UNITED STATES SECURITIES AND EXCHANGE COMMISSION

Washington, DC 20549

FORM N-Q

QUARTERLY SCHEDULE OF PORTFOLIO HOLDINGS OF REGISTERED MANAGEMENT INVESTMENT COMPANY

Investment Company Act file number                811-10491               

Nuveen Real Estate Income Fund

(Exact name of registrant as specified in charter)

     333 West Wacker Drive, Chicago, Illinois 60606     
(Address of principal executive offices) (Zip code)

Kevin J. McCarthy—Vice President and Secretary
     333 West Wacker Drive, Chicago, Illinois 60606     
(Name and address of agent for service)

Registrant’s telephone number, including area code:      312-917-7700     

Date of fiscal year end:       12/31      

Date of reporting period:    9/30/2009   

Form N-Q is to be used by management investment companies, other than small business investment companies registered on Form N-5 (§§ 239.24 and 274.5 of this chapter), to file reports with the Commission, not later than 60 days after the close of the first and third fiscal quarters, pursuant to rule 30b1-5 under the Investment Company Act of 1940 (17 CFR 270.30b1-5). The Commission may use the information provided on Form N-Q in its regulatory, disclosure review, inspection, and policymaking roles.

A registrant is required to disclose the information specified by Form N-Q, and the Commission will make this information public. A registrant is not required to respond to the collection of information contained in Form N-Q unless the Form displays a currently valid Office of Management and Budget (“OMB”) control number. Please direct comments concerning the accuracy of the information collection burden estimate and any suggestions for reducing the burden to the Secretary, Securities and Exchange Commission, 450 Fifth Street, NW, Washington, DC 20549-0609. The OMB has reviewed this collection of information under the clearance requirements of 44 U.S.C. § 3507.

 

 

Item 1. Schedule of Investments

Nuveen Real Estate Income Fund (JRS)
September 30, 2009

Shares				Description (1)				Value
				Real Estate Investment Trust Common Stocks – 58.8% (47.5% of Total Investments)
				Diversified – 2.9%
	90,000			Liberty Property Trust				$	2,927,700
	50,000			Vornado Realty Trust					3,220,500
				Total Diversified					6,148,200
				Industrial – 2.4%
	225,000			AMB Property Corp.					5,163,750
				Office – 11.2%
	201,400			Boston Properties, Inc.					13,201,770
	218,600			Brandywine Realty Trust					2,413,344
	87,000			Corporate Office Properties					3,208,560
	394,900			Douglas Emmett Inc.					4,849,372
				Total Office					23,673,046
				Residential – 12.1%
	73,688			AvalonBay Communities, Inc.					5,359,328
	170,200			Equity Residential					5,225,140
	104,800			Essex Property Trust Inc.					8,339,984
	375,400			Post Properties, Inc.					6,757,200
				Total Residential					25,681,652
				Retail – 13.4%
	98,600			Federal Realty Investment Trust					6,051,082
	222,523			Macerich Company					6,749,123
	75,000			Saul Centers Inc.					2,407,500
	189,596			Simon Property Group, Inc.					13,163,650
				Total Retail					28,371,355
				Specialized – 16.8%
	389,500			Extra Space Storage Inc.					4,109,225
	351,000			Health Care Property Investors Inc.					10,087,740
	725,000			Host Hotels & Resorts Inc.					8,533,250
	50,200			Public Storage, Inc.					3,777,048
	127,000			Senior Housing Properties Trust					2,426,970
	174,000			Ventas Inc.					6,699,000
				Total Specialized					35,633,233
				Total Real Estate Investments Trust Common Stocks (cost $111,770,744)					124,671,236

Shares				Description (1)		Coupon			Value
				Real Estate Investment Trust Preferred Stocks – 50.4% (40.7% of Total Investments)
				Diversified – 7.8%
	400,000			PS Business Parks, Inc., Series O		7.375%			$	8,800,000
	195,840			Vornado Realty Trust, Series G		6.625%				4,130,266
	75,200			Vornado Realty Trust, Series H		6.750%				1,560,400
	102,000			Vornado Realty Trust, Series I		6.625%				2,167,500
				Total Diversified						16,658,166
				Industrial – 2.1%
	211,000			AMB Property Corporation, Series P		6.850%				4,378,250
				Office – 19.0%
	679,942			Duke-Weeks Realty Corporation		6.950%				13,469,651
	12,141			Highwoods Properties, Inc., Series A		8.625%				11,848,098
	81,000			HRPT Properties Trust, Series C		7.125%				1,622,430
	95,743			Lexington Corporate Properties Trust, Series B		8.050%				1,734,863
	682,284			Lexington Realty Trust		7.550%				11,598,828
				Total Office						40,273,870
				Residential – 9.2%
	511,100			Apartment Investment & Management Company, Series U		7.750%				10,579,770
	179,300			Apartment Investment & Management Company, Series Y		7.875%				3,765,300
	253,325			BRE Properties, Series D		6.750%				5,195,696
				Total Residential						19,540,766
				Specialized – 12.3%
	103,300			Hersha Hospitality Trust, Series A		8.000%				1,851,136
	611,000			Hospitality Properties Trust, Series C		7.000%				11,883,950
	239,785			Public Storage, Inc., Series I		7.250%				6,044,980
	76,462			Public Storage, Inc., Series K		7.250%				1,904,668
	242,492			Sunstone Hotel Investors Inc., Series A		8.000%				4,534,601
				Total Specialized						26,219,335
				Total Real Estate Investment Trust Preferred Stocks (cost $119,464,937)						107,070,387

Principal
Amount (000)				Description (1)		Coupon		Maturity		Ratings		Value
				Convertible Bonds – 5.8% (4.7% of Total Investments)
				Office – 2.2%
$	3,000			Alexandria Real Estate Equities Inc., Convertible Bonds, 144A		3.700%		1/15/27		N/R		$	2,771,250
	2,100			BioMed Realty L.P., Convertible Bond, 144A		4.500%		10/01/26		N/R			1,960,875
				Total Office									4,732,125
				Retail – 3.6%
	8,500			Macerich Company, Convertible Bond, 144A		3.250%		3/15/12		N/R			7,703,125
$	13,600			Total Convertible Bonds (cost $10,625,077)									12,435,250

Principal

Amount (000)

Description (1)

Coupon

Maturity

Ratings (2)

Value

Corporate Bonds – 0.3% (0.3% of Total Investments)

Specialized – 0.3%

$

800

Senior Housing Properties Trust

7.875%

4/15/15

BBB-

$

764,000

$

800

Total Corporate Bonds (cost $750,702)

764,000

Principal
Amount (000)				Description (1)		Coupon		Maturity				Value
				Short-Term Investments – 8.5% (6.8% of Total Investments)
$	17,988			Repurchase Agreement with Fixed Income Clearing Corporation, dated    9/30/2009, repurchase price $17,987,549, collateralized by $18,895,000    U.S. Treasury Notes, 2.375%, due 3/31/16, value $18,351,769		0.010%		10/01/09				$	17,987,544
				Total Short-Term Investments (cost $17,987,544)									17,987,544
				Total Investments (cost $260,599,004) – 123.8%									262,928,417
				Borrowings – (21.7)% (3)(4)									(46,000,000	)
				Other Assets Less Liabilities – (2.1)%									(4,609,314	)
				Net Assets Applicable to Common Shares – 100%								$	212,319,103

In determining the value of the Fund’s investments various inputs are used. These inputs are summarized in the three broad levels listed below:

    Level 1 – Quoted prices in active markets for identical securities.

    Level 2 – Other significant observable inputs (including quoted prices for similar securities, interest rates, prepayment speeds, credit risk,     etc.).

    Level 3 – Significant unobservable inputs (including management’s assumptions in determining the fair value of investments).

The inputs or methodology used for valuing securities are not an indication of the risk associated with investing in those securities. The following is a summary of the Fund’s fair value measurements as of September 30, 2009:

		Level 1				Level 2				Level 3				Total
Investments:
Real Estate Investment Trust Common Stocks		$	124,671,236			$	–			$	–			$	124,671,236
Real Estate Investment Trust Preferred Stocks			95,222,289				11,848,098				–				107,070,387
Convertible Bonds			–				12,435,250				–				12,435,250
Corporate Bonds			–				764,000				–				764,000
Short-Term Investments			17,987,544				–				–				17,987,544
Total		$	237,881,069			$	25,047,348			$	–			$	262,928,417

The following information is presented on an income tax basis. Differences between amounts for financial statement and federal income tax purposes are primarily due to timing differences in recognition of income on REIT investments and timing differences in recognizing certain gains and losses on investment transactions. To the extent that differences arise that are permanent in nature, such amounts are reclassified within the capital accounts on the Statement of Assets and Liabilities presented in the annual report, based on their federal tax basis treatment; temporary differences do not require reclassification. Temporary and permanent differences do not impact the net asset value of the Fund.

At September 30, 2009, the cost of investments was $263,090,607.

Gross unrealized appreciation and gross unrealized depreciation of investments at September 30, 2009, were as follows:

Gross unrealized:
Appreciation		$	23,396,276
Depreciation			(23,558,466	)
Net unrealized appreciation (depreciation) of investments		$	(162,190	)

(1)		All percentages shown in the Portfolio of Investments are based on net assets applicable to Common shares unless otherwise noted.
(2)		Ratings: Using the higher of Standard & Poor’s Group (“Standard & Poor’s”) or Moody’s Investor Service, Inc. (“Moody’s”) rating. Ratings below BBB by Standard & Poor’s or Baa by Moody’s are considered to be below investment grade.
(3)		Borrowings as a percentage of Total Investments is 17.5%.
(4)		The Fund may pledge up to 100% of its eligible investments in the Portfolio of Investments as collateral for Borrowings. As of September 30, 2009, investments with a value of $159,303,775 have been pledged as collateral for Borrowings.
N/R		Not rated.
144A		Investment is exempt from registration under Rule 144A of the Securities Act of 1933, as amended. These investments may only be resold in transactions exempt from registration which are normally those transactions with qualified institutional buyers.

Item 2. Controls and Procedures.

	a.		The registrant’s principal executive and principal financial officers, or persons performing similar functions, 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”) (17 CFR 270.30a-3(c))) are effective, as of a date within 90 days of the filing date of this report that includes the disclosure required by this paragraph, based on their evaluation of the controls and procedures required by Rule 30a-3(b) under the 1940 Act (17 CFR 270.30a-3(b)) and Rule 13a-15(b) or 15d-15(b) under the Securities Exchange Act of 1934 (17 CFR 240.13a-15(b) or 240.15d-15(b)).
	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 (17 CFR 270.30a-3(d)) 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.

File as exhibits as part of this Form a separate certification for each principal executive officer and principal financial officer of the registrant as required by Rule 30a-2(a) under the 1940 Act (17 CFR 270.30a-2(a)), exactly as set forth below: EX-99 CERT Attached hereto.

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.

(Registrant)          Nuveen Real Estate Income Fund          

Date November 27, 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.

Date November 27, 2009

Date November 27, 2009