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

811-21616

 

 

RMR F.I.R.E. 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 F.I.R.E. 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, 4th Floor

Kansas City, Missouri 64102

 

Julie A Tedesco, Esq.

State Street Bank and Trust Company

4 Copley Place, 5th Floor

Boston, MA 02116

 

Registrant’s telephone number, including area code:

(617) 332-9530

 

 

Date of fiscal year end:

December 31

 

 

 

 

Date of reporting period:

March 31, 2009

 

 


 

RMR F.I.R.E. Fund

Portfolio of Investments — March 31, 2009 (unaudited)

 

Company

 

Shares

 

Value

 

Common Stocks — 44.0%

 

 

 

 

 

Real Estate — 37.2%

 

 

 

 

 

Apartments — 7.8%

 

 

 

 

 

Apartment Investment & Management Co. *

 

2,083

 

$

11,415

 

Associated Estates Realty Corp. *

 

6,000

 

34,080

 

AvalonBay Communities, Inc. *

 

206

 

9,694

 

Home Properties, Inc. *

 

200

 

6,130

 

Mid-America Apartment Communities, Inc. *

 

3,300

 

101,739

 

 

 

 

 

163,058

 

Diversified — 12.1%

 

 

 

 

 

Colonial Properties Trust *

 

6,000

 

22,860

 

Cousins Properties, Inc. *

 

8,000

 

51,520

 

Duke Realty Corp. *

 

5,000

 

27,500

 

National Retail Properties, Inc. *

 

6,000

 

95,040

 

Vornado Realty Trust *

 

1,626

 

54,048

 

 

 

 

 

250,968

 

Health Care — 2.4%

 

 

 

 

 

Cogdell Spencer, Inc. *

 

5,000

 

25,500

 

HCP, Inc. *

 

500

 

8,925

 

Health Care REIT, Inc. *

 

200

 

6,118

 

Nationwide Health Properties, Inc. *

 

400

 

8,876

 

OMEGA Healthcare Investors, Inc. *

 

100

 

1,408

 

 

 

 

 

50,827

 

Hospitality — 1.5%

 

 

 

 

 

Entertainment Properties Trust *

 

2,000

 

31,520

 

 

 

 

 

 

 

Office — 4.2%

 

 

 

 

 

BioMed Realty Trust, Inc. *

 

2,500

 

16,925

 

Highwoods Properties, Inc. *

 

400

 

8,568

 

Kilroy Realty Corp. *

 

2,000

 

34,380

 

Mack-Cali Realty Corp. *

 

600

 

11,886

 

SL Green Realty Corp. *

 

1,350

 

14,580

 

 

 

 

 

86,339

 

Retail — 9.2%

 

 

 

 

 

Kimco Realty Corp. *

 

2,000

 

15,240

 

Realty Income Corp. *

 

1,500

 

28,230

 

Regency Centers Corp. *

 

200

 

5,314

 

Simon Property Group, Inc. *

 

1,740

 

60,274

 

Tanger Factory Outlet Centers, Inc. *

 

300

 

9,258

 

The Macerich Co. *

 

2,600

 

16,276

 

Weingarten Realty Investors *

 

6,000

 

57,120

 

 

 

 

 

191,712

 

Total Real Estate (Cost $987,572)

 

 

 

774,424

 

Other — 6.8%

 

 

 

 

 

Carador PLC (a)  (Cost $1,000,000)

 

749,660

 

142,435

 

Total Common Stocks (Cost $1,987,572)

 

 

 

916,859

 

Preferred Stocks — 107.1%

 

 

 

 

 

Real Estate — 100.8%

 

 

 

 

 

Apartments — 7.6%

 

 

 

 

 

Apartment Investment & Management Co., Series Y *

 

13,900

 

143,587

 

BRE Properties, Inc., Series D *

 

1,000

 

14,710

 

 

 

 

 

158,297

 

 

See notes to portfolio of investments.

 


 

Company

 

Shares

 

Value

 

Preferred Stocks — continued

 

 

 

 

 

Real Estate — continued

 

 

 

 

 

Diversified — 30.3%

 

 

 

 

 

Cousins Properties, Inc., Series B *

 

9,798

 

$

128,942

 

Digital Realty Trust, Inc., Series A *

 

8,050

 

140,392

 

LBA Realty LLC, Series B (a)*

 

40,919

 

327,352

 

National Retail Properties, Inc., Series C *

 

1,700

 

25,857

 

Vornado Realty Trust, Series F *

 

700

 

9,807

 

 

 

 

 

632,350

 

Health Care — 11.3%

 

 

 

 

 

HCP, Inc., Series E *

 

200

 

3,598

 

Health Care REIT, Inc., Series F *

 

4,500

 

86,940

 

OMEGA Healthcare Investors Inc., Series D *

 

8,000

 

144,000

 

 

 

 

 

234,538

 

Hospitality — 16.5%

 

 

 

 

 

Eagle Hospitality Properties Trust, Inc., Series A (a) (b)*

 

14,000

 

9,100

 

Entertainment Properties Trust, Series B *

 

8,000

 

77,600

 

FelCor Lodging Trust, Inc., Series C (b)*

 

36,652

 

146,608

 

Grace Acquisition I, Inc., Series B (b) *

 

50,000

 

13,000

 

Hersha Hospitality Trust, Series A *

 

8,000

 

65,200

 

Host Marriott Corp., Series E *

 

1,100

 

21,175

 

Strategic Hotels & Resorts, Inc., Series B (b)*

 

4,800

 

12,000

 

 

 

 

 

344,683

 

Mortgage — 0.2%

 

 

 

 

 

Anthracite Capital, Inc., Series D (b)*

 

3,500

 

3,570

 

MFA Mortgage Investments, Inc., Series A *

 

65

 

1,254

 

 

 

 

 

4,824

 

Office — 14.8%

 

 

 

 

 

Alexandria Real Estate Equities, Inc., Series C *

 

8,700

 

169,650

 

Kilroy Realty Corp., Series E *

 

5,000

 

65,250

 

Parkway Properties, Inc., Series D *

 

5,000

 

73,750

 

 

 

 

 

308,650

 

Retail — 20.1%

 

 

 

 

 

CBL & Associates Properties, Inc., Series D *

 

2,500

 

16,200

 

Cedar Shopping Centers, Inc., Series A *

 

9,250

 

80,475

 

Glimcher Realty Trust, Series F *

 

26,500

 

154,230

 

Glimcher Realty Trust, Series G *

 

2,500

 

12,050

 

Kimco Realty Corp., Series G *

 

300

 

4,095

 

Taubman Centers, Inc., Series G *

 

10,000

 

152,100

 

 

 

 

 

419,150

 

Total Real Estate (Cost $6,059,767)

 

 

 

2,102,492

 

Financial Services — 6.3%

 

 

 

 

 

Corts-UNUM Provident Financial Trust (Cost $222,310)

 

8,600

 

131,064

 

Total Preferred Stocks (Cost $6,282,077)

 

 

 

2,233,556

 

Other Investment Companies — 1.3%

 

 

 

 

 

Ultra Real Estate ProShares

 

2,500

 

6,125

 

UltraShort Real Estate ProShares

 

400

 

21,092

 

Total Other Investment Companies (Cost $91,421)

 

 

 

27,217

 

Short-Term Investments — 5.6%

 

 

 

 

 

Other Investment Companies — 5.6%

 

 

 

 

 

Dreyfus Cash Management, Institutional Shares, 0.74% (c) (Cost $116,210)

 

116,210

 

116,210

 

Total Investments — 158.0% (Cost $8,477,280) (d)

 

 

 

3,293,842

 

Other assets less liabilities — (1.6)%

 

 

 

(34,635

)

Preferred Shares, at liquidation preference — (56.4)%

 

 

 

(1,175,000

)

Net Assets applicable to common shareholders — 100%

 

 

 

$

2,084,207

 

 

Notes to Portfolio of Investments

*                 Real Estate Investment Trust, or REIT.

(a)          As of March 31, 2009, the Fund held securities fair valued in accordance with policies adopted by the board of trustees aggregating to $478,887 and 14.5% of market value.

 


 

(b)         As of March 31, 2009, this security had discontinued paying distributions.

(c)   Rate reflects 7 day yield as of March 31, 2009.

(d)         Although subject to adjustments to the extent 2009 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 March 31, 2009, are as follows:

 

Cost

 

$

8,477,280

 

 

 

 

 

Gross unrealized appreciation

 

$

14,724

 

 

 

 

 

Gross unrealized depreciation

 

(5,198,162

)

 

 

 

 

Net unrealized depreciation

 

$

(5,183,438

)

 

Reference should be made to the Fund’s financial statements for the year ended December 31, 2008, for further information concerning the income tax characterization of the Fund’s investment income and distributions.

 


 

Fair Value Measurements

 

Under Financial Accounting Standards Board Statement of Financial Accounting Standards No. 157, Fair Value Measurements, or 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. 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 following is a summary of the inputs used as of March 31, 2009, in valuing the Fund’s investments carried at value:

 

Valuation Inputs

 

Investments in
Securities

 

Level 1 — Quoted prices

 

$

2,814,955

 

Level 2 — Other significant observable inputs

 

478,887

 

Level 3 — Significant unobservable inputs

 

—

 

Total

 

$

3,293,842

 

 

There were no investments in securities characterized as Level 3 on December 31, 2008, or March 31, 2009.

 


 

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 F.I.R.E. FUND

 

By:

/s/ Adam D. Portnoy

 

 

Adam D. Portnoy

 

President

 

 

Date:

May 22, 2009

 

 

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 22, 2009

 

 

By:

/s/ Mark L. Kleifges

 

 

Mark L. Kleifges

 

Treasurer

 

 

Date:

May 22, 2009