Neuberger Berman Fund Unveils Rights Offering for Shareholders

Neuberger Berman Real Estate Fund Announces a New Rights Offering

Neuberger Berman Real Estate Securities Income Fund Inc. (NYSE American: NRO) has innovative news for its common stockholders. The Fund has revealed the issuance of transferable rights to allow current stockholders the opportunity to subscribe for additional shares of Common Stock at advantageous terms. This strategic move aims to attract investment and amplify the Fund's capabilities in seizing valuable investment opportunities.

Purpose and Benefits of the Rights Offering

The decision to conduct this rights offering has been underpinned by thoughtful considerations regarding potential benefits for both the Fund and its shareholders. Firstly, it provides much-needed capital to support the Fund's overarching investment goals, namely, achieving high current income while also paving the way for capital appreciation.

According to the Fund's investment advisor, Neuberger Berman Investment Advisers LLC, this is a prime moment to expand the Fund's asset base. The rights offering serves as a channel to raise new funds that can be deployed into promising market opportunities. Some key benefits include:

• Access to increased capital, enabling the Fund to capitalize on potentially lucrative investment opportunities and to enhance its long-term returns.
• Existing shareholders can purchase shares at a lower price than the current market value or can trade the rights they are allocated.
• The potential to lower the total expense ratio by distributing fixed operating costs over a larger asset basis.
• Improved trading volume and liquidity for NRO Common Stock, making it an attractive investment for current and new investors alike.

Details of the Rights Offering

The Fund outlines the following key terms regarding the rights offering:

• Current stockholders on the Record Date will receive one right for each share they own. These rights will allow them to purchase additional shares of Common Stock at a favorable ratio of one new share for every three rights held (1-for-3).
• The subscription price for each additional share will be determined based on specific calculations around the market price on the expiration date, which is anticipated to be shortly after the record date.
• Holders of the rights who fulfill their subscriptions can also request additional shares that remain unsubscribed following the initial offering, provided that they meet certain criteria.
• Rights will be transferable and are expected to trade on the NYSE American under designated symbols, starting on specific dates detailed in the official announcement.

Expected Outcomes for Shareholders

Following the rights offering, the Fund anticipates upholding its current distribution levels. The declaration of regular monthly distributions showcases the Fund's commitment to providing value to its shareholders. Importantly, shares issued through this offering will also benefit shareholders by receiving distributions starting in subsequent months.

For those who wish to actively participate in the rights offering, it is highly recommended to stay in touch with brokerage firms and to act quickly to exercise their rights once the offering begins.

About Neuberger Berman

Neuberger Berman is a respected player in investment management, established in 1939 and renowned for its employee-driven philosophy. With over 2,800 employees globally, the firm manages approximately $509 billion across various asset classes, illustrating their expertise and strong market insight. Recognized for its commitment to responsible investment practices, Neuberger Berman is noted as a leader in sustainable investing.

As this rights offering unfolds, the Fund will ensure shareholders are well-informed through prospectus documentation and will handle all associated costs directly, reflecting their transparency and dedication to shareholder interests.

Frequently Asked Questions

What is the purpose of the rights offering by Neuberger Berman?

The rights offering aims to raise additional capital for the Fund, allowing it to invest in attractive opportunities while providing existing shareholders with the option to purchase shares at a discount.

How are shares priced during the rights offering?

The subscription price will be determined based on the average market price of shares on or near the expiration date, ensuring a favorable rate for participants.

Who can participate in the rights offering?

Current stockholders recorded as of the designated date will be eligible to receive rights and participate in the offering.

What happens to shares issued under the rights offering?

Common Stock issued through the rights offering will be entitled to future monthly distributions, enhancing their value to participating shareholders.

Where can I find more information about the rights offering?

Further details will be provided through the prospectus and accompanying documents distributed to stockholders after the record date.

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