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:    3/31/2010   

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

Portfolio of Investments (Unaudited)

Nuveen Real Estate Income Fund (JRS)
March 31, 2010

Shares				Description (1)		Value
				Real Estate Investment Trust Common Stocks – 75.3% (58.2% of Total Investments)
				Diversified – 2.4%
	79,081			Vornado Realty Trust		$	5,986,432
				Industrial – 4.3%
	398,650			AMB Property Corp.			10,859,226
				Office – 15.7%
	202,050			Boston Properties, Inc.			15,242,651
	101,650			Corporate Office Properties			4,079,215
	228,450			Douglas Emmett Inc.			3,511,277
	915,100			HRPT Properties Trust			7,119,478
	179,400			Mack-Cali Realty Corporation			6,323,850
	50,200			Piedmont Office Realty Trust			996,470
	39,500			SL Green Realty Corporation			2,262,165
				Total Office			39,535,106
				Residential – 16.0%
	416,650			Apartment Investment & Management Company, Class A			7,670,527
	96,188			AvalonBay Communities, Inc.			8,305,834
	368,350			Equity Residential			14,420,902
	110,350			Essex Property Trust Inc.			9,925,983
				Total Residential			40,323,246
				Retail – 15.3%
	112,150			Federal Realty Investment Trust			8,165,642
	130,527			Macerich Company			5,000,489
	75,000			Saul Centers Inc.			3,105,000
	210,119			Simon Property Group, Inc.			17,628,983
	112,150			Taubman Centers Inc.			4,477,028
				Total Retail			38,377,142
				Specialized – 21.6%
	199,850			Extra Space Storage Inc.			2,534,098
	388,200			Health Care Property Investors Inc.			12,810,600
	59,650			Health Care Inc.			2,697,970
	667,125			Host Hotels & Resorts Inc.			9,773,381
	131,800			Public Storage, Inc.			12,124,282
	238,450			Senior Housing Properties Trust			5,281,668
	228,850			Sunstone Hotel Investors Inc.			2,556,255
	137,100			Ventas Inc.			6,509,507
				Total Specialized			54,287,761
				Total Real Estate Investment Trust Common Stocks (cost $150,308,632)			189,368,913

Shares				Description (1)		Coupon												Value
				Real Estate Investment Trust Preferred Stocks – 32.3% (25.1% of Total Investments)
				Diversified – 3.8%
	400,000			PS Business Parks, Inc., Series O			7.375%											$	9,616,000
				Office – 10.8%
	12,141			Highwoods Properties, Inc., Series A			8.625%												12,861,112
	181,000			HRPT Properties Trust, Series C			7.125%												4,208,250
	125,000			HRPT Properties Trust, Series D			6.500%												2,543,750
	336,678			Lexington Realty Trust			7.550%												7,491,086
				Total Office															27,104,198
				Residential – 6.5%
	511,100			Apartment Investment & Management Company, Series U			7.750%												11,990,406
	179,300			Apartment Investment & Management Company, Series Y			7.875%												4,265,547
				Total Residential															16,255,953
				Retail – 2.3%
	152,800			Saul Centers, Inc.			8.000%												3,656,505
	97,800			Weingarten Realty Trust			6.500%												2,112,480
				Total Retail															5,768,985
				Specialized – 8.9%
	103,300			Hersha Hospitality Trust, Series A			8.000%												2,345,943
	611,000			Hospitality Properties Trust, Series C			7.000%												13,692,509
	271,452			Sunstone Hotel Investors Inc., Series A			8.000%												6,256,969
				Total Specialized															22,295,421
				Total Real Estate Investment Trust Preferred Stocks (cost $83,375,911)															81,040,557
Principal
Amount (000)				Description (1)		Coupon				Maturity				Ratings (2)				Value
				Convertible Bonds – 7.3% (5.6% of Total Investments)
				Office – 3.8%
$	3,000			Alexandria Real Estate Equities Inc., Convertible Bonds, 144A			3.700%				1/15/27			N/R				$	2,955,000
	2,100			BioMed Realty L.P., Convertible Bond, 144A			4.500%				10/01/26			N/R					2,089,500
	3,400			Kilroy Realty Limited Partnership, Convertible Bond, 144A			3.250%				4/15/12			N/R					3,264,000
	1,200			SL Green Realty Corporation, Convertible Bond, 144A			3.000%				3/30/27			N/R					1,167,000
	9,700			Total Office															9,475,500
				Retail – 3.5%
	9,000			Macerich Company, Convertible Bond, 144A			3.250%				3/15/12				N/R				8,673,750
$	18,700			Total Convertible Bonds (cost $15,757,822)															18,149,250
Principal
Amount (000)				Description (1)		Coupon				Maturity				Ratings (2)				Value
				Corporate Bonds – 0.3% (0.2% of Total Investments)
				Specialized – 0.3%
$	800			Senior Housing Properties Trust			7.875%				4/15/15			BBB-				$	810,000
				Total Corporate Bonds (cost $754,213)															810,000

Principal
Amount (000)				Description (1)		Coupon				Maturity				Value
				Short-Term Investments – 14.0% (10.9% of Total Investments)
$	35,224			Repurchase Agreement with Fixed Income Clearing Corporation, dated 3/31/10, repurchase price $35,223,856, collateralized by $35,950,000 U.S. Treasury Bills, 0.000%, due 4/22/10, value $35,932,025			0.000%				4/01/10			$	35,223,856
				Total Short-Term Investments (cost $35,223,856)											35,223,856
				Total Investments (cost $285,420,434) – 129.2%											324,592,576
				Borrowings – (25.8)% (3)(4)											(64,710,000	)
				Other Assets Less Liabilities – (3.4)%											(8,650,468	)
				Net Assets Applicable to Common Shares – 100%										$	251,232,108

Fair Value Measurements

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 March 31, 2010:

		Level 1				Level 2				Level 3				Total
Investments:
Real Estate Investment Trust Common Stocks		$	189,368,913			$	—			$	—			$	189,368,913
Real Estate Investment Trust Preferred Stocks			68,179,445				12,861,112				—				81,040,557
Convertible Bonds			—				18,149,250				—				18,149,250
Corporate Bonds			—				810,000				—				810,000
Short-Term Investments			35,223,856				—				—				35,223,856
Total		$	292,772,214			$	31,820,362			$	—			$	324,592,576

Income Tax Information

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 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 March 31, 2010, the cost of investments was $289,206,496.

Gross unrealized appreciation and gross unrealized depreciation of investments at March 31, 2010, were as follows:

Gross unrealized:
Appreciation		$	43,586,366
Depreciation			(8,200,286	)
Net unrealized appreciation (depreciation) of investments		$	35,386,080

(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 19.9%.
(4)		The Fund may pledge up to 100% of its eligible investments in the Portfolio of Investments as collateral for Borrowings. As of March 31, 2010, investments with a value of $251,723,558 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 May 28, 2010

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 May 28, 2010

Date May 28, 2010