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)

Jessica R. Droeger—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:    9/30/2006   

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

Shares				Description (1)						Value
				Real Estate Investment Trust Common Stocks – 99.7% (71.3% of Total Investments)
				Diversified – 2.0%
	871,900			Newkirk Realty Trust Inc.						$	14,368,912
				Industrial – 3.9%
	626,600			First Industrial Realty Trust, Inc.							27,570,400
				Office – 30.5%
	1,195,300			Brandywine Realty Trust							38,907,015
	477,300			Equity Office Properties Trust							18,977,448
	2,280,800			HRPT Properties Trust							27,255,560
	1,090,500			Mack-Cali Realty Corporation							56,487,900
	264,600			Maguire Properties, Inc.							10,779,804
	1,120,600			Reckson Associates Realty Corporation							47,961,680
	1,579,000			Republic Property Trust							17,400,580
				Total Office							217,769,987
				Residential – 22.3%
	415,300			Apartment Investment & Management Company, Class A							22,596,473
	795,000			Archstone-Smith Trust							43,279,800
	464,500			AvalonBay Communities, Inc.							55,925,800
	1,254,200			United Dominion Realty Trust							37,876,840
				Total Residential							159,678,913
				Retail – 17.5%
	413,800			Federal Realty Investment Trust							30,745,340
	721,900			Glimcher Realty Trust							17,888,682
	691,000			Macerich Company							52,764,760
	880,300			New Plan Excel Realty Trust							23,812,115
				Total Retail							125,210,897
				Specialized – 23.5%
	2,307,600			Ashford Hospitality Trust Inc.							27,529,668
	493,400			Cogdell Spencer Inc.							10,238,050
	1,152,000			Extra Space Storage Inc.							19,941,120
	931,564			Hersha Hospitality Trust							8,943,014
	1,587,300			Nationwide Health Properties, Inc.							42,444,402
	1,241,100			Senior Housing Properties Trust							26,485,074
	1,496,800			U-Store-It Trust							32,121,328
				Total Specialized							167,702,656
				Total Real Estate Investment Trust Common Stocks (cost $448,181,199)							712,301,765

Shares				Description (1)		Coupon				Value
				Real Estate Investment Trust Preferred Stocks – 38.5% (27.6% of Total Investments)
				Diversified – 11.2%
	370,000			BRE Properties, Series D		6.750%				$	9,042,800
	1,031,300			Crescent Real Estate Equities Company, Series A (Convertible)		6.750%					22,606,096
	850,000			Crescent Real Estate Equities Company, Series B		9.500%					21,836,500
	150,000			Lexington Corporate Properties Trust, Series B		8.050%					3,835,500
	497,623			PS Business Parks, Inc., Series F		8.750%					12,599,814
	400,000			PS Business Parks, Inc., Series O		7.375%					10,262,520
				Total Diversified							80,183,230
				Office – 6.9%
	95,400			Alexandria Real Estate Equities Inc., Series B		9.100%					2,417,436
	160,000			Alexandria Real Estate Equities Inc., Series C		8.375%					4,192,000
	200,000			Corporate Office Properties Trust, Series G		8.000%					5,144,000
	12,141			Highwoods Properties, Inc., Series A		8.625%					13,097,104
	81,000			HRPT Properties Trust, Series C		7.125%					2,070,360
	901,700			Maguire Properties, Inc., Series A		7.625%					22,235,922
				Total Office							49,156,822
				Residential – 5.8%
	511,100			Apartment Investment & Management Company, Series U		7.750%					12,966,607
	183,000			Apartment Investment & Management Company, Series Y		7.875%					4,629,900
	945,000			Home Properties Inc., Series F		9.000%					24,130,575
				Total Residential							41,727,082
				Retail – 3.7%
	160,000			Cedar Shopping Centers Inc., Series A		8.875%					4,254,400
	113,000			Glimcher Realty Trust, Series F		8.750%					2,865,680
	234,300			Glimcher Realty Trust, Series G		8.125%					5,878,587
	125,000			Saul Centers, Inc., Series A		8.000%					3,201,875
	400,000			Taubman Centers, Inc., Series H		7.625%					10,286,000
				Total Retail							26,486,542
				Specialized – 10.9%
	130,000			Ashford Hospitality Trust, Series A		8.550%					3,347,500
	407,900			FelCor Lodging Trust Inc., Series C, (2)		8.000%					10,160,790
	120,000			Hersha Hospitality Trust, Series A		8.000%					3,115,200
	592,000			LaSalle Hotel Properties, Series A		10.250%					15,167,040
	1,000,000			Public Storage Inc., Series I		7.250%					25,920,000
	175,000			Strategic Hotel Capital Inc., Series B		8.250%					4,558,750
	320,000			Strategic Hotel Capital Inc., Series C		8.250%					8,208,000
	300,000			Sunstone Hotel Investors Inc., Series A		8.000%					7,620,000
				Total Specialized							78,097,280
				Total Real Estate Investment Trust Preferred Stocks (cost $265,895,192)							275,650,956

Principal
Amount (000)				Description (1)		Coupon		Maturity		Value
				Short-Term Investments – 1.6% (1.1% of Total Investments)
$	11,092			Repurchase Agreement with State Street Bank, dated 9/29/06, repurchase price $11,096,708, collateralized by $9,180,000 U.S. Treasury Bonds, 6.500% due 11/15/26, value $11,314,350		4.800%		10/02/06		$	11,092,271
				Total Short-Term Investments (cost $11,092,271)							11,092,271
				Total Investments (cost $725,168,662) – 139.8%							999,044,992
				Borrowings Payable – (9.8)% (3)							(70,000,000	)
				Other Assets Less Liabilities – 1.1%							7,466,396
				Preferred Shares, at Liquidation Value – (31.1)%							(222,000,000	)
				Net Assets Applicable to Common Shares – 100%						$	714,511,388

Unrealized

Fund

Fixed Rate

Appreciation

Notional

Floating Rate

Pay/Receive

Fixed Rate

Payment

Termination

(Depreciation)

Counterparty

Amount

Index

Floating Rate

(Annualized)

Frequency

Date

(U.S. Dollars)

Citigroup Inc.

$

43,000,000

Monthly USD-LIBOR

Receive

4.800

%

Monthly

2/06/07

$

94,914

Citigroup Inc.

43,000,000

Monthly USD-LIBOR

Receive

5.190

Monthly

2/06/09

(217,542

)

$

(122,628

)

USD-LIBOR      (United States Dollar-London Interbank Offered Rate)

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 recording income and timing differences in recognizing certain gains and losses on investment transactions.

At September 30, 2006, the cost of investments was $725,168,662.

Gross unrealized appreciation and gross unrealized depreciation of investments at September 30, 2006, were as follows:

Gross unrealized:
Appreciation		$	278,203,587
Depreciation			(4,327,257	)
Net unrealized appreciation (depreciation) of investments		$	273,876,330

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 28, 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.

Date November 28, 2006

Date November 28, 2006