Item 1.
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Reports to Stockholders.
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(a)
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The Report to Shareholders of CBRE Clarion Global Real Estate Income Fund (the Trust) is attached
herewith.
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CBRE CLARION GLOBAL REAL ESTATE
INCOME FUND
Semi-Annual Report for the Six
Months Ended June 30, 2021
CBRE Clarion Global Real Estate Income Fund (the Trust), acting in accordance with an exemptive order received
from the Securities and Exchange Commission (SEC) and with approval of its Board of Trustees (the Board), has adopted a managed distribution policy (the Policy) with the purpose of distributing over the course of
each year, through periodic distributions as nearly equal as practicable and any required special distributions, an amount closely approximating the total taxable income of the Trust during such year and all of the returns of capital paid by
portfolio companies to the Trust during such year. In accordance with its Policy, the Trust distributes a fixed amount per common share, currently $0.05, each month to its common shareholders. This amount is subject to change from time to time in
the discretion of the Board. Although the level of distributions is independent of fund performance, the Trust expects such distributions to correlate with its performance over time. Each monthly distribution to shareholders is expected to be at the
fixed amount established by the Board, except for extraordinary distributions and potential increases or decreases in the final dividend periods for each year in light of the Trusts performance for the entire calendar year and to enable the
Trust to comply with the distribution requirements imposed by the Internal Revenue Code. Over time, the Trust expects that the distribution rate in relation to the Trusts Net Asset Value (NAV) will approximately equal the
Trusts total return on NAV.
The fixed amount of distributions will be reviewed and amended as necessary by the Board at regular intervals with consideration of
the level of investment income and realized gains. The Board strives to establish a level regular distribution that will meet the Trusts requirement to pay out all taxable income (including amounts representing return of capital paid by
portfolio companies) with a minimum of special distributions. The Trusts total return in relation to changes in NAV is presented in the financial highlights table. Shareholders should not draw any conclusions about the Trusts investment
performance from the amount of the current distribution or from the terms of the Policy. The Board may amend or terminate the Policy without prior notice to Trust shareholders.
Shareholders should note that the Policy is subject to change or termination as a result of many factors. The Trust is subject to risks through ownership of its portfolio
company holdings including, but not limited to, declines in the value of real estate held by the portfolio company, risks related to general and local economic conditions, and portfolio company losses. Moreover, an economic downturn could have a
material adverse effect on the real estate markets and on real estate companies in which the Trust invests, which in turn could result in the Trust not achieving its investment or distribution objectives thereby jeopardizing the continuance of the
Policy. Please refer to the Trusts prospectus for a fuller description of risks.
Table of Contents
CBRE CLARION GLOBAL REAL ESTATE INCOME FUND SEMI-ANNUAL REPORT 2021 (unaudited)
Investors should consider a funds investment objectives,
risks, charges and expenses carefully before investing. A copy of the prospectus that contains this and other information about the Fund may be obtained by calling 888-711-4272. Please read the prospectus carefully before investing. Investing in
closed-end funds involves risk, including possible loss of principal. Past performance does not guarantee future results.
Real Estate investments are subject to
changes in economic conditions, credit risk, and interest rate fluctuations. International investments may involve risk of capital loss from unfavorable fluctuation in currency values, from differences in generally accepted accounting principles or
from economic or political instability in other nations. Because real estate funds concentrate their investments in the real estate industry, the portfolio may experience more volatility and be exposed to greater risk than the portfolios of other
funds.
Closed-end funds are traded on the secondary market through one of the stock exchanges. The Funds investment return and principal value will fluctuate
so that an investors shares may be worth more or less than the original cost. Shares of closed-end funds may trade above (a premium) or below (a discount) the net asset value (NAV) of the funds portfolio. There is no assurance that the
Fund will achieve its investment objective.
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SEMI-ANNUAL REPORT 2021
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1
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Letter to Shareholders
T. Ritson Ferguson
Joseph P. Smith
Kenneth S. Weinberg
Dear Shareholder:
We are pleased to
present the 2021 Semi-Annual Report for the CBRE Clarion Global Real Estate Income Fund (the Trust).
Performance Review
Real estate securities climbed materially during the first half of the year. After a difficult 2020, global real estate stocks were up +15.5% for the
first half of the year, outpacing the broader equity market which rose +13.3% (1). The economic recovery is accelerating, driven by the rapid distribution of COVID vaccines, consumers
with substantial savings and a desire to spend, businesses eager to hire, and material policy support from governments and central banks. These factors are very good news for the economic outlook and real estate landlords, and we believe real estate
stocks will be beneficiaries of these trends.
North America was the best performing region in the first half of the year followed by Asia Pacific and Europe. Common
stocks outperformed preferred securities.
Global Real Estate Market Performance
Performance as of June 30, 2021
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Region
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1H2021
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CY2020
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North
America (2)
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21.4
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%
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-10.8
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%
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Europe (2)
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5.8
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%
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-2.8
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%
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Asia-Pacific (2)
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9.8
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%
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-9.5
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%
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Global Real Estate Common Stocks (2)
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15.5
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%
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-9.0
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%
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U.S. REIT Preferred Stocks (3)
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6.8
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%
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2.4
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%
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80/20 Blend of Global Common Stock & U.S. Preferred
Stock (4)
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13.8
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%
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-6.4
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%
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The Trusts net asset value (NAV) return was +20.34% during the first half of 2021, outperforming the +13.76%
return for an 80/20 mix of global common stock and preferred securities. In the U.S., outperformance was driven by positioning in the storage, mall, and net lease sectors. The portfolio benefited from being overweight the outperforming
storage property sector. We also continue to be overweight the mall sector via our position in Simon Property Group, which has experienced stellar performance in the first half of the year. The portfolio benefited from an overweight to net lease
company VEREIT, which announced in late April that it was being acquired by best-in-class net lease company Realty Income in a stock-for-stock merger at a +17% premium to VEREITs prior day closing stock price. In the Asia-Pacific region, the Trusts best investments were in Australia, where our stock selection made a
significant contribution to our outperformance. In Europe, relative performance lagged for the first half of the year due largely to not owning German residential company Deutsche Wohnen, which announced in May that it agreed to be acquired by
Vonovia at an +18% premium.
(1)
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Global real estate stocks as measured by FTSE EPRA Nareit Developed Index Net which returned +15.5% during
the first half of the year. The broader equity market as measured by the MSCI World Index which returned +13.3% for the first half of the year.
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(2)
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Represented by the FTSE EPRA Nareit Developed Index Net. The Index is an unmanaged market-weighted index
consisting of real estate companies from developed markets, where greater than 75% of constituents EBITDA (earnings before interest, taxes, depreciation, and amortization) is derived from relevant real estate activities, and is calculated net
of withholding taxes. Investors cannot invest directly in an index.
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(3)
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Represented by the MSCI REIT Preferred Index, a preferred stock market capitalization weighted index of certain exchange
traded preferred securities issued by U.S. equity and U.S. hybrid REITs. Investors cannot invest directly in an index.
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(4)
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Represented by the daily weighted average of the following indices: 80% FTSE EPRA Nareit Developed Net and 20%
MSCI Preferred Index. Investors cannot invest directly in an index.
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2
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CBRE CLARION GLOBAL REAL ESTATE INCOME FUND
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The Trust made total distributions of $0.30 per share during 1H2021, maintaining a level monthly distribution of $0.05 per
share. The annualized distribution represents a 6.81% rate on the $8.81 share price and a 6.36% rate on the $9.43 NAV as of June 30th. (5) The Board continues to regularly review the
level of the Trusts distribution and the ability to sustain it.
The Trust continues to maintain a flexible strategy for managing portfolio leverage. The
Trusts leverage position remained stable, at 20% as of June 30th.
Portfolio Review
The Trusts investments remain well-diversified by property type and geography. During the first half of the year, we reduced our allocation to preferred securities
as we see better upside in common stock positions. We also decreased our position in datacenters. We used those proceeds to increase our exposure to hotels and communication towers. At June 30th, the Trusts portfolio was approximately 92%
invested in common stock securities (58% in the Americas, 20% in Asia-Pacific, and 14% in Europe) with 8% of the portfolio invested in preferred stock of U.S. real estate companies.
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Geographic Diversification
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Sector Diversification
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Source: CBRE Clarion Securities as of 06/30/2021.
Geographic and Sector diversification are unaudited. Percentages presented are based on managed trust assets, which include borrowings. The percentages in the pie
charts will differ from those on the Portfolio of Investments because the figures on the Portfolio of Investments are calculated using net assets of the Trust.
Market Outlook
Based on our proprietary valuation dashboard, we believe that real estate securities are attractively priced relative
to the private real estate market, the fixed income market, and the broader stock market and that investors committing capital to listed real estate at this time have the potential to earn attractive absolute and relative long-term total returns. At
June 30, 2021, real estate stocks are trading at a global average 3% discount to private market real estate value (i.e., NAV), with an implied unleveraged cash flow yield of 5.5%.
In addition to attractive valuation metrics, there are additional thematic reasons for investors to be positive about real estate stocks at
mid-year 2021: 1) real estate clearly benefits from a re-opening economy and earnings growth is accelerating as shown in the accompanying chart; 2) real estate stocks
are outperforming broader stock market indices for the first time in the last five years, which suggests a change in stock market leadership; 3) real estate offers an inflation hedge, particularly short lease duration sectors which can quickly re-price rental rates; and 4) funds flows to dedicated real estate mutual funds and ETFs have turned positive in 2021 after several years of anemic funds flows, signaling improving investor interest in the sector.
(5)
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The Fund is currently paying distributions in excess of its net investment income, which may result in a return of
capital. Absent this, the distribution rate would have been lower. The estimated composition of each distribution, including any return of capital, will be provided to shareholders of record and is also available at www.cbreclarion.com. Final
determination of a distributions tax character will be made on Form 1099 DIV and sent to shareholders. On a tax basis, the estimated component of the cumulative distribution for the fiscal year-to-date would include an estimated return of capital of $0.136 per share or 45.31%. This amount is an estimate and the actual amounts and sources for tax reporting purposes may change upon final
determination of tax characteristics and may be subject to changes based on tax regulations.
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SEMI-ANNUAL REPORT
2021 |
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3
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Regional Earnings Growth Forecast
Source: CBRE Clarion as of 06/30/2021.
f refers to forecasts. Forecasts are the opinion of CBRE Clarion, which is subject to change and is not intended to be a guarantee of future
results or investment advice. Forecasts are not indicative of future investment performance.
We believe real estate dividend yield remains attractive. Current
income generated by listed propertys dividend yields remains an attractive investment characteristic of the sector. Dividend yield for real estate stocks remain in the 3-4% range.
Current Dividend Yield
Source: CBRE Clarion as of 06/30/2021. Not all countries included.
Dividend yields fluctuate and are not necessarily indicative of present or future investment performance.
Information is subject to change and should not be construed as investment advice. Past performance is no guarantee of future results.
We own a well-balanced portfolio of securities that have been screened for their growth prospects in combination with the quality of their business models, assets,
balance sheets, and management teams. We are positive on property types, regions, and stocks that offer these qualities at reasonable valuations. In the U.S., we are overweight towers, industrial, retail, apartments, and storage. In Japan, we prefer
industrial, residential, and mid-cap office J-REITs that are providing earnings resiliency at a very attractive relative valuation, and we continue to own select
Japanese REOCs that have exposure to office, retail, and residential and have committed to improving their corporate governance. In Hong Kong, we are overweight residential companies, diversified companies with a
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4
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CBRE CLARION GLOBAL REAL ESTATE INCOME FUND
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residential bias, non-discretionary retail, and decentralized office. In Australia, we prefer residential, industrial, and a few select diversified
companies. In the U.K., we favor the storage, industrial, and residential sectors, and select larger cap diversified companies that trade at material discounts and may see earnings acceleration as the U.K. economy
re-opens. In Continental Europe, we own the German residential companies, and we continue to prefer property companies in markets with a positive earnings growth profile, which favors stocks in Germany and the
Nordics.
We believe active management has the ability to offer significant relative return potential at this time when investors have a unique opportunity to invest
in listed real estate assets at attractive valuations. Based on our information advantage and the disciplined use of our proprietary analytical tools, we have been able to outperform a passive investment strategy and
believe the portfolio is well-positioned to deliver continued relative outperformance.
We appreciate your continued faith and confidence.
Sincerely,
CBRE CLARION SECURITIES LLC
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T. Ritson Ferguson, CFA
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Joseph P. Smith
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Kenneth S. Weinberg, CFA
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Co-Portfolio Manager
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Co-Portfolio Manager
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Co-Portfolio Manager
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President & CEO
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IMPORTANT DISCLOSURES AND RISK INFORMATION
The views expressed represent the opinion of CBRE Clarion Securities (CBRE Clarion), which are subject to change and are not intended as investment advice or
a guarantee of future results. This material is for informational purposes only. It is not intended as an endorsement of any specific investment. Stated information is derived from proprietary and
non-proprietary sources which have not been independently verified for accuracy or completeness. While CBRE Clarion believes the information to be accurate and reliable, we do not claim or accept
responsibility for its completeness, accuracy, or reliability. Statements of future expectations, forecasts, estimates, projections, and other forward-looking statements are based on CBRE Clarions view at the time such statements were made.
Accordingly, such statements are inherently speculative, as they are based on assumptions which may involve known and unknown risks and uncertainties. Any discussion of particular securities herein should not be perceived as a recommendation to
purchase or sell any of those securities. It should not be assumed that investments in any securities discussed were or will be profitable. Actual results, performance or events may differ materially from those expressed or implied in such
statements. Investing in real estate securities involves risks including the potential loss of principal. Real estate equities are subject to risks similar to those associated with the direct ownership of real estate. Portfolios concentrated in real
estate securities may experience price volatility and other risks associated with non-diversification. While equities may offer the potential for greater long-term growth than most debt securities, they generally have higher volatility.
International (non-US) investments may involve risk of capital loss from unfavorable fluctuation in currency values, from differences in generally accepted accounting principles, or from economic or political
instability in other nations. Past performance is no guarantee of future results.
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SEMI-ANNUAL REPORT
2021 |
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5
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Fees and Expenses (unaudited)
As a shareholder
of the Fund, you incur two types of costs: (1) transaction costs, including brokerage commissions paid on purchases and sales of fund shares, and (2) ongoing costs, including management fees and other Fund expenses. The expense examples
below are intended to help you understand your ongoing costs (in dollars) of investing in the Fund and to compare these costs with the ongoing costs of investing in other funds.
The examples in the table is based on an investment of $1,000 invested at the beginning of the six-month period and held for the
entire period (January 1, 2021 to June 30, 2021).
Actual expenses
The first line in the following table provides information about actual account values and actual expenses. You may use the information in this line, together with the
amount you invested, to estimate the expenses that you paid over the period. Simply divide your account value by $1,000 (for example, an $8,600 account value divided by $1,000 = 8.6), then multiply the result by the number in the first line under
the heading Expenses Paid During the Period to estimate the expenses you paid on your account during this period.
Hypothetical
example for comparison purposes
The second line in the following table provides information about hypothetical account values and hypothetical expenses
based on the Funds actual expense ratios and an assumed rate of return of 5% per year before expenses (which is not the Funds actual return). The hypothetical account values and expenses may not be used to estimate the actual ending
account balance or expenses you paid for the period. You may use this information to compare the ongoing costs of investing in the Fund and other funds. To do so, compare this 5% hypothetical example with the 5% hypothetical examples that appear in
the shareholder reports of the other funds.
Please note that the expenses shown in the tables are meant to highlight your ongoing costs only, and do not reflect any
transactional costs. Therefore the second line in the table is useful in comparing ongoing costs only, and will not help you determine the relative total costs of owning different funds. In addition, if these transactional costs were included, your
costs would have been higher.
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Beginning
Account Value
January 1, 2021
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Ending
Account Value
June 30, 2021
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Annualized
Expense Ratio
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Expenses Paid
During the Period
Per $1,000 (1)
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CBRE Clarion Global Real Estate Income Fund
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Actual
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$
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1,000.00
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$
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1,203.40
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1.50
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%
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$
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8.19
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Hypothetical (5% return before expenses)
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$
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1,000.00
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$
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1,017.36
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1.50
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%
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$
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7.50
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(1)
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Expenses are equal to the Funds annualized expense ratio, multiplied by the average account value over the period,
multiplied by 181 (the number of days in the most recent six-month period), then divided by 365.
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6
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CBRE CLARION GLOBAL REAL ESTATE INCOME FUND
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Additional Information Investment
Objectives, Policies, and Risks (unaudited)
Investment Objective
The Trusts primary investment objective is high current income. The Trusts secondary investment objective is capital appreciation. The Trusts investment
objectives and certain investment policies are considered fundamental and may not be changed without shareholder approval. There can be no assurance that the Trusts investment objectives will be achieved.
Investment Policies
The Trust has a policy of
concentrating its investments in the real estate industry and not in any other industry. Under normal market conditions, the Trust will invest substantially all but no less than 80% of its total assets in income-producing global Real Estate
Equity Securities. Real Estate Equity Securities include common stocks, preferred securities, warrants and convertible securities issued by real estate companies, such as real estate investment trusts (REITs). The
Trust, under normal market conditions, will invest in Real Estate Equity Securities of companies domiciled primarily in developed countries. However, the Trust may invest up to 15% of its total assets in Real Estate Equity Securities of companies
domiciled in emerging market countries. Under normal market conditions, the Trust expects to have investments in at least three countries, including the United States.
The Trust may invest up to 25% of its total assets in preferred securities of global real estate companies. The Trust may invest up to 20% of its total assets in
preferred securities that are rated below investment grade or that are not rated and are considered by the Trusts investment advisor to be of comparable quality. Preferred securities of non-investment
grade quality are regarded as having predominantly speculative characteristics with respect to the capacity of the issuer of the preferred securities to pay interest and repay principal. Investment grade quality securities are those that are rated
within the four highest grades by Moodys Investors Service, Inc., S&P Global Ratings, , or Fitch Ratings at the time of investment or are considered by the Trusts investment advisor to be of comparable quality. Although it has no
present intentions to do so, the Trust may invest up to 15% of its total assets in securities and other instruments that, at the time of investment, are illiquid (i.e., securities that are not readily marketable).
The Trust defines a real estate company as a company that derives at least 50% of its revenue from the ownership, construction, financing, management or sale of
commercial, industrial or residential real estate or has at least 50% of its assets invested in such real estate. A common type of real estate company, a REIT, is a domestic corporation that pools investors funds for investment primarily in
income-producing real estate or in real estate related loans (such as mortgages) or other interests. Therefore, a REIT normally derives its income from rents or from interest payments and may realize capital gains by selling properties that have
appreciated in value. A REIT is not taxed on income distributed to its shareholders if it complies with several requirements of the Internal Revenue Code of 1986, as amended (the Code). As a result, REITs tend to pay relatively
high dividends (as compared to other types of companies), and the Trust intends to use these REIT dividends in an effort to meet its primary objective of high current income.
Global real estate companies outside the U.S. include, but are not limited to, companies with similar characteristics to the REIT structure, in which revenue primarily
consists of rent derived from owned, income-producing real estate properties, dividend distributions as a percentage of taxable net income are high (generally greater than 80%), debt levels are generally conservative and income derived from
development activities is generally limited.
The Trust may invest in securities of foreign issuers in the form of American Depositary Receipts
(ADRs) and European Depositary Receipts (EDRs).
The Trust may engage in foreign currency transactions, including foreign currency
forward contracts, options, swaps, and other strategic transactions in connection with its investments in foreign Real Estate Equity Securities. Although not intended to be a significant element in the Trusts investment strategy, from time to
time the Trust may use various other investment management techniques that also involve certain risks and special considerations, including engaging in interest rate transactions and short sales.
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SEMI-ANNUAL REPORT
2021 |
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7
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Additional Information Investment Objectives, Policies, and Risks (unaudited) continued
The Trust will invest in Real Estate Equity Securities where dividend distributions are
subject to withholding taxes as determined by United States tax treaties with respective individual foreign countries. Generally, the Trust will invest in Real Estate Equity Securities that are excluded from the reduced tax rates as determined by
the Jobs and Growth Tax Relief Reconciliation Act of 2003.
Risk Factors
The Trust is a diversified, closed-end management investment company designed primarily as a long-term investment and not as a
trading vehicle. The Trust is not intended to be a complete investment program and, due to the uncertainty inherent in all investments, there can be no assurance that the Trust will achieve its investment objectives. Your common shares at any point
in time may be worth less than you invested, even after taking into account the reinvestment of Trust dividends and distributions.
General Real Estate Risks.
Because the Trust concentrates its assets in the global real estate industry, your investment in the Trust will be closely linked to the performance of the global real estate markets. Property values may fall due to increasing vacancies or
declining rents resulting from economic, legal, cultural or technological developments. The price of real estate company shares may drop because of falling property values, increased interest rates, poor management of the company or other factors.
Many real estate companies utilize leverage, which increases investment risk and could adversely affect a companys operations and market value in periods of rising interest rates.
There are also special risks associated with particular sectors of real estate investments.
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Retail Properties. Retail properties are affected by the overall health of the economy and may be adversely affected
by, among other things, the growth of alternative forms of retailing, bankruptcy, departure or cessation of operations of a tenant, a shift in consumer demand due to demographic changes, spending patterns and lease terminations.
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Office Properties. Office properties are affected by the overall health of the economy, and other factors such as a
downturn in the businesses operated by their tenants, obsolescence and non-competitiveness.
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Hotel Properties. The risks of hotel properties include, among other things, the necessity of a high level of
continuing capital expenditures, competition, increases in operating costs which may not be offset by increases in revenues, dependence on business and commercial travelers and tourism, increases in fuel costs and other expenses of travel, and
adverse effects of general and local economic conditions. Hotel properties tend to be more sensitive to adverse economic conditions and competition than many other commercial properties.
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Healthcare Properties. Healthcare properties and healthcare providers are affected by several significant factors,
including federal, state and local laws governing licenses, certification, adequacy of care, pharmaceutical distribution, rates, equipment, personnel and other factors regarding operations, continued availability of revenue from government
reimbursement programs, and competition on a local and regional basis. The failure of any healthcare operator to comply with governmental laws and regulations may affect its ability to operate its facility or receive government reimbursements.
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Multifamily Properties. The value and successful operation of a multifamily property may be affected by a number of
factors such as the location of the property, the ability of the management team, the level of mortgage rates, the presence of competing properties, adverse economic conditions in the locale, oversupply and rent control laws or other laws affecting
such properties.
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Community Shopping Centers. Community center properties are dependent upon the successful operations and financial
condition of their tenants, particularly certain of their major tenants, and could be adversely affected by bankruptcy of those tenants. In some cases, a tenant may lease a significant portion of the space in one center, and the filing of bankruptcy
could cause significant revenue loss. Like others in the commercial real estate industry, community centers are subject to environmental risks and interest rate risk. They also face the need to enter into new leases or renew leases on favorable
terms to generate rental revenues. Community center properties could be adversely affected by changes in the local markets where their properties are located, as well as by adverse changes in national economic and market conditions.
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8
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CBRE CLARION GLOBAL REAL ESTATE INCOME FUND
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Additional Information Investment Objectives, Policies, and Risks (unaudited) continued
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Self-Storage Properties. The value and successful operation of a self-storage property may be affected by a number of
factors, such as the ability of the management team, the location of the property, the presence of competing properties, changes in traffic patterns, and adverse effects of general and local economic conditions with respect to rental rates and
occupancy levels.
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Industrial Properties. Industrial properties typically include warehouses, manufactories, depots, storage, factories,
logistics and distributions. Factors such as vacancy, tenant mix, lease term, property condition and design, redevelopment opportunities and property location could adversely affect the value and operation of industrial properties.
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Towers Companies. Cell towers and wireless services have seen an increased demand in recent years. However, owners
and operators of towers may be subject to, and therefore must comply with, environmental laws that impose strict, joint and several liability for the cleanup of on-site or
off-site contamination and related personal injury or property damage.
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Data Centers Properties. Data centers facilities house an organizations most critical and proprietary assets.
Therefore, operation of data centers properties depends upon the demand for technology-related real estate and global economic conditions that could adversely affect companies abilities to lease, develop or renew leases. Declining real estate
valuations and impairment charges could adversely affect earnings and financial condition of data center properties.
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Net Lease Properties. Net lease properties require the tenant to pay (in addition to the rent) property taxes,
insurance, and maintenance on the property. Tenants ability to pay rent, interest rate fluctuations, vacancy, property location, length of the lease are only few of the risks that could affect net lease properties operations.
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Other factors that may contribute to the riskiness of all real estate investments include:
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Lack of Insurance. Certain of the portfolio companies may fail to carry comprehensive liability, fire, flood,
earthquake extended coverage and rental loss insurance, or insurance in place may be subject to various policy specifications, limits and deductibles. Should any type of uninsured loss occur, the portfolio company could lose its investment in, and
anticipated profits and cash flows from, a number of properties and as a result adversely affect the Trusts investment performance.
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Financial Leverage. Global real estate companies may be highly leveraged and financial covenants may affect the
ability of global real estate companies to operate effectively.
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Environmental Issues. In connection with the ownership (direct or indirect), operation, management and development of
real properties that may contain hazardous or toxic substances, a portfolio company may be considered an owner, operator or responsible party of such properties and, therefore, may be potentially liable for removal or remediation costs, as well as
certain other costs, including governmental fines and liabilities for injuries to persons and property. The existence of any such material environmental liability could have a material adverse effect on the results of operations and cash flow of any
such portfolio company and, as a result, the amount available to make distributions on shares of the Trust could be reduced.
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Recent Events. The value of real estate is particularly susceptible to acts of terrorism and other changes in foreign
and domestic conditions.
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Acts of God and Geopolitical Risks: The performance of certain investments could be affected by acts of God or other
unforeseen and/or uncontrollable events (collectively, disruptions), including, but not limited to, natural disasters, public health emergencies (including any outbreak or threat of COVID-19, SARS,
H1N1/09 flu, avian flu, other coronavirus, Ebola, or other existing or new pandemic or epidemic diseases), terrorism, social and political discord, geopolitical events, national and international political circumstances, and other unforeseen and/or
uncontrollable events with widespread impact. These disruptions may affect the level and volatility of security prices and liquidity of any investments. Unexpected volatility could impair an investments profitability or result in it suffering
losses. Economies and financial markets throughout the world are becoming increasingly interconnected, which increases the likelihood that events or conditions in one country or region will adversely impact markets or securities industry
participants in other countries or regions.
|
|
|
|
SEMI-ANNUAL REPORT
2021 |
|
|
9
|
Additional Information Investment Objectives, Policies, and Risks (unaudited) continued
The extent of the impact of any such disruption on the Trust will
depend on many factors, including the duration and scope of such disruption, the extent of any related travel advisories and restrictions implemented, the impact of such disruption on overall supply and demand, goods and services, investor
liquidity, consumer confidence and levels of economic activity and the extent of its disruption to important global, regional and local supply chains and economic markets, all of which are highly uncertain and cannot be predicted. A disruption may
materially and adversely impact the value and performance of any investment, the Advisers ability to source, manage and divest investments, and the Advisers ability to achieve the Trusts investment objectives, ultimately resulting
in significant losses to investors. In addition, there is a risk that a long disruption will significantly impact the operations of the Adviser, the Trust, and its portfolio investments, or even temporarily or permanently halt their operations.
|
|
REIT Issues. REITs are subject to a highly technical and complex set of provisions in the Code. It is possible that
the Trust may invest in a real estate company which purports to be a REIT, but which fails to qualify as a REIT. In the event of any such unexpected failure to qualify as a REIT, the purported REIT would be subject to corporate-level taxation,
significantly reducing the return to the Trust on its investment in such company.
|
Stock Market Risks. A portion of your investment in common
shares represents an indirect investment in equity securities owned by the Trust, substantially all of which are traded on a domestic or foreign securities exchange or in the
over-the-counter markets. The value of these securities, like other stock market investments, may move up or down, sometimes rapidly and unpredictably.
Common Stock Risk. While common stock has historically generated higher average returns than fixed income securities, common stock has also experienced
significantly more volatility in those returns. An adverse event, such as an unfavorable earnings report, may depress the value of common stock held by the Trust. Also, the price of common stock is sensitive to general movements in the stock market.
A drop in the stock market may depress the price of common stock held by the Trust.
Foreign Securities Risks. Although it is not the Trusts current
intent, the Trust may invest up to 100% of its total assets in real estate securities of non-U.S. issuers or that are denominated in various foreign currencies or multinational currency units (Foreign
Securities). Such investments involve certain risks not involved in domestic investments. Securities markets in certain foreign countries are not as developed, efficient or liquid as securities markets in the United States. Therefore,
the prices of Foreign Securities often are volatile. In addition, the Trust will be subject to risks associated with adverse political and economic developments in foreign countries, which could cause the Trust to lose money on its investments in
Foreign Securities. The Trust may hold any Foreign Securities of issuers in so-called emerging markets which may entail additional risks.
Foreign Currency Risk. Although the Trust will report its net asset value and pay dividends in U.S. dollars, Foreign Securities often are purchased with and make
interest payments in foreign currencies. Therefore, when the Trust invests in Foreign Securities, it will be subject to foreign currency risk, which means that the Trusts net asset value could decline as a result of changes in the exchange
rates between foreign currencies and the U.S. dollar. Certain foreign countries may impose restrictions on the ability of issuers of Foreign Securities to make payment of principal and interest to investors located outside the country, due to
blockage of foreign currency exchanges or otherwise.
Emerging Markets Risks. The Trust may invest in Real Estate Equity Securities of issuers located or doing
substantial business in emerging markets. Because of less developed markets and economies and, in some countries, less mature governments and governmental institutions, the risks of investing in foreign securities can be
intensified in the case of investments in issuers domiciled or doing substantial business in emerging market countries. These risks include high concentration of market capitalization and trading volume in a small number of issuers representing a
limited number of industries, as well as a high concentration of investors and financial intermediaries; political and social uncertainties; over-dependence on exports, especially with respect to primary commodities, making these economies
vulnerable to changes in commodity prices; overburdened infrastructure and obsolete or unseasoned financial systems; environmental problems; less developed legal systems; and less reliable custodial services and settlement practices.
|
|
|
10
|
|
|
CBRE CLARION GLOBAL REAL ESTATE INCOME FUND
|
Additional Information Investment Objectives, Policies, and Risks (unaudited) continued
Leverage Risk. The use of leverage through the issuance of Preferred Shares or
debt creates an opportunity for increased common share net investment income dividends, but also creates risks for the holders of common shares. The Trusts leveraging strategy may not be successful. Leverage creates two major types of risks
for the holders of common shares:
|
|
the likelihood of greater volatility of net asset value and market price of the common shares because changes in the value
of the Trusts portfolio, including securities bought with the proceeds of the leverage, are borne entirely by the holders of common shares; and
|
|
|
the possibility either that common share net investment income will fall if the leverage expense rises or that common share
net investment income will fluctuate because the leverage expense varies.
|
Small Cap Risk. The Trust may invest in Real Estate Equity
Securities of smaller companies which may entail additional risks. There may be less trading in a smaller companys stock, which means that buy and sell transactions in that stock could have a larger impact on the stocks price than is the
case with larger company stocks. Smaller companies also may have fewer lines of business so that changes in any one line of business may have a greater impact on a smaller companys stock price than is the case for a larger company. Further,
smaller company stocks may perform in different cycles than larger company stocks. Accordingly, shares of these companies can be more volatile than, and at times will perform differently from, large company stocks such as those found in the Dow
Jones Industrial Average. In addition, there are relatively few REITs when compared to other types of companies. Even the larger global real estate companies tend to be small to medium-sized companies in
comparison to many industrial and service companies.
Preferred Securities. The Trust may invest in preferred securities, which entail special risks,
including:
|
|
Deferral. Preferred securities may include provisions that permit the issuer, at its discretion, to defer
distributions for a stated period without any adverse consequences to the issuer. If the Trust owns a preferred security that is deferring its distributions, the Trust may be required to report income for tax purposes although it has not yet
received such income.
|
|
|
Subordination. Preferred securities are subordinated to bonds and other debt instruments in a companys capital
structure with respect to priority to corporate income and liquidation payments, and therefore will be subject to greater credit risk than more senior debt instruments.
|
|
|
Liquidity. Preferred securities may be substantially less liquid than many other securities, such as common stocks or
U.S. government securities.
|
|
|
Limited Voting Rights. Generally, preferred security holders (such as the Trust) have no voting rights with respect
to the issuing company unless preferred dividends have been in arrears for a specified number of periods, at which time the preferred security holders may elect a number of directors to the issuers board. Generally, once all the arrearages
have been paid, the preferred security holders no longer have voting rights. In the case of certain trust preferred securities, holders generally have no voting rights, except (i) if the issuer fails to pay dividends for a specified period of
time or (ii) if a declaration of default occurs and is continuing. In such an event, rights of holders of trust preferred securities generally would include the right to appoint and authorize a trustee to enforce the trust or special purpose
entitys rights as a creditor under the agreement with its operating company.
|
|
|
Special Redemption Rights. In certain varying circumstances, an issuer of preferred securities may redeem the
securities prior to a specified date. For instance, for certain types of preferred securities, a redemption may be triggered by a change in Federal income tax or securities laws. As with call provisions, a redemption by the issuer may negatively
impact the return on the security held by the Trust.
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|
|
New Types of Securities. From time to time, preferred securities, including trust preferred securities, have been,
and may in the future be, offered having features other than those described herein. The Trust reserves the right to invest in these securities if the Advisor believes that doing so would be consistent with the Trusts investment objectives and
policies. Since the market for these instruments would be new, the Trust may have difficulty disposing of them at a suitable price and time. In addition to limited liquidity, these instruments may present other risks, such as high price volatility.
|
|
|
|
SEMI-ANNUAL REPORT
2021 |
|
|
11
|
Additional Information Investment Objectives, Policies, and Risks (unaudited) continued
Illiquid Securities. The Trust may invest up to 15% of its total assets in
illiquid securities. Illiquid securities are securities that are not readily marketable and may include some restricted securities, which are securities that may not be resold to the public without an effective registration statement under the
Securities Act of 1933, (the Securities Act) or, if they are unregistered, may be sold only in a privately negotiated transaction or pursuant to an exemption from registration. Illiquid investments involve the risk that the
securities will not be able to be sold at the time desired by the Trust or at prices approximating the value at which the Trust is carrying the securities on its books.
Lower-Rated Securities. The Trust will not invest more than 20% of its total assets in preferred securities rated below investment grade or unrated and considered
by the Advisor to be of comparable quality.
The values of lower-rated securities often reflect individual corporate developments and have a higher sensitivity to
economic changes than do higher rated securities. Issuers of lower-rated securities are often in the growth stage of their development and/or involved in a reorganization or takeover. The companies are often highly leveraged (have a significant
amount of debt relative to shareholders equity) and may not have available to them more traditional financing methods, thereby increasing the risk associated with acquiring these types of securities. In some cases, obligations with respect to
lower-rated securities are subordinated to the prior repayment of senior indebtedness, which will potentially limit the Trusts ability to fully recover principal or to receive interest payments when senior securities are in default. Thus,
investors in lower-rated securities have a lower degree of protection with respect to principal and interest payments than do investors in higher rated securities.
During an economic downturn, a substantial period of rising interest rates or a recession, issuers of lower-rated securities may experience financial distress possibly
resulting in insufficient revenues to meet their principal and interest payment obligations, to meet projected business goals and to obtain additional financing. An economic downturn could also disrupt the market for lower-rated securities and
adversely affect the ability of the issuers to repay principal and interest. If the issuer of a security held by the Trust defaults, the Trust may not receive full interest and principal payments due to it and could incur additional expenses if it
chose to seek recovery of its investment.
Interest Rate Risk. Interest rate risk is the risk that fixed income investments such as preferred securities, and
to a lesser extent dividend-paying common stocks such as REIT common stocks, will decline in value because of changes in market interest rates. When market interest rates rise, the market value of such securities generally will fall. The
Trusts investment in such securities means that the net asset value and market price of its common shares will tend to decline if market interest rates rise. Because market interest rates are currently near their lowest levels in many years,
there is a greater than normal risk that the Trusts portfolio will decline in value due to rising interest rates. Your common shares at any point in time may be worth less than what you invested, even after taking into account the reinvestment
of Trust dividends and distributions. The Trust utilizes leverage, which magnifies interest rate risk.
Strategic Transactions. For general portfolio
management purposes, the Trust may use various other investment management techniques that also involve certain risks and special considerations, including engaging in hedging and risk management transactions, including interest rate swaps and
options and foreign currency transactions. These strategic transactions will be entered into to seek to manage the risks of the Trusts portfolio of securities, but may have the effect of limiting the gains from favorable market movements.
Inflation Risk. Inflation risk is the risk that the value of assets or income from investments will be worth less in the future as inflation decreases the value of
money. As inflation increases, the real value of the common shares and distributions can decline and the dividend payments in respect of Preferred Shares, if any, or interest payments on any borrowings may increase.
Deflation Risk. Deflation risk is the risk that the Trusts dividends may be reduced in the future as lower prices reduce interest rates and earning power,
resulting in lower distributions on the assets owned by the Trust.
Market Discount Risk. Shares of closed-end
management investment companies frequently trade at a discount from their net asset value. This characteristic is a risk separate and distinct from the risk that the Trusts net asset value could decrease as a result of Trust investment
activities and may be greater for investors expecting to sell their shares in a relatively short period following the offering
|
|
|
12
|
|
|
CBRE CLARION GLOBAL REAL ESTATE INCOME FUND
|
Additional Information Investment Objectives, Policies, and Risks (unaudited) concluded
of Preferred Shares. Whether investors will realize gains or losses upon the sale of
the shares will depend not upon the Trusts net asset value but entirely upon whether the market price of the shares at the time of sale is above or below the investors purchase price for the shares. Because the market price of the shares
will be determined by factors such as relative supply of and demand for shares in the market, general market and economic conditions, and other factors beyond the control of the Trust, we cannot predict whether the shares will trade at, below or
above net asset value, or at, below or above the initial public offering price.
Investment Risk. An investment in the Trust is subject to investment risk,
including the possible loss of the entire principal amount that you invest.
Anti-Takeover Provisions. The Trusts Amended and Restated Agreement and
Declaration of Trust (the Agreement and Declaration of Trust) includes provisions that could limit the ability of other entities or persons to acquire control of the Trust or convert the Trust to
open-end status. These provisions could deprive the holders of common shares of opportunities to sell their common shares at a premium over the then current market price of the common shares or at net asset
value. In addition, if the Trust issues Preferred Shares, the holders of the Preferred Shares will have voting rights that could deprive holders of common shares of such opportunities.
Market Disruption Risk. A disruption of the U.S. or world financial markets could impact interest rates, auctions, secondary trading, ratings, credit risk,
inflation and other factors relating to the common shares.
Concentration Risk. The Trust invests a substantial portion of its assets
(concentrates) in a particular market, industry, group of industries, country, region, group of countries, asset class or sector generally is subject to greater risk than a portfolio that invests in a more diverse investment portfolio.
In addition, the value of the Trusts portfolio is more susceptible to any single economic, market, political or regulatory occurrence affecting, for example, that particular market, industry, region or sector. This is because, for example,
issuers in a particular market, industry, region or sector often react similarly to specific economic, market, regulatory, or political developments.
|
|
|
SEMI-ANNUAL REPORT
2021 |
|
|
13
|
Portfolio of Investments (unaudited)
June 30, 2021
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Shares
|
|
|
|
|
|
|
|
|
|
|
Market
Value
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Real Estate Securities* 125.2%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Common Stock 114.9%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Australia 5.0%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
2,056,676
|
|
|
|
|
|
|
Dexus
|
|
|
|
|
|
$
|
16,475,012
|
|
|
|
|
|
|
|
665,063
|
|
|
|
|
|
|
Goodman Group
|
|
|
|
|
|
|
10,570,100
|
|
|
|
|
|
|
|
1,301,723
|
|
|
|
|
|
|
Ingenia Communities Group
|
|
|
|
|
|
|
6,000,430
|
|
|
|
|
|
|
|
5,028,871
|
|
|
|
|
|
|
Mirvac Group
|
|
|
|
|
|
|
11,024,244
|
|
|
|
|
|
|
|
9,266,266
|
|
|
|
|
|
|
Vicinity Centres
|
|
|
|
|
|
|
10,748,026
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
54,817,812
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Belgium 1.7%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
147,379
|
|
|
|
|
|
|
Shurgard Self Storage SA
|
|
|
|
|
|
|
7,113,409
|
|
|
|
|
|
|
|
296,029
|
|
|
|
|
|
|
Warehouses De Pauw CVA
|
|
|
|
|
|
|
11,304,150
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
18,417,559
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Canada 2.2%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
261,232
|
|
|
|
|
|
|
Boardwalk Real Estate Investment Trust
|
|
|
|
|
|
|
8,624,053
|
|
|
|
|
|
|
|
151,916
|
|
|
|
|
|
|
Canadian Apartment Properties REIT
|
|
|
|
|
|
|
7,130,225
|
|
|
|
|
|
|
|
669,200
|
|
|
|
|
|
|
H&R Real Estate Investment Trust
|
|
|
|
|
|
|
8,646,693
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
24,400,971
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Finland 1.2%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
558,772
|
|
|
|
|
|
|
Kojamo OYJ
|
|
|
|
|
|
|
12,769,213
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
France 0.5%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
427,804
|
|
|
|
|
|
|
Mercialys SA
|
|
|
|
|
|
|
5,179,864
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Germany 6.4%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
293,937
|
|
|
|
|
|
|
ADLER Group SA
|
|
|
|
|
|
|
7,731,497
|
|
|
|
|
|
|
|
604,777
|
|
|
|
|
|
|
alstria office REIT-AG
|
|
|
|
|
|
|
11,181,219
|
|
|
|
|
|
|
|
157,643
|
|
|
|
|
|
|
Grand City Properties SA
|
|
|
|
|
|
|
4,258,691
|
|
|
|
|
|
|
|
172,977
|
|
|
|
|
|
|
LEG Immobilien SE
|
|
|
|
|
|
|
24,913,437
|
|
|
|
|
|
|
|
345,308
|
|
|
|
|
|
|
Vonovia SE
|
|
|
|
|
|
|
22,325,966
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
70,410,810
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Hong Kong 6.9%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
2,730,500
|
|
|
|
|
|
|
CK Asset Holdings Ltd.
|
|
|
|
|
|
|
18,845,947
|
|
|
|
|
|
|
|
2,586,070
|
|
|
|
|
|
|
Link REIT
|
|
|
|
|
|
|
25,058,656
|
|
|
|
|
|
|
|
1,259,000
|
|
|
|
|
|
|
Sun Hung Kai Properties Ltd.
|
|
|
|
|
|
|
18,757,290
|
|
|
|
|
|
|
|
4,382,000
|
|
|
|
|
|
|
Swire Properties Ltd.
|
|
|
|
|
|
|
13,062,743
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
75,724,636
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Ireland 0.9%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
6,713,031
|
|
|
|
|
|
|
Hibernia REIT PLC
|
|
|
|
|
|
|
9,871,613
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Shares
|
|
|
|
|
|
|
|
|
|
|
Market
Value
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Japan 9.5%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
7,321
|
|
|
|
|
|
|
AEON REIT Investment Corp.
|
|
|
|
|
|
$
|
10,850,568
|
|
|
|
|
|
|
|
1,974
|
|
|
|
|
|
|
Kenedix Office Investment Corp.
|
|
|
|
|
|
|
13,925,957
|
|
|
|
|
|
|
|
4,112
|
|
|
|
|
|
|
Kenedix Residential Next Investment Corp.
|
|
|
|
|
|
|
8,895,317
|
|
|
|
|
|
|
|
10,619
|
|
|
|
|
|
|
LaSalle Logiport REIT
|
|
|
|
|
|
|
17,948,684
|
|
|
|
|
|
|
|
830,000
|
|
|
|
|
|
|
Mitsui Fudosan Co., Ltd.
|
|
|
|
|
|
|
19,241,283
|
|
|
|
|
|
|
|
422,600
|
|
|
|
|
|
|
Nomura Real Estate Holdings, Inc.
|
|
|
|
|
|
|
10,729,676
|
|
|
|
|
|
|
|
4,325
|
|
|
|
|
|
|
Orix JREIT, Inc.
|
|
|
|
|
|
|
8,331,246
|
|
|
|
|
|
|
|
2,341,100
|
|
|
|
|
|
|
Tokyu Fudosan Holdings Corp.
|
|
|
|
|
|
|
14,090,051
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
104,012,782
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Mexico 1.4%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
6,890,088
|
|
|
|
|
|
|
Prologis Property Mexico SA de CV
|
|
|
|
|
|
|
15,427,042
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Singapore 4.2%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
9,381,444
|
|
|
|
|
|
|
CapitaLand China Trust
|
|
|
|
|
|
|
9,561,507
|
|
|
|
|
|
|
|
6,879,700
|
|
|
|
|
|
|
CapitaLand Integrated Commercial Trust
|
|
|
|
|
|
|
10,696,751
|
|
|
|
|
|
|
|
4,481,800
|
|
|
|
|
|
|
CapitaLand Ltd.
|
|
|
|
|
|
|
12,369,795
|
|
|
|
|
|
|
|
1,261,800
|
|
|
|
|
|
|
City Developments Ltd.
|
|
|
|
|
|
|
6,843,120
|
|
|
|
|
|
|
|
8,338,000
|
|
|
|
|
|
|
Keppel REIT
|
|
|
|
|
|
|
7,319,476
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
46,790,649
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Sweden 1.4%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
332,242
|
|
|
|
|
|
|
Castellum AB
|
|
|
|
|
|
|
8,461,300
|
|
|
|
|
|
|
|
131,216
|
|
|
|
|
|
|
Catena AB
|
|
|
|
|
|
|
7,030,182
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
15,491,482
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
United Kingdom 4.9%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
438,333
|
|
|
|
|
|
|
Big Yellow Group PLC
|
|
|
|
|
|
|
7,914,345
|
|
|
|
|
|
|
|
1,833,695
|
|
|
|
|
|
|
Grainger PLC
|
|
|
|
|
|
|
7,219,501
|
|
|
|
|
|
|
|
1,199,481
|
|
|
|
|
|
|
Land Securities Group PLC
|
|
|
|
|
|
|
11,191,535
|
|
|
|
|
|
|
|
1,523,388
|
|
|
|
|
|
|
Segro PLC
|
|
|
|
|
|
|
23,033,584
|
|
|
|
|
|
|
|
3,140,193
|
|
|
|
|
|
|
Target Healthcare REIT PLC
|
|
|
|
|
|
|
5,006,075
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
54,365,040
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
United States 68.7%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
111,194
|
|
|
|
|
|
|
Alexandria Real Estate Equities, Inc.
|
|
|
|
|
|
|
20,230,636
|
|
|
|
|
|
|
|
401,333
|
|
|
|
|
|
|
American Tower Corp. (a)
|
|
|
|
|
|
|
108,416,097
|
|
|
|
|
|
|
|
347,425
|
|
|
|
|
|
|
Apartment Income REIT Corp.
|
|
|
|
|
|
|
16,478,368
|
|
|
|
|
|
|
|
1,115,530
|
|
|
|
|
|
|
Brixmor Property Group, Inc.
|
|
|
|
|
|
|
25,534,482
|
|
|
|
|
|
|
|
225,099
|
|
|
|
|
|
|
Camden Property Trust
|
|
|
|
|
|
|
29,863,884
|
|
|
|
|
|
|
|
172,458
|
|
|
|
|
|
|
Crown Castle International Corp.
|
|
|
|
|
|
|
33,646,556
|
|
|
|
|
|
|
|
602,434
|
|
|
|
|
|
|
CubeSmart
|
|
|
|
|
|
|
27,904,743
|
|
|
|
|
|
|
|
134,104
|
|
|
|
|
|
|
CyrusOne, Inc.
|
|
|
|
|
|
|
9,591,118
|
|
See notes to financial statements.
|
|
|
14
|
|
|
CBRE CLARION GLOBAL REAL ESTATE INCOME FUND
|
Portfolio of Investments (unaudited) continued
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Shares
|
|
|
|
|
|
|
|
|
|
|
Market
Value
|
|
|
|
|
|
|
|
1,021,997
|
|
|
|
|
|
|
Duke Realty Corp.
|
|
|
|
|
|
$
|
48,391,558
|
|
|
|
|
|
|
|
246,526
|
|
|
|
|
|
|
Extra Space Storage, Inc.
|
|
|
|
|
|
|
40,385,889
|
|
|
|
|
|
|
|
615,723
|
|
|
|
|
|
|
Healthcare Trust of America, Inc., Class A
|
|
|
|
|
|
|
16,439,804
|
|
|
|
|
|
|
|
202,229
|
|
|
|
|
|
|
Highwoods Properties, Inc.
|
|
|
|
|
|
|
9,134,684
|
|
|
|
|
|
|
|
791,953
|
|
|
|
|
|
|
Host Hotels & Resorts, Inc. (b)
|
|
|
|
|
|
|
13,534,477
|
|
|
|
|
|
|
|
549,376
|
|
|
|
|
|
|
Hudson Pacific Properties, Inc.
|
|
|
|
|
|
|
15,283,640
|
|
|
|
|
|
|
|
560,495
|
|
|
|
|
|
|
Invitation Homes, Inc.
|
|
|
|
|
|
|
20,900,859
|
|
|
|
|
|
|
|
156,377
|
|
|
|
|
|
|
Life Storage, Inc.
|
|
|
|
|
|
|
16,787,071
|
|
|
|
|
|
|
|
676,971
|
|
|
|
|
|
|
MGM Growth Properties LLC, Class A
|
|
|
|
|
|
|
24,790,678
|
|
|
|
|
|
|
|
145,000
|
|
|
|
|
|
|
Mid-America Apartment Communities, Inc.
|
|
|
|
|
|
|
24,420,900
|
|
|
|
|
|
|
|
292,500
|
|
|
|
|
|
|
National Retail Properties, Inc.
|
|
|
|
|
|
|
13,712,400
|
|
|
|
|
|
|
|
308,731
|
|
|
|
|
|
|
Pebblebrook Hotel Trust
|
|
|
|
|
|
|
7,270,615
|
|
|
|
|
|
|
|
696,892
|
|
|
|
|
|
|
Piedmont Office Realty Trust, Inc., Class A
|
|
|
|
|
|
|
12,871,595
|
|
|
|
|
|
|
|
539,944
|
|
|
|
|
|
|
Prologis, Inc. (a)
|
|
|
|
|
|
|
64,539,506
|
|
|
|
|
|
|
|
492,606
|
|
|
|
|
|
|
Simon Property Group, Inc. (a)
|
|
|
|
|
|
|
64,275,231
|
|
|
|
|
|
|
|
731,143
|
|
|
|
|
|
|
SITE Centers Corp.
|
|
|
|
|
|
|
11,011,014
|
|
|
|
|
|
|
|
585,007
|
|
|
|
|
|
|
Spirit Realty Capital, Inc.
|
|
|
|
|
|
|
27,986,735
|
|
|
|
|
|
|
|
1,261,600
|
|
|
|
|
|
|
Sunstone Hotel Investors, Inc. (b)
|
|
|
|
|
|
|
15,669,072
|
|
|
|
|
|
|
|
411,900
|
|
|
|
|
|
|
UDR, Inc.
|
|
|
|
|
|
|
20,174,862
|
|
|
|
|
|
|
|
285,785
|
|
|
|
|
|
|
Ventas, Inc.
|
|
|
|
|
|
|
16,318,323
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
755,564,797
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total Common Stock
(cost $1,053,236,040)
|
|
|
|
|
|
|
1,263,244,270
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Preferred Stock 10.3%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
United States 10.3%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
245,403
|
|
|
|
|
|
|
Digital Realty Trust, Inc., Series J, 5.250%
|
|
|
|
|
|
|
6,380,478
|
|
|
|
|
|
|
|
301,100
|
|
|
|
|
|
|
Digital Realty Trust, Inc., Series L, 5.200%
|
|
|
|
|
|
|
8,484,998
|
|
|
|
|
|
|
|
282,200
|
|
|
|
|
|
|
Federal Realty Investment Trust, Series C, 5.000%
|
|
|
|
|
|
|
7,455,724
|
|
|
|
|
|
|
|
405,900
|
|
|
|
|
|
|
National Storage Affiliates Trust, Series A, 6.000%
|
|
|
|
|
|
|
10,959,300
|
|
|
|
|
|
|
|
600,000
|
|
|
|
|
|
|
Pebblebrook Hotel Trust, Series D, 6.375%
|
|
|
|
|
|
|
15,132,000
|
|
|
|
|
|
|
|
383,644
|
|
|
|
|
|
|
Pebblebrook Hotel Trust, Series E, 6.375%
|
|
|
|
|
|
|
9,644,810
|
|
|
|
|
|
|
|
541,950
|
|
|
|
|
|
|
Pebblebrook Hotel Trust, Series F, 6.300%
|
|
|
|
|
|
|
13,705,915
|
|
|
|
|
|
|
|
262,125
|
|
|
|
|
|
|
Pebblebrook Hotel Trust, Series G, 6.375%
|
|
|
|
|
|
|
7,145,528
|
|
|
|
|
|
|
|
143,517
|
|
|
|
|
|
|
Rexford Industrial Realty, Inc., Series B, 5.875%
|
|
|
|
|
|
|
3,849,126
|
|
|
|
|
|
|
|
225,000
|
|
|
|
|
|
|
Summit Hotel Properties, Inc., Series D, 6.450%
|
|
|
|
|
|
|
5,665,500
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Shares
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Market
Value
|
|
|
|
|
|
|
|
287,077
|
|
|
|
|
|
|
Summit Hotel Properties, Inc., Series E, 6.250%
|
|
|
|
|
|
|
$
|
7,495,581
|
|
|
|
|
|
|
|
379,377
|
|
|
|
|
|
|
Sunstone Hotel Investors, Inc., Series F, 6.450%
|
|
|
|
|
|
|
|
9,812,586
|
|
|
|
|
|
|
|
265,000
|
|
|
|
|
|
|
Sunstone Hotel Investors, Inc., Series H, 6.125%
|
|
|
|
|
|
|
|
7,523,350
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total Preferred Stock
(cost $103,946,144)
|
|
|
|
|
|
|
|
113,254,896
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total Investments 125.2%
(cost $1,157,182,184)
|
|
|
|
|
|
|
|
1,376,499,166
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Liabilities in Excess of Other Assets (25.2)%
|
|
|
|
|
|
|
|
(277,357,705
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net Assets 100.0%
|
|
|
|
|
|
|
$
|
1,099,141,461
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Number of
Contracts
|
|
|
|
|
|
|
|
|
|
|
Notional
Amount
|
|
|
|
|
|
Market
Value
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Written Call Opti ons (0.0)% (c)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
United States (0.0)% (c)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(2,000)
|
|
|
|
|
|
|
American Tower Corp.
Expires 7/16/2021
Strike Price $280.00
|
|
|
|
|
|
|
(200,000
|
)
|
|
|
|
|
|
$
|
(180,000
|
)
|
|
|
|
|
|
|
|
|
(1,456)
|
|
|
|
|
|
|
Prologis, Inc.
Expires 7/16/2021
Strike Price $125.00
|
|
|
|
|
|
|
(145,600
|
)
|
|
|
|
|
|
|
(50,960
|
)
|
|
|
|
|
|
|
|
|
(3,700)
|
|
|
|
|
|
|
Simon Property Group, Inc.
Expires 7/16/2021
Strike Price $135.00
|
|
|
|
|
|
|
(370,000
|
)
|
|
|
|
|
|
|
(314,500
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total Written Call Options
(Premiums Received $1,437,034)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
$
|
(545,460
|
)
|
*
|
Includes U.S. Real Estate Investment Trusts (REIT) and Real Estate Operating Companies (REOC) as
well as entities similarly formed under the laws of non-U.S. countries.
|
(a)
|
A portion of the security has been pledged for open written option contracts. The aggregate market value of the
collateral as of June 30, 2021 is $119,709,168.
|
(b)
|
Non-income producing security.
|
(c)
|
Rounds to less than 0.1%.
|
See notes to financial statements.
|
|
|
SEMI-ANNUAL REPORT
2021 |
|
|
15
|
Portfolio of Investments (unaudited) concluded
Securities Valuation
The following is a summary of various inputs used in determining the value of the Trusts investments. These inputs are summarized in three broad levels.
Level 1 includes quoted prices in active markets for identical investments. Level 2 includes other significant observable inputs (including quoted prices for similar investments, interest rates, prepayment speeds, credit risk, etc.).
Level 3 includes significant unobservable inputs (including the Trusts own assumptions in determining the fair value of investments). The level assigned to the securities valuations may not be an indication of the risk or liquidity
associated with investing in those securities.
The following is a summary of inputs used as of June 30, 2021. For information on the Trusts policy
regarding the valuation of investments, please refer to the Security Valuation section of Note 2 in the accompanying Notes to Financial Statements.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Assets
|
|
Level 1
|
|
|
Level 2
|
|
|
Level 3
|
|
|
Total
|
|
|
|
|
|
|
Investments in Real Estate Securities
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Common Stock
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Australia
|
|
$
|
54,817,812
|
|
|
$
|
|
|
|
$
|
|
|
|
$
|
54,817,812
|
|
Belgium
|
|
|
18,417,559
|
|
|
|
|
|
|
|
|
|
|
|
18,417,559
|
|
Canada
|
|
|
24,400,971
|
|
|
|
|
|
|
|
|
|
|
|
24,400,971
|
|
Finland
|
|
|
12,769,213
|
|
|
|
|
|
|
|
|
|
|
|
12,769,213
|
|
France
|
|
|
5,179,864
|
|
|
|
|
|
|
|
|
|
|
|
5,179,864
|
|
Germany
|
|
|
70,410,810
|
|
|
|
|
|
|
|
|
|
|
|
70,410,810
|
|
Hong Kong
|
|
|
75,724,636
|
|
|
|
|
|
|
|
|
|
|
|
75,724,636
|
|
Ireland
|
|
|
9,871,613
|
|
|
|
|
|
|
|
|
|
|
|
9,871,613
|
|
Japan
|
|
|
104,012,782
|
|
|
|
|
|
|
|
|
|
|
|
104,012,782
|
|
Mexico
|
|
|
15,427,042
|
|
|
|
|
|
|
|
|
|
|
|
15,427,042
|
|
Singapore
|
|
|
46,790,649
|
|
|
|
|
|
|
|
|
|
|
|
46,790,649
|
|
Sweden
|
|
|
15,491,482
|
|
|
|
|
|
|
|
|
|
|
|
15,491,482
|
|
United Kingdom
|
|
|
54,365,040
|
|
|
|
|
|
|
|
|
|
|
|
54,365,040
|
|
United States
|
|
|
755,564,797
|
|
|
|
|
|
|
|
|
|
|
|
755,564,797
|
|
|
|
|
|
|
Total Common Stock
|
|
|
1,263,244,270
|
|
|
|
|
|
|
|
|
|
|
|
1,263,244,270
|
|
|
|
|
|
|
Preferred Stock
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
United States
|
|
|
103,442,310
|
|
|
|
9,812,586
|
|
|
|
|
|
|
|
113,254,896
|
|
|
|
|
|
|
Total Investment in Real Estate Securities
|
|
$
|
1,366,686,580
|
|
|
$
|
9,812,586
|
|
|
$
|
|
|
|
$
|
1,376,499,166
|
|
|
|
|
|
|
Liabilities
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Other Financial Instruments
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Written Call Options
|
|
$
|
(545,460
|
)
|
|
$
|
|
|
|
$
|
|
|
|
$
|
(545,460
|
)
|
|
|
|
|
|
Total Liabilities
|
|
$
|
(545,460
|
)
|
|
$
|
|
|
|
$
|
|
|
|
$
|
(545,460
|
)
|
See notes to financial statements.
|
|
|
16
|
|
|
CBRE CLARION GLOBAL REAL ESTATE INCOME FUND
|
Statement of Assets and Liabilities (unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
June 30, 2021
|
|
|
|
|
Assets
|
|
|
|
|
|
|
|
|
|
|
|
Investments, at value (cost $1,157,182,184)
|
|
|
|
|
|
|
$1,376,499,166
|
|
|
|
|
Cash and cash equivalents
|
|
|
|
|
|
|
256,711
|
|
|
|
|
Dividends and interest receivable
|
|
|
|
|
|
|
5,312,056
|
|
|
|
|
Dividend withholding reclaims receivable
|
|
|
|
|
|
|
438,098
|
|
|
|
|
Other assets
|
|
|
|
|
|
|
36,596
|
|
|
|
|
Total Assets
|
|
|
|
|
|
|
1,382,542,627
|
|
|
|
|
Liabilities
|
|
|
|
|
|
|
|
|
|
|
|
Line of credit payable
|
|
|
|
|
|
|
280,995,600
|
|
|
|
|
Management fees payable
|
|
|
|
|
|
|
971,021
|
|
|
|
|
Written options (premiums received $1,437,034)
|
|
|
|
|
|
|
545,460
|
|
|
|
|
Line of credit interest payable
|
|
|
|
|
|
|
189,509
|
|
|
|
|
Dividend and distributions payable
|
|
|
|
|
|
|
155,343
|
|
|
|
|
Unrealized depreciation on spot contracts
|
|
|
|
|
|
|
107
|
|
|
|
|
Accrued expenses
|
|
|
|
|
|
|
544,126
|
|
|
|
|
Total Liabilities
|
|
|
|
|
|
|
283,401,166
|
|
|
|
|
Net Assets
|
|
|
|
|
|
|
$1,099,141,461
|
|
|
|
|
Composition of Net Assets
|
|
|
|
|
|
|
|
|
|
|
|
$0.001 par value per share;
unlimited number of shares authorized,
116,590,494 shares issued and
outstanding
|
|
|
|
|
|
|
$116,590
|
|
|
|
|
Additional paid-in capital
|
|
|
|
|
|
|
939,728,919
|
|
|
|
|
Distributable earnings / (accumulated loss)
|
|
|
|
|
|
|
159,295,952
|
|
|
|
|
Net Assets
|
|
|
|
|
|
|
$1,099,141,461
|
|
|
|
|
Net Asset Value
(based on 116,590,494 shares
outstanding)
|
|
|
|
|
|
|
$9.43
|
|
See notes to financial statements.
|
|
|
SEMI-ANNUAL REPORT
2021 |
|
|
17
|
Statement of Operations
(unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
For the
Six Months Ended
June 30, 2021
|
|
|
|
|
Investment Income
|
|
|
|
|
|
|
|
|
|
|
|
Dividends (net of foreign withholding taxes of $823,690)
|
|
|
|
|
|
|
$19,046,840
|
|
|
|
|
Total Investment Income
|
|
|
|
|
|
|
19, 046,840
|
|
|
|
|
Expenses:
|
|
|
|
|
|
|
|
|
|
|
|
Management fees
|
|
|
|
|
|
|
5,449,604
|
|
|
|
|
Interest expense on line of credit
|
|
|
|
|
|
|
1,171,126
|
|
|
|
|
Printing and mailing fees
|
|
|
|
|
|
|
229,398
|
|
|
|
|
Administration fees
|
|
|
|
|
|
|
133,185
|
|
|
|
|
Trustees fees and expenses
|
|
|
|
|
|
|
111,574
|
|
|
|
|
Custodian fees
|
|
|
|
|
|
|
110,746
|
|
|
|
|
Insurance fees
|
|
|
|
|
|
|
83,066
|
|
|
|
|
NYSE listing fee
|
|
|
|
|
|
|
59,261
|
|
|
|
|
Legal fees
|
|
|
|
|
|
|
49,880
|
|
|
|
|
Transfer agent fees
|
|
|
|
|
|
|
49,324
|
|
|
|
|
Audit and tax fees
|
|
|
|
|
|
|
37,688
|
|
|
|
|
Miscellaneous expenses
|
|
|
|
|
|
|
24,367
|
|
|
|
|
Total Expenses
|
|
|
|
|
|
|
7,509,219
|
|
|
|
|
Net Investment Income
|
|
|
|
|
|
|
11,537,621
|
|
|
|
|
Net Realized and Unrealized Gain (Loss) on Investments, Written Options, and Foreign Currency
Transactions
|
|
|
|
|
|
|
|
|
|
|
|
Net realized gain (loss) on:
|
|
|
|
|
|
|
|
|
|
|
|
Investments
|
|
|
|
|
|
|
73,899,752
|
|
|
|
|
Written options
|
|
|
|
|
|
|
1,315,836
|
|
|
|
|
Foreign currency transactions
|
|
|
|
|
|
|
(92,149
|
)
|
|
|
|
Total Net Realized Gain
|
|
|
|
|
|
|
75,123,439
|
|
|
|
|
Net change in unrealized appreciation (depreciation) on:
|
|
|
|
|
|
|
|
|
|
|
|
Investments
|
|
|
|
|
|
|
101,397,325
|
|
|
|
|
Written options
|
|
|
|
|
|
|
891,574
|
|
|
|
|
Foreign currency denominated assets and liabilities
|
|
|
|
|
|
|
(25,585
|
)
|
|
|
|
Total Net Change in Unrealized Appreciation
|
|
|
|
|
|
|
102,263,314
|
|
|
|
|
Net Realized and Unrealized Gain on Investments, Written
Options, and Foreign Currency Transactions
|
|
|
|
|
|
|
177,386,753
|
|
|
|
|
Net Increase in Net Assets Resulting from
Operations
|
|
|
|
|
|
|
$188,924,374
|
|
See notes to financial statements.
|
|
|
18
|
|
|
CBRE CLARION GLOBAL REAL ESTATE INCOME FUND
|
Statements of Changes in Net Assets
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
For the
Six Months Ended
June 30, 2021
(unaudited)
|
|
|
|
|
|
For the
Year Ended
December 31, 2020
|
|
|
|
|
|
|
Change in Net Assets Resulting from Operations
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net investment income
|
|
|
|
|
|
|
$11,537,621
|
|
|
|
|
|
|
|
$19,680,348
|
|
|
|
|
|
|
Net realized gain (loss) on investments, written options, and foreign currency transactions
|
|
|
|
|
|
|
75,123,439
|
|
|
|
|
|
|
|
(47,735,561
|
)
|
|
|
|
|
|
Net change in unrealized appreciation on investments, and foreign
currency denominated assets and liabilities
|
|
|
|
|
|
|
102,263,314
|
|
|
|
|
|
|
|
10,314,142
|
|
|
|
|
|
|
Net increase (decrease) in net assets resulting from
operations
|
|
|
|
|
|
|
188,924,374
|
|
|
|
|
|
|
|
(17,741,071
|
)
|
|
|
|
|
|
Distributions on Common Shares
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Distributions from distributable earnings
|
|
|
|
|
|
|
(34,977,148
|
)
|
|
|
|
|
|
|
(24,012,983
|
)
|
|
|
|
|
|
Distribution of return of capital
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(45,941,313
|
)
|
|
|
|
|
|
Total distributions on Common Shares
|
|
|
|
|
|
|
(34,977,148
|
)
|
|
|
|
|
|
|
(69,954,296
|
)
|
|
|
|
|
|
Net Increase (Decrease) in Net Assets
|
|
|
|
|
|
|
153,947,226
|
|
|
|
|
|
|
|
(87,695,367
|
)
|
|
|
|
|
|
Net Assets
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Beginning of period
|
|
|
|
|
|
|
945,194,235
|
|
|
|
|
|
|
|
1,032,889,602
|
|
|
|
|
|
|
End of period
|
|
|
|
|
|
|
$1,099,141,461
|
|
|
|
|
|
|
|
$945,194,235
|
|
See notes to financial statements.
|
|
|
SEMI-ANNUAL REPORT
2021 |
|
|
19
|
Statement of Cash Flows
(unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
For the
Six Months Ended
June 30, 2021
|
|
|
|
|
Cash Flows from Operating Activities:
|
|
|
|
|
|
|
|
|
|
|
|
Net Increase in Net Assets Resulting from Operations
|
|
|
|
|
|
|
$188,924,374
|
|
|
|
|
Adjustments to Reconcile Net Increase in Net Assets Resulting from Operations to Net Cash Provided by
Operating Activities:
|
|
|
|
|
|
|
|
|
|
|
|
Net change in unrealized appreciation/depreciation on investments
|
|
|
|
|
|
|
(101,397,325
|
)
|
|
|
|
Net change in unrealized appreciation/depreciation on options
|
|
|
|
|
|
|
(891,574
|
)
|
|
|
|
Net realized gain on investments
|
|
|
|
|
|
|
(73,899,752
|
)
|
|
|
|
Net realized gain on written options
|
|
|
|
|
|
|
(1,315,836
|
)
|
|
|
|
Cost of securities purchased
|
|
|
|
|
|
|
(473,331,166
|
)
|
|
|
|
Proceeds from sale of securities
|
|
|
|
|
|
|
505,660,966
|
|
|
|
|
Premiums received on written options
|
|
|
|
|
|
|
3,221,534
|
|
|
|
|
Decrease in receivable for investment securities sold
|
|
|
|
|
|
|
6,714,336
|
|
|
|
|
Decrease in dividends and interest receivable
|
|
|
|
|
|
|
544,243
|
|
|
|
|
Increase in dividend withholding reclaims receivable
|
|
|
|
|
|
|
(125,614
|
)
|
|
|
|
Decrease in other assets
|
|
|
|
|
|
|
83,066
|
|
|
|
|
Decrease in unrealized depreciation on spot contracts
|
|
|
|
|
|
|
(2,421
|
)
|
|
|
|
Decrease in payable for investment securities purchased
|
|
|
|
|
|
|
(10,689,362
|
)
|
|
|
|
Increase in management fees payable
|
|
|
|
|
|
|
100,515
|
|
|
|
|
Decrease in line of credit interest payable
|
|
|
|
|
|
|
(15,588
|
)
|
|
|
|
Increase in accrued expenses
|
|
|
|
|
|
|
229,470
|
|
|
|
|
Net Cash Provided by Operating Activities
|
|
|
|
|
|
|
43,809,866
|
|
|
|
|
Cash Flows From Financing Activities:
|
|
|
|
|
|
|
|
|
|
|
|
Cash distributions paid on common shares
|
|
|
|
|
|
|
(34,978,098
|
)
|
|
|
|
Proceeds from borrowing on line of credit
|
|
|
|
|
|
|
180,220,400
|
|
|
|
|
Payments on line of credit borrowings
|
|
|
|
|
|
|
(188,951,600
|
)
|
|
|
|
Net Cash Used in Financing Activities
|
|
|
|
|
|
|
(43,709,298
|
)
|
|
|
|
Net Increase in cash
|
|
|
|
|
|
|
100,568
|
|
|
|
|
Cash and Cash Equivalents at Beginning of Period
|
|
|
|
|
|
|
156,143
|
|
|
|
|
Cash and Cash Equivalents at End of Period
|
|
|
|
|
|
|
$256,711
|
|
|
|
|
Supplemental disclosure
|
|
|
|
|
|
|
|
|
|
|
|
Interest paid on line of credit borrowings
|
|
|
|
|
|
|
$1,186,714
|
|
See notes to financial statements.
|
|
|
20
|
|
|
CBRE CLARION GLOBAL REAL ESTATE INCOME FUND
|
Financial Highlights
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Per share operating performance for a
share outstanding throughout the period
|
|
|
|
|
For the Six
Months Ended
June 30, 2021
(unaudited)
|
|
|
|
|
|
For the
Year Ended
December 31,
2020
|
|
|
|
|
|
For the
Year Ended
December 31,
2019
|
|
|
|
|
|
For the
Year Ended
December 31,
2018
|
|
|
|
|
|
For the
Year Ended
December 31,
2017
|
|
|
|
|
|
For the
Year Ended
December 31,
2016
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net asset value, beginning of period
|
|
|
|
|
|
|
$8.11
|
|
|
|
|
|
|
|
$8.86
|
|
|
|
|
|
|
|
$7.55
|
|
|
|
|
|
|
|
$8.99
|
|
|
|
|
|
|
|
$8.65
|
|
|
|
|
|
|
|
$9.04
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income from investment operations
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net investment income (1)
|
|
|
|
|
|
|
0.10
|
|
|
|
|
|
|
|
0.17
|
|
|
|
|
|
|
|
0.16
|
|
|
|
|
|
|
|
0.19
|
|
|
|
|
|
|
|
0.27
|
|
|
|
|
|
|
|
0.26
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net realized and unrealized gain (loss) on investments, written
options and foreign currency transactions
|
|
|
|
|
|
|
1.52
|
|
|
|
|
|
|
|
(0.32
|
)
|
|
|
|
|
|
|
1.75
|
|
|
|
|
|
|
|
(1.03
|
)
|
|
|
|
|
|
|
0.67
|
|
|
|
|
|
|
|
(0.05
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total from investment operations
|
|
|
|
|
|
|
1.62
|
|
|
|
|
|
|
|
(0.15
|
)
|
|
|
|
|
|
|
1.91
|
|
|
|
|
|
|
|
(0.84
|
)
|
|
|
|
|
|
|
0.94
|
|
|
|
|
|
|
|
0.21
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Distributions on Common Shares
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net investment income
|
|
|
|
|
|
|
(0.30
|
)
|
|
|
|
|
|
|
(0.21
|
)
|
|
|
|
|
|
|
(0.30
|
)
|
|
|
|
|
|
|
(0.17
|
)
|
|
|
|
|
|
|
(0.60
|
)
|
|
|
|
|
|
|
(0.34
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Return of capital
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(0.39
|
)
|
|
|
|
|
|
|
(0.30
|
)
|
|
|
|
|
|
|
(0.43
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(0.26
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total distributions to Common Shareholders
|
|
|
|
|
|
|
(0.30
|
)
|
|
|
|
|
|
|
(0.60
|
)
|
|
|
|
|
|
|
(0.60
|
)
|
|
|
|
|
|
|
(0.60
|
)
|
|
|
|
|
|
|
(0.60
|
)
|
|
|
|
|
|
|
(0.60
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net asset value, end of period
|
|
|
|
|
|
|
$9.43
|
|
|
|
|
|
|
|
$8.11
|
|
|
|
|
|
|
|
$8.86
|
|
|
|
|
|
|
|
$7.55
|
|
|
|
|
|
|
|
$8.99
|
|
|
|
|
|
|
|
$8.65
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Market value, end of period
|
|
|
|
|
|
|
$8.81
|
|
|
|
|
|
|
|
$6.88
|
|
|
|
|
|
|
|
$8.02
|
|
|
|
|
|
|
|
$6.16
|
|
|
|
|
|
|
|
$7.92
|
|
|
|
|
|
|
|
$7.30
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total investment return
(2)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net asset value
|
|
|
|
|
|
|
20.34
|
%
|
|
|
|
|
|
|
(0.74
|
)%
|
|
|
|
|
|
|
25.74
|
%
|
|
|
|
|
|
|
(9.75
|
)%
|
|
|
|
|
|
|
11.28
|
%
|
|
|
|
|
|
|
2.17
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Market value
|
|
|
|
|
|
|
32.95
|
%
|
|
|
|
|
|
|
(5.52
|
)%
|
|
|
|
|
|
|
40.87
|
%
|
|
|
|
|
|
|
(15.52
|
)%
|
|
|
|
|
|
|
17.22
|
%
|
|
|
|
|
|
|
3.17
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Ratios and supplemental data
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net assets, applicable to Common Shares, end of period (thousands)
|
|
|
|
|
|
|
$1,099,141
|
|
|
|
|
|
|
|
$945,194
|
|
|
|
|
|
|
|
$1,032,890
|
|
|
|
|
|
|
|
$880,636
|
|
|
|
|
|
|
|
$1,048,432
|
|
|
|
|
|
|
|
$1,008,918
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Ratios to average net assets applicable to Common Shares of:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net expenses
|
|
|
|
|
|
|
1.50
|
%(3)
|
|
|
|
|
|
|
1.53
|
%
|
|
|
|
|
|
|
1.57
|
%
|
|
|
|
|
|
|
1.54
|
%
|
|
|
|
|
|
|
1.43
|
%
|
|
|
|
|
|
|
1.18
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net expenses, excluding interest on line of credit
|
|
|
|
|
|
|
1.27
|
%(3)
|
|
|
|
|
|
|
1.26
|
%
|
|
|
|
|
|
|
1.16
|
%
|
|
|
|
|
|
|
1.17
|
%
|
|
|
|
|
|
|
1.16
|
%
|
|
|
|
|
|
|
1.09
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net investment income
|
|
|
|
|
|
|
2.30
|
%(3)
|
|
|
|
|
|
|
2.25
|
%
|
|
|
|
|
|
|
1.89
|
%
|
|
|
|
|
|
|
2.30
|
%
|
|
|
|
|
|
|
3.02
|
%
|
|
|
|
|
|
|
2.86
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Portfolio turnover rate
|
|
|
|
|
|
|
36.94
|
%
|
|
|
|
|
|
|
72.50
|
%
|
|
|
|
|
|
|
44.97
|
%
|
|
|
|
|
|
|
70.38
|
%
|
|
|
|
|
|
|
124.07
|
%
|
|
|
|
|
|
|
67.36
|
%
|
(1)
|
Based on average shares outstanding.
|
(2)
|
Total investment return does not reflect brokerage commissions. Dividends and distributions are assumed to be reinvested
at the prices obtained under the Trusts Dividend Reinvestment Plan. Net Asset Value (NAV) total return is calculated assuming reinvestment of distributions at NAV on the date of the distribution.
|
See notes to financial statements.
|
|
|
SEMI-ANNUAL REPORT
2021 |
|
|
21
|
Notes to Financial Statements (unaudited)
CBRE Clarion Global Real Estate Income Fund (the Trust) is a diversified, closed-end management investment company
that was organized as a Delaware statutory trust on November 6, 2003 and registered with the Securities and Exchange Commission (SEC) under the Investment Company Act of 1940, as amended. The Trust is an investment company and
accordingly follows the Investment Company accounting and reporting guidance of the Financial Accounting Standards Board (FASB) Accounting Standards Codification Topic 946 Financial Services-Investment Companies. CBRE Clarion Securities
LLC (the Advisor) is the Trusts investment advisor. The Advisor is a majority-owned subsidiary of CBRE Group, Inc. and is partially owned by its senior management team. The Trust commenced operations on February 18, 2004.
2.
|
Significant Accounting Policies
|
The following accounting policies are in accordance with U.S. generally accepted accounting principles (U.S. GAAP) and are consistently followed by the Trust.
Securities Valuation The net asset value of the common shares of the Trust will be computed based upon the value of the Trusts
portfolio securities and other assets. The Trust calculates net asset value per common share by subtracting the Trusts liabilities (including accrued expenses, dividends payable and any borrowings of the Trust) and the liquidation value of any
outstanding preferred shares from the Trusts total assets (the value of the securities the Trust holds, plus cash and/or other assets, including dividends accrued but not yet received) and dividing the result by the total number of common
shares of the Trust outstanding. Net asset value per common share will be determined as of the close of the regular trading session (usually 4:00 p.m., EST) on the New York Stock Exchange (NYSE) on each business day on which the NYSE is
open for trading.
For purposes of determining the net asset value of the Trust, readily marketable portfolio assets (including common stock, preferred stock, and
options) traded principally on an exchange, or on a similar regulated market reporting contemporaneous transaction prices, are valued, except as indicated below, at the last sale price for such assets on such principal markets on the business day on
which such value is being determined. If there has been no sale on such day, the securities are valued at the mean of the closing bid and asked prices on such day. Foreign securities are valued based upon quotations from the primary market in which
they are traded and are translated from the local currency into U.S. dollars using current exchange rates. During the period that a forward foreign currency contract is open, changes in the value of the contract are recognized as unrealized
appreciation or depreciation by marking to market such contract on a daily basis to reflect the market value of the contract at the end of each days trading. Securities and other assets for which market quotations are not readily available or
for which the above valuation procedures are deemed not to reflect fair value are valued in a manner that is intended to reflect their fair value as determined in accordance with procedures approved by the Trusts Board of Trustees (the
Board).
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.
U.S. GAAP provides guidance on fair value measurements. In accordance with the standard, fair
value is defined as the price that the Trust would receive to sell an investment or pay to transfer a liability in a timely transaction with an independent buyer in the principal market, or in the absence of a principal market the most advantageous
market for the investment or liability. It establishes a single definition of fair value, creates a three-tier hierarchy as a framework for measuring fair value based on inputs used to value the Trusts investments, and requires additional
disclosure about fair value.
For Level 1 inputs, the Trust uses unadjusted quoted prices in active markets for assets or liabilities with sufficient frequency
and volume to provide pricing information as the most reliable evidence of fair value.
The Trusts Level 2 valuation techniques include inputs other than
quoted prices within Level 1 that are observable for an asset or liability, either directly or indirectly. Level 2 observable inputs may include quoted prices for similar assets and liabilities in active markets or quoted prices for
identical or similar assets or liabilities in markets that are not active in which there are few transactions, the prices are not current, or price quotations vary substantially over time or among market participants. Inputs that are observable for
the asset or liability in Level 2 include such factors as interest rates, yield curves, prepayment speeds, credit risk, and default rates for similar liabilities.
|
|
|
22
|
|
|
CBRE CLARION GLOBAL REAL ESTATE INCOME FUND
|
Notes to Financial Statements continued
For Level 3 valuation techniques, the Trust uses unobservable inputs that reflect assumptions
market participants would be expected to use in pricing the asset or liability. Unobservable inputs are used to measure fair value to the extent that observable inputs are not available and are developed based on the best information available under
the circumstances. In developing unobservable inputs, market participant assumptions are used if they are reasonably available without undue cost and effort.
The
primary third party pricing vendor for the Trusts listed preferred stock investments is FT Interactive Data (IDC). When available, the Trust will obtain a closing exchange price to value the preferred stock investments and, in such
instances, the investment will be classified as Level 1 since an unadjusted quoted price was utilized. When a closing price is not available for the listed preferred stock investments, IDC will produce an evaluated mean price (midpoint between
the bid and the ask evaluation) and such investments will be classified as Level 2 since other observable inputs were used in the valuation. Factors used in the IDC evaluation include trading activity, the presence of a two-sided market, and other relevant market data.
Pursuant to the Trusts fair value procedures noted previously, equity
securities (including exchange traded securities and open-end regulated investment companies) and exchange traded derivatives (i.e. futures contracts and options) are generally categorized as Level 1
securities in the fair value hierarchy. Fixed income securities, non-exchange traded derivatives and money market instruments are generally categorized as Level 2 securities in the fair value hierarchy.
Investments for which there are no such quotations, or for which quotations do not appear reliable, are valued at fair value as determined in accordance with procedures established by and under the general supervision of the Trustees. These
valuations are typically categorized as Level 2 or Level 3 securities in the fair value hierarchy.
For the period ended June 30, 2021, there have been
no significant changes to the Trusts fair valuation methodology.
Foreign Currency Translation The books and records of the Trust are
maintained in U.S. dollars. Foreign currency amounts are translated into U.S. dollars on the following basis:
(i)
|
market value of investment securities, other assets and liabilities at the current rates of exchange;
|
(ii)
|
purchases and sales of investment securities, income and expenses at the rate of exchange prevailing on
the respective dates of such transactions.
|
Although the net assets of the Trust are presented at the foreign exchange rates and market values at
the close of each fiscal year, the Trust does not isolate that portion of the results of operations arising as a result of changes in the foreign exchange rates from the fluctuations arising from changes in the market prices of long-term securities
held at the end of the fiscal year. Similarly, the Trust does not isolate the effect of changes in foreign exchange rates from the fluctuations arising from changes in the market prices of portfolio securities sold during the fiscal year.
Accordingly, realized foreign currency gains or losses will be included in the reported net realized gains or losses on investment transactions.
Net realized gains
or losses on foreign currency transactions represent net foreign exchange gains or losses from the holding of foreign currencies, currency gains or losses realized between the trade date and settlement date on securities transactions, and the
difference between the amounts of dividends, interest and foreign withholding taxes recorded on the Trusts books and the U.S. dollar equivalent amounts actually received or paid. Net unrealized currency gains or losses from valuing foreign
currency denominated assets or liabilities (other than investments) at year end exchange rates are reflected as a component of net unrealized appreciation or depreciation on investments and foreign currencies.
Foreign security and currency transactions may involve certain considerations and risks not typically associated with those of domestic origin as a result of, among other
factors, the possibility of political or economic instability, or the level of governmental supervision and regulation of foreign securities markets.
Forward
Foreign Currency Contracts The Trust enters into forward foreign currency contracts in order to hedge its exposure to changes in foreign currency exchange rates on its foreign portfolio holdings, to hedge certain Trust purchase
and sales commitments denominated in foreign currencies and for investment purposes. A forward foreign currency contract is a commitment to purchase or sell a foreign currency on a future date at a negotiated forward rate. The gain or loss arising
from the difference between the original contracts and the closing of such contracts would be included in net realized gain or loss on foreign currency transactions.
Fluctuations in the value of open forward foreign currency contracts are recorded for financial reporting purposes as unrealized appreciation and depreciation by the
Trust.
|
|
|
SEMI-ANNUAL REPORT
2021 |
|
|
23
|
Notes to Financial Statements continued
The Trusts custodian will place and maintain cash not available for investment or other
liquid assets in a separate account of the Trust having a value at least equal to the aggregate amount of the Trusts commitments under forward foreign currency contracts entered into with respect to position hedges.
Risks may arise from the potential inability of a counterparty to meet the terms of a contract and from unanticipated movements in the value of a foreign currency
relative to the U.S. dollar. The face or contract amount, in U.S. dollars, reflects the total exposure the Trust has in that particular currency contract. As of June 30, 2021, the Trust did not hold any forward foreign currency contracts.
Options The Trust may purchase or sell (write) options on securities and securities indices which are listed on a national securities exchange or
in the over-the-counter (OTC) market as a means of achieving additional return or of hedging the value of the Trusts portfolio.
An option on a security is a contract that gives the holder of the option, in return for a premium, the right to buy from (in the case of a call) or sell to (in the case
of a put) the writer of the option the security underlying the option at a specified exercise or strike price. The writer of an option on a security has an obligation upon exercise of the option to deliver the underlying security upon
payment of the exercise price (in the case of a call) or to pay the exercise price upon delivery of the underlying security (in the case of a put).
There are several
risks associated with transactions in options on securities. As the writer of a covered call option, the Trust forgoes, during the options life, the opportunity to profit from increases in the market value of the security covering the call
option above the sum of the premium and the strike price of the call but has retained the risk of loss should the price of the underlying security decline. The writer of an option has no control over the time when it may be required to fulfill its
obligation as writer of the option. Once an option writer has received an exercise notice, it cannot effect a closing purchase transaction in order to terminate its obligation under the option and must deliver the underlying security at the exercise
price. Written Options for the period ended June 30, 2021 are disclosed in the Trusts Portfolio of Investments.
Securities Transactions and Investment
Income Securities transactions are recorded on a trade date basis. Realized gains and losses from securities transactions are recorded on the basis of identified cost. Dividend income is recorded on the ex-dividend date. Distributions received from investments in REITs are recorded as dividend income on ex-dividend date, subject to reclassification upon notice of the
character of such distributions by the issuer. The portion of dividend attributable to the return of capital is recorded against the cost basis of the security. Withholding taxes on foreign dividends are recorded net of reclaimable amounts, at the
time the related income is earned. 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.
Dividends and Distributions to
Shareholders Dividends from net investment income, if any, are declared and paid on a monthly basis. Income dividends and capital gain distributions to common shareholders are recorded on the
ex-dividend date. To the extent the Trusts net realized capital gains, if any, can be offset by capital loss carryforwards, it is the policy of the Trust not to distribute such gains.
On August 5, 2008, the Trust acting in accordance with an exemptive order received from the SEC and with approval of the Board, adopted a managed distribution policy
under which the Trust intends to make regular monthly cash distributions to common shareholders, stated in terms of a fixed amount per common share. This managed distribution policy permits the Trust to include long-term capital gains in its
distribution as frequently as twelve times a year. In practice, the Board views this policy as a potential means of further supporting the market price of the Trusts shares through the payment of a steady and predictable level of cash
distributions to shareholders.
The current monthly distribution rate is $0.05 per share. The Trust continues to evaluate its monthly distribution policy in light of
ongoing economic and market conditions and may change the amount of the monthly distributions in the future.
Use of Estimates The preparation
of financial statements, in conformity with U.S. GAAP, requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities at the date of the financial statements and the reported amounts of expenses
during the reporting year. Actual results could differ from those estimates.
|
|
|
24
|
|
|
CBRE CLARION GLOBAL REAL ESTATE INCOME FUND
|
Notes to Financial Statements continued
3.
|
Derivative Instruments
|
The following table presents the fair value of derivatives held at June 30, 2021 and the location on the Statement of Assets and Liabilities:
|
|
|
|
|
|
|
Derivatives not accounted for as hedging
instruments
|
|
Location on Statement of Assets
and Liabilities
|
|
Fair Value
|
|
|
|
|
Liabilities derivatives
|
|
|
|
|
|
|
|
|
|
Equity Risk
|
|
|
|
|
|
|
|
|
|
Written options
|
|
Written options
|
|
$
|
(545,460
|
)
|
The effect of derivative instruments on the Trusts Statement of Operations for the period ended June 30, 2021 was as follows:
|
|
|
|
|
|
|
|
|
|
|
Derivatives not accounted for as hedging
instruments
|
|
Realized gain
|
|
Change in unrealized appreciation
|
|
|
|
Equity Risk
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Written options
|
|
|
$
|
1,315,836
|
|
|
|
$
|
891,574
|
|
For the period ended June 30, 2021, the average month-end notional value of written options
was $60,241,509.
Under normal market conditions, the Trusts investments will be concentrated in income-producing common equity securities, preferred securities, convertible
securities and non-convertible debt securities issued by companies deriving the majority of their revenue from the ownership, construction, financing, management and/or sale of commercial, industrial, and/or
residential real estate. Values of the securities of such companies may fluctuate due to economic, legal, cultural, geopolitical or technological developments affecting various global real estate industries.
5.
|
Investment Management Agreement and Other Agreements
|
Pursuant to an investment management agreement between the Advisor and the Trust, the Advisor is responsible for the daily management of the Trusts portfolio of
investments, which includes buying and selling securities for the Trust, as well as investment research. The Trust pays for investment advisory services and facilities through a fee payable monthly in arrears at an annual rate equal to 0.85% of the
average daily value of the Trusts managed assets plus certain direct and allocated expenses of the Advisor incurred on the Trusts behalf. During the period ended June 30, 2021, the Trust incurred management fees of $5,449,604, of
which $971,021 is payable as of the end of the period.
The Trust has multiple service agreements with the Bank of New York Mellon (BNYM). Under the
servicing agreements, BNYM will perform custodial, fund accounting, and certain administrative services for the Trust. As custodian, BNYM is responsible for the custody of the Trusts assets. As administrator, BNYM is responsible for
maintaining the books and records of the Trusts securities and cash.
Computershare is the Trusts transfer agent and as such is responsible for performing
transfer agency services for the Trust.
For the period ended June 30, 2021, there were purchases and sales transactions (excluding short-term securities) of $476,553,618 and $504,152,506, respectively.
These purchases and sales transaction amounts differ from the amounts disclosed on the Statement of Cash Flows primarily due to the re-characterization of dividends from ordinary income to return of capital
and capital gain.
|
|
|
SEMI-ANNUAL REPORT
2021 |
|
|
25
|
Notes to Financial Statements continued
The Trust intends to elect to be, and qualify for treatment as, a regulated investment company under Subchapter M of the Internal Revenue Code of 1986, as amended (the
Code). A regulated investment company generally pays no federal income tax on the income and gains that it distributes. The Trust intends to meet the calendar year distribution requirements imposed by the Code to avoid the imposition of
a 4% excise tax.
The Trust is required to evaluate tax positions taken or expected to be taken in the course of preparing the Trusts tax returns to determine
whether the tax positions are more-likely-than-not of being sustained by the applicable tax authority. Income tax and related interest and penalties would be recognized by the Trust as tax expense
in the Statement of Operations if the tax positions were deemed to not meet the more-likely-than-not threshold. For the period ended June 30, 2021, the Trust did not incur any income tax, interest, or
penalties. Management has analyzed the Trusts tax positions taken on federal, state and local income tax returns for all open tax years (since inception) and has concluded that no provisions for federal, state and local income tax are required
in the Trusts financial statements.
The Trust distinguishes between dividends on a tax basis and on a financial reporting basis and only distributions in
excess of tax basis earnings and profits are reported in the financial statements as a tax return of capital. Differences in the recognition or classification of income between the financial statements and tax earnings and profits which result in
temporary over-distributions for financial statement purposes are classified as distributable earnings or accumulated losses in the composition of net assets on the Statement of Assets and Liabilities.
In order to present paid-in capital in excess of par and total distributable earnings /(Accumulated Loss) on the Statement of
Assets and Liabilities that more closely represent their tax character, certain adjustments have been made to additional paid-in capital, and total distributable earnings. For the year ended December 31, 2020,
the adjustments were to decrease additional paid-in capital by $8,935 and increase distributable earnings by $8,935 due to the difference in the treatment for book and tax purposes of passive foreign
investment company (PFIC) investments and recognition of foreign currency gain (loss) as ordinary income (loss) and distribution reclasses. Results of operations and net assets were not affected by these reclassifications.
At December 31, 2020, the Trust had capital loss carryforwards which will reduce the Trusts taxable income arising from future net realized gain on investments, if
any, to the extent permitted by the code and thus will reduce the amount of distributions to shareholders which would otherwise be necessary to relieve the Trust of any liability for federal income tax.
The Regulated Investment Company Modernization Act of 2010 (the Act) eliminated the eight-year carryover period for capital losses that arise in taxable years
beginning after its enactment date of December 22, 2010. Consequently, these capital losses can be carried forward for an unlimited period. However, capital losses with an expiration period may not be used to offset capital gains until all net
capital losses without an expiration date have been utilized. Additionally, post-enactment capital loss carryovers will retain their character as either short-term or long-term capital losses instead of as short-term capital losses as under prior
law. At December 31, 2020, the Trust had no expiring capital losses. The Trust had short-term capital losses of $50,986,077, with no expiration and long-term capital losses of $42,247,781, with no expiration.
The final determination of the source of the 2021 distributions for tax purposes will be made after the end of the Trusts fiscal year and will be reported to
shareholders in February 2022 on the Form 1099-DIV.
For the year ended December 31, 2020, the tax character of
distributions paid, as reflected in the Statements of Changes in Net Assets, was $24,012,983 of ordinary income (reflected in the Statement of Changes in Net Assets as distributions from distributable earnings) and $45,941,313 of return of capital,
respectively. For the year ended December 31, 2019, the tax character of distributions paid, as reflected in the Statements of Changes in Net Assets, was $34,394,639 of ordinary income and $35,559,657 of return of capital, respectively.
|
|
|
26
|
|
|
CBRE CLARION GLOBAL REAL ESTATE INCOME FUND
|
Notes to Financial Statements concluded
Information on the tax components of net assets as of December 31, 2020 is as follows:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cost of
Investments for
Tax Purposes
|
|
Gross Tax
Unrealized
Appreciation
|
|
Gross Tax
Unrealized
Depreciation
|
|
Net Tax
Unrealized
Appreciation
on Investments
|
|
Net Tax
Unrealized
Appreciation on
Foreign Currency
|
|
Qualified
Late Year
Ordinary Losses
|
|
Qualified Post-
October Capital
Deferral
|
|
Undistributed
Long-Term
Capital Gains/
(Accumulated
Capital Loss)
|
$1,135,444,841
|
|
$125,708,956
|
|
$(27,153,244)
|
|
$98,555,712
|
|
$27,278
|
|
$0
|
|
$0
|
|
$(93,234,264)
|
The Trust has access to a secured line of credit up to $300,000,000 from BNYM for borrowing purposes. Borrowings under this arrangement bear interest at the Federal funds
rate plus 75 basis points. At June 30, 2021, there were borrowings in the amount of $280,995,600 on the Trusts line of credit.
The average daily amount of
borrowings during the period ended June 30, 2021 was $283,125,359 with an average interest rate of 0.82%. The maximum amount outstanding for the period ended June 30, 2021, was $300,000,000. The Trust had borrowings under the line of
credit for all 181 days during period.
During 2004, the Trust issued 101,000,000 shares of common stock at $15.00. In connection with the Trusts Dividend Reinvestment Plan (DRIP), the Trust
issued no common shares for the period ended June 30, 2021 and the year ended December 31, 2020, respectively. At June 30, 2021, the Trust had outstanding common shares of 116,590,494 with a par value of $0.001 per share. The Advisor
owned none of the common shares outstanding as of June 30, 2021.
At June 30, 2021, the Trust had no shares of auction rate preferred securities
outstanding.
The Trust enters into contracts that contain a variety of indemnifications. The Trusts exposure under these arrangements is unknown. However, the Trust has not had
prior claims or losses or current claims or losses pursuant to these contracts.
11.
|
Recently Adopted Accounting Pronouncement:
|
In April 2020, the SEC issued a final rule entitled Securities Offering Reform for Closed-End Investment Companies
(the Release) containing amended rules and forms intended to streamline the registration, communications and offering practices for business development companies and registered closed-end
investment companies (registered CEFs). The Releases rule and form amendments became effective August 1, 2020, with certain additional provisions becoming effective at later dates. Among its provisions, the Release amends Form
N-2 to extend a Management Discussion of Fund Performance disclosure requirement to the annual reports of all registered CEFs and also mandates the inclusion of a Fee and Expense Table, Share Price Data
information and a Senior Securities Table in its annual report. This information is all currently contained in a registered CEFs prospectus. To fully comply with the Release, the Trust has included a Fee and Expense Table, as well as the
Trusts Investment Objectives, Policies, and Risks as Additional Information within the Annual Report.
Events or transactions that occur after the balance sheet date but before the financial statements are issued are categorized as recognized or non-recognized for financial statement purposes. Since June 30, 2021, the Trust paid a dividend on July 31, 2021 of $0.05 per share for the month of July 2021. No other notable events have occurred between
period-end and the issuance of these financial statements.
|
|
|
SEMI-ANNUAL REPORT
2021 |
|
|
27
|
Supplemental Information (unaudited)
Trustees
The Trustees of the CBRE Clarion Global
Real Estate Income Fund and their principal occupations during the past five years:
|
|
|
|
|
|
|
|
|
|
|
Name, Address
and Age
|
|
Term of Office and
Length of Time
Served (1)
|
|
Title
|
|
Principal Occupations
During The Past
Five Years
|
|
Number of
portfolios in
the Fund
Complex
Overseen
by Trustee
|
|
Other Directorships
Held by Trustee
|
|
|
|
|
|
|
Trustees:
|
|
|
|
|
|
|
|
|
|
|
T. Ritson Ferguson*
201
King of Prussia Road, Suite 600 Radnor, PA 19087 Age: 62
|
|
3 years/
since
inception
|
|
Trustee,
President
and Chief
Executive
Officer
|
|
Vice Chairman of CBRE Clarion Securities LLC (since 2021); Chief Executve Officer and Co-Chief Investment Officer of CBRE Clarion Securities LLC (1995 - 2020); Chief Executive Officer, Chief Investment Officer and Global Chief Investment Officer of CBRE Global Investors (2015 -
2019)
|
|
1
|
|
Duke Management Company
(DUMAC) (since 2018)
|
Asuka Nakahara
201 King of
Prussia
Road, Suite 600
Radnor, PA 19087
Age: 65
|
|
3 years/
since
inception
|
|
Trustee
|
|
Associate Director of the Zell-Lurie Real Estate Center at the Wharton School, University of Pennsylvania (since 1999); Practice Professor of Real Estate at the Wharton School, University
of Pennsylvania (since 1999); Partner of Triton Atlantic Partners (since 2009)
|
|
1
|
|
Comcast Corporation (since 2017)
|
John R. Bartholdson 201 King of Prussia Road, Suite 600 Radnor, PA 19087 Age: 76
|
|
3 years/
17 years
|
|
Trustee/ Audit Committee Financial Expert
|
|
Senior Vice President, CFO and Treasurer, and a Director of Triumph Group, Inc. (1993 - 2007) (Retired)
|
|
1
|
|
Berwyn Cornerstone Fund, Berwyn Income Fund, and Berwyn Fund (2013 - 2016)
|
Leslie E. Greis
201 King
of Prussia
Road, Suite 600
Radnor, PA 19087
Age: 62
|
|
3 years/
2 years
|
|
Trustee
|
|
Founder and Managing Member of Perennial Capital Advisors, LLC (since 2003)
|
|
1
|
|
AIM Mutual, Inc. (2016), Kinefac Corporation since 2009)
|
Heidi Stam 201
King of
Prussia
Road, Suite 600
Radnor, PA 19087
Age 64
|
|
3 years/
1year
|
|
Trustee
|
|
Managing Director and General Counsel, The Vanguard Group, Inc. (2005 - 2016) (Retired)
|
|
1
|
|
Investor Advisory Committee, U.S. Securities and Exchange Commission (since 2017); National Adjudicatory Council, FINRA (since 2017)
|
(1)
|
Each Trustee is elected to serve a three-year term concurrent with the class of Trustees to which he or she belongs.
Mr. Ferguson and Ms. Stam, as Class I Trustees, are currently serving a term expiring at the Trusts 2023 annual meeting of shareholders. Mr. Nakahara, as Class II Trustee, is currently serving a term expiring at the
Trusts 2021 annual meeting of shareholders. Mr. Bartholdson and Ms. Greis, as Class III Trustees, are each currently serving a term expiring at the Trusts 2022 annual meeting of shareholders.
|
*
|
Mr. Ferguson is deemed to be an interested person of the Trust as defined in the Investment Company Act of 1940 (the
1940 ACT), as amended, due to his position with the Advisor.
|
|
|
|
28
|
|
|
CBRE CLARION GLOBAL REAL ESTATE INCOME FUND
|
Supplemental Information (unaudited) continued
Officers
The Officers of the CBRE Clarion Global Real Estate Income Fund and their principal occupations during the past five years:
|
|
|
|
|
Name, Address, Age
and Position(s) Held
with Registrant
|
|
Length of Time
Served
|
|
Principal Occupations During
the Past Five Years and
Other Affiliations
|
|
|
|
Officers:
|
|
|
|
|
Jonathan A. Blome
201 King
of Prussia Road, Suite 600
Radnor, PA 19087
Age: 44
Chief Financial Officer
|
|
since 2006
|
|
Chief Operating Officer of CBRE Clarion Securities LLC (since 2021); Chief Financial Officer and Director of Operations of CBRE Clarion Securities LLC (since 2011)
|
Robert S. Tull III
201
King of Prussia Road, Suite 600
Radnor, PA 19087
Age: 44
Chief Compliance Officer and Secretary
|
|
since 2019
|
|
Chief Compliance Officer of CBRE Clarion Securities LLC (since 2010); Compliance Officer of CBRE Clarion Securities LLC (2008 - 2010); Global Chief Compliance Officer for CBRE Global
Investors (2017 - 2018)
|
|
|
|
SEMI-ANNUAL REPORT
2021 |
|
|
29
|
Supplemental Information (unaudited) concluded
Additional Information
Statement of Additional Information includes additional information regarding the Trustees. This information is available upon request, without charge, by calling the
following toll-free telephone number: 1-888-711-4272.
The Trust has delegated the voting of the Trusts voting securities to the Trusts advisor pursuant to the proxy voting policies and procedures of the advisor.
You may obtain a copy of these policies and procedures by calling 1-888-711-4272. The policies may also be found on the website
of the SEC (http://www.sec.gov).
Information regarding how the Trust voted proxies for portfolio securities, if applicable, during the most recent 12-month period ended December 31, is also available, without charge and upon request by calling the Trust at
1-888-711-4272 or by accessing the Trusts Form N-PX on the Commissions
website at http://www.sec.gov.
The Trust files its complete schedule of portfolio holdings with the SEC for the first and third quarters of each fiscal year on Form N-PORT. Copies of the filings are available by visiting the SEC website at www.sec.gov. The filed forms may also be viewed and copied at the Commissions Public Reference Room in Washington, DC. Information
regarding the operations of the Public Reference Room may be obtained by calling (800) SEC-0330.
Beginning on
January 1, 2022, as permitted by regulations adopted by the Securities and Exchange Commission, paper copies of the Funds shareholder reports like this one will no longer be sent by mail, unless you specifically request paper copies.
Instead, the reports will be made available on a website, and you will be notified by mail each time a report is posted and provided with a website link to access the report.
You may elect to receive all future reports in paper free of charge. If you hold your shares through a financial intermediary (like a broker), you can inform the
intermediary that you wish to continue receiving paper copies of your shareholder reports. If you are the registered owner of your shares, you should contact the Funds transfer agent.
Dividend Reinvestment Plan (unaudited)
Pursuant
to the Trusts Dividend Reinvestment Plan (the Plan), shareholders of the Trust are automatically enrolled, to have all distributions of dividends and capital gains reinvested by The Bank of New York Mellon (the Plan
Agent) in the Trusts shares pursuant to the Plan. You may elect not to participate in the Plan and to receive all dividends in cash by sending written instructions or by contacting The Bank of New York Mellon, as dividend disbursing
agent, at the address set forth below. Participation in the Plan is completely voluntary and may be terminated or resumed at any time without penalty by contacting the Plan Agent before the dividend record date; otherwise such termination or
resumption will be effective with respect to any subsequently declared dividend or other distribution. Shareholders who do not participate in the Plan will receive all distributions in cash paid by check and mailed directly to the shareholders of
record (or if the shares are held in street or other nominee name, then to the nominee) by the Plan Agent, which serves as agent for the shareholders in administering the Plan.
After the Trust declares a dividend or determines to make a capital gain distribution, the Plan Agent will acquire shares for the participants account, depending
upon the circumstances described below, either (i) through receipt of unissued but authorized shares from the Trust (newly issued shares) or (ii) by open market purchases. If, on the dividend payment date, the NAV is equal to
or less than the market price per share plus estimated brokerage commissions (such condition being referred to herein as market premium), the Plan Agent will invest the dividend amount in newly issued shares on behalf of the
participants. The number of newly issued shares to be credited to each participants account will be determined by dividing the dollar amount of the dividend by the NAV on the date the shares are issued. However, if the NAV is less than 95% of
the market price on the payment date, the dollar amount of the dividend will be divided by 95% of the market price on the payment date. If, on the dividend payment date, the NAV is greater than the market value per share plus estimated brokerage
commissions (such condition being referred to herein as market discount), the Plan Agent will invest the dividend amount in shares acquired on behalf of the participants in open-market purchases.
The Plan Agents fees for the handling of the reinvestment of dividends and distributions will be paid by the Trust. However, each participant will pay a pro rata
share of brokerage commissions incurred with respect to the Plan Agents open market purchases in connection with the reinvestment of dividends and distributions. The automatic reinvestment of dividends and distributions will not relieve
participants of any Federal income tax that may be payable on such dividends or distributions.
The Trust reserves the right to amend or terminate the Plan. There is
no direct service charge to participants in the Plan; however, the Trust reserves the right to amend the Plan to include a service charge payable by the participants. Participants that request a sale of shares through the Plan Agent are subject to a
$2.50 sales fee and a $0.15 per share sold brokerage commission. All correspondence concerning the Plan should be directed to the Plan Agent at Computershare Shareowner Services LLC, P.O. Box 505000, Louisville, KY 40233, Phone Number: (866) 221-1580.
|
|
|
30
|
|
|
CBRE CLARION GLOBAL REAL ESTATE INCOME FUND
|
CBRE CLARION GLOBAL REAL ESTATE INCOME FUND
BOARD OF TRUSTEES
T. RITSON FERGUSON
ASUKA NAKAHARA
JOHN R. BARTHOLDSON
LESLIE E. GREIS
HEIDI STAM
OFFICERS
T. RITSON FERGUSON
PRESIDENT AND
CHIEF EXECUTIVE OFFICER
JONATHAN A. BLOME
CHIEF FINANCIAL OFFICER
ROBERT S. TULL III
CHIEF COMPLIANCE OFFICER
AND SECRETARY
INVESTMENT ADVISOR
CBRE CLARION SECURITIES LLC
201 KING OF PRUSSIA ROAD, SUITE 600
RADNOR, PA 19087
888-711-4272
ADMINISTRATOR AND CUSTODIAN
THE BANK OF NEW YORK MELLON
NEW YORK, NEW YORK
TRANSFER AGENT
COMPUTERSHARE
LOUISVILLE, KENTUCKY
LEGAL COUNSEL
MORGAN, LEWIS & BOCKIUS LLP
WASHINGTON, DC
INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM
KPMG LLP
PHILADELPHIA, PENNSYLVANIA