Neuberger Berman’s NRO Fund Strengthens Leverage Structure to Support Growth Strategy
Neuberger Berman Real Estate Securities Income Fund Inc. (NYSE American: NRO) has announced a strategic amendment to its leverage arrangements, transitioning from a revolving credit facility to a margin facility. In addition, the Fund has increased its committed debt financing from $70 million to $90 million. This adjustment reflects the Fund’s intent to better align its capital structure with its current asset levels and long-term investment objectives.
The move to a margin facility provides the Fund with greater financial flexibility and more efficient access to capital. Unlike traditional revolving credit facilities, margin-based structures allow borrowing directly against portfolio assets, enabling more responsive investment decisions. This structure is particularly well-suited for actively managed portfolios, such as NRO, that seek to capitalize on opportunities in a dynamic real estate market.
The increase in available leverage underscores the Fund’s confidence in its future growth prospects. With an expanded facility, NRO is better positioned to pursue attractive real estate securities, optimize portfolio allocations, and maintain a strong income-focused investment strategy. The change comes at a time when the real estate sector is showing signs of recovery, supported by stabilizing interest rates and renewed investor interest.
Neuberger Berman, the Fund’s advisor, is a globally respected, independent investment manager overseeing $515 billion in assets across a range of strategies, including equities, fixed income, private equity, and real estate. The firm’s emphasis on active management, in-depth research, and long-term value creation continues to support the performance and resilience of its investment products.
This revised leverage arrangement is part of a broader effort to ensure that the NRO Fund remains agile, efficient, and well-equipped to deliver competitive income in an evolving economic landscape. By modernizing its financial tools, the Fund reinforces its commitment to generating shareholder value while maintaining a disciplined approach to risk management.
For investors seeking exposure to real estate through a professionally managed income strategy, the NRO Fund’s latest move signals a proactive and thoughtful approach to portfolio enhancement and long-term growth.
