March 10, 2008
A while back I sent out an email that Neuberger Berman was asking shareholders to approve a merger of two of their funds - NRI and NRO. That approval was finally given by a majority of the shareholders. The intent is to reduce expenses and run a more lean and efficient operation. Both NRI and NRO holdings were similiar so there was little reason to operate both separately. Now the combined fund will trade under the NRO symbol. Those of you who own NRI will receive 1.409 shares of NRO for each share of NRI that you hold. At a dividend of $.15308/NRO share/month, the equivalent dividend of each NRI share would be $.2157/share/month which is a little higher than what we were receiving before which was $.2033/share.
Since real estate is in the dump right now, the only thing we can do is collect the monthly dividends unless you want to sell. It will take a long time for the market to correct since the credit crisis is far from over at this point.
NEW YORK, Mar 10, 2008 (BUSINESS WIRE) -- After the close of business on Friday, March 7, 2008, Neuberger Berman Realty Income Fund Inc. (NRI) merged with and into Neuberger Berman Real Estate Securities Income Fund Inc. (NRO) . Friday's net asset value (NAV) per share of common stock for NRI was $14.3754 and for NRO was $10.2028. As the merger was based on relative NAV, this generated a merger conversion ratio that resulted in former NRI common stockholders receiving 1.409 shares of NRO common stock for each share of NRI common stock they previously held. Common stockholders will subsequently receive cash payments in lieu of fractional shares not held in the Distribution Reinvestment Plan (DRIP). NRO's monthly distribution remains $0.15308 per share.
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