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- 08565
Exact name of registrant as specified in charter: Strategic Partners Real
Estate Securities Fund
Address of principal executive offices: Gateway Center 3
100 Mulberry Street
Newark, New Jersey 07102
Name and address of agent for service: Jonathan D. Shain
Gateway Center 3
100 Mulberry Street
Newark, New Jersey 07102
Registrant's telephone number, including area code: 973-802-6469
Date of fiscal year end: March 31, 2004
Date of reporting period: September 30, 2003
Item 1 -- Reports to Stockholders
Semiannual Report September 30, 2003
STRATEGIC PARTNERS
Real Estate Securities Fund (LOGO)
(Formerly known as Prudential Real Estate Securities Fund)
Objective: High current income and long-term growth of capital
This report is not authorized for distribution
to prospective investors unless preceded or
accompanied by a current prospectus. The views
expressed in this report and information about
the Fund's portfolio holdings are for the
period covered by this report and are subject
to change thereafter.
Strategic Partners Real Estate Securities Fund
Performance at a Glance
FUND OBJECTIVE
The investment objective of the Strategic
Partners Real Estate Securities Fund (the Fund)
is high current income and long-term growth
of capital. There can be no assurance that the
Fund will achieve its investment objective.
Cumulative Total Returns1 As of 9/30/03
Six Months One Year Five Years Since Inception2
Class A 28.52% 31.86% 91.06% 47.74%
Class B 28.11 30.90 83.98 41.92
Class C 28.11 30.90 83.98 41.92
Class Z 28.73 32.25 93.50 49.88
S&P 500 Index3 18.44 24.37 5.08 -3.20
Wilshire REIT Index4 23.23 25.35 81.22 60.71
Lipper Real Estate
Funds Avg.5 22.99 25.78 74.77 49.43
Average Annual Total Returns1 As of 9/30/03
One Year Five Years Since Inception2
Class A 25.27% 12.66% 6.47%
Class B 25.90 12.84 6.55
Class C 28.60 12.74 6.49
Class Z 32.25 14.11 7.77
S&P 500 Index3 24.37 1.00 -0.60
Wilshire REIT Index4 25.35 12.63 9.15
Lipper Real Estate Funds Avg.5 25.78 11.76 7.64
Past performance is not indicative of future
results. Principal value and investment return
will fluctuate so that an investor's shares,
when redeemed, may be worth more or less than
their original cost. 1Source: Prudential
Investments LLC and Lipper Inc. The cumulative
total returns do not take into account
applicable sales charges. If reflected, the
applicable sales charge would reduce the
cumulative total returns performance quoted.
The average annual total returns do take into
account applicable sales charges. Without a
distribution and service (12b-1) fee waiver of
0.05% for Class A shares, the returns would
have been lower. The Fund charges a maximum
front-end sales charge of 5% for Class A shares
and a 12b-1 fee of up to 0.30% annually. In
some circumstances, Class A shares may not be
subject to a front-end sales charge, but may be
subject to a 1% contingent deferred sales
charge (CDSC) for the first year. Class B
shares are subject to a declining CDSC of 5%,
4%, 3%, 2%, 1%, and 1% respectively for the
first six years after purchase and a 12b-1 fee
of 1% annually. Approximately seven years after
purchase, Class B shares will automatically
convert to Class A shares on a quarterly basis.
Class C shares are subject to a front-end sales
charge of 1%, a CDSC of 1% for shares redeemed
within 18 months of purchase, and a 12b-1 fee
of 1% annually. Class Z shares are not subject
to a 12b-1 fee. The returns in the tables do
not reflect the deduction of taxes that a
shareholder would pay on Fund distributions or
following the redemption of Fund shares.
2Inception date: 5/5/98. 3The Standard & Poor's
500 Composite Stock Price Index (S&P 500 Index)
is an unmanaged index of 500 stocks of large
U.S. companies. It gives a broad look at how
U.S. stock prices have performed. 4The Wilshire
REIT Index is an unmanaged, market
capitalization-weighted index comprising
publicly traded REITs. This Index does not
www.strategicpartners.com (800) 225-1852
Semiannual Report September 30, 2003
include real estate operating companies like
the Wilshire Real Estate Securities Index does.
5The Lipper Real Estate Funds Average (Lipper
Average) represents returns based on the
average return for all funds in the Lipper Real
Estate Funds category for the periods noted. Funds
in the Lipper Real Estate Funds category invest
primarily in equity securities of domestic and
foreign companies engaged in the real estate
industry. Investors cannot invest directly in
an index. The returns for the indexes would be
lower if they included the effects of sales
charges, operating expenses of a mutual fund,
or taxes. Returns for the Lipper Average
reflect the deduction of operating expenses,
but not sales charges or taxes.
Five Largest Holdings
Expressed as a percentage of net assets as of
9/30/03.
7.5% General Growth Properties, Inc.
Retail-Malls
- -----------------------------------------
7.2 Simon Property Group, Inc.
Retail-Malls
- -----------------------------------------
7.1 ProLogis
Warehouse
- -----------------------------------------
7.0 The Rouse Co.
Diversified
- -----------------------------------------
6.7 Kimco Realty Corp.
Retail-Shopping Centers
- -----------------------------------------
Holdings are subject to change.
Five Largest Industries
Expressed as a percentage of net assets as of
9/30/03.
16.1% Retail-Shopping Centers
- -----------------------------------------
15.6 Diversified
- -----------------------------------------
14.7 Retail-Malls
- -----------------------------------------
11.4 Warehouse
- -----------------------------------------
9.9 Office
- -----------------------------------------
Industry weightings are subject to change.
1
(LOGO)
November 21, 2003
DEAR SHAREHOLDER,
Recent stories in the media have painted an
unflattering portrait of the mutual fund
industry. There has also been press coverage of
Prudential, almost all of which has been
focused on former brokers of Prudential
Securities.* As the manager of Strategic
Partners mutual funds, we at Prudential
Investments share your concern over these
investigations.
State and federal authorities have requested
information regarding trading practices from
many mutual fund companies from across the
nation. Prudential Investments has been
cooperating with those inquiries and, at the
same time, participating in an internal review.
This review includes activity by the investment
professionals of Prudential-managed funds, as
well as the policies, systems, and procedures
of Prudential Financial's investment units and
its proprietary distribution channels,
including the former Prudential Securities.
MARKET TIMING
While market timing is not illegal, Prudential
Investments has actively discouraged disruptive
market timing, and for years, our mutual fund
prospectuses have identified and addressed this
issue. Our mutual fund business has established
operating policies and procedures that are designed
to detect and deter frequent trading activities
deemed disruptive to the management of
Prudential-managed mutual fund portfolios, and
we have rejected numerous orders placed by market
timers in the past.
* Prudential Investments LLC, the manager of
Strategic Partners Mutual Funds, and
Prudential Investment Management Services,
the distributor of the funds, are part of the
Investment Management segment of Prudential
Financial, Inc. and are separate legal
entities from Prudential Securities, a retail
brokerage firm formerly owned by Prudential
Financial. In February 2003, Prudential
Financial and Wachovia Corporation announced
they were combining their retail brokerage
forces. The transaction was completed in July
2003. Wachovia Corporation has a 62% interest
in the new firm, which is now known as
Wachovia Securities, and Prudential Financial
owns the remaining 38%.
2
LATE TRADING
SEC rules require that orders to purchase or
redeem fund shares be received either by the
fund or by an intermediary (such as a broker,
financial adviser, or 401(k) record keeper)
before the time at which the fund calculates
its net asset value (normally 4:00 p.m.,
Eastern time) if they are to receive that day's
price. While we can't be absolutely certain
that no intermediary has accepted a late trade,
our contracts with intermediaries require that
they adhere to our prohibition on late trading.
For more than 40 years Prudential has offered
investors quality investment products,
financial guidance, and responsive customer
service. Today, as the manager of Strategic
Partners mutual funds, we remain committed to
this heritage and to the highest ethical
principles in our investment practices.
Sincerely,
Judy A. Rice, President
Strategic Partners Real Estate Securities Fund
3
Strategic Partners Real Estate Securities Fund
Portfolio of Investments as of September 30, 2003 (Unaudited)
<Table>
<Caption>
Shares Description Value (Note 1)
- -----------------------------------------------------------------------------------------
LONG-TERM INVESTMENTS 98.4%
COMMON STOCKS
- -------------------------------------------------------------------------------------
Diversified 15.6%
18,500 Harrah's Entertainment, Inc. $ 779,035
12,400 LNR Property Corp. 507,780
53,000 Newcastle Investment Holdings Corp.(a)(b) 258,375
19,200 Pulte Homes, Inc. 1,305,792
86,100 Rouse Co. (The) 3,590,370
20,372 Unibail 1,601,384
--------------
8,042,736
- -------------------------------------------------------------------------------------
Healthcare Facilities 3.3%
83,000 OMEGA Healthcare Investors, Inc. 637,440
61,900 Ventas, Inc. 1,059,728
--------------
1,697,168
- -------------------------------------------------------------------------------------
Lodging 5.7%
240,700 Host Marriott Corp.(b) 2,582,711
60,052 Interstate Hotels & Resorts, Inc.(b) 343,497
--------------
2,926,208
- -------------------------------------------------------------------------------------
Mortgage 5.8%
57,340 iStar Financial, Inc. 2,233,393
32,200 RAIT Investment Trust 739,312
--------------
2,972,705
- -------------------------------------------------------------------------------------
Multi-Family 9.3%
63,600 Apartment Investment & Management Co. (Class A) 2,503,296
49,600 Avalonbay Communities, Inc. 2,321,280
--------------
4,824,576
- -------------------------------------------------------------------------------------
Office 9.9%
30,700 Arden Realty, Inc. 857,144
57,200 Boston Properties, Inc. 2,486,484
34,100 Liberty Property Trust 1,261,018
24,700 Maguire Properties, Inc. 506,350
--------------
5,110,996
- -------------------------------------------------------------------------------------
Retail-Malls 14.7%
53,900 General Growth Properties, Inc. 3,864,630
85,200 Simon Property Group, Inc. 3,713,016
--------------
7,577,646
</Table>
4 See Notes to Financial Statements
<Page>
Strategic Partners Real Estate Securities Fund
Portfolio of Investments as of September 30, 2003 (Unaudited)
Cont'd.
<Table>
<Caption>
Shares Description Value (Note 1)
- -----------------------------------------------------------------------------------------
Retail-Shopping Centers 16.1%
41,500 Chelsea Property Group, Inc. $ 1,987,850
84,800 Kimco Realty Corp. 3,474,256
51,700 Price Legacy Corp.(b) 180,950
71,500 Regency Centers Corp. 2,634,775
--------------
8,277,831
- -------------------------------------------------------------------------------------
Self-Storage Facilities 6.6%
66,100 Public Storage, Inc. 2,593,103
22,900 Shurgard Storage Centers, Inc. (Class A) 808,370
--------------
3,401,473
- -------------------------------------------------------------------------------------
Warehouse 11.4%
46,000 AMB Property Corp. 1,417,260
121,700 ProLogis 3,681,425
20,700 PS Business Parks, Inc. 781,218
--------------
5,879,903
--------------
Total long-term investments
(cost $40,655,032) 50,711,242
--------------
SHORT-TERM INVESTMENT 1.9%
<Caption>
Principal
Amount
(000)
- -----------------------------------------------------------------------------------------
Repurchase Agreement
$992 State Street Bank & Trust Co. Repurchase Agreement,
dated 9/30/03, 0.05%, due 10/1/03(c)
(cost $992,000) 992,000
--------------
Total Investments 100.3%
(cost $41,647,032; Note 5) 51,703,242
Liabilities in excess of other assets (0.3%) (167,426)
--------------
Net Assets 100% $ 51,535,816
--------------
--------------
</Table>
- ------------------------------
(a) Fair-valued security (Note 1).
(b) Non-income producing security.
(c) Repurchase price of $992,000. Collateralized by $1,005,000 U.S. Treasury
Notes with a rate of 1.625%, maturity date of 04/30/05, and aggregate
market value, including accrued interest, of $1,016,306.
See Notes to Financial Statements 5
<Page>
Strategic Partners Real Estate Securities Fund
Statement of Assets and Liabilities (Unaudited)
September 30, 2003
- ------------------------------------------------------------------------------
ASSETS
Investments, at value (cost $41,647,032) $ 51,703,242
Cash 2,567
Dividends and interest receivable 162,261
Receivable for Fund shares sold 128,265
Receivable for investments sold 116,871
Tax reclaim receivable 2,513
Deferred organization expenses and other assets 571
---------------
Total assets 52,116,290
---------------
LIABILITIES
Payable for Fund shares reacquired 346,233
Accrued expenses 172,616
Management fee payable 31,317
Distribution fee payable 30,308
---------------
Total liabilities 580,474
---------------
NET ASSETS $ 51,535,816
---------------
---------------
Net assets were comprised of:
Shares of beneficial interest, at par $ 4,134
Paid-in capital in excess of par 64,734,611
---------------
64,738,745
Undistributed net investment income 173,342
Accumulated net realized loss on investments (23,432,470)
Net unrealized appreciation on investments 10,056,199
---------------
Net assets, September 30, 2003 $ 51,535,816
---------------
---------------
6 See Notes to Financial Statements
<Page>
Strategic Partners Real Estate Securities Fund
Statement of Assets and Liabilities (Unaudited) Cont'd.
<Table>
<Caption>
September 30, 2003
- ----------------------------------------------------------------------------------------
Class A:
Net asset value and redemption price per share
($14,680,416 / 1,176,145 shares of beneficial interest
issued and outstanding) $12.48
Maximum sales charge (5% of offering price) .66
------------------
Maximum offering price to public $13.14
------------------
------------------
Class B:
Net asset value, offering price and redemption price per
share ($29,102,658 / 2,336,257 shares of beneficial
interest issued and outstanding) $12.46
------------------
------------------
Class C:
Net asset value and redemption price per share
($4,514,078 / 362,373 shares of beneficial interest
issued and outstanding) $12.46
Sales charge (1% of offering price) .13
------------------
Offering price to public $12.59
------------------
------------------
Class Z:
Net asset value, offering price and redemption price per
share ($3,238,664 / 259,134 shares of beneficial
interest issued and outstanding) $12.50
------------------
------------------
</Table>
See Notes to Financial Statements 7
<Page>
Strategic Partners Real Estate Securities Fund
Statement of Operations (Unaudited)
<Table>
<Caption>
Six Months
Ended
September 30, 2003
- ----------------------------------------------------------------------------------------
NET INVESTMENT INCOME
Income
Dividends (net of foreign withholding taxes of $4,898) $ 1,029,182
Interest 3,561
------------------
Total income 1,032,743
------------------
Expenses
Management fee 179,771
Distribution fee--Class A 16,702
Distribution fee--Class B 140,307
Distribution fee--Class C 20,579
Custodian's fees and expenses 55,000
Transfer agent's fees and expenses 39,000
Legal fees and expenses 21,000
Reports to shareholders 20,000
Audit fee 14,000
Trustees' fees 3,000
Amortization of organizational expense 2,461
Miscellaneous 2,051
------------------
Total expenses 513,871
------------------
Net investment income 518,872
------------------
REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS AND
FOREIGN CURRENCY TRANSACTIONS
Net realized gain (loss) on:
Investment transactions 2,003,129
Foreign currency transactions (5,648)
------------------
1,997,481
------------------
Net change in unrealized appreciation on investments: 9,172,375
------------------
Net gain on investments 11,169,856
------------------
NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS $ 11,688,728
------------------
------------------
</Table>
8 See Notes to Financial Statements
<Page>
Strategic Partners Real Estate Securities Fund
Statement of Changes in Net Assets (Unaudited)
<Table>
<Caption>
Six Months Year
Ended Ended
September 30, 2003 March 31, 2003
- -----------------------------------------------------------------------------------
INCREASE (DECREASE) IN NET ASSETS
Operations
Net investment income $ 518,872 $ 1,069,162
Net realized gain on investments and
foreign currency transactions 1,997,481 3,067,176
Net change in unrealized appreciation
(depreciation) on investments and
foreign currencies 9,172,375 (3,681,292)
------------------ --------------
Net increase in net assets resulting from
operations 11,688,728 455,046
------------------ --------------
Dividends and distributions (Note 1)
Dividends from net investment income
Class A (173,378) (398,589)
Class B (262,152) (751,391)
Class C (38,437) (106,366)
Class Z (31,138) (61,045)
------------------ --------------
(505,105) (1,317,391)
------------------ --------------
Fund share transactions (net of share
conversions) (Note 6)
Net proceeds from shares sold 8,963,373 18,911,306
Net asset value of shares issued in
reinvestment of dividends and
distributions 428,334 1,117,048
Cost of shares reacquired (10,710,821) (22,372,903)
------------------ --------------
Net decrease in net assets from Fund
share transactions (1,319,114) (2,344,549)
------------------ --------------
Total increase (decrease) 9,864,509 (3,206,894)
NET ASSETS
Beginning of period 41,671,307 44,878,201
------------------ --------------
End of period(a) $ 51,535,816 $ 41,671,307
------------------ --------------
------------------ --------------
- ------------------------------
(a) Includes undistributed net investment
income of: $ 173,342 $ 159,575
------------------ --------------
</Table>
See Notes to Financial Statements 9
<Page>
Strategic Partners Real Estate Securities Fund
Notes to Financial Statements (Unaudited)
Strategic Partners Real Estate Securities Fund, Inc. (the 'Fund'),
formerly known as Prudential Real Estate Securities Fund, is registered under
the Investment Company Act of 1940 as a nondiversified, open-end, management
investment company. The Fund was established as a Delaware business trust on
October 24, 1997. The Fund commenced investment operations on May 5, 1998. The
investment objective of the Fund is high current income and long-term growth of
capital. It seeks to achieve this objective by investing primarily in equity
securities of real estate companies.
Note 1. Accounting Policies
The following is a summary of significant accounting policies followed by the
Fund in the preparation of its financial statements.
Securities Valuation: Securities listed on a securities exchange are
valued at the last sale price on such exchange on the day of valuation or, if
there was no sale on such day, at the mean between the last reported bid and ask
prices, or at the last bid price on such day in the absence of an asked price.
Securities traded via Nasdaq are valued at the official closing price provided
by Nasdaq. Securities that are actively traded in the over-the-counter market,
including listed securities for which the primary market is believed by
Prudential Investments LLC ('PI' or 'Manager'), in consultation with the
subadviser to be over-the-counter, are valued at market value by an independent
pricing agent or principal market maker. Options on securities and indices
traded on an exchange are valued at the mean between the most recently quoted
bid and asked prices on such exchange. Futures contracts and options thereon
traded on a commodities exchange or board of trade are valued at the last sale
price at the close of trading on such exchange or board of trade or, if there
was no sale on the applicable commodities exchange or board of trade on such
day, at the mean between the most recently quoted bid and asked prices on such
exchange or board of trade or at the last bid price in the absence of an asked
price. Any security for which a reliable market quotation is unavailable is
valued at fair value by a Valuation Committee appointed by the Fund's Board of
Trustees.
Short-term securities which mature in more than 60 days are valued at
current market quotations. Short-term securities which mature in 60 days or less
are valued at amortized cost, which approximates market value.
Repurchase Agreements: In connection with transactions in repurchase
agreements with United States financial institutions, it is the Fund's policy
that its custodian or designated subcustodians, as the case may be under
triparty repurchase agreements, take possession of the underlying collateral
securities, the value of which
10
<Page>
Strategic Partners Real Estate Securities Fund
Notes to Financial Statements (Unaudited) Cont'd.
exceeds the principal amount of the repurchase transaction, including accrued
interest. To the extent that any repurchase transaction exceeds one business
day, the value of collateral is marked to market on a daily basis to ensure
adequacy of the collateral. If the seller defaults and the value of the
collateral declines, or if bankruptcy proceedings are commenced with respect to
the seller of the security, realization of the collateral by the Fund may be
delayed or limited.
Securities Transactions and Investment Income: Securities transactions
are recorded on the trade date. Realized gains or losses on sales of investments
are calculated on the identified cost basis. Dividend income is recorded on the
ex-dividend date and interest income is recorded on the accrual basis. The Fund
amortizes premiums and accretes discounts on debt securities as adjustments to
interest income. The Fund invests in real estate investment trusts ('REITS'),
which report information on the source of their distributions annually. A
portion of distributions received from REITS during the period is estimated to
be capital gain and a portion is estimated to be return of capital and is
recorded as a reduction of their costs. These estimates are adjusted when the
actual source of distributions is disclosed by the REITS. Expenses are recorded
on the accrual basis which may require the use of certain estimates by
management.
Net investment income or loss (other than distribution fees which are
charged directly to the respective class) and unrealized and realized gains or
losses are allocated daily to each class of shares based upon the relative
proportion of net assets of each class at the beginning of the day.
Dividends and Distributions: The Fund expects to pay dividends of net
investment income quarterly and distributions of net realized capital gains, if
any, annually. Dividends and distributions to shareholders, which are determined
in accordance with federal income tax regulations and which may differ from
generally accepted accounting principles, are recorded on the ex-dividend date.
Permanent book/tax differences relating to income and gains are reclassified to
paid-in-capital when they arise.
Taxes: It is the Fund's policy to continue to meet the requirements of
the Internal Revenue Code applicable to regulated investment companies and to
distribute all of its taxable net income and capital gains, if any, to
shareholders. Therefore, no federal income tax provision is required.
Withholding taxes on foreign dividends are recorded, net of reclaimable
amounts, at the time the related income is earned.
Organization Expenses: Organization costs of approximately $108,700 are
being amortized ratably over a period of sixty months from the date the Fund
commenced investment operations.
11
<Page>
Strategic Partners Real Estate Securities Fund
Notes to Financial Statements (Unaudited) Cont'd.
Note 2. Agreements
The Fund has a management agreement with PI. Pursuant to this agreement, PI has
responsibility for all investment advisory services and supervises the
subadviser's performance of such services. PI has a subadvisory agreement with
Wellington Management Company, LLP ('Wellington' or 'subadviser'). The
subadvisory agreement provides that Wellington furnishes investment advisory
services in connection with the management of the Fund. In connection therewith,
Wellington is obligated to keep certain books and records of the Fund. PI
continues to have responsibility for all investment advisory services pursuant
to the management agreement and supervises Wellington's performance of such
services. PI pays for the services of Wellington, the cost of compensation of
officers of the Fund, occupancy and certain clerical and bookkeeping costs of
the Fund. The Fund bears all other costs and expenses.
The management fee paid to PI is computed daily and payable monthly at an
annual rate of .75 of 1% of the Fund's average daily net assets.
The Fund has a distribution agreement with Prudential Investment
Management Services LLC ('PIMS') which acts as the distributor of the Class A,
Class B, Class C and Class Z shares of the Fund. The Fund compensates PIMS for
distributing and servicing the Fund's Class A, Class B and Class C shares,
pursuant to a plan of distribution (the 'Class A, B and C Plans'), regardless of
expenses actually incurred by PIMS. The distribution fees are accrued daily and
payable monthly. No distribution or service fees are paid to PIMS as distributor
of the Class Z shares of the Fund.
Pursuant to the Class A, B and C Plans, the Fund compensates PIMS for
distribution-related activities at an annual rate of up to .30 of 1%, 1% and 1%,
of the average daily net assets of the Class A, B and C shares, respectively.
PIMS has contractually agreed to limit such fees to an annual rate of .25 of 1%
of the average daily net assets of the Class A shares.
PIMS has advised the Fund that it received approximately $24,900 and
$2,600 in front-end sales charges resulting from sales of Class A and Class C
shares, respectively, during the six months ended September 30, 2003. From these
fees, PIMS paid such sales charges to dealers, which in turn paid commissions to
salespersons and incurred other distribution costs.
PIMS has advised the Fund that for the six months ended September 30,
2003, it received approximately $34,600 and $400 in contingent deferred sales
charges imposed upon certain redemptions by Class B and Class C shareholders,
respectively.
PI and PIMS are indirect, wholly-owned subsidiaries of Prudential
Financial, Inc. ('Prudential').
12
<Page>
Strategic Partners Real Estate Securities Fund
Notes to Financial Statements (Unaudited) Cont'd.
The Fund, along with other affiliated registered investment companies (the
'Funds'), is a party to a syndicated credit agreement ('SCA') with a group of
banks. The SCA provides for a commitment of $800 million and allows the Funds to
increase the commitment to $1 billion, if necessary. Interest on any borrowings
under the SCA will be incurred at market rates. The Funds pay a commitment fee
of .08 of 1% of the unused portion of the SCA. The commitment fee is accrued and
paid quarterly and is allocated to the Funds pro rata, based on net assets. The
purpose of the SCA is to serve as an alternative source of funding to facilitate
capital share redemptions. The expiration date of the SCA was May 2, 2003. On
May 2, 2003, the SCA was renewed under the same terms and conditions ('May 2003
renewal'). The expiration date of the May 2003 renewal is April 30, 2004. The
Fund did not borrow any amounts pursuant to the SCA during the six months ended
September 30, 2003.
Note 3. Other Transactions with Affiliates
Prudential Mutual Fund Services LLC ('PMFS'), an affiliate of PI and an
indirect, wholly-owned subsidiary of Prudential, serves as the Fund's transfer
agent. During the six months ended September 30, 2003, the Fund incurred fees of
approximately $33,000 for the services of PMFS. As of September 30, 2003,
approximately $5,600 of such fees were due to PMFS. Transfer agent fees and
expenses in the Statement of Operations include certain out-of-pocket expenses
paid to nonaffiliates, where applicable.
The Fund pays networking fees to affiliated and unaffiliated
broker/dealers. These networking fees are payments made to broker/dealers that
clear mutual fund transactions through a national clearing system. The Fund
incurred approximately $5,500 in total networking fees, of which the amount
relating to the services of Wachovia Securities LLC ('Wachovia') and Prudential
Securities, Inc. ('PSI'), affiliates of PI was approximately $5,000 for the six
months ended September 30, 2003. Effective July 1, 2003, Prudential and Wachovia
Corp. formed a joint venture ('Wachovia Securities, LLC') whereby Prudential and
Wachovia Corp. combined their brokerage business with Prudential holding a
minority interest. Prior to July 1, 2003, PSI was an indirect, wholly-owned
subsidiary of Prudential. As of September 30, 2003, approximately $800 of such
fees were due to Wachovia. These amounts are included in the transfer agent's
fees and expenses in the Statement of Operations.
Note 4. Portfolio Securities
Purchases and sales of investment securities, other than short-term investments,
for the six months ended September 30, 2003 aggregated $19,622,874 and
$19,142,410, respectively.
13
<Page>
Strategic Partners Real Estate Securities Fund
Notes to Financial Statements (Unaudited) Cont'd.
Note 5. Distributions and Tax Information
Distributions to shareholders, which are determined in accordance with federal
income tax regulations and which may differ from generally accepted accounting
principles, are recorded on the ex-dividend date.
For federal income tax purposes, the Fund had a capital loss carryforward
as of March 31, 2003, of approximately $25,257,000 of which $1,956,000 expires
in 2007, $21,157,000 expires in 2008 and $2,144,000 expires in 2009.
Accordingly, no capital gains distributions are expected to be paid to
shareholders until future net gains have been realized in excess of such
carryforward.
The United States federal income tax basis of the Fund's investments and
the net unrealized appreciation as of September 30, 2003 were as follows:
Net Unrealized
Tax Basis Appreciation Depreciation Appreciation
- --------------- ---------------- ---------------- ----------------
$41,841,521 $10,001,022 $(139,301) $9,861,721
The difference between book basis and tax basis is attributable to
deferred losses on wash sales.
Note 6. Capital
The Fund offers Class A, Class B, Class C and Class Z shares. Class A shares are
sold with a front-end sales charge of up to 5%. Certain investors who purchase
$1 million or more of Class A shares are subject to a 1% contingent deferred
sales charge for shares redeemed within 12 months of purchase. Class B shares
are sold with a contingent deferred sales charge which declines from 5% to zero
depending on the period of time the shares are held. Class C shares are sold
with a front-end sales charge of 1% and a contingent deferred sales charge of 1%
during the first 18 months. Class B shares will automatically convert to Class A
shares on a quarterly basis approximately seven years after purchase. A special
exchange privilege is also available for shareholders who qualify to purchase
Class A shares at net asset value. Class Z shares are not subject to any sales
or redemption charge and are offered exclusively for sale to a limited group of
investors.
The Fund has authorized an unlimited number of shares of beneficial
interest at $.001 par value divided into four classes, designated Class A, Class
B, Class C and Class Z.
14
<Page>
Strategic Partners Real Estate Securities Fund
Notes to Financial Statements (Unaudited) Cont'd.
Transactions in shares of beneficial interest were as follows:
<Table>
<Caption>
Class A Shares Amount
- ------------------------------------------------------------ ----------- -----------
Six months ended September 30, 2003:
Shares sold 364,329 $ 4,108,364
Shares issued in reinvestment of dividends 13,492 146,530
Shares reacquired (343,699) (3,929,166)
----------- -----------
Net increase (decrease) in shares outstanding before
conversion 34,122 325,728
Shares issued upon conversion from Class B 16,477 195,007
----------- -----------
Net increase (decrease) in shares outstanding 50,599 $ 520,736
----------- -----------
----------- -----------
Year ended March 31, 2003:
Shares sold 720,377 $ 7,051,194
Shares issued in reinvestment of dividends 35,963 346,610
Shares reacquired (784,287) (7,543,928)
----------- -----------
Net increase (decrease) in shares outstanding before
conversion (27,947) (146,124)
Shares issued upon conversion from Class B 27,626 274,022
----------- -----------
Net increase (decrease) in shares outstanding (321) $ 127,898
----------- -----------
----------- -----------
<Caption>
Class B
- ------------------------------------------------------------
Six months ended September 30, 2003:
Shares sold 191,256 $ 2,157,517
Shares issued in reinvestment of dividends 19,999 216,364
Shares reacquired (411,780) (4,734,693)
----------- -----------
Net increase (decrease) in shares outstanding before
conversion (200,525) (2,360,812)
Shares reacquired upon conversion into Class A (16,513) (195,007)
----------- -----------
Net increase (decrease) in shares outstanding (217,038) $(2,555,819)
----------- -----------
----------- -----------
Year ended March 31, 2003:
Shares sold 728,086 $ 7,188,231
Shares issued in reinvestment of dividends 63,891 616,151
Shares reacquired (1,061,355) (10,341,123)
----------- -----------
Net increase (decrease) in shares outstanding before
conversion (269,378) (2,536,741)
Shares reacquired upon conversion into Class A (27,665) (274,022)
----------- -----------
Net increase (decrease) in shares outstanding (297,043) $(2,810,763)
----------- -----------
----------- -----------
<Caption>
Class C
- ------------------------------------------------------------
Six months ended September 30, 2003:
Shares sold 82,475 $ 944,148
Shares issued in reinvestment of dividends 3,258 35,268
Shares reacquired (94,297) (1,069,264)
----------- -----------
Net increase (decrease) in shares outstanding (8,564) $ (89,848)
----------- -----------
----------- -----------
</Table>
15
<Page>
Strategic Partners Real Estate Securities Fund
Notes to Financial Statements (Unaudited) Cont'd.
<Table>
<Caption>
Class C Shares Amount
- ------------------------------------------------------------ ----------- -----------
Year ended March 31, 2003:
Shares sold 135,638 $ 1,326,702
Shares issued in reinvestment of dividends 10,007 96,488
Shares reacquired (188,554) (1,823,267)
----------- -----------
Net increase (decrease) in shares outstanding (42,909) $ (400,077)
----------- -----------
----------- -----------
<Caption>
Class Z
- ------------------------------------------------------------
Six months ended September 30, 2003:
Shares sold 154,907 $ 1,753,344
Shares issued in reinvestment of dividends 2,779 30,172
Shares reacquired (89,832) (977,698)
----------- -----------
Net increase (decrease) in shares outstanding 67,854 $ 805,818
----------- -----------
----------- -----------
Year ended March 31, 2003:
Shares sold 343,421 $ 3,345,179
Shares issued in reinvestment of dividends 6,049 57,799
Shares reacquired (276,329) (2,664,585)
----------- -----------
Net increase (decrease) in shares outstanding 73,141 $ 738,393
----------- -----------
----------- -----------
</Table>
Note 7. Dividends
On October 7, 2003 the Board of Trustees of the Fund declared the following
dividends per share, payable on October 10, 2003 to shareholders of record on
October 9, 2003.
Class B
Class A and C Class Z
------- ------------- -------
Ordinary Income $0.072 $ 0.049 $ 0.080
16
<Page>
SEMIANNUAL REPORT SEPTEMBER 30, 2003
- --------------------------------------------------------------------------
STRATEGIC PARTNERS
REAL ESTATE SECURITIES FUND (LOGO)
- --------------------------------------------------------------------------
Financial Highlights
<Page>
Strategic Partners Real Estate Securities Fund
Financial Highlights (Unaudited)
<Table>
<Caption>
Class A
------------------
Six Months
Ended
September 30, 2003
- ----------------------------------------------------------------------------------------
PER SHARE OPERATING PERFORMANCE:
Net asset value, beginning of period $ 9.84
--------
Income from investment operations
Net investment income .15(e)
Net realized and unrealized gain (loss) on investment and
foreign currency transactions 2.63
--------
Total from investment operations 2.78
--------
Less distributions:
Dividends from net investment income (.14)
Distributions in excess of net investment income --
Tax return of capital distributions --
--------
Total distributions (.14)
--------
Net asset value, end of period $ 12.48
--------
--------
TOTAL RETURN(b): 28.52%
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period (000) $ 14,680
Average net assets (000) $ 13,361
Ratios to average net assets:
Expenses, including distribution and service (12b-1)
fees(g) 1.65%(c)
Expenses, excluding distribution and service (12b-1)
fees 1.40%(c)
Net investment income 2.67%(c)
For Class A, B, C and Z shares:
Portfolio turnover(f) 42%
</Table>
- ------------------------------
(a) Commencement of investment operations.
(b) Total return does not consider the effects of sales loads. Total return is
calculated assuming a purchase of shares on the first day and a sale on the
last day of each period reported and includes reinvestment of dividends and
distributions. Total returns for periods of less than one full year are not
annualized.
(c) Annualized.
(d) Less than $.005 per share.
(e) Based on average monthly shares outstanding during the period.
(f) Portfolio turnover for periods of less than one full year is not annualized.
(g) The Distributor of the Fund contractually agreed to limit its distribution
and service (12b-1) fees to .25 of 1% of the average net assets of the Class
A shares.
18 See Notes to Financial Statements
<Page>
Strategic Partners Real Estate Securities Fund
Financial Highlights (Unaudited) Cont'd.
<Table>
<Caption>
Class A
- --------------------------------------------------------------------------------------------------------
May 5, 1998(a)
Year Ended March 31, Through
- ------------------------------------------------------------------------------- March 31,
2003 2002 2001 2000 1999
- --------------------------------------------------------------------------------------------------------
$ 9.97 $ 8.71 $ 7.79 $ 7.46 $ 10.00
-------- -------- -------- -------- --------------
.29(e) .31(e) .28(e) .15(e) .27
(.08) 1.30 .82 .42 (2.60)
-------- -------- -------- -------- --------------
.21 1.61 1.10 .57 (2.33)
-------- -------- -------- -------- --------------
(.34) (.35) (.18) (.21) (.21)
-- -- -- --(d) --
-- -- -- (.03) --
-------- -------- -------- -------- --------------
(.34) (.35) (.18) (.24) (.21)
-------- -------- -------- -------- --------------
$ 9.84 $ 9.97 $ 8.71 $ 7.79 $ 7.46
-------- -------- -------- -------- --------------
-------- -------- -------- -------- --------------
2.27% 19.00% 14.28% 7.74% (23.29)%
$ 11,073 $ 11,225 $ 15,103 $ 16,545 $ 22,465
$ 11,248 $ 12,433 $ 16,271 $ 19,631 $ 31,941
1.79% 1.93% 1.87% 1.70% 1.56%(c)
1.54% 1.68% 1.62% 1.45% 1.31%(c)
2.97% 3.43% 3.27% 1.93% 3.47%(c)
92% 110% 62% 54% 122%
</Table>
See Notes to Financial Statements 19
<Page>
Strategic Partners Real Estate Securities Fund
Financial Highlights (Unaudited) Cont'd.
<Table>
<Caption>
Class B
------------------
Six Months
Ended
September 30, 2003
- ----------------------------------------------------------------------------------------
PER SHARE OPERATING PERFORMANCE:
Net asset value, beginning of period $ 9.82
--------
Income from investment operations
Net investment income .11(e)
Net realized and unrealized gain (loss) on investment and
foreign currency transactions 2.63
--------
Total from investment operations 2.74
--------
Less distributions
Dividends from net investment income (.10)
Distributions in excess of net investment income --
Tax return of capital distributions --
--------
Total distributions (.10)
--------
Net asset value, end of period $ 12.46
--------
--------
TOTAL RETURN(b): 28.11%
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period (000) $ 29,103
Average net assets (000) $ 28,062
Ratios to average net assets:
Expenses, including distribution and service (12b-1)
fees 2.40%(c)
Expenses, excluding distribution and service (12b-1)
fees 1.40%(c)
Net investment income 1.89%(c)
</Table>
- ------------------------------
(a) Commencement of investment operations.
(b) Total return does not consider the effects of sales loads. Total return is
calculated assuming a purchase of shares on the first day and a sale on the
last day of each period reported and includes reinvestment of dividends and
distributions. Total returns for periods of less than one full year are not
annualized.
(c) Annualized.
(d) Less than $.005 per share.
(e) Based on average monthly shares outstanding during the period.
20 See Notes to Financial Statements
<Page>
Strategic Partners Real Estate Securities Fund
Financial Highlights (Unaudited) Cont'd.
<Table>
<Caption>
Class B
- --------------------------------------------------------------------------------------------------------
May 5, 1998(a)
Year Ended March 31, Through
- ------------------------------------------------------------------------------- March 31,
2003 2002 2001 2000 1999
- --------------------------------------------------------------------------------------------------------
$ 9.95 $ 8.69 $ 7.78 $ 7.45 $ 10.00
-------- -------- -------- -------- --------------
.22(e) .24(e) .21(e) .09(e) .20
(.08) 1.30 .82 .42 (2.58)
-------- -------- -------- -------- --------------
.14 1.54 1.03 .51 (2.38)
-------- -------- -------- -------- --------------
(.27) (.28) (.12) (.15) (.17)
-- -- -- --(d) --
-- -- -- (.03) --
-------- -------- -------- -------- --------------
(.27) (.28) (.12) (.18) (.17)
-------- -------- -------- -------- --------------
$ 9.82 $ 9.95 $ 8.69 $ 7.78 $ 7.45
-------- -------- -------- -------- --------------
-------- -------- -------- -------- --------------
1.47% 18.14% 13.35% 6.96% (23.78)%
$ 25,072 $ 28,357 $ 28,118 $ 33,616 $ 54,845
$ 26,955 $ 27,939 $ 30,747 $ 47,271 $ 72,034
2.54% 2.68% 2.62% 2.45% 2.31%(c)
1.54% 1.68% 1.62% 1.45% 1.31%(c)
2.20% 2.67% 2.49% 1.16% 2.70%(c)
</Table>
See Notes to Financial Statements 21
<Page>
Strategic Partners Real Estate Securities Fund
Financial Highlights (Unaudited) Cont'd.
<Table>
<Caption>
Class C
------------------
Six Months
Ended
September 30, 2003
- ----------------------------------------------------------------------------------------
PER SHARE OPERATING PERFORMANCE:
Net asset value, beginning of period $ 9.82
-------
Income from investment operations
Net investment income .11(e)
Net realized and unrealized gain (loss) on investment and
foreign currency transactions 2.63
-------
Total from investment operations 2.74
-------
Less distributions
Dividends from net investment income (.10)
Distributions in excess of net investment income --
Tax return of capital distributions --
-------
Total distributions (.10)
-------
Net asset value, end of period $12.46
-------
-------
TOTAL RETURN(b): 28.11%
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period (000) $4,514
Average net assets (000) $4,116
Ratios to average net assets:
Expenses, including distribution and service (12b-1)
fees 2.40%(c)
Expenses, excluding distribution and service (12b-1)
fees 1.40%(c)
Net investment income 1.92%(c)
</Table>
- ------------------------------
(a) Commencement of investment operations.
(b) Total return does not consider the effects of sales loads. Total return is
calculated assuming a purchase of shares on the first day and a sale on the
last day of each period reported and includes reinvestment of dividends and
distributions. Total returns for periods of less than one full year are not
annualized.
(c) Annualized.
(d) Less than $.005 per share.
(e) Based on average monthly shares outstanding during the period.
22 See Notes to Financial Statements
<Page>
Strategic Partners Real Estate Securities Fund
Financial Highlights (Unaudited) Cont'd.
<Table>
<Caption>
Class C
- --------------------------------------------------------------------------------------------------------
May 5, 1998(a)
Year Ended March 31, Through
- ------------------------------------------------------------------------------- March 31,
2003 2002 2001 2000 1999
- --------------------------------------------------------------------------------------------------------
$ 9.95 $ 8.69 $ 7.78 $ 7.45 $ 10.00
------- ------- ------- ------- --------------
.22(e) .25(e) .21(e) .09(e) .20
(.08) 1.29 .82 .42 (2.58)
------- ------- ------- ------- --------------
.14 1.54 1.03 .51 (2.38)
------- ------- ------- ------- --------------
(.27) (.28) (.12) (.15) (.17)
-- -- -- --(d) --
-- -- -- (.03) --
------- ------- ------- -------
(.27 (.28) (.12) (.18) (.17)
------- ------- ------- ------- --------------
$ 9.82 $ 9.95 $ 8.69 $ 7.78 $ 7.45
------- ------- ------- ------- --------------
------- ------- ------- ------- --------------
1.47% 18.14% 13.35% 6.96% (23.78)%
$3,642 $4,117 $4,750 $5,162 $ 9,883
$3,891 $4,390 $5,096 $8,215 $ 13,672
2.54% 2.68% 2.62% 2.45% 2.31%(c)
1.54% 1.68% 1.62% 1.45% 1.31%(c)
2.24% 2.72% 2.52% 1.12% 2.71%(c)
</Table>
See Notes to Financial Statements 23
<Page>
Strategic Partners Real Estate Securities Fund
Financial Highlights (Unaudited) Cont'd.
<Table>
<Caption>
Class Z
------------------
Six Months
Ended
September 30, 2003
- ----------------------------------------------------------------------------------------
PER SHARE OPERATING PERFORMANCE:
Net asset value, beginning of period $ 9.85
-------
Income from investment operations
Net investment income .16(e)
Net realized and unrealized gain (loss) on investment and
foreign currency transactions 2.65
-------
Total from investment operations 2.81
-------
Less distributions
Dividends from net investment income (.16)
Distributions in excess of net investment income --
Tax return of capital distributions --
-------
Total distributions (.16)
-------
Net asset value, end of period $12.50
-------
-------
TOTAL RETURN(b): 28.73%
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period (000) $3,239
Average net assets (000) $2,400
Ratios to average net assets:
Expenses, including distribution and service (12b-1)
fees 1.40%(c)
Expenses, excluding distribution and service (12b-1)
fees 1.40%(c)
Net investment income 2.91%(c)
</Table>
- ------------------------------
(a) Commencement of investment operations.
(b) Total return does not consider the effects of sales loads. Total return is
calculated assuming a purchase of shares on the first day and a sale on the
last day of each period reported and includes reinvestment of dividends and
distributions. Total returns for periods of less than one full year are not
annualized.
(c) Annualized.
(d) Less than $.005 per share.
(e) Based on average monthly shares outstanding during the period.
24 See Notes to Financial Statements
<Page>
Strategic Partners Real Estate Securities Fund
Financial Highlights (Unaudited) Cont'd.
<Table>
<Caption>
Class Z
- --------------------------------------------------------------------------------------------------------
May 5, 1998(a)
Year Ended March 31, Through
- ------------------------------------------------------------------------------- March 31,
2003 2002 2001 2000 1999
- --------------------------------------------------------------------------------------------------------
$ 9.98 $ 8.72 $ 7.80 $ 7.47 $10.00
------- ------- ------- ------- -------
.31(e) .33(e) .29(e) .18(e) .29
(.07) 1.30 .83 .41 (2.59)
------- ------- ------- ------- -------
.24 1.63 1.12 .59 (2.30)
------- ------- ------- ------- -------
(.37) (.37) (.20) (.23) (.23)
-- -- -- --(d) --
-- -- -- (.03) --
------- ------- ------- ------- -------
(.37) (.37) (.20) (.26) (.23)
------- ------- ------- ------- -------
$ 9.85 $ 9.98 $ 8.72 $ 7.80 $ 7.47
------- ------- ------- ------- -------
------- ------- ------- ------- -------
2.52% 19.29% 14.54% 8.02% (23.05)%
$1,884 $1,179 $1,045 $1,746 $1,530
$1,722 $ 988 $1,376 $1,482 $2,894
1.54% 1.68% 1.62% 1.45% 1.31%(c)
1.54% 1.68% 1.62% 1.45% 1.31%(c)
3.17% 3.70% 3.43% 2.32% 3.76%(c)
</Table>
See Notes to Financial Statements 25
<Page>
Strategic Partners Real Estate Securities Fund
Supplemental Proxy Information (Unaudited)
Meetings of the Fund's shareholders were held on July 17, 2003 and August
21, 2003. The meetings were held for the following purposes:
(1) To approve the election of ten (10) trustees to the Board of Trustees, as
follows:
- David E.A. Carson
- Robert E. La Blanc
- Robert F. Gunia
- Douglas H. McCorkindale
- Stephen P. Munn
- Richard A. Redeker
- Judy A. Rice
- Robin B. Smith
- Stephen Stoneburn
- Clay T. Whitehead
(2) To approve amendments to the Fund's Declaration of Trust.
The results of the proxy solicitation on the preceding matters were:
<Table>
<Caption>
Votes Votes Votes
Matter For Against Withheld Abstentions
----------------------- ------------- ------- -------- -----------
(1)* David E.A. Carson 3,300,174 -- 41,993 --
Robert E. La Blanc 3,306,876 -- 35,291 --
Robert F. Gunia 3,300,967 -- 41,200 --
Douglas H. McCorkindale 3,300,854 -- 41,313 --
Stephen P. Munn 3,300,967 -- 41,200 --
Richard A. Redeker 3,300,967 -- 41,200 --
Judy A. Rice 3,300,438 -- 41,729 --
Robin B. Smith 3,307,968 -- 34,199 --
Stephen Stoneburn 3,300,967 -- 41,200 --
Clay T. Whitehead 3,300,574 -- 41,593 --
(2)D Approve amendments to
the Fund's Declaration
of Trust. 1,105,683 65,185 -- 24,989
</Table>
- ------------------------------
* Approved at the July 17, 2003 meeting.
D Approved at the August 21, 2003 meeting.
26
www.strategicpartners.com (800) 225-1852
FOR MORE INFORMATION
Strategic Partners Mutual Funds
Gateway Center Three
100 Mulberry Street
Newark, NJ 07102-4077
(800) 225-1852
Trustees
David E.A. Carson
Robert F. Gunia
Robert E. La Blanc
Douglas H. McCorkindale
Stephen P. Munn
Richard A. Redeker
Judy A. Rice
Robin B. Smith
Stephen D. Stoneburn
Clay T. Whitehead
Officers
Judy A. Rice, President
Robert F. Gunia, Vice President
Grace C. Torres, Treasurer and Principal
Financial and Accounting Officer
Marguerite E.H. Morrison, Chief Legal
Officer and Assistant Secretary
Jonathan D. Shain, Secretary
Maryanne Ryan, Anti-Money Laundering
Compliance Officer
Manager
Prudential Investments LLC
Gateway Center Three
100 Mulberry Street
Newark, NJ 07102
Investment Adviser
Wellington Management Company, LLP
75 State Street
Boston, MA 02109
Distributor
Prudential Investment Management Services LLC
Gateway Center Three, 14th Floor
100 Mulberry Street
Newark, NJ 07102
Custodian
State Street Bank and Trust Company
One Heritage Drive
North Quincy, MA 02171
Transfer Agent
Prudential Mutual Fund Services LLC
PO Box 8098
Philadelphia, PA 19101
Independent Accountants
KPMG LLP
757 Third Avenue
New York, NY 10017
Legal Counsel
Sullivan & Cromwell LLP
125 Broad Street
New York, NY 10004
Fund Symbols Nasdaq CUSIP
Class A PURAX 86276L109
Class B PURBX 86276L208
Class C -- 86276L307
Class Z -- 86276L406
The views expressed in this report and
information about the Fund's portfolio holdings
are for the period covered by this report and
are subject to change thereafter.
The accompanying financial statements as of
September 30, 2003, were not audited, and
accordingly, no auditor's opinion is expressed
on them.
Mutual Funds:
ARE NOT INSURED BY THE FDIC OR ANY FEDERAL
GOVERNMENT AGENCY
MAY LOSE VALUE
ARE NOT A DEPOSIT OF OR GUARANTEED BY ANY BANK OR
ANY BANK AFFILIATE
(LOGO)
Fund Symbols Nasdaq CUSIP
Class A PURAX 86276L109
Class B PURBX 86276L208
Class C -- 86276L307
Class Z -- 86276L406
MFSP182E2 IFS-A085815
Item 2 -- Code of Ethics -- Not required as this is not an annual filing.
Item 3 -- Audit Committee Financial Expert --
The registrant's Board has determined that Mr. Stephen Munn, member of the
Board's Audit Committee is an "audit committee financial expert," and that he
is "independent," for purposes of this Item.
Item 4 -- Principal Accountant Fees and Services -- Not required in this
filing
Item 5 -- Reserved
Item 6 -- Reserved
Item 7 -- Disclosure of Proxy Voting Policies and Procedures for Closed-End
Management Investment Companies -- Not required in this filing
Item 8 -- Reserved
Item 9 -- Controls and Procedures
(a) It is the conclusion of the registrant's principal executive officer
and principal financial officer that the effectiveness of the
registrant's current disclosure controls and procedures (such
disclosure controls and procedures having been evaluated within 90
days of the date of this filing) provide reasonable assurance that
the information required to be disclosed by the registrant has been
recorded, processed, summarized and reported within the time period
specified in the Commission's rules and forms and that the
information required to be disclosed by the registrant has been
accumulated and communicated to the registrant's principal executive
officer and principal financial officer in order to allow timely
decisions regarding required disclosure.
(b) There have been no significant changes in the registrant's internal
controls or in other factors that could significantly affect these
controls subsequent to the date of their evaluation, including any
corrective actions with regard to significant deficiencies and
material weaknesses.
Item 10 -- Exhibits
(a) Code of Ethics -- Not applicable with semi-annual filing
(b) Certifications pursuant to Sections 302 and 906 of the
Sarbanes-Oxley Act -- 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.
(Registrant) Strategic Partners Real Estate Securities Fund
By (Signature and Title)* /s/Jonathan D. Shain
--------------------
Jonathan D. Shain
Secretary
Date November 24, 2003
Pursuant to the requirements of the Securities Exchange Act of 1934 and the
Investment Company Act of 1940, this report has been signed below by the
following persons on behalf of the registrant and in the capacities and on the
dates indicated.
By (Signature and Title)* /s/Judy A. Rice
--------------------
Judy A. Rice
President and Principal Executive Officer
Date November 24, 2003
By (Signature and Title)* /s/Grace C. Torres
------------------
Grace C. Torres
Treasurer and Principal Financial Officer
Date November 24, 2003
* Print the name and title of each signing officer under
his or her signature.