfolio of investments.

	Retail – 3.4%
		CBL & Associates Properties, Inc.	12,000	$	432,600
		Developers Diversified Realty Corp.	2,000		105,420
		Equity One, Inc.	3,000		76,650
		Glimcher Realty Trust	27,400		685,000
		Pennsylvania Real Estate Investment Trust	2,000		88,660
		Ramco-Gershenson Properties Trust	3,000		107,790
		Realty Income Corp.	12,200		307,318
		Tanger Factory Outlet Centers, Inc.	5,000		187,250
		Urstadt Biddle Properties, Inc.	2,900		49,329

					2,040,017
	Specialty – 1.6%
		Getty Realty Corp.	34,000		893,520
		Resource Capital Corp.	6,300		88,074

					981,594
	Storage – 0.9%
		Sovran Self Storage, Inc.	8,100		390,096
		U-Store-It Trust	10,000		163,900

					553,996
Total Real Estate Investment Trusts (Cost $47,195,152)					51,450,410
	Other – 4.5%
		American Capital Strategies, Ltd.	3,500		148,820
		IndyMac Bancorp, Inc.	3,000		87,510
		Iowa Telecommunication Services, Inc.	20,800		472,784
		KKR Financial Holdings LLC	5,500		137,005
		MCG Capital Corp.	11,000		176,220
		Meruelo Maddux Properties, Inc. (a)	6,300		51,408
		Seaspan Corp.	33,400		1,074,812
		Thomas Properties Group, Inc.	9,900		158,202
		Wyndham Worldwide Corp. (a)(c)	11,000		398,861
Total Other (Cost $2,103,110)					2,705,622
Total Common Stocks (Cost $49,298,262)					54,156,032
Preferred Stocks – 44.3%
Real Estate Investment Trusts – 44.3%
	Apartments – 1.0%
		Apartment Investment & Management Co., Series U	24,000		614,400
See notes to financial statements and notes to portfolio of investments.

	Diversified – 1.7%
		Digital Realty Trust, Inc., Series A	15,000	$	389,250
		LBA Realty LLC, Series B	30,000		630,000

					1,019,250
	Health Care – 4.3%
		Health Care REIT, Inc., Series F	40,000		1,008,800
		Health Care REIT, Inc., Series G	20,000		595,200
		LTC Properties, Inc., Series F	40,000		992,000

					2,596,000
	Hospitality – 25.6%
		Ashford Hospitality Trust, Series A	46,000		1,182,430
		Eagle Hospitality Properties Trust, Inc., Series A	28,000		650,440
		FelCor Lodging Trust, Inc., Series C	60,000		1,504,800
		Hersha Hospitality Trust, Series A	44,000		1,098,240
		Highland Hospitality Corp., Series A	170,000		4,258,500
		Host Marriott Corp., Series E	100,000		2,646,000
		Innkeepers USA Trust, Series C	27,000		585,900
		LaSalle Hotel Properties, Series E	5,000		127,500
		LaSalle Hotel Properties, Series G	10,000		236,000
		Strategic Hotels & Resorts, Inc., Series C	20,000		507,600
		Winston Hotels, Inc., Series B	99,000		2,511,630

					15,309,040
	Manufactured Homes – 0.4%
		Affordable Residential Communities, Series A	9,600		238,560
	Mortgage – 2.7%
		Anthracite Capital, Inc., Series D	7,000		163,275
		Gramercy Capital Corp., Series A	40,000		990,000
		HomeBanc Corp., Series A	25,000		455,000

					1,608,275
	Office – 8.1%
		Alexandria Real Estate Equities, Inc., Series C	120,000		3,068,400
		SL Green Realty Corp., Series D	70,000		1,774,500

					4,842,900
	Retail – 0.5%
		The Mills Corp., Series E	1,800		48,708
		The Mills Corp., Series G	10,000		264,600

					313,308
Total Preferred Stocks (Cost $26,358,982)					26,541,733
See notes to financial statements and notes to portfolio of investments.


Company			Shares or Principal Amount		Value

Debt Securities – 8.9%
	Hospitality – 8.9%
		American Real Estate Partners LP, 8.125%, 06/01/2012	$	2,000,000	$	2,007,500
		FelCor Lodging LP, 8.50%, 06/01/2011 (d)		1,600,000		1,682,000
		Six Flags, Inc., 9.75%, 04/15/2013		1,760,000		1,656,600
Total Debt Securities (Cost $5,261,968)						5,346,100
Short-Term Investments – 2.5%
	Other Investment Companies – 2.5%
		SSgA Money Market Fund, 4.98% (e) (Cost $1,506,973)		1,506,973		1,506,973
Total Investments – 146.0% (Cost $82,426,185)						87,550,838
Other assets less liabilities – 0.7%						413,467
Preferred Shares, at liquidation preference – (46.7)%						(28,000,000	)
Net Assets applicable to common shareholders – 100%					$	59,964,305

Notes to Portfolio of Investments

(a): As of June 30, 2007, this security had not paid a distribution.
(b): 144A securities. Securities restricted for resale to Qualified Institutional Buyers (3.2% of net assets).
(c): A hospitality company.
(d): Also a Real Estate Investment Trust.
(e): Rate reflects 7 day yield as of June 30, 2007.

See notes to financial statements.

RMR Hospitality and Real Estate Fund
Financial Statements

Statement of Assets and Liabilities


June 30, 2007 (unaudited)

Assets
	Investments in securities, at value (cost $82,426,185)		$	87,550,838
	Cash			635
	Dividends and interest receivable			854,332
	Other assets			7,528

		Total assets		88,413,333

Liabilities
	Payable for investment securities purchased			164,231
	Advisory fee payable			44,139
	Distributions payable – preferred shares			26,410
	Accrued expenses and other liabilities			214,248

		Total liabilities		449,028

Preferred shares, at liquidation preference
	Auction preferred shares, Series Th; $.001 par value per share; 1,120 shares issued and outstanding at $25,000 per share liquidation preference			28,000,000

Net assets attributable to common shares			$	59,964,305

Composition of net assets
	Common shares, $.001 par value per share; unlimited number of shares authorized, 2,485,000 shares issued and outstanding		$	2,485
	Additional paid-in capital			46,993,809
	Undistributed net investment income			326,295
	Accumulated net realized gain on investment transactions			7,517,063
	Net unrealized appreciation on investments			5,124,653

Net assets attributable to common shares			$	59,964,305

Net asset value per share attributable to common shares (based on 2,485,000 common shares outstanding)			$	24.13

See notes to financial statements.

RMR Hospitality and Real Estate Fund
Financial Statements – continued

Statement of Operations


Six Months Ended June 30, 2007 (unaudited)

Investment Income
	Dividends (cash distributions received or due)			$	3,631,030
	Interest				294,336

		Total investment income			3,925,366

Expenses
	Legal				806,376
	Advisory				388,356
	Administrative				53,951
	Custodian				37,918
	Preferred share remarketing				34,988
	Audit				28,068
	Shareholder reporting				26,470
	Compliance and internal audit				22,817
	Trustees' fees and expenses				9,780
	Other				41,095

		Total expenses			1,449,819
	Less: expense waived by the Advisor				(114,222	)

		Net expenses			1,335,597

			Net investment income		2,589,769

Realized and unrealized gain (loss) on investments
	Net realized gain on investments				1,633,844
	Net change in unrealized appreciation/(depreciation) on investments				(6,312,803	)

	Net realized and unrealized loss on investments				(4,678,959	)

	Distributions to preferred shareholders from net investment income				(710,349	)

		Net decrease in net assets attributable to common shares resulting from operations		$	(2,799,539	)

See notes to financial statements.

RMR Hospitality and Real Estate Fund
Financial Statements – continued

Statements of Changes in Net Assets


				Six Months Ended June 30, 2007 (unaudited)			Year Ended December 31, 2006

Increase (decrease) in net assets resulting from operations
	Net investment income			$	2,589,769		$	2,673,464
	Net realized gain on investments				1,633,844			6,418,390
	Net change in unrealized appreciation/(depreciation) on investments				(6,312,803	)		5,902,770
	Distributions to preferred shareholders from:
		Net investment income			(710,349	)		(748,592	)
		Net realized gain on investments			—			(579,000	)

			Net increase (decrease) in net assets attributable to common shares resulting from operations		(2,799,539	)		13,667,032

	Distributions to common shareholders from:
		Net investment income			(1,553,125	)		(2,101,833	)
		Net realized gains on investments			—			(1,625,667	)

		Total increase (decrease) in net assets attributable to common shares			(4,352,664	)		9,939,532
Net assets attributable to common shares
	Beginning of period				64,316,969			54,377,437

	End of period (including undistributed net investment income of $326,295 and $0, respectively)			$	59,964,305		$	64,316,969

Common shares issued and repurchased
	Shares outstanding, beginning of period				2,485,000			2,485,000
		Shares issued			—			—

	Shares outstanding, end of period				2,485,000			2,485,000

See notes to financial statements.

RMR Hospitality and Real Estate Fund
Financial Highlights

Selected Data For A Common Share Outstanding Throughout Each Period


		Six Months Ended June 30, 2007 (unaudited)			Year Ended December 31, 2006			Year Ended December 31, 2005			For the Period April 27, 2004(a) to December 31, 2004

Per Common Share Operating Performance (b)
Net asset value, beginning of period		$	25.88		$	21.88		$	22.94		$	19.28	(c)

Income from Investment Operations
Net investment income (d)			1.04	(e)		1.08			1.13			.71
Net realized and unrealized appreciation/(depreciation) on investments			(1.87	)(e)		4.95			(.19	)		3.95
Distributions to preferred shareholders (common stock equivalent basis) from:
	Net investment income		(.29	)(e)		(.30	)		(.16	)		(.06	)
	Net realized gain on investments		—	(e)		(.23	)		(.11	)		(.01	)

Net increase (decrease) in net asset value from operations			(1.12	)		5.50			.67			4.59
Less: Distributions to common shareholders from:
	Net investment income		(.63	)(e)		(.85	)		(.96	)		(.65	)
	Net realized gain on investments		—	(e)		(.65	)		(.65	)		(.10	)
Common share offering costs charged to capital			—			—			—			(.04	)
Preferred share offering costs charged to capital			—			—			(.12	)		(.14	)

Net asset value, end of period		$	24.13		$	25.88		$	21.88		$	22.94

Market price, beginning of period		$	22.95		$	18.21		$	19.98		$	20.00

Market price, end of period		$	21.68		$	22.95		$	18.21		$	19.98

Total Return (f)
Total investment return based on:
	Market price (g)		(2.87	)%		35.54	%		(0.73	)%		3.93	%
	Net asset value (g)		(4.47	)%		25.89	%		2.54	%		23.16	%
Ratios/Supplemental Data:
Ratio to average net assets attributable to common shares of:
	Net investment income, before total preferred share distributions (d)		8.14	%(e)(h)		4.50	%		5.04	%		4.96	%(h)
	Total preferred share distributions		2.23	%(h)		2.23	%		1.20	%		0.50	%(h)
	Net investment income, net of preferred share distributions (d)		5.91	%(e)(h)		2.27	%		3.84	%		4.46	%(h)
	Expenses, net of fee waivers		4.20	%(h)		3.13	%		1.80	%		1.86	%(h)
	Expenses, before fee waivers		4.56	%(h)		3.49	%		2.14	%		2.18	%(h)
Portfolio Turnover Rate			14.29	%		45.70	%		23.95	%		20.83	%
Net assets attributable to common shares, end of period (000s)		$	59,964		$	64,317		$	54,377		$	57,005
Preferred shares, liquidation preference ($25,000 per share) (000s)		$	28,000		$	28,000		$	28,000		$	17,000
Asset coverage per preferred share (i)		$	78,540		$	82,426		$	73,551		$	108,830

(a): Commencement of operations.
(b): Based on average shares outstanding.
(c): Net asset value at April 27, 2004, reflects the deduction of the average sales load and offering costs of $0.72 per share paid by the holders of common shares from the $20.00 offering price. We paid a sales load and offering cost of $0.90 per share on 2,000,000 common shares sold to the public and no sales load or offering costs on 480,000 common shares sold to affiliates of RMR Advisors for $20 per share.
(d): Amounts are net of expenses waived by RMR Advisors.
(e): As discussed in Note A (7) to the financial statements, these amounts are subject to change to the extent 2007 distributions by the issuers of the Fund's investments are characterized as capital gains and return of capital.
(f): Total returns for periods of less than one year are not annualized.
(g): Total return based on per share market price assumes the purchase of common shares at the market price on the first day and sales of common shares at the market price on the last day of the period indicated; dividends and distributions, if any, are assumed to be reinvested at market prices on the ex-dividend date. The total return based net asset value, or NAV, assumes the purchase of common shares at NAV on the first day and sales of common shares at NAV on the last day of the period indicated; distributions are assumed to be reinvested at NAV on the ex-dividend date. Results represent past performance and do not guarantee future results. Total return would have been lower if RMR Advisors had not contractually waived a portion of its investment advisory fee.
(h): Annualized.
(i): Asset coverage per share equals net assets attributable to common shares plus the liquidation preference of the preferred shares divided by the total number of preferred shares outstanding at the end of the period.

See notes to financial statements.

RMR Hospitality and Real Estate Fund
Notes to Financial Statements

June 30, 2007 (unaudited)

Note A

(1) Organization

RMR Hospitality and Real Estate Fund, or the Fund, was organized as a Massachusetts business trust on January 27, 2004, and is registered under the Investment Company Act of 1940, as amended, or the 1940 Act, as a non-diversified closed-end management investment company. The Fund had no operations until April 27, 2004, other than matters relating to the Fund's establishment and registration of the Fund's common shares under the Securities Act of 1933.

(2) Interim Financial Statements

(3) Use of Estimates

(4) Portfolio Valuation

(5) Securities Transactions and Investment Income

(6) Federal Taxes

(7) Distributable Earnings

The Fund earns income, net of expenses, daily on its investments. It is the policy of the Fund to pay a stable distribution amount to common shareholders on a monthly basis and distributions to Fund shareholders are declared pursuant to this policy. On July 12, 2007, the Fund declared regular monthly distributions of $0.125 per common share payable in August and September and a special distribution consisting entirely of long term capital gains of $1.10 per share payable on September 14, 2007. Distributions to shareholders are recorded on the ex-dividend date. The Fund's distributions may consist of ordinary income (net investment income and short term capital gains), long term capital gains and return of capital. To the extent the Fund's net realized capital gains, if any, can be offset by capital loss carry-forwards, it is the policy of the Fund not to distribute such gains. Distributions to preferred shareholders are determined as described in Note D.

Although subject to adjustments, the cost, gross unrealized appreciation and unrealized depreciation of the Fund's investments for federal income tax purposes as of June 30, 2007, are as follows:

Cost	$	82,426,185

Gross unrealized appreciation	$	7,834,206
Gross unrealized depreciation		(2,709,553	)

Net unrealized appreciation/(depreciation)	$	5,124,653

(8) Concentration of Risk

Under normal market conditions, the Fund's investments are concentrated in income producing common shares, preferred shares and debt securities, including convertible preferred and debt securities, issued by hospitality and real estate companies and REITs. The value of Fund shares may fluctuate more than the shares

of a fund not concentrated in the hospitality and real estate industries due to economic, legal, regulatory, technological or other developments affecting the United States hospitality and real estate industries.

(9) Recent Accounting Pronouncements

In June 2006, the Financial Accounting Standards Board, or FASB, issued Interpretation No. 48, "Accounting for Uncertainty in Income Taxes", or FIN 48. FIN 48 was effective for the fiscal years beginning after December 15, 2006. The Securities and Exchange Commission delayed the application of FIN 48 to open and closed end funds to not later than June 29, 2007. FIN 48 prescribes how the Fund should recognize, measure and present in the Fund's financial statements uncertain tax provisions that have been taken or expected to be taken in a tax return. Pursuant to FIN 48 the Fund can recognize a tax benefit only if it is "more likely than not" that a particular tax position will be sustained upon examination or audit. To the extent the "more likely than not" standard has been satisfied the benefits associated with a tax position is measured as the largest amount that is greater than 50% likely of being realized upon settlement. As required, the Fund adopted FIN 48 effective June 29, 2007, and concluded that the effect is not material to its financial statements.

(10) Other Investment Companies

Note B

Advisory and Administration Agreements and Other Transactions with Affiliates

into for purposes of leverage. For purposes of calculating managed assets, the liquidation preference of preferred shares are not considered liabilities.

RMR Advisors has contractually agreed to waive a portion of its annual fee equal to 0.25% of the Fund's average daily managed assets, until April 27, 2009. The Fund incurred net advisory fees of $274,134 during the six months ended June 30, 2007.

RMR Advisors, and not the Fund, has contractually agreed to pay the lead underwriters of the Fund's initial public offering, an aggregate annual fee equal to 0.15% of the Fund's managed assets. This fee is paid quarterly in arrears during the term of RMR Advisors' advisory agreement and is paid by RMR Advisors, not the Fund. The aggregate fees paid pursuant to the contract plus reimbursement of legal expenses of the underwriters will not exceed 4.5% of the total price of the common shares in the initial public offering.

RMR Advisors also performs administrative functions for the Fund pursuant to an administration agreement with the Fund. RMR Advisors has entered into a subadministration agreement with State Street Bank and Trust Company, or State Street, to perform substantially all Fund accounting and other administrative services. Under the administration agreement, RMR Advisors is entitled to reimbursement of the cost of providing administrative services. The Fund reimbursed RMR Advisors for $53,951 of subadministrative fees charged by State Street for the six months ended June 30, 2007.

Each trustee who is not a director, officer or employee of RMR Advisors and who is not an "interested person" of the Fund as defined under the 1940 Act, is considered to be a "disinterested trustee". Disinterested trustees are each paid by the Fund an annual fee plus fees for board and committee meetings. The Fund incurred $9,780 of trustee fees and expenses during the six months ended June 30, 2007.

The Fund's board of trustees and separately the disinterested trustees authorized the Fund to make reimbursement payments to RMR Advisors for costs related to the Fund's compliance and internal audit programs. The Fund incurred $22,817 of compliance and internal audit expense during the six months ended June 30, 2007. The Fund also participates in pooled insurance programs with RMR Advisors and other funds managed by RMR Advisors and makes payments of allocated portions of related premiums. The Fund incurred $9,975 of insurance expense during the six months ended June 30, 2007.

Note C

Securities Transactions

During the six months ended June 30, 2007, there were purchases and sales transactions (excluding short term securities) of $12,796,811 and $13,843,511, respectively. Brokerage commissions on securities transactions amounted to $20,033 during the six months ended June 30, 2007.

Note D

Preferred Shares

The Fund's 1,120 outstanding Series Th auction preferred shares, have a liquidation preference of $25,000 per share, plus an amount equal to accumulated but unpaid distributions. The preferred shares are senior to the Fund's common shares and rank on parity with any other class or series of preferred shares of the Fund as to the payment of periodic distributions, including distribution of assets upon liquidation. If the Fund does not

Note E

Submission of Proposals to a Vote of Shareholders

The annual meeting of Fund shareholders was held on March 8, 2007. Following is a summary of the proposals submitted to shareholders for vote at the meeting and votes cast:

Proposal		Votes for	Votes withheld	Votes abstained
Common and Preferred shares
	Election of Arthur G. Koumantzelis as trustee until the 2010 annual meeting.	1,051,758	15,893	—
Preferred shares
	Election of Barry M. Portnoy as trustee until the 2010 annual meeting.	546	—	—

Note F

Litigation and Legal Fees

The Fund is involved in litigation with Bulldog Investors General Partnership, a hedge fund controlled by Mr. Phillip Goldstein and various affiliated entities and persons (collectively Bulldog). The purpose of this litigation is to enforce provisions of the Fund's organizational documents which limit ownership of the Fund and that appear to have been intentionally violated by Bulldog. This litigation was begun by the Fund in November 2006 after extended correspondence with Bulldog. Bulldog commenced a proxy contest to elect Mr. Goldstein and another Bulldog affiliate at the Fund's 2007 annual meeting and to promote various shareholder proposals; Bulldog's nominees were not elected and its proposals were not adopted at the 2007 annual meeting in March 2007. In May 2007, Bulldog's motion to dismiss the pending litigation was denied by the Massachusetts Superior Court. In June 2007, Bulldog sought to remove the litigation to the federal courts; the Fund is currently opposing this removal. In July 2007, Bulldog made a demand upon the Fund's board of trustees pursuant to the Massachusetts Universal Demand Statute which appears to be a prelude to a possible derivative action against the Fund or its trustees. During the six months ended June 30, 2007, the Fund incurred approximately $784,000 of expense in connection with the Bulldog litigation and related matters. In June 2007, the Fund amended its litigation against Bulldog to seek recovery of its expenses incurred in connection with Bulldog's activities.

Note G

Portfolio Management Changes

RMR F.I.R.E. Fund
June 30, 2007

To our shareholders,

In the pages that follow, you will find data summarizing our financial results for the six months ended June 30, 2007, and our financial position as of June 30, 2007.

Relevant Market Conditions

Financial Services Industry Fundamentals. Companies in the financial sector witnessed an increase in earnings during the first half of 2007 as a result of strong trading gains and tight expense controls. Net interest margins, however, continued to remain under pressure as a result of the inverted yield curve which existed throughout most of this period, whereby the yield on longer term Treasury bonds was lower than the yield on shorter term Treasury obligations. Also during the period, credit quality of loans outstanding appeared well under control, with non-performing loans holding well below historical percentages.

The expectation by market participants of a rate cut, and a subsequent steepening in the yield curve, during the first half of the year as a result of a slowing housing market never materialized. Job and wage growth remained strong and inflation remained above the comfort level of the Federal Reserve allowing it to keep interest rates unchanged.

Toward the end of the first half of 2007, serious credit concerns emerged for those financial institutions with exposure to sub-prime home loans and for larger banks with exposure to bridge loans to private equity buyouts. Also, it appears unlikely that the second half of 2007 will see the same opportunities for trading gains and fee income at larger financial institutions as was earned during the past six months.

financing. If the liquidity freeze which began in July (as we are writing this report) continues, M&A activity will cease and underlying net asset value and equity valuations may be challenged.

Fund Strategies, Techniques and Performance

Our investment objective is to provide high total returns to our common shareholders through a combination of capital appreciation and current income. There can be no assurance that we will achieve our investment objective.

During the first six months of 2007, our total return on net asset value, or NAV (including NAV changes and assuming a hypothetical reinvestment of distributions at NAV), was negative 7.9%. During the same period the S&P 500 Financial Sector Index (an unmanaged index of financial services common stocks) total return was negative 0.8%, the total return for the MSCI US REIT Total Return Index (an unmanaged index of REIT common stocks) was negative 6.5% and the Merrill Lynch REIT Preferred Index (an unmanaged index of REIT preferred stocks) was 0.4%. We believe these three indices are relevant to us because our investments, excluding short term investments, as of June 30, 2007, included 18% financial services stocks, 41% REIT common stocks and 39% REIT preferred stocks. The S&P 500 Index (an unmanaged index published as Standard and Poor's Composite Index of 500 common stocks) total return for the first six months of 2007 was 6.4%.

Our biggest losses were in New Century Financial and Novastar Financial, two mortgage REITs with exposure to sub-prime home loans, which were down 98% and 73%, respectively, very shortly after the sub-prime crisis first surfaced in late February of 2007. The Fund's negative performance was somewhat offset by strong returns from our security selections in the hotel sub-sector. Eagle Hospitality Properties, one of our REIT holdings, was acquired at a 48% premium to the stock's closing price as of the end of 2006.

Thank you for your continued support. For more information, please view our website, at www.rmrfunds.com.

Sincerely,

Adam D. Portnoy
President

Portfolio holdings by sub-sector as a percentage of investments
(as of June 30, 2007) *

Banks & Thrifts		11	%
Other Financial Services		7	%
Mortgage REITs		13	%
Diversified REITs		12	%
Hospitality REITs		12	%
Retail REITs		11	%
Other REITs less than 10%		27	%
Other		3	%
Short term investments		4	%

	Total investments	100	%

REITs		75	%
Financial Services		18	%
Other		3	%
Short term investments		4	%

	Total investments	100	%

*: These percentages represent the Fund's portfolio holdings by sub-sector as a percentage of total portfolio holdings and do not agree with the percentages included in the Portfolio of Investments schedule which represent the Fund's portfolio holdings by sub-sector as a percentage of the Fund's total net assets.


Company			Shares	Value

Common Stocks – 89.2%
Financial Services – 24.2%
	Banks – 10.3%
		Bank of America Corp.	10,000	$	488,900
		Cullen/Frost Bankers, Inc.	3,000		160,410
		Farmers Capital Bank Corp.	3,035		87,803
		Fifth Third Bancorp	3,000		119,310
		First Commonwealth Financial Corp.	28,000		305,760
		First Horizon National Corp.	11,400		444,600
		Firstmerit Corp.	12,800		267,904
		FNB Corp.	28,500		477,090
		KeyCorp	7,000		240,310
		National City Corp.	12,400		413,168
		Regions Financial Corp.	4,000		132,400
		Trustco Bank Corp. NY	23,400		231,192
		U.S. Bancorp	1,000		32,950

					3,401,797
	Thrifts – 6.2%
		Beverly Hills Bancorp, Inc.	58		453
		Capitol Federal Financial	9,605		354,617
		Flagstar Bancorp, Inc.	25,000		301,250
		IndyMac Bancorp, Inc.	5,500		160,435
		New York Community Bancorp, Inc.	72,200		1,228,844

					2,045,599
	Other Financial Services – 7.7%
		American Capital Strategies, Ltd.	2,000		85,040
		Centerline Holding Co.	44,200		795,600
		Fannie Mae	13,000		849,290
		Friedman Billings Ramsey Group, Inc. *	54,000		294,840
		MCG Capital Corp.	32,000		512,640

					2,537,410
Total Financial Services (Cost $9,938,185)					7,984,806
Real Estate – 62.4%
	Apartments – 4.9%
		Apartment Investment & Management Co. *	10,000		504,200
		AvalonBay Communities, Inc. *	3,000		356,640
		Home Properties, Inc. *	300		15,579
		Mid-America Apartment Communities, Inc. *	9,600		503,808
		UDR, Inc. *	9,000		236,700

					1,616,927
See notes to financial statements and notes to portfolio of investments.

	Diversified – 13.9%
		Colonial Properties Trust *	15,780	$	575,181
		Cousins Properties, Inc. *	6,900		200,169
		Crescent Real Estate Equities Co. *	46,900		1,052,436
		Franklin Street Properties Corp. *	3,000		49,620
		iStar Financial, Inc. *	7,000		310,310
		Lexington Corporate Properties Trust *	56,400		1,173,120
		Meruelo Maddux Properties, Inc. (a)	3,100		25,296
		National Retail Properties, Inc. *	55,350		1,209,951

					4,596,083
	Health Care – 10.7%
		Care Investment Trust, Inc. *(a)	8,550		117,563
		Health Care Property Investors, Inc. *	16,850		487,470
		Health Care REIT, Inc. *	34,904		1,408,725
		Healthcare Realty Trust, Inc. *	13,500		375,030
		Medical Properties Trust, Inc. *	24,365		322,349
		Nationwide Health Properties, Inc. *	26,400		718,080
		OMEGA Healthcare Investors, Inc. *	5,000		79,150

					3,508,367
	Hospitality – 3.2%
		Ashford Hospitality Trust *	51,000		599,760
		Eagle Hospitality Properties Trust, Inc. *	16,500		217,140
		LaSalle Hotel Properties *	5,400		234,468

					1,051,368
	Industrial – 5.4%
		AMB Property Corp. *	3,000		159,660
		DCT Industrial Trust, Inc. *	5,200		55,952
		First Industrial Realty Trust, Inc. *	40,200		1,558,152

					1,773,764
	Manufactured Homes – 2.4%
		Sun Communities, Inc. *	27,000		803,790
See notes to financial statements and notes to portfolio of investments.

	Mortgage – 10.4%
		Abingdon Investment, Ltd. (b)	100,000	$	948,000
		Alesco Financial, Inc. *	142,400		1,157,712
		American Mortgage Acceptance Co. *	7,400		74,370
		Anthracite Capital, Inc. *	15,000		175,500
		Jer Investors Trust, Inc. *	10,000		150,000
		Newcastle Investment Corp. *	26,500		664,355
		NovaStar Financial, Inc. *	37,500		261,750

					3,431,687
	Office – 3.5%
		American Financial Realty Trust *	54,000		557,280
		Boston Properties, Inc. *	2,000		204,260
		Parkway Properties, Inc. *	300		14,409
		SL Green Realty Corp. *	3,000		371,670

					1,147,619
	Retail – 6.5%
		CBL & Associates Properties, Inc. *	3,000		108,150
		Developers Diversified Realty Corp. *	3,000		158,130
		Equity One, Inc. *	3,000		76,650
		Feldman Mall Properties, Inc. *	5,000		57,000
		Glimcher Realty Trust *	59,300		1,482,500
		Realty Income Corp. *	200		5,038
		Simon Property Group, Inc. *	2,000		186,080
		Tanger Factory Outlet Centers, Inc. *	2,000		74,900

					2,148,448
	Specialty – 1.0%
		Getty Realty Corp. *	4,000		105,120
		Resource Capital Corp. *	15,588		217,920

					323,040
	Storage – 0.5%
		U-Store-It Trust	10,000		163,900
Total Real Estate (Cost $21,830,113)					20,564,993
See notes to financial statements and notes to portfolio of investments.


Company			Shares	Value

Common Stocks – continued
	Other – 2.6%
		Iowa Telecommunication Services, Inc.	37,500	$	852,375
Total Other (Cost $631,150)					852,375
Total Common Stocks (Cost $32,399,448)					29,402,174
Preferred Stocks – 62.7%
Real Estate – 59.7%
	Apartments — 9.7%
		Apartment Investment & Management Co., Series U *	32,500		832,000
		Apartment Investment & Management Co., Series V *	27,700		701,918
		Apartment Investment & Management Co., Series Y *	65,000		1,648,400

					3,182,318
	Diversified – 6.0%
		Cousins Properties, Inc., Series B *	20,000		499,000
		Digital Realty Trust, Inc., Series A *	20,000		519,000
		LBA Realty LLC, Series B *	45,000		945,000

					1,963,000
	Health Care – 3.5%
		Health Care REIT, Inc., Series F *	26,900		678,418
		OMEGA Healthcare Investors Inc., Series D *	19,000		490,390

					1,168,808
	Hospitality – 15.2%
		Eagle Hospitality Properties Trust, Inc., Series A *	14,000		325,220
		Entertainment Properties Trust, Series B *	40,000		1,016,000
		Equity Inns, Inc., Series B *	50,000		1,185,500
		FelCor Lodging Trust, Inc., Series C *	64,000		1,605,120
		Host Marriott Corp., Series E *	10,000		264,600
		Strategic Hotels & Resorts, Inc., Series B *	13,700		341,815
		Winston Hotels, Inc., Series B *	10,900		276,533

					5,014,788
See notes to financial statements and notes to portfolio of investments.

Preferred Stocks – continued Real Estate – continued
	Manufactured Homes – 0.5%
		Affordable Residential Communities, Series A *	6,900	$	171,465
	Mortgage – 10.9%
		Anthracite Capital, Inc., Series D *	6,000		139,950
		Gramercy Capital Corp., Series A *	20,000		495,000
		HomeBanc Corp., Series A *	10,000		182,000
		MFA Mortgage Investments, Inc., Series A *	13,800		339,480
		RAIT Investment Trust, Series B *	59,000		1,431,340
		Thornburg Mortgage, Inc., Series C *	40,000		1,003,200

					3,590,970
	Office – 2.4%
		Alexandria Real Estate Equities, Inc., Series C *	31,600		808,012
	Retail – 11.5%
		CBL & Associates Properties, Inc., Series D *	10,000		250,200
		Glimcher Realty Trust, Series F *	26,500		673,100
		Glimcher Realty Trust, Series G *	41,000		1,022,950
		Ramco-Gershenson Properties Trust, Series B *	36,000		909,360
		Taubman Centers, Inc., Series G *	15,000		380,100
		The Mills Corp., Series E *	9,500		257,070
		The Mills Corp., Series G *	11,500		304,290

					3,797,070
Total Real Estate (Cost $20,241,462)					19,696,431
Financial Services – 3.0%
		Corts-UNUM Provident Financial Trust	38,000		990,280
Total Financial Services (Cost $982,300)					990,280
Total Preferred Stocks (Cost $21,223,762)					20,686,711
Other Investment Companies – 1.8%
		Alpine Total Dynamic Dividend Fund	19,960		413,970
		Cornerstone Strategic Value Fund, Inc.	14,800		136,012
		LMP Real Estate Income Fund, Inc.	1,300		28,028
Total Other Investment Companies (Cost $592,852)					578,010
See notes to financial statements and notes to portfolio of investments.


Company			Shares	Value

Short-Term Investments – 5.9%
	Other Investment Companies – 5.9%
		SSgA Money Market Fund, 4.98% (c) (Cost $1,958,271)	1,958,271	$	1,958,271
Total Investments – 159.6% (Cost $56,174,333)					52,625,166
Other assets less liabilities – 1.1%					347,343
Preferred Shares, at liquidation preference – (60.7)%					(20,000,000	)
Net Assets applicable to common shareholders – 100%				$	32,972,509

Notes to Portfolio of Investments

*: Real Estate Investment Trust, or REIT
(a): As of June 30, 2007, this security had not paid a distribution.
(b): 144A securities. Securities restricted for resale to Qualified Institutional Buyers (2.9% of net assets).
(c): Rate reflects 7 day yield as of June 30, 2007.

See notes to financial statements.

RMR F.I.R.E. Fund
Financial Statements

Statement of Assets and Liabilities


June 30, 2007 (unaudited)

Assets
	Investments in securities, at value (cost $56,174,333)		$	52,625,166
	Cash			598
	Dividends and interest receivable			542,286
	Receivable for securities sold			143,585
	Other assets			8,419

		Total assets		53,320,054

Liabilities
	Payable for investment securities purchased			164,231
	Advisory fee payable			26,793
	Distributions payable – preferred shares			19,248
	Accrued expenses and other liabilities			137,273

		Total liabilities		347,545

Preferred shares, at liquidation preference
	Auction preferred shares, Series W; $.001 par value per share; 800 shares issued and outstanding at $25,000 per share liquidation preference			20,000,000

Net assets attributable to common shares			$	32,972,509

Composition of net assets
	Common shares, $.001 par value per share; unlimited number of shares authorized, 1,484,000 shares issued and outstanding		$	1,484
	Additional paid-in capital			35,173,277
	Undistributed net investment income			99,780
	Accumulated net realized gain on investment transactions			1,247,135
	Net unrealized depreciation on investments			(3,549,167	)

Net assets attributable to common shares			$	32,972,509

Net asset value per share attributable to common shares (based on 1,484,000 common shares outstanding)			$	22.22

See notes to financial statements.

RMR F.I.R.E. Fund
Financial Statements – continued

Statement of Operations


Six Months Ended June 30, 2007 (unaudited)

Investment Income
	Dividends (cash distributions received or due)			$	2,012,064
	Interest				84,517

		Total investment income			2,096,581

Expenses
	Advisory				234,239
	Administrative				53,923
	Audit and legal				40,349
	Custodian				37,537
	Preferred share remarketing				24,992
	Compliance and internal audit				22,817
	Trustees' fees and expenses				11,149
	Shareholder reporting				9,872
	Other				43,169

		Total expenses			478,047
	Less: expense waived by the Advisor				(68,894	)

		Net expenses			409,153

			Net investment income		1,687,428

Realized and unrealized loss on investments
	Net realized loss on investments				(239,080	)
	Net change in unrealized appreciation/(depreciation) on investments				(3,799,806	)

	Net realized and unrealized loss on investments				(4,038,886	)

	Distributions to preferred shareholders from net investment income				(504,328	)

		Net decrease in net assets attributable to common shares resulting from operations		$	(2,855,786	)

See notes to financial statements.

RMR F.I.R.E. Fund
Financial Statements – continued

Statements of Changes in Net Assets


				Six Months Ended June 30, 2007 (unaudited)			Year Ended December 31, 2006

Increase (decrease) in net assets resulting from operations
	Net investment income			$	1,687,428		$	2,537,768
	Net realized gain (loss) on investments				(239,080	)		2,091,017
	Net change in unrealized appreciation/(depreciation) on investments				(3,799,806	)		3,090,835
	Distributions to preferred shareholders from:
		Net investment income			(504,328	)		(690,977	)
		Net realized gain on investments			—			(261,999	)

			Net increase (decrease) in net assets attributable to common shares resulting from operations		(2,855,786	)		6,766,644

	Distributions to common shareholders from:
		Net investment income			(1,083,320	)		(1,885,168	)
		Net realized gains on investments			—			(714,800	)

		Total increase (decrease) in net assets attributable to common shares			(3,939,106	)		4,166,676
Net assets attributable to common shares
	Beginning of period				36,911,615			32,744,939

	End of period (including undistributed net investment income of $99,780 and $0, respectively)			$	32,972,509		$	36,911,615

Common shares issued and repurchased
	Shares outstanding, beginning of period				1,484,000			1,484,000
		Shares issued			—			—

	Shares outstanding, end of period				1,484,000			1,484,000

See notes to financial statements.

Selected Data For A Common Share Outstanding Throughout Each Period


			Six Months Ended June 30, 2007 (unaudited)			Year Ended December 31, 2006			Year Ended December 31, 2005			For the Period November 22, 2004(a) to December 31, 2004

Per Common Share Operating Performance (b)
Net asset value, beginning of period			$	24.87		$	22.07		$	23.99		$	24.03	(c)

Income from Investment Operations
Net investment income (d)				1.14	(e)		1.71			1.28			.10
Net realized and unrealized appreciation/(depreciation) on investments				(2.72	)(e)		3.49			(1.01	)		.17
Distributions to preferred shareholders (common stock equivalent basis) from:
	Net investment income			(.34	)(e)		(.47	)		(.28	)		(.02	)
	Net realized gain on investments			—	(e)		(.18	)		(.15	)		—

Net increase (decrease) in net asset value from operations				(1.92	)		4.55			(.16	)		.25
Less: Distributions to common shareholders from:
	Net investment income			(.73	)(e)		(1.27	)		(1.09	)		—
	Net realized gain on investments			—	(e)		(.48	)		(.67	)		—
Common share offering costs charged to capital				—			—			—			(.04	)
Preferred share offering costs charged to capital				—			—			—			(.25	)

Net asset value, end of period			$	22.22		$	24.87		$	22.07		$	23.99

Market price, beginning of period			$	22.20		$	18.99		$	24.05		$	25.00

Market price, end of period			$	19.95		$	22.20		$	18.99		$	24.05

Total Return (f)
Total investment return based on:
	Market price (g)			(7.04	)%		27.44	%		(14.00	)%		(3.80	)%
	Net asset value (g)			(7.87	)%		21.54	%		(0.64	)%		(0.17	)%
Ratios/Supplemental Data:
	Ratio to average net assets attributable to common shares of:
		Net investment income, before total preferred share distributions (d)		9.57	%(e)(h)		7.42	%		5.64	%		3.92	%(h)
	Total preferred share distributions			2.86	%(h)		2.78	%		1.88	%		0.58	%(h)
	Net investment income, net of preferred share distributions (d)			6.71	%(e)(h)		4.64	%		3.76	%		3.34	%(h)
	Expenses, net of fee waivers			2.32	%(h)		2.39	%		2.63	%		3.45	%(h)
	Expenses, before fee waivers			2.71	%(h)		2.78	%		3.03	%		3.73	%(h)
Portfolio Turnover Rate				48.31	%		59.48	%		64.96	%		0.00	%
Net assets attributable to common shares, end of period (000s)			$	32,973		$	36,912		$	32,745		$	35,594
Preferred shares, liquidation preference ($25,000 per share) (000s)			$	20,000		$	20,000		$	20,000		$	20,000
Asset coverage per preferred share (i)			$	66,216		$	71,140		$	65,931		$	69,493

(a): Commencement of operations.
(b): Based on average shares outstanding.
(c): Net asset value at November 22, 2004, reflects the deduction of the average sales load and offering costs of $0.97 per share paid by the holders of common share from the $25.00 offering price. We paid a sales load and offering cost of $1.125 per share on 1,280,000 common shares sold to the public and no sales load or offering costs on 200,000 common shares sold to affiliates of RMR Advisors for $25 per share.
(d): Amounts are net of expenses waived by RMR Advisors.
(e): As discussed in Note A (7) to the financial statements, these amounts are subject to change to the extent 2007 distributions by the issuers of the Fund's investments are characterized as capital gains and return of capital.
(f): Total returns for periods of less than one year are not annualized.
(g): Total return based on per share market price assumes the purchase of common shares at the market price on the first day and sales of common shares at the market price on the last day of the period indicated; dividends and distributions, if any, are assumed to be reinvested at market prices on the ex-dividend date. The total return based net asset value, or NAV, assumes the purchase of common shares at NAV on the first day and sales of common shares at NAV on the last day of the period indicated; distributions are assumed to be reinvested at NAV on the ex-dividend date. Results represent past performance and do not guarantee future results. Total return would have been lower if RMR Advisors had not contractually waived a portion of its investment advisory fee.
(h): Annualized.
(i): Asset coverage per share equals net assets attributable to common shares plus the liquidation preference of the preferred shares divided by the total number of preferred shares outstanding at the end of the period.

See notes to financial statements.

RMR F.I.R.E. Fund
Notes to Financial Statements

June 30, 2007 (unaudited)

Note A

(1) Organization

RMR F.I.R.E. Fund, or the Fund, was organized as a Massachusetts business trust on August 6, 2004, and is registered under the Investment Company Act of 1940, as amended, the 1940 Act, as a non-diversified closed-end management investment company. The Fund had no operations until November 22, 2004, other than matters relating to the Fund's establishment and registration of the Fund's common shares under the Securities Act of 1933.

(2) Interim Financial Statements

(3) Use of Estimates

(4) Portfolio Valuation

(5) Securities Transactions and Investment Income

accretion of discount on short-term investments, is recorded on the accrual basis. Realized gains and losses from securities transactions are recorded on the basis of identified cost.

(6) Federal Taxes

(7) Distributable Earnings

The Fund earns income, net of expenses, daily on its investments. It is the policy of the Fund to pay a stable distribution amount to common shareholders on a monthly basis and distributions to Fund shareholders are declared pursuant to this policy. On July 12, 2007, the Fund declared regular monthly distributions of $0.146 per common share payable in August and September 2007. Distributions to shareholders are recorded on the ex-dividend date. The Fund's distributions may consist of ordinary income (net investment income and short term capital gains), long term capital gains and return of capital. To the extent the Fund's net realized capital gains, if any, can be offset by capital loss carry-forwards, it is the policy of the Fund not to distribute such gains. Distributions to preferred shareholders are determined as described in Note D.

Although subject to adjustments, the cost, gross unrealized appreciation and unrealized depreciation of the Fund's investments for federal income tax purposes as of June 30, 2007, are as follows:

Cost	$	56,174,333

Gross unrealized appreciation	$	1,120,407
Gross unrealized depreciation		(4,669,574	)

Net unrealized appreciation/(depreciation)	$	(3,549,167	)

(8) Concentration of Risk

Under normal market conditions, the Fund's investments will be concentrated in income producing common shares and preferred shares issued by F.I.R.E. companies. F.I.R.E. is a commonly used acronym for the combined financial services, insurance and real estate companies. The value of Fund shares may fluctuate more than the shares of a fund not concentrated in the F.I.R.E. industries due to economic, legal, regulatory, technological or other developments affecting the United States F.I.R.E. industries.

(9) Recent Accounting Pronouncements

In June 2006, the Financial Accounting Standards Board, or FASB, issued Interpretation No. 48, "Accounting for Uncertainty in Income Taxes", or FIN 48. FIN 48 was effective for the fiscal years beginning after December 15, 2006. The Securities and Exchange Commission delayed the application of FIN 48 to open and closed end funds to not later than June 29, 2007. FIN 48 prescribes how the Fund should recognize, measure and present in the Fund's financial statements uncertain tax provisions that have been taken or expected to be taken in a tax return. Pursuant to FIN 48 the Fund can recognize a tax benefit only if it is "more likely than not" that a particular tax position will be sustained upon examination or audit. To the extent the "more likely than not" standard has been satisfied the benefits associated with a tax position is measured as the largest amount that is greater than 50% likely of being realized upon settlement. As required, the Fund adopted FIN 48 effective June 29, 2007, and concluded that the effect is not material to its financial statements.

(10) Other Investment Companies

Note B

Advisory and Administration Agreements and Other Transactions with Affiliates

The Fund has an advisory agreement with RMR Advisors, Inc., or RMR Advisors, to provide the Fund with a continuous investment program, to make day-to-day investment decisions and to generally manage the business affairs of the Fund in accordance with its investment objectives and policies. Pursuant to this agreement, RMR Advisors is compensated at an annual rate of 0.85% of the Fund's average daily managed assets. Managed assets means the total assets of the Fund less liabilities other than any indebtedness entered for purposes of leverage. For purposes of calculating managed assets, the liquidation preference of preferred shares are not considered liabilities.

RMR Advisors has contractually agreed to waive a portion of its annual fee equal to 0.25% of the Fund's average daily managed assets, until November 22, 2009. The Fund incurred net advisory fees of $165,345 during the six months ended June 30, 2007.

RMR Advisors, and not the Fund, has contractually agreed to pay the lead underwriter of the Fund's initial public offering, an annual fee equal to 0.15% of the Fund's managed assets. This fee is paid quarterly in arrears during the term of RMR Advisors' advisory agreement and is paid by the RMR Advisors, not the Fund. The aggregate fees paid pursuant to the contract plus reimbursement of legal expenses of the underwriters will not exceed 4.5% of the total price of the common shares in the initial public offering.

RMR Advisors also performs administrative functions for the Fund pursuant to an administration agreement with the Fund. RMR Advisors has entered into a subadministration agreement with State Street Bank and Trust Company, or State Street, to perform substantially all Fund accounting and other administrative services. Under the administration agreement, RMR Advisors is entitled to reimbursement of the cost of providing administrative services. The Fund reimbursed RMR Advisors for $53,923 of subadministrative fees charged by State Street for the six months ended June 30, 2007.

Each trustee who is not a director, officer or employee of RMR Advisors and who is not an "interested person" of the Fund as defined under the 1940 Act, is considered to be a "disinterested trustee". Disinterested trustees are each paid by the Fund an annual fee plus fees for board and committee meetings. The Fund incurred $11,149 of trustee fees and expenses during the six months ended June 30, 2007.

The Fund's board of trustees and separately the disinterested trustees authorized the Fund to make reimbursement payments to RMR Advisors for costs related to the Fund's compliance and internal audit programs. The Fund incurred $22,817 of compliance and internal audit expense during the six months ended June 30, 2007. The Fund also participates in pooled insurance programs with RMR Advisors and other funds managed by RMR Advisors and makes payments of allocated portions of related premiums. The Fund incurred $11,576 of insurance expense during the six months ended June 30, 2007.

Note C

Securities Transactions

During the six months ended June 30, 2007, there were purchases and sales transactions (excluding short term securities) of $25,275,451 and $26,371,745, respectively. Brokerage commissions on securities transactions amounted to $36,021 during the six months ended June 30, 2007.

Note D

Preferred Shares

The Fund's 800 outstanding Series W auction preferred shares have a liquidation preference of $25,000 per share plus an amount equal to accumulated but unpaid distributions. The preferred shares are senior to the Fund's common shares and rank on parity with any other class or series of preferred shares of the Fund as to the payment of periodic distributions, including distribution of assets upon liquidation. If the Fund does not timely cure a failure to (1) maintain asset coverage for the preferred shares as required by rating agencies, or (2) maintain asset coverage, as defined in the 1940 Act, of at least 200%, the preferred shares will be subject to redemption in an amount equal to their liquidation preference plus accumulated but unpaid distributions.

The holders of the preferred shares have voting rights equal to the holders of the Fund's common shares and generally vote together with the holders of the common shares as a single class. Holders of the preferred shares, voting as a separate class, also are entitled to elect two of the Fund's trustees. The Fund pays distributions on the preferred shares at a rate set at auctions held generally every seven days. Distributions are generally payable every seven days, on the first business day following the end of a distribution period. The preferred share distribution rate was 4.95% per annum as of June 30, 2007.

Note E

Submission of Proposals to a Vote of Shareholders

The annual meeting of Fund shareholders was held on May 8, 2007. Following is a summary of the proposals submitted to shareholders for vote at the meeting and the votes cast:

Proposal		Votes for	Votes withheld	Votes abstained
Common and Preferred shares
	Election of Arthur G. Koumantzelis as trustee until the 2010 annual meeting.	1,440,659	20,391	—
Preferred shares
	Election of Barry M. Portnoy as trustee until the 2010 annual meeting.	780	12	—

Proposal			Votes for		Votes against		Votes abstained		Broker Non-Vote
Common and Preferred shares
	Amendment to declaration of trust to explicitly provide that any shareholder that breaches the Fund's declaration of trust or bylaws will indemnify and hold harmless the Fund (and, if applicable, any charitable trustee) from and against all costs, expenses, penalties, fines and other amounts, including attorneys' and other professional fees, arising from the shareholder's breach, together with interest on such amounts.		564,075		17,826		18,986		860,163

Note F

Portfolio Management Changes

RMR Preferred Dividend Fund
June 30, 2007

To our shareholders,

In the pages that follow, you will find data summarizing our financial results for the six months ended June 30, 2007, and our financial position as of June 30, 2007.

Relevant Market Conditions

An important characteristic of the market for preferred securities during the first half of 2007, especially preferred securities of REITs, has been the reduced amount of securities available for investment. An unprecedented number of going private transactions combined with regular redemptions and few new quality issues has lead some investors, including the Fund, to focus more on other yield securities, such as dividend paying REIT common shares.

Fund Strategies, Techniques and Performance

Our primary investment objective is to provide our common shareholders high current income. Our secondary investment objective is capital appreciation. There can be no assurance that we will achieve our investment objectives.

During the first six months of 2007 our total return on net asset value, or NAV (including NAV changes and assuming a hypothetical reinvestment of distributions at NAV), was negative 4.9%. During that same period, the total return for the Merrill Lynch REIT Preferred Index (an unmanaged index of REIT preferred stocks) was 0.4%. We believe this index is relevant to us because our investments as of June 30, 2007, excluding short term investments, included 77% REIT preferred stocks. The S&P 500 Index (an unmanaged index published as Standard and Poor's Composite Index of 500 Stocks) total return for the first six months of 2007 was 6.9%.

Despite the REIT preferred market being flat to slightly down for the first half of the year, our comparatively poor performance was affected by our prior holdings in New Century Financial's preferred securities, a mortgage REIT with exposure to sub-prime home loans which eventually was forced into bankruptcy.

Thank you for your continued support. For more information, please view our website, at www.rmrfunds.com.

Sincerely,

Adam D. Portnoy
President

Portfolio holdings by sub-sector as a percentage of investments
(as of June 30, 2007) *

Hospitality real estate		24	%
Mortgage real estate		23	%
Retail real estate		14	%
Other, less than 10%		36	%
Short term investments		3	%

	Total investments	100	%

REITs		80	%
Other		17	%
Short term investments		3	%

	Total investments	100	%

*: These percentages represent the Fund's portfolio holdings by sub-sector as a percentage of total portfolio holdings and do not agree with the percentages included in the Portfolio of Investments schedule which represent the Fund's portfolio holdings by sub-sector as a percentage of the Fund's total net assets.

RMR Preferred Dividend Fund
Portfolio of Investments – June 30, 2007 (unaudited)


Company			Shares	Value

Preferred Stocks – 121.1% Real Estate Investment Trusts – 113.5%
	Apartments – 5.5%
		Apartment Investment & Management Co., Series G	56,400	$	1,441,020
		Associated Estates Realty Corp., Series B	39,800		1,034,402

					2,475,422
	Diversified – 13.4%
		Colonial Properties Trust, Series D	10,000		254,300
		Crescent Real Estate Equities Co., Series B	163,700		4,149,795
		Digital Realty Trust, Inc., Series A	40,000		1,038,000
		LBA Realty LLC, Series B	25,000		525,000

					5,967,095
	Health Care – 0.4%
		LTC Properties, Inc., Series F	4,000		99,200
		OMEGA Healthcare Investors Inc., Series D	3,200		82,592

					181,792
	Hospitality – 36.6%
		Ashford Hospitality Trust, Series A	58,000		1,490,890
		Eagle Hospitality Properties Trust, Inc., Series A	95,000		2,206,850
		Equity Inns, Inc., Series B	83,800		1,986,898
		FelCor Lodging Trust, Inc., Series C	167,400		4,198,392
		Hersha Hospitality Trust, Series A	99,500		2,483,520
		Highland Hospitality Corp., Series A	120,000		3,006,000
		Host Marriott Corp., Series E	15,000		396,900
		Strategic Hotels & Resorts, Inc., Series B	6,800		169,660
		Strategic Hotels & Resorts, Inc., Series C	4,000		101,520
		Sunstone Hotel Investors, Inc., Series A	12,500		314,500

					16,355,130
	Manufactured Homes – 5.4%
		Affordable Residential Communities, Series A	97,200		2,415,420
	Mortgage – 28.9%
		Accredited Mortgage Loan REIT Trust, Series A	1,500		31,590
		American Home Mortgage Investment Corp., Series A	92,000		2,236,520
		Anthracite Capital, Inc., Series C	3,000		76,740
		Anthracite Capital, Inc., Series D	51,000		1,189,575
		Impac Mortgage Holdings, Inc., Series B	54,900		1,067,805
		Impac Mortgage Holdings, Inc., Series C	57,400		1,130,780
		MFA Mortgage Investments, Inc., Series A	40,000		984,000
		Newcastle Investment Corp., Series B	120,000		2,996,400
		NorthStar Realty Finance Corp., Series A	20,000		495,000
		NorthStar Realty Finance Corp., Series B	76,000		1,804,240
		RAIT Financial Trust, Series C	32,000		800,000
		Thornburg Mortgage, Inc., Series C	2,500		62,700

					12,875,350
	Office – 2.2%
		DRA CRT Acquisition Corp., Series A	40,060		971,455
See notes to financial statements and notes to portfolio of investments.


Company			Shares	Value

Preferred Stocks – continued Real Estate Investment Trusts – continued
	Retail – 21.1%
		Cedar Shopping Centers, Inc., Series A	27,000	$	705,780
		Glimcher Realty Trust, Series F	30,000		762,000
		Pennsylvania Real Estate Investment Trust, Series A	59,000		3,110,480
		The Mills Corp., Series B	6,000		162,660
		The Mills Corp., Series C	107,500		2,914,325
		The Mills Corp., Series E	13,600		368,016
		The Mills Corp., Series G	52,500		1,389,150

					9,412,411
Total Real Estate Investment Trusts (Cost $52,825,452)					50,654,075
	Other – 7.6%
		Ford Motor Co., 6/15/43 Series	9,400		182,924
		General Motors Corp., 5/15/48 Series	26,100		518,346
		Great Atlantic & Pacific Tea Co., 8/01/39 Series	87,800		2,257,338
		Red Lion Hotels Corp., 2/19/44 Series	15,925		424,561
Total Other (Cost $3,333,721)					3,383,169
Total Preferred Stocks (Cost $56,159,173)					54,037,244
Common Stocks – 10.3%
Real Estate Investment Trusts – 8.0%
	Diversified – 0.8%
		Colonial Properties Trust	9,800		357,210
	Health Care – 0.6%
		Care Investment Trust, Inc. (a)	10,600		145,750
		Medical Properties Trust, Inc.	11,275		149,168

					294,918
	Mortgage – 6.1%
		Abingdon Investment, Ltd. (b)	150,000		1,422,000
		Alesco Financial, Inc.	142,500		1,158,525
		NovaStar Financial, Inc.	19,500		136,110

					2,716,635
	Retail – 0.1%
		Feldman Mall Properties, Inc.	5,000		57,000
	Storage – 0.4%
		U-Store-It Trust	10,000		163,900
Total Real Estate Investment Trusts (Cost $4,291,428)					3,589,663
See notes to financial statements and notes to portfolio of investments.


Company			Shares or Principal Amount		Value

Preferred Stocks – continued Real Estate Investment Trusts – continued
	Other – 2.3%
		American Capital Strategies, Ltd.		10,700	$	454,964
		Iowa Telecommunication Services, Inc.		24,500		556,885
Total Other (Cost $962,395)						1,011,849
Total Common Stocks (Cost $5,253,823)						4,601,512
Debt Securities – 14.8%
		Ford Motor Co., 7.75%, 06/15/2043	$	2,210,000		1,723,800
		Ford Motor Co., 8.90%, 01/15/2032		557,000		484,590
		General Motors Corp., 8.375%, 07/15/2033		2,000,000		1,825,000
		Six Flags, Inc., 9.75%, 04/15/2013		2,740,000		2,579,025
Total Debt Securities (Cost $6,523,590)						6,612,415
	Other Investment Companies – 1.5%
		Alpine Total Dynamic Dividend Fund		22,295		462,398
		Cornerstone Strategic Value Fund, Inc.		16,800		154,392
		LMP Real Estate Income Fund, Inc.		1,150		24,794
Total Other Investment Companies (Cost $657,455)						641,584
Short-Term Investments – 4.0%
	Other Investment Companies – 4.0%
		SSgA Money Market Fund, 4.98% (c) (Cost $1,776,376)		1,776,376		1,776,376
Total Investments – 151.7% (Cost $70,370,417)						67,669,131
Other assets less liabilities – (1.2)%						(555,127	)
Preferred Shares, at liquidation preference – (50.5)%						(22,500,000	)
Net Assets applicable to common shareholders – 100%					$	44,614,004

Notes to Portfolio of Investments

(a): As of June 30, 2007, this security had not paid a distribution.
(b): 144A securities. Securities restricted for resale to Qualified Institutional Buyers (3.2% of net assets).
(c): Rate reflects 7 day yield as of June 30, 2007.

See notes to financial statements.

RMR Preferred Dividend Fund
Financial Statements

Statement of Assets and Liabilities


June 30, 2007 (unaudited)

Assets
	Investments in securities, at value (cost $70,370,417)		$	67,669,131
	Cash			8,600
	Dividends and interest receivable			544,949
	Other assets			7,380

		Total assets		68,230,060

Liabilities
	Payable for investment securities purchased			964,231
	Distributions payable – preferred shares			21,879
	Advisory fee payable			16,736
	Accrued expenses and other liabilities			113,210

		Total liabilities		1,116,056

Preferred shares, at liquidation preference
	Auction preferred shares, Series M;
		$.001 par value per share; 900 shares issued and
		outstanding at $25,000 per share liquidation preference		22,500,000

Net assets attributable to common shares			$	44,614,004

Composition of net assets
	Common shares, $.001 par value per share;
		unlimited number of shares authorized,
		2,626,103 shares issued and outstanding	$	2,626
	Additional paid-in capital			49,656,127
	Distributions in excess of net investment income			(71,759	)
	Accumulated net realized loss on investment transactions			(2,271,704	)
	Net unrealized depreciation on investments			(2,701,286	)

Net assets attributable to common shares			$	44,614,004

Net asset value per share attributable to common shares
	(based on 2,626,103 common shares outstanding)		$	16.99

See notes to financial statements.

RMR Preferred Dividend Fund
Financial Statements – continued

Statement of Operations


Six Months Ended June 30, 2007 (unaudited)

Investment Income
	Dividends (cash distributions received or due)			$	2,451,019
	Interest				385,237

		Total investment income			2,836,256

Expenses
	Advisory				291,286
	Audit and legal				69,407
	Administrative				53,927
	Custodian				30,122
	Preferred share remarketing				28,118
	Compliance and internal audit				22,817
	Trustees' fees and expenses				10,842
	Shareholder reporting				10,595
	Other				42,200

		Total expenses			559,314
	Less: expense waived by the Advisor				(188,479	)

		Net expenses			370,835

			Net investment income		2,465,421

Realized and unrealized loss on investments
	Net realized loss on investments				(2,321,360	)
	Net change in unrealized appreciation/(depreciation) on investments				(1,971,852	)

	Net realized and unrealized loss on investments				(4,293,212	)

	Distributions to preferred shareholders from net investment income				(570,465	)

		Net decrease in net assets attributable to common shares resulting from operations		$	(2,398,256	)

See notes to financial statements.

RMR Preferred Dividend Fund
Financial Statements – continued

Statement of Changes in Net Assets


				Six Months Ended June 30, 2007 (unaudited)			Year Ended December 31, 2006

Increase (decrease) in net assets resulting from operations
	Net investment income			$	2,465,421		$	4,931,552
	Net realized gain (loss) on investments				(2,321,360	)		832,486
	Net change in unrealized appreciation/(depreciation) on investments				(1,971,852	)		2,897,321
	Distributions to preferred shareholders from:
		Net investment income			(570,465	)		(902,855	)
		Net realized gain on investments			—			(147,481	)

			Net increase (decrease) in net assets attributable to common shares resulting from operations		(2,398,256	)		7,611,023

	Distributions to common shareholders from:
		Net investment income			(1,966,715	)		(4,028,697	)
		Net realized gains on investments			—			(658,083	)
Capital shares transactions
	Net proceeds from reinvestment of distributions				239,388			435,418

		Net increase from capital transactions			239,388			435,418

		Total increase (decrease) in net assets attributable to common shares			(4,125,583	)		3,359,661
Net assets attributable to common shares
	Beginning of period				48,739,587			45,379,926

	End of period (including distributions in excess of net investment income of ($71,759) and $0, respectively)			$	44,614,004		$	48,739,587

Common shares issued and repurchased
	Shares outstanding, beginning of period				2,613,188			2,589,311
		Shares issued			—			—
		Shares issued (reinvestment of distributions)			12,915			23,877

	Shares outstanding, end of period				2,626,103			2,613,188

See notes to financial statements.

RMR Preferred Dividend Fund
Financial Highlights

Selected Data For A Common Share Outstanding Throughout Each Period


		Six Months Ended June 30, 2007 (unaudited)			Year Ended December 31, 2006			For the Period May 25, 2005(a) to December 31, 2005

Per Common Share Operating Performance
Net asset value, beginning of period		$	18.65		$	17.53		$	19.09	(c)

Income from Investment Operations
Net investment income (b)(d)			.94	(e)		1.90			.93
Net realized and unrealized appreciation/(depreciation)
	on investments		(1.63)	(e)		1.43			(1.22	)
Distributions to preferred shareholders (common stock equivalent basis) from:
	Net investment income		(.22)	(e)		(.35	)		(.14	)
	Net realized gain on investments		—	(e)		(.06	)		(.02	)

Net increase (decrease) in net asset value from operations			(.91	)		2.92			(.45	)
Less: Distributions to common shareholders from:
	Net investment income		(.75)	(e)		(1.55	)		(.77	)
	Net realized gain on investments		—	(e)		(.25	)		(.13	)
Common share offering costs charged to capital			—			—			(.04	)
Preferred share offering costs charged to capital			—			—			(.17	)

Net asset value, end of period		$	16.99		$	18.65		$	17.53

Market price, beginning of period		$	20.75		$	16.35		$	20.00

Market price, end of period		$	19.61		$	20.75		$	16.35

Total Return (f)
Total investment return based on:
	Market price (g)		0.69	%		39.90	%		14.10	%
	Net asset value (g)		(4.92)	%		17.48	%		3.50	%
Ratios/Supplemental Data:
Ratio to average net assets attributable to common shares of:
	Net investment income, before total preferred share distributions (d)		10.67	% (e)(h)		10.47	%		8.22	% (h)
	Total preferred share distributions		2.47	% (h)		2.23	%		1.40	% (h)
	Net investment income, net of preferred share distributions (d)		8.20	%��(e)(h)		8.24	%		6.82	% (h)
	Expenses, net of fee waivers		1.60	% (h)		1.45	%		1.54	% (h)
	Expenses, before fee waivers		2.42	% (h)		2.26	%		2.29	% (h)
Portfolio Turnover Rate			12.43	%		23.60	%		5.60	%
Net assets attributable to common shares, end of period (000s)		$	44,614		$	48,740		$	45,380
Preferred shares, liquidation preference ($25,000 per share) (000s)		$	22,500		$	22,500		$	22,500
Asset coverage per preferred share (i)		$	74,571		$	79,156		$	75,422

(a): Commencement of operations.
(b): Based on average shares outstanding.
(c): Net asset value at May 25, 2005, reflects the deduction of the average sales load and offering costs of $0.91 per share paid by the holders of common shares from the $20.00 offering price. We paid a sales load and offering cost of $0.94 per share on 2,237,500 common shares sold to the public and no sales load or offering costs on 67,500 common shares sold to affiliates of the RMR Advisors for $20 per share.
(d): Amounts are net of expenses waived by RMR Advisors.
(e): As discussed in Note A (7) to the financial statements, these amounts are subject to change to the extent 2007 distributions by the issuers of the Fund's investments are characterized as capital gains and return of capital.
(f): Total returns for periods of less than one year are not annualized.
(g): Total return based on per share market price assumes the purchase of common shares at the market price on the first day and sales of common shares at the market price on the last day of the period indicated; dividends and distributions, if any, are assumed to be reinvested at market prices on the ex-dividend date. The total return based net asset value, or NAV, assumes the purchase of common shares at NAV on the first day and sales of common shares at NAV on the last day of the period indicated; distributions are assumed to be reinvested at NAV on the ex-dividend date. Results represent past performance and do not guarantee future results. Total return would have been lower if RMR Advisors had not contractually waived a portion of its investment advisory fee.
(h): Annualized.
(i): Asset coverage per share equals net assets attributable to common shares plus the liquidation preference of the preferred shares divided by the total number of preferred shares outstanding at the end of the period.

See notes to financial statements.

RMR Preferred Dividend Fund
Notes to Financial Statements

June 30, 2007 (unaudited)

Note A

(1) Organization

RMR Preferred Dividend Fund, or the Fund, was organized as a Massachusetts business trust on November 8, 2004, and is registered under the Investment Company Act of 1940, as amended, or the 1940 Act, as a non-diversified closed-end management investment company. The Fund had no operations until May 25, 2005, other than matters relating to the Fund's establishment and registration of the Fund's common shares under the Securities Act of 1933.

(2) Interim Financial Statements

(3) Use of Estimates

(4) Portfolio Valuation

(5) Securities Transactions and Investment Income

(6) Federal Taxes

(7) Distributable Earnings

The Fund earns income, net of expenses, daily on its investments. It is the policy of the Fund to pay a stable distribution amount to common shareholders on a monthly basis and distributions to Fund shareholders are declared pursuant to this policy. On July 12, 2007, the Fund declared distributions of $0.15 per common share payable in August and September 2007. Distributions to shareholders are recorded on the ex-dividend date. The Fund's distributions may consist of ordinary income (net investment income and short term capital gains), long term capital gains and return of capital. To the extent the Fund's net realized capital gains, if any, can be offset by capital loss carry-forwards, it is the policy of the Fund not to distribute such gains. Distributions to preferred shareholders are determined as described in Note D.

The Fund has substantial investments in real estate investment trusts, or REITs, which are generally not subject to federal income taxes. Distributions that the Fund received from REITs can be classified as ordinary income, capital gain income or return of capital by the REITs that make these distributions to the Fund. However, it is not possible to characterize distributions received from REITs during interim periods because the issuers do not report their tax characterization until subsequent to year. Final characterization of the Fund's 2007 distributions to shareholders is also dependent upon the magnitude or timing of the Fund's securities transactions prior to year end. Therefore it is likely that some portion of the Fund's 2007 investment income and distributions to shareholders will be recharacterized as long term capital gain and return of capital for financial statement and federal income tax purposes subsequent to year end and reflected accordingly in the Fund's year end financial statements.

Although subject to adjustments, the cost, gross unrealized appreciation and unrealized depreciation of the Fund's investments for federal income tax purposes as of June 30, 2007, are as follows:

Cost	$	70,370,417

Gross unrealized appreciation	$	907,340
Gross unrealized depreciation		(3,608,626	)

Net unrealized appreciation/(depreciation)	$	(2,701,286	)

(8) Concentration of Risk

Under normal market conditions, the Fund's investments will be concentrated in preferred securities issued by real estate investment trusts. The value of Fund shares may fluctuate more than the shares of a fund not concentrated in the real estate industry due to economic, legal, regulatory, technological or other developments affecting the United States real estate industry.

(9) Recent Accounting Pronouncements

In June 2006, the Financial Accounting Standards Board, or FASB, issued Interpretation No. 48, "Accounting for Uncertainty in Income Taxes", or FIN 48. FIN 48 was effective for the fiscal years beginning after December 15, 2006. The Securities and Exchange Commission delayed the application of FIN 48 to open and closed end funds to not later than June 29, 2007. FIN 48 prescribes how the Fund should recognize, measure and present in the Fund's financial statements uncertain tax provisions that have been taken or expected to be taken in a tax return. Pursuant to FIN 48 the Fund can recognize a tax benefit only if it is "more likely than not" that a particular tax position will be sustained upon examination or audit. To the extent the "more likely than not" standard has been satisfied the benefits associated with a tax position is measured as the largest amount that is greater than 50% likely of being realized upon settlement. As required, the Fund adopted FIN 48 effective June 29, 2007, and concluded that the effect is not material to its financial statements.

(10) Other Investment Companies

(11) Common Shares

The Fund issued 12,915 common shares during the six months ended June 30, 2007 and 23,877 common shares during the year ended December 31, 2006, for a total consideration of $239,388 and $435,418 respectively, pursuant to its dividend reinvestment plan.

Note B

Advisory and Administration Agreements and Other Transactions with Affiliates

agreement, RMR Advisors is compensated at an annual rate of 0.85% of the Fund's average daily managed assets. Managed assets means the total assets of the Fund less liabilities other than any indebtedness entered into for purposes of leverage. For purposes of calculating managed assets the liquidation preference of preferred shares are not considered liabilities.

RMR Advisors has contractually agreed to waive a portion of its annual fee equal to 0.55% of the Fund's average daily managed assets, until May 24, 2010. The Fund incurred net advisory fees of $102,807 during the six months ended June 30, 2007.

RMR Advisors also performs administrative functions for the Fund pursuant to an administration agreement with the Fund. RMR Advisors has entered into a subadministration agreement with State Street Bank and Trust Company, or State Street, to perform substantially all Fund accounting and other administrative services. Under the administration agreement, RMR Advisors is entitled to reimbursement of the cost of providing administrative services. The Fund reimbursed RMR Advisors for $53,927 of subadministrative fees charged by State Street for the six months ended June 30, 2007.

Each trustee who is not a director, officer or employee of RMR Advisors and who is not an "interested person" of the Fund as defined under the 1940 Act, is considered to be a "disinterested trustee". Disinterested trustees are each paid by the Fund an annual fee plus fees for board and committee meetings. The Fund incurred $10,842 of trustee fees and expenses during the six months ended June 30, 2007.

The Fund's board of trustees and separately the disinterested trustees authorized the Fund to make reimbursement payments to RMR Advisors for costs related to the Fund's compliance and internal audit programs. The Fund incurred $22,817 of compliance and internal audit expense during the six months ended June 30, 2007. The Fund also participates in pooled insurance programs with RMR Advisors and other funds managed by RMR Advisors and makes payments of allocated portions of related premiums. The Fund incurred $9,835 of insurance expense during the six months ended June 30, 2007.

Note C

Securities Transactions

During the six months ended June 30, 2007, there were purchases and sales transactions (excluding short term securities) of $8,882,383 and $8,348,489, respectively. Brokerage commissions on securities transactions amounted to $4,981 during the six months ended June 30, 2007.

Note D

Preferred Shares

The Fund's 900 outstanding Series M auction preferred shares have a liquidation preference of $25,000 per share plus an amount equal to accumulated plus unpaid distributions. The preferred shares are senior to the Fund's common shares and rank on parity with any other class or series of preferred shares of the Fund as to the payment of periodic distributions, including distribution of assets upon liquidation. If the Fund does not timely cure a failure to (1) maintain asset coverage for the preferred shares as required by rating agencies, or (2) maintain asset coverage, as defined in the 1940 Act, of at least 200%, the preferred shares will be subject to redemption in an amount equal to their liquidation preference plus accumulated but unpaid distributions. The holders of the preferred shares have voting rights equal to the holders of the Fund's common shares and

will generally vote together with the holders of the Fund's common shares as a single class. Holders of the preferred shares, voting as a separate class, also are entitled to elect two of the Fund's trustees. The Fund pays distributions on the preferred shares at a rate set at auctions held generally every seven days. Distributions are generally payable every seven days, on the first business day following the end of a distribution period. The preferred share distribution rate was 5.00% per annum as of June 30, 2007.

Note E

Submission of Proposals to a Vote of Shareholders

The annual meeting of Fund shareholders was held on May 8, 2007. Following is a summary of the proposals submitted to shareholders for vote at the meeting and the votes cast:

Proposal		Votes for	Votes withheld	Votes abstained
Common and Preferred shares
	Election of Arthur G. Koumantzelis as trustee until the 2010 annual meeting.	2,554,635	26,250	—
Preferred shares
	Election of Barry M. Portnoy as trustee until the 2010 annual meeting.	855	5	—

Proposal			Votes for		Votes against		Votes abstained		Broker Non-Vote
Common and Preferred shares
	Amendment to declaration of trust to explicitly provide that any shareholder that breaches the Fund's declaration of trust or bylaws will indemnify and hold harmless the Fund (and, if applicable, any charitable trustee) from and against all costs, expenses, penalties, fines and other amounts, including attorneys' and other professional fees, arising from the shareholder's breach, together with interest on such amounts.		861,007		38,689		21,016		1,660,173

Note F

Portfolio Management Changes

RMR Asia Pacific Real Estate Fund
June 30, 2007

To our shareholders,

In the pages that follow, you will find data summarizing our financial results for the six months ended June 30, 2007, and our financial position as of June 30, 2007.

Relevant Market Conditions

Real Estate Industry Fundamentals. Economic growth in the Asian region remains strong and inflation appears to be generally under control. Authorities have been raising interest rates in China and India in order to slow down extreme growth, which appears to working in India but not yet in China. Official interest rates are expected to rise in Japan over the long term as they are currently very low; however, weak consumer demand has caused the monetary authority to slow the tightening process. As a result the Japanese yen has declined in value, or at least not risen as much as expected. Demand for office space in the financial centers of Tokyo, Hong Kong and Singapore has been very strong. This has led to low vacancy levels and some of the highest asking rents for years. Wage growth and low unemployment have resulted in rising consumer incomes and confidence. This supports retail sales and demand for residential property in most of the markets, except perhaps Japan. Strong exports from Japan, Korea and China have helped to revive the industrial real estate sector. The hotel sector is also buoyant, with strong occupancy and rising room rates.

Real Estate Industry Technicals. Rising bond yields have damaged investor sentiment caused a serious correction in the real estate security markets in June. However, we expect stabilization in the credit markets and a gradual recovery in real estate securities over the remainder of this year. Demand for underlying real estate remains strong and property capital values continue to rise. There has only been one Real Estate Investment Trust, or REIT, initial public offering in Japan this year, which is a significant slowdown from last year. Singapore is becoming a major regional securities market center and it has seen several new REIT listings, including trusts with assets in India and Indonesia.

Fund Strategies, Techniques and Performance

Our primary investment objective is capital appreciation. There can be no assurance that we will achieve our investment objective.

During the first six months of 2007, our total return on net asset value, or NAV, was 12.9%. During that same period, the total return for the EPRA NAREIT Asia Index (an unmanaged index of Asia Pacific real estate common stocks) was 11.7%. We believe this index is relevant to us because all our investments as of June 30, 2007, excluding short term investments, were in securities of real estate companies in countries covered by this index. The S&P 500 Index (an unmanaged index published as Standard and Poor's Composite Index of 500 common stocks) total return for the same period was 6.9%.

Thank you for your continued support. For more information, please view our website, at www.rmrfunds.com.

Sincerely,

Adam D. Portnoy
President

Portfolio holdings by sub-sector as a percentage of investments
(as of June 30, 2007) *

Diversified		61	%
Office		14	%
Retail		14	%
Others, less than 10%		10	%
Short term investments		1	%

	Total investments	100	%

Real Estate		99	%
Short term investments		1	%

	Total investments	100	%

Portfolio holdings by country (as of June 30, 2007) *

Japan		36	%
Hong Kong		29	%
Australia		18	%
Singapore		12	%
Others, less than 10%		4	%
Short term investments		1	%

	Total	100	%

*: These percentages represent the Fund's portfolio holdings by sub-sector as a percentage of total portfolio holdings and do not agree with the percentages included in the Portfolio of Investments schedule which represent the Fund's portfolio holdings by sub-sector as a percentage of the Fund's total net assets.

RMR Asia Pacific Real Estate Fund
Portfolio of Investments – June 30, 2007 (unaudited)


Company			Shares	Value

Common Stocks – 97.4% Australia – 16.6%
	Apartments – 1.9%
		Peet, Ltd.	260,000	$	908,164
	Diversified – 8.2%
		Abacus Property Group	490,000		822,536
		Charter Hall Group	400,000		963,101
		GPT Group *	210,000		829,657
		Multiplex Group *	140,000		583,965
		Valad Property Group	378,700		637,308

					3,836,567
	Office – 5.2%
		Cromwell Group	958,898		963,350
		Macquarie Goodman Group	260,000		1,481,277

					2,444,627
	Retail – 1.3%
		Centro Properties Group	85,000		612,536
Total Australia (Cost $6,861,395)					7,801,894
Hong Kong – 29.2%
	Diversified – 12.4%
		Greentown China Holdings, Ltd.	275,000		597,887
		Guangzhou R&F Properties Co., Ltd., Class H	135,200		414,979
		Hongkong Land Holdings, Ltd.	340,983		1,534,423
		Hopson Development Holdings, Ltd.	330,000		926,374
		Hysan Development Co., Ltd.	180,000		478,821
		Kerry Properties, Ltd.	70,000		441,350
		New World China Land, Ltd.	450,000		382,712
		Shenzhen Investment, Ltd.	710,000		537,549
		Shun TAK Holdings, Ltd.	340,000		501,790

					5,815,885
	Hospitality – 6.5%
		Regal Real Estate Investment Trust *(a)	2,200,000		748,414
		Sun Hung Kai Properties, Ltd.	191,000		2,301,028

					3,049,442
	Office – 3.4%
		Champion Real Estate Investment Trust *	2,800,000		1,597,094
	Retail – 6.9%
		Hang Lung Properties, Ltd.	765,000		2,636,683
		The Link REIT *	260,000		575,251

					3,211,934
Total Hong Kong (Cost $11,114,379)					13,674,355
See notes to financial statements and notes to portfolio of investments.

Common Stocks – continued
Japan – 35.3%
	Apartments – 0.9%
		Nippon Residential Investment Corp. *	71	$	412,305
	Diversified – 25.9%
		Mitsubishi Estate Co., Ltd.	152,000		4,135,635
		Mitsui Fudosan Co., Ltd	125,000		3,512,690
		Shoei Co., Ltd.	22,000		461,888
		Sumitomo Realty & Development Co., Ltd.	123,000		4,015,919

					12,126,132
	Office – 5.1%
		Nippon Building Fund, Inc. *	45		624,975
		NTT Urban Development Corp.	920		1,785,827

					2,410,802
	Retail – 3.4%
		Diamond City Co., Ltd.	66,000		1,597,401
Total Japan (Cost $12,819,019)					16,546,640
Malaysia – 2.4%
	Diversified – 2.4%
		KLCC Property Holdings Berhad	690,000		727,473
		SP Setia Berhad	158,000		395,858

					1,123,331
Total Malaysia (Cost $968,316)					1,123,331
Philippines – 2.0%
	Diversified – 2.0%
		Filinvest Land, Inc.	5,800,000		270,875
		Megaworld Corp.	7,599,868		657,286

					928,161
Total Philippines (Cost $601,889)					928,161
Singapore – 11.9%
	Diversified – 10.0%
		Capitacommercial Trust *	465,000		890,054
		Capitaland, Ltd.	242,000		1,280,549
		CDL Hospitality Trusts *	420,000		674,963
		Keppel Land, Ltd.	97,000		554,467
		Singapore Land, Ltd.	34,000		253,209
		Suntec Real Estate Investment Trust *	813,157		1,030,557

				��	4,683,799
See notes to financial statements and notes to portfolio of investments.

Common Stocks – continued
Singapore – continued
	Retail – 1.9%
		CapitaRetail China Trust *(a)	170,000	$	350,939
		Frasers Centrepoint Trust *	470,000		528,107

					879,046
Total Singapore (Cost $4,451,484)					5,562,845
Total Common Stocks (Cost $36,816,482)					45,637,226
Rights – 0.0%
Australia – 0.0%
		Valad Property Group, Rights, expiring 7/17/07 (a) (Cost $0)	284,025		0
Warrants – 1.4%
Australia – 1.4%
		Macquarie Bank, Ltd., Warrants, expiring 6/19/08 (a) (Cost $718,945)	53,000		656,670
Short-Term Investments – 1.1%
	Other Investment Companies – 1.1%
		SSgA Money Market Fund, 4.98% (b) (Cost $509,962)	509,962		509,962
Total Investments – 99.9% (Cost $38,045,389)					46,803,858
Other assets less liabilities – 0.1%					37,630
Net Assets – 100%				$	46,841,488

Notes to Portfolio of Investments

*: Company is organized as a real estate investment trust as defined by the laws of its country of domicile.
(a): As of June 30, 2007, this security had not paid a distribution.
(b): Rate reflects 7 day yield as of June 30, 2007.

See notes to financial statements.

RMR Asia Pacific Real Estate Fund
Financial Statements

Statement of Assets and Liabilities


June 30, 2007 (unaudited)

Assets
	Investments in securities, at value (cost $38,045,389)		$	46,803,858
	Cash			423
	Foreign currency, at value (cost $39,536)			39,547
	Dividends and interest receivable			120,440
	Other assets			11,172

		Total assets		46,975,440

Liabilities
	Advisory fee payable			29,542
	Accrued expenses and other liabilities			104,410

		Total liabilities		133,952

Net assets			$	46,841,488

Composition of net assets
	$.001 par value per share; unlimited number of shares authorized, 1,755,000 shares issued and outstanding		$	1,755
	Additional paid-in capital			33,437,837
	Undistributed net investment income			985,066
	Accumulated net realized gain on investments and foreign currency			3,658,358
	Net unrealized appreciation on investments and foreign currency transactions			8,758,472

Net assets			$	46,841,488

Net asset value per share (based on 1,755,000 shares outstanding)			$	26.69

See notes to financial statements.

RMR Asia Pacific Real Estate Fund
Financial Statements – continued

Statement of Operations


Six Months Ended June 30, 2007 (unaudited)

Investment Income
	Dividends (cash distributions received or due, net of foreign taxes withheld of $59,633)			$	492,827
	Interest				11,461

		Total investment income			504,288

Expenses
	Advisory				229,123
	Administrative				54,046
	Custodian				37,670
	Audit and legal				37,335
	Compliance and internal audit				22,530
	Trustees' fees and expenses				10,545
	Shareholder reporting				10,150
	Other				32,525

		Total expenses			433,924
	Less: expense waived by the Advisor				(57,281	)

		Net expenses			376,643

			Net investment income		127,645

Realized and unrealized gain (loss) on investment and foreign currency transactions
	Net realized gain on investments (net of foreign capital gain taxes of $10,336)				3,474,494
	Net realized loss on foreign currency transactions				(12,705	)
	Net change in unrealized appreciation on investments				1,739,965

		Net increase in net assets resulting from operations		$	5,329,399

See notes to financial statements.

RMR Asia Pacific Real Estate Fund
Financial Statements – continued

Statement of Changes in Net Assets


			Six Months Ended June 30, 2007 (unaudited)		For the Period May 25, 2006(a) to December 31, 2006

Increase in net assets resulting from operations
	Net investment income		$	127,645	$	353,151
	Net realized gain on investment transactions and foreign currency transactions			3,461,789		647,831
	Net change in unrealized appreciation/(depreciation) on investments			1,739,965		7,018,507

		Net increase in net assets resulting from operations		5,329,399		8,019,489

Capital shares transactions
	Net proceeds from sale of common shares			—		33,392,600

		Net increase from capital transactions		—		33,392,600

		Total increase in net assets		5,329,399		41,412,089
Net assets
	Beginning of period			41,512,089		100,000

	End of period (including undistributed net investment income of $985,066 and $857,421, respectively)		$	46,841,488	$	41,512,089

Common shares
	Shares outstanding, beginning of period			1,755,000		5,000
		Shares issued		—		1,750,000

	Shares outstanding, end of period			1,755,000		1,755,000

(a) Commencement of operations.
See notes to financial statements.

RMR Asia Pacific Real Estate Fund
Financial Highlights

Selected Data For A Common Share Outstanding Throughout Each Period


		Six Months Ended June 30, 2007 (unaudited)			For the Period May 25, 2006(a) to December 31, 2006

Per Common Share Operating Performance (b)
Net asset value, beginning of period		$	23.65		$	19.08	(c)

Income from Investment Operations
Net investment income (d)			.07			.21
Net realized and unrealized appreciation/(depreciation) on investments			2.97			4.40

Net increase in net asset value from operations			3.04			4.61
Common share offering costs charged to capital			—			(.04	)

Net asset value, end of period		$	26.69		$	23.65

Market price, beginning of period		$	23.41		$	20.00

Market price, end of period		$	23.86		$	23.41

Total Return (e)
Total investment return based on:
	Market price (f)		1.92	%		17.05	%
	Net asset value (f)		12.85	%		23.95	%
Ratios/Supplemental Data:
Ratio to average net assets attributable to common shares of: (g)
	Net investment income, before total preferred share distributions (d)		0.56	%		1.64	%
	Expenses, net of fee waivers		1.64	%		2.25	%
	Expenses, before fee waivers		1.89	%		2.50	%
Portfolio Turnover Rate			36.79	%		27.61	%
Net assets attributable to common shares, end of period (000s)		$	46,841		$	41,512

(a): Commencement of operations.
(b): Based on average shares outstanding.
(c): Net asset value at May 25, 2006, reflects the deduction of the average sales load and offering costs of $0.92 per share paid by the holders of common shares from the $20.00 offering price. We paid a sales load and offering cost of $0.94 per share on 1,710,000 shares sold to the public and no sales load or offering costs on 4,000 common shares sold to affiliates of the RMR Advisors for $20 per share.
(d): Amounts are net of expenses waived by RMR Advisors.
(e): Total returns for periods of less than one year are not annualized.
(f): Total return based on per share market price assumes the purchase of common shares at the market price on the first day and sales of common shares at the market price on the last day of the period indicated; dividends and distributions, if any, are assumed to be reinvested at market prices on the ex-dividend date. The total return based net asset value, or NAV, assumes the purchase of common shares at NAV on the first day and sales of common shares at NAV on the last day of the period indicated; distributions are assumed to be reinvested at NAV on the ex-dividend date. Results represent past performance and do not guarantee future results. Total return would have been lower if RMR Advisors had not contractually waived a portion of its investment advisory fee.
(g): Annualized.

See notes to financial statements.

RMR Asia Pacific Real Estate Fund
Notes to Financial Statements

June 30, 2007 (unaudited)

Note A

(1) Organization

RMR Asia Pacific Real Estate Fund, or the Fund, was organized as a Massachusetts business trust on February 14, 2006, and is registered under the Investment Company Act of 1940, as amended, or the 1940 Act, as a non-diversified closed-end management investment company. The Fund had no operations prior to May 25, 2006, other than matters relating to the Fund's establishment, registration of the Fund's common shares under the Securities Act of 1933, and the sale of 5,000 common shares for $100,000 to RMR Advisors, Inc., or RMR Advisors. On May 25, 2006, the Fund sold 1,750,000 common shares in an initial public offering including 40,000 shares sold to affiliates of RMR Advisors. Proceeds to the Fund were $33,392,600 after deducting underwriting commissions and $68,400 of offering expenses. There was no underwriting commission or offering expenses paid on shares sold to the affiliates of RMR Advisors.

(2) Interim Financial Statements

(3) Use of Estimates

(4) Portfolio Valuation

Investment securities of the Fund are valued at the latest sales price reflected on the consolidated tape of the exchange that reflects the principal market for such securities whenever that price is readily available on that day; securities for which no sales were reported on that day, unless otherwise noted, are valued at the last available bid price on that day. Any of the Fund's securities which are not readily marketable, which are not traded or which have other characteristics of illiquidity are valued by the Fund at fair value as determined in good faith under the supervision of the Fund's board of trustees. Numerous factors may be considered when determining fair value of a security, including cost at date of purchase, type of security, the nature and duration of restrictions on disposition of the security and whether the issuer of the security being fair valued has other securities of the same type outstanding. Short-term debt securities with less than 60 days until maturity may be valued at cost, which when combined with interest accrued, approximates market value.

Some foreign markets close before the close of customary trading sessions on the American Stock Exchange or AMEX (normally 4:00 p.m. eastern time). Occasionally, events occur after the principal foreign exchange on which the foreign securities trade has closed but before the AMEX closes and the Fund determines net asset value, or NAV, that could affect the value of the securities the Fund owns or cause their prices to be unreliable. If these events are expected to materially affect the Fund's NAV, the prices of such securities will be adjusted to reflect their estimated fair value as of the close of the AMEX, as determined in good faith under procedures established by the Fund's board of trustees.

(5) Securities Transactions and Investment Income

Securities transactions are recorded on a trade date basis. Dividend income is recorded on the ex-dividend date. Non-cash dividends included in dividend income, if any, are recorded at the fair market value of the securities received. Interest income, including accretion of original issue discount, where applicable, and accretion of discount on short-term investments, is recorded on the accrual basis. Realized gains and losses from securities transactions are recorded on the basis of identified cost.

(6) Taxes

The Fund has qualified and intends to qualify in the future as a "regulated investment company" and to comply with the applicable provisions of subchapter M of the Internal Revenue Code of 1986, as amended, so that it will generally not be subject to United States federal income tax. However, the Fund may be subject to a 4% excise tax to the extent the Fund does not distribute substantially all taxable earnings each year.

Some Asia Pacific governments may subject the Fund's investment income and securities sales to withholding or other taxes. For the six months June 30, 2007, $59,633 of foreign taxes have been withheld from distributions to the Fund and recorded as a reduction of dividend income and $10,336 of foreign taxes have been withheld from the proceeds of sales of securities and recorded as a reduction of net realized gains on investments.

(7) Distributable Earnings

The Fund earns income, net of expenses, daily on its investments. It is the policy of the Fund to make distributions of its income at least annually in amounts at least equal to the amount necessary to maintain its status as a registered investment company. On July 12, 2007, the Fund declared a distribution of $1.52 to common shareholders payable on September 14, 2007. Distributions to shareholders are recorded on the ex-dividend date. The Fund's distributions may consist of ordinary income (net investment income and short term capital gains), long term capital gains and return of capital. To the extent the Fund's net realized capital gains, if any, can be offset by capital loss carry-forwards, it is the policy of the Fund not to distribute such gains.

Although subject to adjustments, the cost, gross unrealized appreciation and unrealized depreciation of the Fund's investments for federal income tax purposes as of June 30, 2007, are as follows:

Cost	$	38,045,389

Gross unrealized appreciation	$	9,066,755
Gross unrealized depreciation		(308,286	)

Net unrealized appreciation/(depreciation)	$	8,758,469

(8) Concentration of Risk

Under normal market conditions, the Fund's investments will be concentrated in common shares, preferred shares and debt securities, including convertible preferred and debt securities, issued by Asia Pacific real estate companies and REITs. The value of Fund shares may fluctuate more than the shares of a fund not concentrated in the real estate industry or in the Asia Pacific region due to economic, legal, regulatory, technological or other developments affecting the Asia Pacific real estate industry and securities market.

(9) Foreign Securities Risk

As compared to U.S. securities, foreign securities may be issued by companies which provide less financial and other information, and which are subject to less developed and difficult to access legal systems, less stringent accounting, auditing and financial reporting standards or different governmental regulations. As compared to U.S. securities markets, foreign securities markets may have different settlement procedures, may have higher transaction costs, may be conducted in a less regulated manner, are generally smaller and may be less liquid and more volatile than securities markets in the U.S. The value of foreign securities may also decline or be unstable because of political, social or economic events or instability outside of the U.S.

(10) Foreign Currency Translations

The accounting records of the Fund are maintained in U.S. dollars. Portfolio securities and other assets and liabilities denominated in a foreign currency are translated daily into U.S. dollars at the prevailing rates of exchange. Purchases and sales of securities, income receipts and expense payments are translated into U.S. dollars at the prevailing exchange rates on the respective transaction dates.

The Fund does not isolate the portion of operations resulting from changes in foreign exchange rates on investments from the fluctuations arising from changes in the market prices of investments. Such fluctuations are included in net realized and unrealized gain (loss) on investments. Net realized gain (loss) on foreign currency transactions represents net foreign currency gain (loss) from forward currency contracts, disposition of foreign currencies, currency gain (loss) realized between the trade and settlement dates on securities transactions, and the difference between the amount of dividends, interest and foreign withholding taxes recorded on the Fund's accounting records and the U.S. dollar equivalent amounts actually received or paid. Net unrealized foreign currency appreciation/(depreciation) arises from changes in the value of assets and liabilities, other than investments in securities, as a result of changes in exchange rates.

(11) Recent Accounting Pronouncements

In June 2006, the Financial Accounting Standards Board, or FASB, issued Interpretation No. 48 "Accounting for Uncertainty in Income Taxes", or FIN 48. FIN 48 was effective for the fiscal years beginning after December 15, 2006. The Securities and Exchange Commission delayed the application of FIN 48 to open and closed end funds to not later than June 29, 2007. FIN 48 prescribes how the Fund should recognize, measure and present in the Fund's financial statements uncertain tax provisions that have been taken or expected to be taken in a tax return. Pursuant to FIN 48 the Fund can recognize a tax benefit only if it is "more likely than not" that a particular tax position will be sustained upon examination or audit. To the extent the "more likely than not" standard has been satisfied the benefits associated with a tax position is measured as the largest amount that is greater than 50% likely of being realized upon settlement. As required, the Fund adopted FIN 48 effective June 29, 2007, and concluded that the effect is not material to its financial statements.

(12) Other Investment Companies

Note B

Advisory, Subadvisory and Administration Agreements and Other Transactions with Affiliates

The Fund has an advisory agreement with RMR Advisors, to provide the Fund with a continuous investment program, oversee the subadvisor and generally manage the business affairs of the Fund in accordance with its investment objectives and policies. Pursuant to the agreement, RMR Advisors is compensated at an annual rate of 1% of the Fund's average daily net assets.

RMR Advisors has contractually agreed to waive a portion of its annual fee equal to 0.25% of the Fund's average daily managed assets until May 25, 2011. The Fund incurred net advisory fees of $171,842 during the six months ended June 30, 2007.

RMR Advisors has entered into a subadvisory agreement with MacarthurCook Investment Managers Ltd., or MacarthurCook, to make day-to-day investment decisions and to generally manage the business affairs of the Fund in accordance with its investment objectives and policies. Pursuant to the agreement, RMR Advisors, and not the Fund, will pay the subadvisor a monthly fee equal to an annual rate of 0.375% of the Fund's average daily managed assets. MacarthurCook has agreed to waive a portion of the fee payable by RMR Advisors such that until May 25, 2011, the fee payable will be equal to 0.25% of the Fund's average daily managed assets.

RMR Advisors also performs administrative functions for the Fund pursuant to an administration agreement with the Fund. RMR Advisors has entered into a subadministration agreement with State Street Bank and Trust Company, or State Street, to perform substantially all Fund accounting and other administrative services. Under the administration agreement, RMR Advisors is entitled to reimbursement of the cost of providing administrative services. The Fund reimbursed RMR Advisors for $54,046 of subadministrative fees charged by State Street for the six months ended June 30, 2007.

Each trustee who is not a director, officer or employee of RMR Advisors and who is not an "interested person" of the Fund as defined under the 1940 Act, is considered to be a "disinterested trustee". Disinterested trustees are each paid by the Fund an annual fee plus fees for board and committee meetings. The Fund incurred $10,545 of trustee fees and expenses during the six months ended June 30, 2007.

The Fund's board of trustees and separately the disinterested trustees authorized the Fund to make reimbursement payments to RMR Advisors for costs related to the Fund's compliance and internal audit programs. The Fund incurred $22,530 of compliance and internal audit expense during the six months ended June 30, 2007. The Fund also participates in pooled insurance programs with RMR Advisors and other funds managed by RMR Advisors and makes payments of allocated portions of related premiums. The Fund incurred $9,835 of insurance expense during the six months ended June 30, 2007.

Note C

Securities Transactions

During the six months ended June 30, 2007, there were purchases and sales transactions (excluding short term securities) of $16,703,113 and $16,923,981, respectively. Brokerage commissions on securities transactions amounted to $75,568 during the six months ended June 30, 2007.

Note D

Submission of Proposals to a Vote of Shareholders

The annual meeting of Fund shareholders was held on May 8, 2007. Following is a summary of the proposals submitted to shareholders for vote at the meeting and the votes cast:

Proposal		Votes for		Votes withheld		Votes abstained
Election of Arthur G. Koumantzelis as trustee until the 2010 annual meeting.		1,557,253		37,451		—
Election of Barry M. Portnoy as trustee until the 2010 annual meeting.		1,547,386		47,318		—

Proposal		Votes for		Votes against		Votes abstained		Broker Non-Vote
Amendment to declaration of trust to explicitly provide that any shareholder that breaches the Fund's declaration of trust or bylaws will indemnify and hold harmless the Fund (and, if applicable, any charitable trustee) from and against all costs, expenses, penalties, fines and other amounts, including attorneys' and other professional fees, arising from the shareholder's breach, together with interest on such amounts.		509,739		33,729		8,891		1,042,345

RMR Asia Real Estate Fund
June 30, 2007

To our shareholders,

In the pages that follow, you will find data summarizing our financial results for the period from May 25, 2007, the date we commenced operations, through June 30, 2007, and our financial position as of June 30, 2007.

Although the Fund has been in operation for only a short time, we have taken the steps to build what we believe will be a sound long term investment portfolio.

Relevant Market Conditions

Fund Strategies, Techniques and Performance

Our primary investment objective is capital appreciation. There can be no assurance that we will achieve our investment objective.

During the period from May 25, 2007, through June 30, 2007, our total return on net asset value, or NAV, was negative 5.25%. During that same period, the total return for the EPRA NAREIT Asia Index (an unmanaged index of Asia Pacific real estate common stocks) was negative 4.5%. We believe this index is

relevant to us because all our investments as of June 30, 2007, excluding short term investments, were in securities of real estate companies in countries covered by this index. The S&P 500 Index (an unmanaged index published as Standard and Poor's Composite Index of 500 common stocks) total return for the same period was negative 0.6%.

Thank you for your continued support. For more information, please view our website, at www.rmrfunds.com.

Sincerely,

Adam D. Portnoy
President

Portfolio holdings by sub-sector as a percentage of investments
(as of June 30, 2007) *

Diversified		70	%
Retail		11	%
Other, less than 10%		14	%
Short term investments		5	%

	Total investments	100	%

Real Estate		99	%
Short term investments		1	%

	Total investments	100	%

Portfolio holdings by country (as of June 30, 2007) *

Hong Kong		39	%
Japan		35	%
Singapore		13	%
Other, less than 10%		8	%
Short term investments		5	%

	Total	100	%

*: These percentages represent the Fund's portfolio holdings by sub-sector as a percentage of total portfolio holdings and do not agree with the percentages included in the Portfolio of Investments schedule which represent the Fund's portfolio holdings by sub-sector as a percentage of the Fund's total net assets.

RMR Asia Real Estate Fund
Portfolio of Investments – June 30, 2007 (unaudited)


Company			Shares	Value

Common Stocks – 94.4%
Hong Kong – 39.1%
	Diversified – 23.5%
		China Resources Land, Ltd.	1,158,000	$	1,732,735
		Great Eagle Holdings, Ltd.	200,000		700,839
		Henderson Land Development Co. Ltd	333,000		2,267,783
		Hongkong Land Holdings, Ltd.	1,847,000		8,311,500
		Hysan Development Co., Ltd.	1,122,000		2,984,653
		New World China Land, Ltd.	1,842,000		1,566,567
		Shenzhen Investment, Ltd.	2,486,000		1,882,177
		Shimao Property Holdings, Ltd.	330,000		739,411

					20,185,665
	Hospitality – 6.6%
		Sun Hung Kai Properties, Ltd.	469,000		5,650,169
	Retail – 9.0%
		Hang Lung Properties, Ltd.	1,174,000		4,046,360
		The Link REIT *	1,689,000		3,736,917

					7,783,277
Total Hong Kong (Cost $33,971,595)					33,619,111
Japan – 34.8%
	Apartments – 1.0%
		Nippon Residential Investment Corp. *	148		859,452
	Diversified – 28.9%
		Aeon Mall Co., Ltd.	47,900		1,474,445
		Mitsubishi Estate Co., Ltd.	450,000		12,243,655
		Mitsui Fudosan Co., Ltd	220,000		6,182,335
		Shoei Co., Ltd.	40,260		845,255
		Sumitomo Realty & Development Co., Ltd.	125,000		4,081,218

					24,826,908
	Office – 4.9%
		Nippon Building Fund, Inc. *	203		2,819,330
		NTT Urban Development Corp.	700		1,358,782

					4,178,112
Total Japan (Cost $34,610,682)					29,864,472
See notes to financial statements and notes to portfolio of investments.

Common Stocks – continued
Malaysia – 3.5%
	Diversified – 3.5%
		KLCC Property Holdings Berhad	1,349,000	$	1,422,262
		SP Setia Berhad	616,000		1,543,345

					2,965,607
Total Malaysia (Cost $3,139,243)					2,965,607
Philippines – 3.8%
	Diversified – 3.8%
		Filinvest Land, Inc.	36,202,000		1,690,731
		Megaworld Corp.	17,963,000		1,553,557

					3,244,288
Total Philippines (Cost $3,204,054)					3,244,288
Singapore – 13.2%
	Diversified – 10.6%
		Allgreen Properties, Ltd.	1,965,000		2,682,901
		CDL Hospitality Trusts *	1,343,000		2,158,275
		City Developments, Ltd.	203,000		2,294,235
		Keppel Land, Ltd,	170,000		971,746
		Singapore Land, Ltd.	137,000		1,020,284

					9,127,441
	Office – 0.9%
		Ascott Residence Trust	593,000		782,531
	Retail – 1.7%
		Frasers Centrepoint Trust *	1,289,000		1,448,362
Total Singapore (Cost $11,004,678)					11,358,334
Total Common Stocks (Cost $85,930,252)					81,051,812
Warrants – 1.3%
	Australia – 1.3%
		Macquarie Bank, Ltd., Warrants, expriring 6/19/08 (a) (Cost $1,121,584)	90,000		1,115,100
Short-Term Investments – 4.5%
	Other Investment Companies – 4.5%
		SSgA Money Market Fund, 4.98% (b) (Cost $3,857,778)	3,857,778		3,857,778
Total Investments – 100.2% (Cost $90,909,614)					86,024,690
Other assets less liabilities – (0.2)%					(143,915	)
Net Assets – 100%				$	85,880,775

Notes to Portfolio of Investments

*: Company is organized as a real estate investment trust as defined by the laws of its country of domicile.
(a): As of June 30, 2007, this security had not paid a distribution.
(b): Rate reflects 7 day yield as of June 30, 2007.

See notes to financial statements.

RMR Asia Real Estate Fund
Financial Statements

Statement of Assets and Liabilities


June 30, 2007 (unaudited)

Assets
	Investments in securities, at value (cost $90,909,614)			$	86,024,690
	Cash				121
	Dividends and interest receivable				140,252

		Total assets			86,165,063

Liabilities
	Advisory fee payable				53,970
	Accrued expenses and other liabilities				230,318

		Total liabilities			284,288

Net assets				$	85,880,775

Composition of net assets
	$.001 par value per share;
		unlimited number of shares authorized,
			4,755,000 shares issued and outstanding	$	4,755
	Additional paid-in capital				90,630,245
	Undistributed net investment income				109,632
	Accumulated net realized gain on investment and foreign currency transactions				21,035
	Net unrealized depreciation on investments and foreign currency transactions				(4,884,892	)

Net assets				$	85,880,775

Net asset value per share (based on 4,755,000 shares outstanding)				$	18.06

See notes to financial statements.

RMR Asia Real Estate Fund
Financial Statements – continued

Statement of Operations


For the Period May 25, 2007(a) to June 30, 2007 (unaudited)

Investment Income
	Dividends (cash distributions received or due, net of foreign taxes withheld of $2,625)				$	109,718
	Interest					102,134

		Total investment income				211,852

Expenses
	Advisory					79,409
	Audit and legal					11,050
	Administrative					8,353
	Compliance and internal audit					6,719
	Custodian					5,810
	Shareholder reporting			��		3,136
	Trustees' fees and expenses					2,195
	Other					5,400

		Total expenses				122,072
	Less: expense waived by the Advisor					(19,852	)

		Net expenses				102,220

			Net investment income			109,632

Realized and unrealized gain (loss) on investment and foreign currency transactions
	Net realized gain on foreign currency transactions					21,035
	Net change in unrealized appreciation/(depreciation) on investments					(4,884,892	)

		Net decrease in net assets attributable to common shares resulting from operations			$	(4,754,225	)

(a) Commencement of operations.
See notes to financial statements.

RMR Asia Real Estate Fund
Financial Statements – continued

Statements of Changes in Net Assets


For the Period May 25, 2007(a) to June 30, 2007 (unaudited)

Increase (decrease) in net assets resulting from operations
	Net investment income		$	109,632
	Net realized gain on foreign currency transactions			21,035
	Net change in unrealized appreciation/(depreciation) on investments			(4,884,892	)

		Net decrease in net assets resulting from operations		(4,754,225	)

Capital shares transactions
	Net proceeds from sale of common shares			90,535,000

		Net increase from capital transactions		90,535,000

		Total increase in net assets		85,780,775
Net assets
	Beginning of period			100,000

	End of period (including undistributed net investment income of $109,632)		$	85,880,775

Common shares
	Shares outstanding, beginning of period			5,000
		Shares issued		4,750,000

	Shares outstanding, end of period			4,755,000

(a) Commencement of operations.
See notes to financial statements.

RMR Asia Real Estate Fund
Financial Highlights

Selected Data For A Common Share Outstanding Throughout The Period


		For the Period May 25, 2007(a) to June 30, 2007 (unaudited)

Per Common Share Operating Performance (b)
Net asset value, beginning of period		$	19.06	(c)

Income from Investment Operations
Net investment income (d)			.02
Net realized and unrealized appreciation/(depreciation) on investments			(.98	)

Net decrease in net asset value from operations			(.96	)
Common share offering costs charged to capital			(.04	)

Net asset value, end of period		$	18.06

Market price, beginning of period		$	20.00

Market price, end of period		$	19.16

Total Return (e)
Total investment return based on:
	Market price (f)		(4.20	)%
	Net asset value (f)		(5.25	)%
Ratios/Supplemental Data:
Ratio to average net assets attributable to common shares of: (g)
	Net investment income (d)		1.38	%
	Expenses, net of fee waivers		1.29	%
	Expenses, before fee waivers		1.54	%
Portfolio Turnover Rate			0.00	%
Net assets attributable to common shares, end of period (000s)		$	85,881

(a): Commencement of operations.
(b): Based on average shares outstanding.
(c): Net asset value at May 25, 2007, reflects the deduction of the average sales load and offering costs of $0.94 per share paid by the holders of common shares from the $20.00 offering price. We paid a sales load of $0.90 per share on 4,750,000 common shares sold to the public.
(d): Amounts are net of expenses waived by RMR Advisors.
(e): Total returns for periods of less than one year are not annualized.
(f): Total return based on per share market price assumes the purchase of common shares at the market price on the first day and sales of common shares at the market price on the last day of the period indicated; dividends and distributions, if any, are assumed to be reinvested at market prices on the ex-dividend date. The total return based net asset value, or NAV, assumes the purchase of common shares at NAV on the first day and sales of common shares at NAV on the last day of the period indicated; distributions are assumed to be reinvested at NAV on the ex-dividend date. Results represent past performance and do not guarantee future results. Total return would have been lower if RMR Advisors had not contractually waived a portion of its investment advisory fee.
(g): Annualized.

See notes to financial statements.

RMR Asia Real Estate Fund
Notes to Financial Statements

June 30, 2007 (unaudited)

Note A

(1) Organization

RMR Asia Real Estate Fund, or the Fund, was organized as a Massachusetts business trust on January 18, 2007, and is registered under the Investment Company Act of 1940, as amended, or the 1940 Act, as a non-diversified closed-end management investment company. The Fund had no operations prior to May 25, 2007, other than matters relating to the Fund's establishment, registration of the Fund's common shares under the Securities Act of 1933, and the sale of 5,000 common shares for $100,000 to RMR Advisors, Inc., or RMR Advisors. On May 25, 2007, the Fund sold 4,750,000 common shares in an initial public offering. Proceeds to the Fund were $90,535,000 after deducting underwriting commissions and $190,000 of offering expenses.

(2) Interim Financial Statements

(3) Use of Estimates

(4) Portfolio Valuation

(5) Securities Transactions and Investment Income

(6) Taxes

The Fund has qualified and intends to qualify in the future as a "regulated investment company" and to comply with the applicable provisions of subchapter M of the Internal Revenue Code of 1986, as amended, so that it will generally not be subject to United States federal income tax. However, the Fund may be subject to a 4% excise tax to the extent the Fund does not distribute substantially all taxable earnings each year.

Some Asian governments may subject the Fund's investment income and securities sales to withholding or other taxes. For the period ended June 30, 2007, $2,625 of foreign taxes has been withheld from distributions to the Fund and recorded as a reduction of dividend income. There were no sales of securities during the period.

(7) Distributable Earnings

The Fund earns income, net of expenses, daily on its investments. It is the policy of the Fund to make distributions of its income at least annually in amounts at least equal to the amount necessary to maintain its status as a registered investment company. As of June 30, 2007, the Fund had not declared or paid distributions to shareholders. Distributions to shareholders are recorded on the ex-dividend date. The Fund's distributions may consist of ordinary income (net investment income and short term capital gains), long term capital gains and return of capital. To the extent the Fund's net realized capital gains, if any, can be offset by capital loss carry-forwards, it is the policy of the Fund not to distribute such gains.

Although subject to adjustments, the cost, gross unrealized appreciation and unrealized depreciation of the Fund's investments for federal income tax purposes as of June 30, 2007, are as follows:

Cost	$	90,909,614

Gross unrealized appreciation	$	1,487,889
Gross unrealized depreciation		(6,372,813	)

Net unrealized appreciation/(depreciation)	$	(4,884,924	)

(8) Concentration of Risk

Under normal market conditions, the Fund's investments will be concentrated in common shares, preferred shares and debt securities, including convertible preferred and debt securities, issued by Asian real estate companies and REITs. The value of Fund shares may fluctuate more than the shares of a fund not concentrated in the real estate industry or in the Asian region due to economic, legal, regulatory, technological or other developments affecting the Asian real estate industry and securities market.

(9) Foreign Securities Risk

(10) Foreign Currency Translations

(11) Recent Accounting Pronouncements

In June 2006, the Financial Accounting Standards Board, or FASB, issued Interpretation No. 48 "Accounting for Uncertainty in Income Taxes", or FIN 48. FIN 48 was effective for the fiscal years beginning after December 15, 2006. The Securities and Exchange Commission delayed the application of FIN 48 to open and closed end funds to not later than June 29, 2007. FIN 48 prescribes how the Fund should recognize, measure and present in the Fund's financial statements uncertain tax provisions that have been taken or expected to be taken in a tax return. Pursuant to FIN 48 the Fund can recognize a tax benefit only if it is "more likely than not" that a particular tax position will be sustained upon examination or audit. To the extent the "more likely than not" standard has been satisfied the benefits associated with a tax position is measured as the largest amount that is greater than 50% likely of being realized upon settlement. As required, the Fund adopted Fin 48 effective June 29, 2007, and concluded that the effect is not material to its financial statements.

(12) Other Investment Companies

Note B

Advisory, Subadvisory and Administration Agreements and Other Transactions with Affiliates

RMR Advisors has contractually agreed to waive a portion of its annual fee equal to 0.25% of the Fund's average daily managed assets until May 25, 2012. The Fund incurred net advisory fees of $59,557 during the period ended June 30, 2007.

RMR Advisors has entered into a subadvisory agreement with MacarthurCook Investment Managers Ltd., or MacarthurCook, to make day-to-day investment decisions and to generally manage the business affairs of the Fund in accordance with its investment objectives and policies. Pursuant to the agreement, RMR Advisors, and not the Fund, will pay the subadvisor a monthly fee equal to an annual rate of 0.375% of the Fund's average daily managed assets. MacarthurCook has agreed to waive a portion of the fee payable by RMR Advisors such that until May 25, 2012, the fee payable will be equal to 0.25% of the Fund's average daily managed assets.

RMR Advisors also performs administrative functions for the Fund pursuant to an administration agreement with the Fund. RMR Advisors has entered into a subadministration agreement with State Street Bank and Trust Company, or State Street, to perform substantially all Fund accounting and other administrative services. Under the administration agreement, RMR Advisors is entitled to reimbursement of the cost of providing administrative services. The Fund reimbursed RMR Advisors for $8,353 of subadministrative fees charged by State Street for the period ended June 30, 2007.

Each trustee who is not a director, officer or employee of RMR Advisors and who is not an "interested person" of the Fund as defined under the 1940 Act, is considered to be a "disinterested trustee". Disinterested trustees are each paid by the Fund an annual fee plus fees for board and committee meetings. The Fund incurred $2,195 of trustee fees and expenses during the period ended June 30, 2007.

The Fund's board of trustees and separately the disinterested trustees authorized the Fund to make reimbursement payments to RMR Advisors for costs related to the Fund's compliance and internal audit programs. The Fund incurred $6,719 of compliance and internal audit expense during the period ended June 30, 2007. The Fund also participates in pooled insurance programs with RMR Advisors and other funds managed by RMR Advisors and makes payments of allocated portions of related premiums. The Fund incurred $1,742 of insurance expense during the period ended June 30, 2007.

Note C

Securities Transactions

During the period ended June 30, 2007, there were purchases and sales transactions (excluding short term securities) of $87,051,836 and $0 respectively. Brokerage commissions on securities transactions amounted to $50,372 during the period ended June 30, 2007.

RMR Real Estate Fund
RMR Hospitality and Real Estate Fund
RMR F.I.R.E. Fund
RMR Preferred Dividend Fund
RMR Asia Pacific Real Estate Fund
RMR Asia Real Estate Fund
June 30, 2007

For the purposes of the following, RMR Real Estate Fund (RMR), RMR Hospitality and Real Estate Fund (RHR), RMR F.I.R.E. Fund (RFR), RMR Preferred Dividend Fund (RDR), RMR Asia Pacific Real Estate Fund (RAP) and RMR Asia Real Estate Fund (RAF) are each referred to as a "Trust" or collectively as the "Trusts".

Consideration of the Investment Advisory and Investment Sub-Advisory Agreements for RAF

RMR Advisors serves as the investment advisor to RAF, and MacarthurCook Investment Managers Limited ("MacarthurCook") serves as the sub-advisor to RAF. On February 12, 2007, the RAF board of trustees (the "board") entered into investment advisory and investment sub-advisory agreements for a period of two years to expire on February 11, 2009.

Investment Advisory Agreement. In making their determination to approve the RAF investment advisory agreement, the board, including the disinterested trustees, considered all of the factors described below.

The board considered the anticipated benefits to RAF shareholders from appointing RMR Advisors as investment advisor. The board's considerations included, among others: the nature, scope and quality of services that RMR Advisors was expected to provide to RAF; the advisory and other fees to be paid; the fact that RMR Advisors has agreed to waive a portion of its fee during the first five years of the RAF's existence in order to reduce RAF's operating expenses; the quality and depth of personnel of RMR Advisors's organization; the capacity and future commitment of RMR Advisors to perform its duties; the financial condition and anticipated profitability of RMR Advisors; the experience and expertise of RMR Advisors as an investment adviser; the level of fees to be paid to RMR Advisors as compared to similar funds; the potential for economies of scale; and any indirect benefits expected to be derived by RMR Advisors's relationship with RAF.

The board considered the level and depth of knowledge of RMR Advisors. In evaluating the quality of services to be provided by RMR Advisors, the board took into account its familiarity with RMR Advisors' management through board meetings, conversations and reports of other funds managed by RMR Advisors. The board also considered the historical performance of the other funds managed by RMR Advisors. The board also took into account RMR Advisors's compliance policies and procedures.

The board compared the proposed advisory fees and the estimated total expense ratio of RAF with various comparative fund data. The board considered RAF's investment objective. The board also considered the RAF's model portfolio composition and investment strategy.

The board considered the potential economies of scale that may be realized if the assets of the RAF grow. The board noted that shareholders might benefit from lower operating expenses as a result of an increasing amount of assets being spread over RAF's fixed expenses.

In considering the approval of the investment advisory agreement, the board, including the disinterested trustees, did not identify any single factor as controlling. Based on the board's evaluation of all the factors that it deemed to be relevant, the board, including the disinterested trustees of the board, concluded that: RMR

Advisors has demonstrated that it possesses the capability and resources to perform the duties required of it under the investment advisory agreement for the Fund; RMR Advisors maintains an appropriate compliance program; and the proposed advisory fee rate is fair and reasonable, given the scope and quality of the services to be rendered by RMR Advisors.

Investment Sub-Advisory Agreement. In making their determination to approve the RAF investment sub-advisory agreement, the board, including the disinterested trustees, considered all of the factors described below.

The board considered the anticipated benefits to RAF shareholders from appointing MacarthurCook as investment sub-advisor. The board's considerations included, among others: the nature, scope and quality of services that MacarthurCook was expected to provide; the sub-advisory fees to be paid by RMR Advisors to MacarthurCook; the fact that MacarthurCook has agreed to waive a portion of its fee during the first five years of RAF's existence; the quality and depth of personnel of MacarthurCook's organization; the capacity and future commitment of MacarthurCook to perform its duties; and the experience and expertise of MacarthurCook as an investment adviser.

The board considered the level and depth of knowledge of MacarthurCook, noting that MacarthurCook specialized in the area of real estate investment management. The board also took into account MacarthurCook's compliance policies and procedures.

The board compared the proposed sub-advisory fees and the estimated total expense ratio of RAF with various comparative fund data. The board considered RAF's investment objective. The board also took into consideration the performance of a model portfolio on which RAF's initial holdings would be based as well as the performance of other funds managed by MacarthurCook.

The board noted that sub-advisory fees under the investment sub-advisory agreement would be paid by RMR Advisers and not by RAF and therefore were the product of arm's-length negotiations between RMR Advisors and MacarthurCook. For these reasons, the anticipated profitability to MacarthurCook from its relationship with RAF was not a material factor in the board's deliberations. For similar reasons, the board did not consider the potential economies of scale in MacarthurCook's management of RAF to be a material factor in its consideration.

In considering the approval of the investment sub-advisory agreement, the board, including the disinterested trustees, did not identify any single factor as controlling. Based on the board's evaluation of all the factors that it deemed to be relevant, the board, including the disinterested trustees of the board, concluded that: MacarthurCook possesses the capability and resources to perform the duties required of it under the investment sub-advisory agreement; MacarthurCook maintains an appropriate compliance program; and the proposed sub-advisory fee rate is fair and reasonable, given the scope and quality of the services to be rendered by MacarthurCook.

Privacy Policy

Each of the Funds is committed to maintain shareholder privacy and to safeguard shareholder nonpublic personal information.

The Funds do not receive any nonpublic personal information relating to shareholders who purchase Fund shares through an intermediary that acts as the record owner of the shares. If a shareholder is the record owner of any Fund's shares, that Fund may receive nonpublic personal information on shareholder account documents or otherwise and also has access to specific information regarding shareholder Fund share transactions, either directly or through the Fund's transfer agent.

The Funds do not disclose any nonpublic personal information about shareholders or any former shareholders to anyone, except as permitted by law (e.g. in connection with litigation between the Fund and a shareholder) or as is necessary to service shareholder accounts. The Funds restrict access to nonpublic personal information about shareholders to employees of the Funds and RMR Advisors with a legitimate business need for the information.

Proxy Voting Policies and Procedures

A description of the policies and procedures that are used to vote proxies relating to each Fund's portfolio securities is available: (1) without charge, upon request, by calling us at 1-866-790-8165; and (2) as an exhibit to each Fund's annual report on Form N-CSR, which is available on the website of the U.S. Securities and Exchange Commission (the "Commission") at http://www.sec.gov. Information regarding how proxies received by each Fund during the most recent 12 month period ended June 30, 2007, have been voted is available (1) without charge, on request, by calling us at 1-866-790-3165, or (2) by visiting the Commission's website at http://www.sec.gov and accessing each Fund's Form N-PX.

Procedures for the Submission of Confidential and Anonymous Concerns or Complaints about Accounting, Internal Accounting Controls or Auditing Matters

The Funds are committed to compliance with all applicable securities laws and regulations, accounting standards, accounting controls and audit practices and have established procedures for handling concerns or complaints about accounting, internal accounting controls or auditing matters. Any shareholder or other interested party who desires to communicate with our independent trustees or any other trustees, individually or as a group, may do so by filling out a report at the "Contact Us" section of our website (www.rmrfunds.com), by calling our toll-free confidential message system at 866-511-5038, or by writing to the party for whom the communication is intended, care of our director of internal audit, RMR Funds, 400 Centre Street, Newton, MA 02458. Our director of internal audit will then deliver any communication to the appropriate party or parties.

Portfolio Holdings Reports

Each Fund files its complete schedule of portfolio holdings with the Commission for the first and third quarters of each fiscal year on Form N-Q, which are available on the Commission's website at http://www.sec.gov. The Funds' Forms N-Q may also be reviewed and copied at the Commission's Public Reference Room in Washington, D.C. Information on the operation of the Public Reference Room may be obtained by calling the Commission at 1-800-SEC-0330. Each Fund provides additional data at its website at www.rmrfunds.com.

Certifications

Each Fund's principal executive officer and principal financial officer certifications required by Section 302 of the Sarbanes-Oxley Act of 2002 and filed with the Fund's N-CSR are available on the Securities and Exchange Commission's website at http://www.sec.gov.

100


WWW.RMRFUNDS.COM

Item 2. Code of Ethics.

The information is only required for the annual report on Form N-CSR.

Item 3. Audit Committee Financial Expert.

The information is only required for the annual report on Form N-CSR.

Item 4. Principal Accountant Fees and Services.

The information is only required for the annual report on Form N-CSR.

Item 5. Audit Committee of Listed Registrants.

The information is only required for the annual report on Form N-CSR.

Item 6. Schedule of Investments.

The information required under Item 6 is included as part of the report to shareholders filed under Item 1 of this Form N-CSR.

Item 7. Disclosure of Proxy Voting Policies and Procedures for Closed-End Management Investment Companies.

The information is only required for the annual report on Form N-CSR.

Item 8. Portfolio Managers of Closed-End Management Investment Companies.

The information is only required for the annual report on Form N-CSR.

Item 9. Purchases of Equity Securities by Closed-End Management Investment Company and Affiliated Purchasers.

During the period ended June 30, 2007, there were no purchases made by or on behalf of the registrant or any "affiliated purchaser" as defined in Rule 10b-18(a)(3) under the Securities Exchange Act of 1934, as amended (the "Exchange Act") (17 CFR 240.10b-18(a)(3)), of shares of the registrant's equity securities that are registered by the registrant pursuant to Section 12 of the Exchange Act.

Item 10. Submission of Matters to a Vote of Security Holders.

There have been no material changes to the procedures by which shareholders may recommend nominees to the registrant's board of trustees.

Item 11. Controls and Procedures.

(a): The registrant's principal executive officer and principal financial officer have concluded that the registrant's disclosure controls and procedures (as defined in Rule 30a-3(c) under the Investment Company Act of 1940, as amended (the "1940 Act")) are effective, as of a date within 90 days of the filing date of this report, based on their evaluation of these controls and procedures.
(b): There were no changes in the registrant's internal control over financial reporting (as defined in Rule 30a-3(d) under the 1940 Act) that occurred during the registrant's most recent fiscal period covered by this report that have materially affected, or are reasonably likely to materially affect, the registrant's internal control over financial reporting.

Item 12. Exhibits.

(a): (2) Certifications of principal executive officer and principal financial officer of the registrant as required by Rule 30a-2(a) under the 1940 Act are attached hereto.
(b): Certifications of principal executive officer and principal financial officer of the registrant as required by Rule 30a-2(b) under the 1940 Act and Section 906 of the Sarbanes-Oxley Act of 2002 are attached hereto.

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.

RMR ASIA PACIFIC REAL ESTATE FUND
By:		/s/ ADAM D. PORTNOY Adam D. Portnoy President Date: August 17, 2007

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:

/s/ ADAM D. PORTNOY

Adam D. Portnoy
President
Date: August 17, 2007

By:

/s/ MARK L. KLEIFGES

Mark L. Kleifges
Treasurer
Date: August 17, 2007

QuickLinks

Item 1. Reports to Shareholders.