UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549

 

FORM N-Q

 

QUARTERLY SCHEDULE OF PORTFOLIO HOLDINGS OF REGISTERED
MANAGEMENT INVESTMENT COMPANY

 

Investment Company Act file number

811-21502

 

 

RMR HOSPITALITY AND REAL ESTATE FUND

(Exact name of registrant as specified in charter)

 

400 CENTRE STREET
NEWTON, MASSACHUSETTS

 

02458

(Address of principal executive offices)

 

(Zip code)

 

Thomas M. O’Brien, President
RMR Hospitality and Real Estate Fund
400 Centre Street
Newton, Massachusetts 02458

(Name and address of agent for service)

 

Copy to:

 

Hugh Carter

State Street Bank and Trust Company

2 Avenue De Lafayette, 6th Floor

Boston, Massachusetts 02111

 

Thomas Reyes, Esq.

State Street Bank and Trust Company

2 Avenue De Lafayette, 6th Floor

Boston, Massachusetts 02111

 

Registrant's telephone number, including area code:

(617) 332-9530

 

 

Date of fiscal year end:

December 31

 

 

 

 

Date of reporting period:

September 30, 2006

 

 


Item 1. Schedule of Investments.

 

RMR Hospitality and Real Estate Fund

Portfolio of Investments – September 30, 2006 (unaudited)

 

Company

 

Shares

 

Value

 

Common Stocks — 86.4%

 

 

 

 

 

Real Estate Investment Trusts — 83.1%

 

 

 

 

 

Apartments — 2.5%

 

 

 

 

 

Apartment Investment & Management Co.

 

8,200

 

$

446,162

 

Associated Estates Realty Corp.

 

5,600

 

86,632

 

BNP Residential Properties, Inc.

 

16,000

 

380,000

 

Home Properties, Inc.

 

5,500

 

314,380

 

United Dominion Realty Trust, Inc.

 

10,100

 

305,020

 

 

 

 

 

1,532,194

 

 

 

 

 

 

 

Diversified — 22.6%

 

 

 

 

 

Centracore Properties Trust

 

14,150

 

449,262

 

Colonial Properties Trust

 

80,200

 

3,834,362

 

Cousins Properties, Inc.

 

10,000

 

342,100

 

Crescent Real Estate Equities Co.

 

163,500

 

3,565,935

 

iStar Financial, Inc.

 

6,000

 

250,200

 

Lexington Corporate Properties Trust

 

96,400

 

2,041,752

 

Liberty Property Trust

 

24,000

 

1,146,960

 

National Retail Properties, Inc.

 

89,850

 

1,940,760

 

Newkirk Realty Trust, Inc.

 

8,000

 

131,840

 

Spirit Finance Corp.

 

12,500

 

145,125

 

Washington Real Estate Investment Trust

 

300

 

11,940

 

 

 

 

 

13,860,236

 

Health Care — 9.7%

 

 

 

 

 

Health Care Property Investors, Inc.

 

6,770

 

210,209

 

Health Care REIT, Inc.

 

49,150

 

1,966,491

 

Healthcare Realty Trust, Inc.

 

4,300

 

165,163

 

Medical Properties Trust, Inc.

 

17,050

 

228,300

 

Nationwide Health Properties, Inc.

 

86,000

 

2,299,640

 

OMEGA Healthcare Investors, Inc.

 

2,000

 

30,020

 

Universal Health Realty Income Trust

 

5,000

 

179,250

 

Windrose Medical Properties Trust

 

50,100

 

885,768

 

 

 

 

 

5,964,841

 

 

 

 

 

 

 

Hospitality — 4.2%

 

 

 

 

 

Ashford Hospitality Trust, Inc.

 

34,000

 

405,620

 

Eagle Hospitality Properties Trust, Inc.

 

41,000

 

381,300

 

Entertainment Properties Trust

 

18,800

 

927,216

 

Equity Inns, Inc.

 

8,000

 

127,360

 

Hersha Hospitality Trust

 

33,100

 

317,760

 

Highland Hospitality Corp.

 

7,000

 

100,310

 

Innkeepers USA Trust

 

9,000

 

146,610

 

Winston Hotels, Inc.

 

17,000

 

209,440

 

 

 

 

 

2,615,616

 

Industrial — 9.2%

 

 

 

 

 

EastGroup Properties, Inc.

 

4,000

 

199,440

 

First Industrial Realty Trust, Inc.

 

109,160

 

4,803,040

 

ProLogis

 

11,000

 

627,660

 

 

 

 

 

5,630,140

 

 

See notes to portfolio of investments.

 


 

Company

 

Shares

 

Value

 

Common Stocks — continued

 

 

 

 

 

Real Estate Investment Trusts — continued

 

 

 

 

 

Mortgage — 3.6%

 

 

 

 

 

American Mortgage Acceptance Co.

 

13,400

 

$

241,736

 

Arbor Realty Trust, Inc.

 

1,100

 

28,116

 

Crystal River Capital, Inc. (a)

 

16,900

 

386,672

 

KKR Financial Corp.

 

2,000

 

49,080

 

New Century Financial Corp.

 

5,000

 

196,550

 

Newcastle Investment Corp.

 

17,600

 

482,416

 

NovaStar Financial, Inc.

 

24,000

 

700,560

 

Thornburg Mortgage, Inc.

 

5,000

 

127,350

 

 

 

 

 

2,212,480

 

 

 

 

 

 

 

Office — 16.0%

 

 

 

 

 

American Financial Realty Trust

 

9,500

 

106,020

 

Brandywine Realty Trust

 

44,000

 

1,432,200

 

Columbia Equity Trust, Inc.

 

3,000

 

49,950

 

Corporate Office Properties Trust

 

11,500

 

514,740

 

Equity Office Properties Trust

 

50,000

 

1,988,000

 

Glenborough Realty Trust, Inc.

 

87,400

 

2,248,802

 

Highwoods Properties, Inc.

 

45,000

 

1,674,450

 

Maguire Properties, Inc.

 

4,000

 

162,960

 

Reckson Associates Realty Corp.

 

38,000

 

1,626,400

 

 

 

 

 

9,803,522

 

 

 

 

 

 

 

Other Financial Services — 0.1%

 

 

 

 

 

Friedman Billings Ramsey Group, Inc.

 

5,000

 

40,150

 

 

 

 

 

 

 

Retail — 9.8%

 

 

 

 

 

CBL & Associates Properties, Inc.

 

6,000

 

251,460

 

Glimcher Realty Trust

 

23,400

 

579,852

 

Heritage Property Investment Trust

 

80,400

 

2,931,384

 

New Plan Excel Realty Trust

 

46,270

 

1,251,603

 

Realty Income Corp.

 

12,200

 

301,462

 

Taubman Centers, Inc.

 

2,000

 

88,840

 

The Mills Corp.

 

36,100

 

603,231

 

Urstadt Biddle Properties, Inc.

 

800

 

14,536

 

 

 

 

 

6,022,368

 

Specialty — 4.7%

 

 

 

 

 

Getty Realty Corp.

 

34,000

 

995,520

 

Trustreet Properties, Inc.

 

153,200

 

1,916,532

 

 

 

 

 

2,912,052

 

Storage — 0.7%

 

 

 

 

 

Sovran Self Storage, Inc.

 

8,100

 

449,955

 

Total Real Estate Investment Trusts (Cost $42,264,412)

 

 

 

51,043,554

 

Other — 3.3%

 

 

 

 

 

American Capital Strategies, Ltd.

 

16,000

 

631,520

 

Iowa Telecommunication Services, Inc.

 

25,800

 

510,582

 

Morgans Hotel Group (b)

 

9,311

 

116,388

 

Seaspan Corp.

 

33,400

 

750,832

 

Total Other (Cost $1,698,770)

 

 

 

2,009,322

 

Total Common Stocks (Cost $43,963,182)

 

 

 

53,052,876

 

 

See notes to portfolio of investments.

 


 

 

 

Shares or

 

 

 

Company

 

Principal Amount

 

Value

 

Preferred Stocks — 42.3%

 

 

 

 

 

Real Estate Investment Trusts — 42.3%

 

 

 

 

 

Apartments — 1.0%

 

 

 

 

 

Apartment Investment & Management Co., Series U

 

24,000

 

$

608,880

 

 

 

 

 

 

 

Diversified — 2.5%

 

 

 

 

 

Colonial Properties Trust, Series E

 

23,067

 

 

584,748

 

Digital Realty Trust, Inc., Series A

 

15,000

 

389,250

 

LBA Realty LLC, Series B

 

30,000

 

560,100

 

 

 

 

 

1,534,098

 

 

 

 

 

 

 

Health Care — 4.2%

 

 

 

 

 

Health Care REIT, Inc., Series F

 

40,000

 

1,028,400

 

LTC Properties, Inc., Series F

 

40,000

 

1,002,800

 

Windrose Medical Properties Trust, Series A (c)

 

20,000

 

560,000

 

 

 

 

 

2,591,200

 

 

 

 

 

 

 

Hospitality — 24.0%

 

 

 

 

 

Ashford Hospitality Trust, Series A

 

46,000

 

1,184,500

 

Eagle Hospitality Properties Trust, Inc., Series A

 

28,000

 

718,480

 

FelCor Lodging Trust, Inc., Series C

 

60,000

 

1,494,600

 

Hersha Hospitality Trust, Series A

 

40,000

 

1,038,400

 

Highland Hospitality Corp., Series A

 

160,000

 

3,984,000

 

Host Marriott Corp., Series E

 

100,000

 

2,647,000

 

Innkeepers USA Trust, Series C

 

27,000

 

683,640

 

LaSalle Hotel Properties, Series E

 

5,000

 

129,000

 

Strategic Hotels & Resorts, Inc., Series C

 

20,000

 

513,000

 

Winston Hotels, Inc., Series B

 

95,000

 

2,385,450

 

 

 

 

 

14,778,070

 

Manufactured Homes — 0.4%

 

 

 

 

 

Affordable Residential Communities, Series A

 

9,600

 

228,240

 

 

 

 

 

 

 

Mortgage — 1.8%

 

 

 

 

 

HomeBanc Corp., Series A

 

25,000

 

631,500

 

New Century Financial Corp., Series A

 

20,000

 

490,000

 

 

 

 

 

1,121,500

 

 

 

 

 

 

 

Office — 8.0%

 

 

 

 

 

Alexandria Real Estate Equities, Inc., Series C

 

120,000

 

3,144,000

 

SL Green Realty Corp., Series D

 

70,000

 

1,784,300

 

 

 

 

 

4,928,300

 

 

 

 

 

 

 

Retail — 0.4%

 

 

 

 

 

The Mills Corp., Series E

 

1,800

 

37,332

 

The Mills Corp., Series G

 

10,000

 

194,100

 

 

 

 

 

231,432

 

Total Preferred Stocks (Cost $25,388,814)

 

 

 

26,021,720

 

Debt Securities — 8.7%

 

 

 

 

 

Hospitality — 8.7%

 

 

 

 

 

American Real Estate Partners LP, 8.125%, 06/01/2012

 

$

2,000,000

 

2,050,000

 

FelCor Lodging LP, 9.00%, 06/01/2011 (d)

 

1,600,000

 

1,694,000

 

Six Flags, Inc., 9.75%, 04/15/2013

 

1,760,000

 

1,584,000

 

Total Debt Securities (Cost $5,254,226)

 

 

 

5,328,000

 

Short-Term Investments — 3.9%

 

 

 

 

 

Other Investment Companies — 3.9%

 

 

 

 

 

SSgA Money Market Fund, 4.95% (e) (Cost $2,394,450)

 

2,394,450

 

 

2,394,450

 

 

See notes to portfolio of investments.

 


 

Total Investments — 141.3% (Cost $77,000,672) (f)

 

 

 

$

86,797,046

 

Other assets less liabilities — 4.3%

 

 

 

2,610,553

 

Preferred Shares, at liquidation preference — (45.6)%

 

 

 

(28,000,000

)

Net Assets applicable to common shareholders — 100%

 

 

 

$

61,407,599

 

 

Notes to Portfolio of Investments

(a)

 

Non-income producing security as first dividend paid subsequent to September 30, 2006.

(b)

 

Non-income producing security.

(c)

 

Convertible into common stock.

(d)

 

Also a Real Estate Investment Trust.

(e)

 

Rate reflects 7 day yield as of September 30, 2006.

(f)

 

Although subject to adjustments to the extent 2006 distributions by the issuers of the Fund’s investments are characterized as return of capital, the cost, gross unrealized appreciation and gross unrealized depreciation of the Fund’s investments for federal income tax purposes, as of September 30, 2006, are as follows:

 

Cost

 

$

77,000,672

 

 

 

 

 

Gross unrealized appreciation

 

$

11,610,506

 

Gross unrealized depreciation

 

(1,814,132

)

Net unrealized appreciation

 

$

9,796,374

 

 

 

 

Reference should be made to the Fund’s financial statements for the year ended December 31, 2005, and six months ended June 30, 2006, for further information concerning the income tax characterization of the Fund’s investment income and distributions.

 


Item 2. Controls and Procedures.

 

(a)  The registrant’s principal executive officer and principal financial officer have concluded that the registrant’s disclosure controls and procedures (as defined in Rule 30a-3(c) under the Investment Company Act of 1940, as amended (the “1940 Act”)), are effective, as of a date within 90 days of the filing date of this report, based on their evaluation of these controls and procedures required by Rule 30a-3(b) under the 1940 Act and Rules 13a-15(b) or 15d-15(b) under the Securities Exchange Act of 1934, as amended.

 

(b)  There were no changes in the registrant’s internal control over financial reporting (as defined in Rule 30a-3(d) under the 1940 Act) that occurred during the registrant’s last fiscal quarter that have materially affected, or are reasonably likely to materially affect, the registrant’s internal control over financial reporting.

 

Item 3. Exhibits

 

(a)(1) Certification of Principal Executive Officer, as required by Rule 30a-2(a) under the 1940 Act.

(a)(2) Certification of Principal Financial Officer, as required by Rule 30a-2(a) under the 1940 Act.

 


SIGNATURES

 

Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.

 

RMR HOSPITALITY AND REAL ESTATE FUND

 

 

 

By:

/s/ Thomas M. O’Brien

 

 

 

Thomas M. O’Brien

 

 

President

 

 

 

 

Date:

November 16, 2006

 

 

Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, this report has been signed below by the following persons on behalf of the registrant and in the capacities and on the dates indicated.

 

 

By:

/s/ Thomas M. O’Brien

 

 

 

Thomas M. O’Brien

 

 

President

 

 

 

 

Date:

November 16, 2006

 

 

 

By:

/s/ Mark L. Kleifges

 

 

 

Mark L. Kleifges

 

 

Treasurer

 

 

 

 

Date:

November 16, 2006