Rmr Asia Real Estate Fund - Quarterly Schedule of Portfolio Holdings of Registered Management Investment Company (N-Q)

 

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			811-22007
RMR ASIA REAL ESTATE FUND
(Exact name of registrant as specified in charter)
400 CENTRE STREET NEWTON, MASSACHUSETTS					02458
(Address of principal executive offices)					(Zip code)
Adam D. Portnoy, President RMR Asia Real Estate Fund 400 Centre Street Newton, Massachusetts 02458
(Name and address of agent for service)
Copy to: Brian D. O’Sullivan State Street Bank and Trust Company  801 Pennsylvania Avenue, Tower II, 4 th Floor Kansas City, Missouri 64102 Elizabeth Watson, Esq. State Street Bank and Trust Company  2 Avenue De Lafayette, 6 th Floor Boston, Massachusetts 02111
Registrant's telephone number, including area code:			[phone]
Date of fiscal year end:	December 31
Date of reporting period:	March 31, 2008

 

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RMR Asia Real Estate Fund

Portfolio of Investments – March 31, 2008 (unaudited)

 

Company		Shares		Value
Common Stocks – 96.0%
Hong Kong – 44.1%
Diversified – 25.2%
Agile Property Holdings, Ltd.		1,235,000		$	1,299,641
China Overseas Land & Investment, Ltd.		310,000		565,617
China Resources Land, Ltd.		1,015,000		1,760,647
Guangzhou R&F Properties Co., Ltd., Class H		220,000		578,081
Henderson Land Development Co., Ltd.		333,000		2,364,008
Hongkong Land Holdings, Ltd.		985,000		4,068,050
Hysan Development Co., Ltd.		1,122,000		3,128,420
Kerry Properties, Ltd.		90,000		543,517
KWG Property Holding, Ltd.		1,060,000		896,199
New World China Land, Ltd.		1,092,000		693,142
Shun TAK Holdings, Ltd.		585,000		774,222
SPG Land Holdings, Ltd. (a)		800,000		333,048
The Wharf (Holdings), Ltd.		170,000		801,655
				17,806,247
Hospitality – 12.7%
Regal Real Estate Investment Trust *		2,500,000		578,209
Sun Hung Kai Properties, Ltd.		543,000		8,407,355
				8,985,564
Office – 0.3%
Champion Real Estate Investment Trust *		490,000		250,583
Retail – 5.9%
Hang Lung Properties, Ltd.		1,174,000		4,155,873
Total Hong Kong (Cost $32,605,435)				31,198,267
Japan – 37.3%
Diversified – 27.9%
Aeon Mall Co., Ltd.		61,000		1,692,064
Mitsubishi Estate Co., Ltd.		375,500		9,116,272
Mitsui Fudosan Co., Ltd.		220,000		4,367,777
Shoei Co., Ltd.		76,960		958,912
Sumitomo Realty & Development Co., Ltd.		202,000		3,560,534
				19,695,559
Office – 9.4%
Japan Excellent, Inc. *		50		305,478
Japan Real Estate Investment Corp. *		35		407,303
Nippon Building Fund, Inc. *		210		2,654,494
NTT Urban Development Corp.		1,200		1,721,509
Orix REIT, Inc. *		80		465,490
Tokyu REIT, Inc. *		145		1,090,991
				6,645,265
Total Japan (Cost $36,657,436)				26,340,824
Malaysia – 2.0%
Diversified – 2.0%
KLCC Property Holdings Berhad		770,000		702,955
SP Setia Berhad		600,000		697,827
				1,400,782
Total Malaysia (Cost $1,909,378)				1,400,782
Philippines – 2.2%
Diversified – 2.2%
Filinvest Land, Inc.		20,500,000		510,414
Megaworld Corp.		17,963,000		1,057,912
				1,568,326
Total Philippines (Cost $2,518,367)				1,568,326

 

See notes to portfolio of investments.

 

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Company		Shares		Value
Common Stocks – continued
Singapore – 10.4%
Diversified – 10.4%
Allgreen Properties, Ltd.		1,650,000		$	1,474,445
Ascendas India Trust *		464,000		350,583
Ascendas Real Estate Investment Trust *		645,000		1,115,260
Capitaland, Ltd.		330,000		1,522,395
CDL Hospitality Trusts *		1,050,000		1,579,062
City Developments, Ltd.		52,000		416,317
SC Global Developments, Ltd.		171,000		166,472
Singapore Land, Ltd.		60,000		296,415
Yanlord Land Group, Ltd.		260,000		402,339
				7,323,288
Total Singapore (Cost $8,224,385)				7,323,288
Total Common Stocks (Cost $81,915,001)				67,831,487
Warrants – 2.3%
India – 2.3%
Ansal Properties & Infrastructure, Ltd., Macquarie Bank, Ltd., expiring 1/17/12 (a)		93,000		357,120
Unitech, Ltd., Macquarie Bank, Ltd., expiring 6/24/08 (a)		180,000		1,238,400
Total India (Cost $1,821,137)				1,595,520
Total Warrants (Cost $1,821,137)				1,595,520
Short-Term Investments – 1.6%
Other Investment Companies – 1.6%
Dreyfus Cash Management, Institutional Shares, 3.32% (b) (Cost $1,148,282)		1,148,282		1,148,282
Total Investments – 99.9% (Cost $84,884,420) (c)				70,575,289
Other assets less liabilities – 0.1%				66,540
Net Assets – 100%				$	70,641,829

 

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Notes to Portfolio of Investments
*		Company is organized as a real estate investment trust as defined by the laws of its country of domicile.
(a)		As of March 31, 2008, this security had not paid a distribution.
(b)		Rate reflects 7 day yield as of March 31, 2008.
(c)		The gross unrealized appreciation and gross unrealized depreciation of the Fund’s investments for federal income tax purposes, as of March 31, 2008, are as follows:

 

Cost		$	84,884,420
Gross unrealized appreciation		$	2,189,360
Gross unrealized depreciation		(16,498,491		)
Net unrealized depreciation		$	(14,309,131	)

 

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Information regarding FAS 157

 

The Fund has adopted the provisions of Financial Accounting Standards Board Statement of Financial Accounting Standards No. 157, Fair Value Measurements, or FAS 157, effective January 1, 2008. In accordance with FAS 157, fair value is defined as the price that the Fund would receive upon selling an investment in a timely transaction to an independent buyer in the principal or most advantageous market of the investment. FAS 157 established a three tier hierarchy to maximize the use of observable market data and minimize the use of unobservable inputs and to establish classification of fair value measurements for disclosure purposes. Inputs refer broadly to the assumptions that market participants would use in pricing the asset or liability, including assumptions about risk, for example, the risk inherent in a particular valuation technique used to measure fair value including such a pricing model and/or the risk inherent in the inputs to the valuation technique. Inputs may be observable or unobservable. Observable inputs are inputs that reflect the assumptions market participants would use in pricing the asset or liability developed based on market data obtained from sources independent of the reporting entity. Unobservable inputs are inputs that reflect the reporting entity’s own assumptions about the assumptions market participants would use in pricing the asset or liability developed based on the best information available in the circumstances. The three tier hierarchy of inputs is summarized in the three broad levels listed below.

 

·                   Level 1 – quoted prices in active markets for identical investments

·                   Level 2 – other significant observable inputs (including quoted prices for similar investments, interest rates,  credit risk, etc.)

·                   Level 3 – significant unobservable inputs (including the Fund’s own assumptions in determining the fair value of investments)

 

The valuation techniques used by the Fund to measure fair value during the three months ended March 31, 2008, maximized the use of observable inputs and minimized the use of unobservable inputs. When the S&P 500 Index fluctuates significantly from the previous day close, we believe that the closing price in the local market may no longer represent the fair value of foreign securities at the time of the U.S. market close. Accordingly, in such circumstances, we report holdings in such foreign securities at their fair values as determined by an independent security pricing service. The service uses a multi-factor model that includes such information as the issue’s local closing price, relevant general and sector indices, currency fluctuations, depository receipts, and futures, as applicable. The model generates an adjustment factor for each security that is applied to the local closing price to adjust it for post closing events, resulting in the security’s reported fair value.

 

The following is a summary of the inputs used as of March 31, 2008, in valuing the Fund’s investments carried at value:

 

Valuation Inputs		Investments in Securities
Level 1 - Quoted prices		$	1,148,282
Level 2 - Other significant observable inputs		69,427007
Level 3 – Significant unobservable inputs		—
Total		$	70,575,289

 

There were no investments in securities characterized as Level 3 on December 31, 2007, or March 31, 2008.

 

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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.

 

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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 ASIA REAL ESTATE FUND

 

By:	/s/ Adam D. Portnoy
	Adam D. Portnoy
	President
Date:	May 27, 2008

 

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/ Adam D. Portnoy
	Adam D. Portnoy
	President
Date:	May 27, 2008
By:	/s/ Mark L. Kleifges
	Mark L. Kleifges
	Treasurer
Date:	May 27, 2008

 

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