SCHEDULE 14A
(Rule 14a-101)
INFORMATION REQUIRED IN PROXY STATEMENT
SCHEDULE 14A INFORMATION
Proxy Statement Pursuant to Section 14(a) of the Securities
Exchange Act of 1934 (Amendment No. )
Filed by the Registrant |X|
Filed by a Party other than the Registrant |_|
Check the appropriate box:
|_| Preliminary Proxy Statement
|_| Confidential, for Use of the Commission Only (as permitted by Rule
14a-6(e)(2))
|X| Definitive Proxy Statement
|_| Definitive Additional Materials
|_| Soliciting Material Pursuant to Section 240.14a-11(c) or
Section 240.14a-12
REAL ESTATE INCOME FUND INC.
----------------------------------------------------------------------
(Name of Registrant as Specified in Its Charter)
Payment of Filing Fee (Check the appropriate box):
|X| No fee required.
|_| Fee computed on table below per Exchange Act Rules 14a-6(i)(1) and 0-11.
(1) Title of each class of securities to which transaction applies:
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(2) Aggregate number of securities to which transaction applies:
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(3) Per unit price or other underlying value of transaction computed
pursuant to Exchange Act Rule 0-11 (set forth the amount on which
the filing fee is calculated and state how it was determined):
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(4) Proposed maximum aggregate value of transaction:
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(5) Total fee paid:
|_| Fee paid previously with preliminary materials.
|_| Check box if any part of the fee is offset as provided by Exchange Act
Rule 0-11(a)(2) and identify the filing for which the offsetting fee was
paid previously. Identify the previous filing by the registration statement
number, or the Form or Schedule and the date of its filing.
(1) Amount Previously Paid:
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(2) Form, Schedule or Registration Statement No.:
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(3) Filing Party:
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(4) Date Filed:
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REAL ESTATE INCOME FUND INC.
125 Broad Street
New York, New York 10004
--------------------
NOTICE OF ANNUAL MEETING OF SHAREHOLDERS
TO BE HELD ON APRIL 11, 2005
--------------------
To the Shareholders of Real Estate Income Fund Inc.:
Notice is hereby given that the Annual Meeting of Shareholders of Real
Estate Income Fund Inc. (the "Fund ") will be held at Citigroup Center, 153 E.
53rd Street, 14th Floor Conference Center, New York, New York at 3:30 p.m. on
April 11, 2005 for the following purposes:
1. To elect two (2) Class II Directors of the Fund (PROPOSAL 1); and
2. To consider and vote upon such other matters as may come before said
meeting or any adjournment thereof.
The close of business on February 28, 2005 has been fixed as the record
date (the "Record Date") for the determination of shareholders entitled to
notice of and to vote at the meeting and any adjournment thereof.
By Order of the Board of Directors,
Robert I. Frenkel
Secretary
March 11, 2005
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YOUR VOTE IS IMPORTANT REGARDLESS OF THE SIZE OF YOUR
HOLDINGS IN THE FUND. WHETHER OR NOT YOU PLAN TO ATTEND THE
MEETING, WE ASK THAT YOU PLEASE COMPLETE AND SIGN THE ENCLOSED
PROXY CARD AND RETURN IT PROMPTLY IN THE ENCLOSED ENVELOPE WHICH
NEEDS NO POSTAGE IF MAILED IN THE CONTINENTAL UNITED STATES.
INSTRUCTIONS FOR THE PROPER EXECUTION OF PROXIES ARE SET FORTH
ON THE INSIDE COVER.
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INSTRUCTIONS FOR SIGNING PROXY CARDS
The following general rules for signing proxy cards may be of assistance
to you and may avoid the time and expense to the Fund involved in validating
your vote if you fail to sign your proxy card properly.
1. Individual Accounts: Sign your name exactly as it appears in the
registration on the proxy card.
2. Joint Accounts: Either party may sign, but the name of the party
signing should conform exactly to the name shown in the registration
on the proxy card.
3. All Other Accounts: The capacity of the individual signing the proxy
card should be indicated unless it is reflected in the form of
registration. For example:
Registration Valid Signature
------------ ---------------
Corporate Accounts
(1) ABC Corp. ABC Corp.
(2) ABC Corp. John Doe, Treasurer
(3) ABC Corp.
c/o John Doe, Treasurer John Doe
(4) ABC Corp. Profit Sharing Plan John Doe, Trustee
Trust Accounts
(1) ABC Trust Jane B. Doe, Trustee
(2) Jane B. Doe, Trustee
u/t/d 12/28/78 Jane B. Doe
Custodian or Estate Accounts
(1) John B. Smith, Cust.
f/b/o John B. Smith, Jr. UGMA John B. Smith
(2) John B. Smith John B. Smith, Executor
REAL ESTATE INCOME FUND INC.
125 Broad Street
New York, New York 10004
1-800-331-1710
--------------------
ANNUAL MEETING OF SHAREHOLDERS
APRIL 11, 2005
--------------------
PROXY STATEMENT
This Proxy Statement is furnished in connection with the solicitation of
proxies by the Board of Directors (the "Board") of Real Estate Income Fund Inc.
(the "Fund") for use at the Annual Meeting of Shareholders (the "Meeting") of
the Fund to be held at 3:30 p.m. on April 11, 2005 at Citigroup Center, 153 East
53rd Street, 14th Floor Conference Center, New York, New York and at any
adjournments thereof. A Notice of Meeting of Shareholders (the "Notice") and a
proxy card accompany this Proxy Statement.
The cost of soliciting proxies and the expenses incurred in preparing this
Proxy Statement and its enclosure will be borne by the Fund. Solicitation costs
are expected to be approximately $15,750. In addition, the Fund will reimburse
brokerage firms or other record holders for their expenses in forwarding
solicitation materials to beneficial owners of shares of the Fund. Proxy
solicitations will be made primarily by mail, but proxy solicitations also may
be made by telephone or personal interview conducted by officers of the Fund and
officers and regular employees of Citi Fund Management Inc. ("CFM" or the
"Manager"), the Fund's investment manager, Citigroup Global Markets Inc. ("CGM")
and American Stock Transfer and Trust Company, the Fund's transfer agent.
The Annual Report of the Fund, including audited financial statements for
the fiscal year ended December 31, 2004, has previously been furnished to all
shareholders. This Proxy Statement is first being mailed to shareholders on or
about March 11, 2005. The Fund will provide additional copies of the annual
report to any shareholder upon request by calling the Fund at 1-800-331-1710.
The Fund has one class of Common Stock which has a par value of $.001 per
Share. As of the Record Date, there were 11,069,242.453 shares of common stock
outstanding. The Fund has one series of Preferred Stock outstanding, Taxable
Auction Rate Preferred Stock Series M, $25,000 per share liquidation preference.
As of the record date, there were 2,600 shares of Preferred Stock outstanding.
The shares of Common Stock and the shares of Preferred Stock are referred to
collectively as the "Shares". Each shareholder is entitled to one vote for each
Share held and a proportionate fraction of a vote for any fractional Share held.
If the enclosed Proxy is properly executed and returned in time to be
voted at the Meeting, the Shares represented thereby will be voted in accordance
with the instructions marked thereon. Unless instructions to the contrary are
marked thereon, a proxy will be voted FOR the matter listed in the accompanying
Notice of Annual Meeting of Shareholders. For purposes of determining the
presence of a quorum for transacting business at the Meeting, abstentions and
broker "non-votes" (that is, proxies from brokers or nominees indicating that
such persons have not received instructions from the beneficial owner or other
persons entitled to vote shares on a particular matter with respect to which the
brokers or nominees do not have discretionary power) will be treated as shares
that are present but which have not been voted. Approval of Proposal 1 requires
the affirmative vote of a plurality of the votes cast at the Meeting with a
quorum present. Because the Proposal requires a proportion of votes cast for its
approval, abstentions and broker non-votes may influence whether a quorum is
present, but will have no impact on the requisite approval of such Proposal. Any
shareholder who has given a proxy has the right to revoke it at any time prior
to its exercise either by attending the Meeting and voting his or her shares in
person or by submitting a letter of revocation or a later-dated proxy to the
Fund at the above address prior to the date of the Meeting.
In the event that a quorum is not present at the Meeting, or in the event
that a quorum is present but sufficient votes to approve the proposal are not
received, the persons named as proxies may propose one or more adjournments of
the Meeting to permit further solicitations of proxies. In determining whether
to adjourn the Meeting, the following factors may be considered: the nature of
the proposal that is the subject of the Meeting; the percentage of votes
actually cast; the percentage of negative votes actually cast; the nature of any
further solicitation; and the information to be provided to shareholders with
respect to the reasons for the solicitation. Any adjournment will require the
affirmative vote of a majority of the Shares represented at the Meeting in
person or by proxy. A shareholder vote may be taken on the proposal in this
Proxy Statement prior to such adjournment if sufficient votes have been received
and it is otherwise appropriate. Under the Fund's By-laws, a quorum is
constituted by the presence in person or by proxy of the holders of a majority
of the outstanding Shares entitled to vote at the Meeting.
The close of business on February 28, 2005 has been fixed as the record
date (the "Record Date") for the determination of shareholders entitled to
notice of and to vote at the Meeting and all adjournments thereof.
As of the Record Date, to the knowledge of the Fund and the Board, no
single shareholder or "group" (as that term is used in Section 13(d) of the
Securities Exchange Act of 1934 (the "Exchange Act")) beneficially owned 5% or
more of the outstanding Shares of the Fund. As of the Record Date, Cede & Co.,
as nominee of The Depository Trust Company, was the record holder of
11,048,675.493 Shares, or 99.8% of the Fund's outstanding Shares. As of the
Record Date, the officers and Board Members of the Fund as a group beneficially
owned less than 1% of the outstanding Shares of the Fund.
2
In order that a shareholder's Shares may be represented at the Meeting,
shareholders are required to allow sufficient time for their proxies to be
received on or before 3:30 p.m. on April 11, 2005.
As of the Record Date, to the knowledge of the Fund, no securities issued
by CGM's ultimate parent corporation, Citigroup Inc. ("Citigroup"), were held by
Directors who are not "interested persons" of the Fund as that term is used in
the Investment Company Act of 1940, as amended (the "1940 Act").
The Fund's manager is Citi Fund Management Inc., located at 399 Park
Avenue, New York, NY 10022.
PROPOSAL 1:
TO ELECT TWO (2) CLASS II DIRECTORS OF THE FUND
The Board of Directors of the Fund is divided into three classes: Class I,
Class II and Class III. At the Meeting, shareholders will be asked to elect two
Class II Directors to hold office until the 2008 Annual Meeting of Shareholders,
or until their successors have been duly elected and qualified. The terms of
office of the Class I and Class III Directors expire at the year 2007 and 2006
Annual Meeting of Shareholders, respectively, or thereafter in each case when
their respective successors are duly elected and qualified.
Under the terms of the Fund's Articles of Incorporation, as amended (the
"Charter"), the holders of Preferred Stock are entitled as a class, to the
exclusion of the holders of Common Stock, to elect two Directors of the Fund
(the "Preferred Share Directors"). The Charter further provides that the
remaining nominees shall be elected by holders of Common Stock and Preferred
Stock voting together as a single class. One of the Directors designated as a
Preferred Share Director, Paolo Cucchi, has been nominated for election at this
Meeting. Therefore, the holders of the Fund's Preferred Stock, voting as a
single class, are being asked to vote for Mr. Cucchi as a Director of the Fund.
Each nominee has consented to serve as a Director if elected at the
Meeting. If a designated nominee declines or otherwise becomes unavailable for
election, however, the proxy confers discretionary power on the persons named
therein to vote in favor of a substitute nominee or nominees.
Certain information concerning the nominees is set forth below. For all
nominees or Directors indicated as owning shares of the Fund, such ownership
constituted less than 1% of the outstanding shares of the Fund as of the Record
Date. All of the nominees are currently Directors of the Fund. Except as
indicated, each nominee or Director has held the office shown or other offices
in the same company for the last five years.
3
Persons Nominated for Election as Directors
Number of
Portfolios
Principal in Fund Other
Position Length Occupations Complex Directorships
Name, Address and Held with of Time During Past Overseen Held by
Year of Birth Fund Served Five Years by Director Director
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CLASS II DIRECTORS
Non-Interested Directors:
Robert A. Frankel+ Director Since Managing Partner of Robert 24 None
1961 Deergrass Way 2002 A. Frankel Management
Carlsbad, CA 92009 Consultants.
Year of Birth: 1927
Paolo M. Cucchi+ Director Since Vice President and Dean 7 None
Drew University 2002 of College of Liberal Arts
108 Brothers College at Drew University.
Madison, NJ 07940
Year of Birth: 1941
The following table provides information concerning the remaining
Directors of the Fund:
CLASS I DIRECTORS
Non-Interested Director:
George M. Pavia+ Director Since Senior Partner, Pavia & 7 None
600 Madison Avenue 2002 Harcourt Attorneys.
New York, NY 10022
Year of Birth: 1928
Interested Director:
R. Jay Gerken*+ Chairman, Since Managing Director of CGM; 219 None
399 Park Avenue President 2002 Chairman, President and Chief
New York, NY 10022 and Chief Executive Officer of Smith
Year of Birth: 1951 Executive Barney Fund Management
Officer LLC ("SBFM"), Travelers
Investment Advisor, Inc.
("TIA") and Citi Fund
Management Inc. ("CFM");
President and Chief Executive
Officer of certain mutual funds
associated with Citigroup;
formerly portfolio manager,
Smith Barney Growth and
Income Fund (1994-2000) and
Smith Barney Allocation
Series Inc. (1996-2001).
----------
* An "interested person" of the Fund, as defined in the 1940 Act, because he
is a Managing Director of CGM, which is an affiliate of CFM, the Fund's
Manager.
+ Director, Trustee and/or general partner of other investment companies
registered under the 1940 Act with which CGM is associated.
4
Number of
Portfolios
Principal in Fund Other
Position Length Occupations Complex Directorships
Name, Address and Held with of Time During Past Overseen Held by
Year of Birth Fund Served Five Years by Director Director
-----------------------------------------------------------------------------------------------------------------------------------
CLASS III DIRECTORS
Non-Interested Directors:
Dwight B. Crane+ Director Since Professor, Harvard 50 None
Harvard Business School 2002 Business School.
Soldiers Field Road
Morgan Hall #375
Boston, MA 02163
Year of Birth: 1937
Paul Hardin+ Director Since Chancellor Emeritus and 34 None
12083 Morehead 2002 Professor of Law at the
Chapel Hill, NC University of North Carolina
27514-8426 at Chapel Hill.
Year of Birth: 1931
William R. Hutchinson+ Director Since President, WR Hutchinson & 44 Director of
535 N. Michigan 2002 Associates, Inc. (oil industry Associated
Suite 1012 consulting); formerly Group Bank;
Chicago, IL 60611 Vice President, Mergers & Director of
Year of Birth: 1942 Acquisitions BP Amoco p.l.c. Associated
Banc-Corp.
----------
+ Director, trustee and/or general partner of other investment companies
registered under the 1940 Act with which CGM is associated.
5
The following table provides information concerning the dollar range of
equity securities owned beneficially by each Director and nominee for election
as Director as of December 31, 2004:
Aggregate Dollar Range of Equity
Securities in All Funds Overseen
Dollar Range of Equity by Director/Nominee and
Name of Director/Nominee Securities in the Fund Advised by CFM
------------------------ ---------------------- --------------------------------
Non-Interested Directors/Nominees
Dwight B. Crane None Over $100,000
Paolo M. Cucchi None $1-$10,000
Robert A. Frankel $1-$10,000 $10,000-$50,000
Dr. Paul Hardin $10,000-$50,000 Over $100,000
William R. Hutchinson $50,000-$100,000 Over $100,000
George Pavia None None
Interested Directors/Nominees
R. Jay Gerken* $1-$10,000 Over $100,000
----------
* Mr. Gerken is an "interested person" as defined in the 1940 Act, because
he is a Managing Director of CGM, which is an affiliate of the manager.
During the Fund's last fiscal year ended December 31, 2004, four regular
and three special meetings of the Board were held. In the last fiscal year, each
Director attended at least 75% of the regular and special meetings of the Board
and each of the audit and nominating committee meetings held. The Fund does not
have a formal policy regarding attendance by Directors at annual meetings but
may consider a policy in the future. One Board member attended the 2004 Annual
Meeting.
6
COMPENSATION
Only the Independent Directors receive remuneration from the Fund for
acting as a Director. Aggregate expenses (including reimbursement for travel and
out-of-pocket expenses) of $16,961 were paid to such Directors by the Fund
during the fiscal year ended December 31, 2004. Fees for the Independent
Directors are currently set at $6,000 per annum plus $750 per in-person Board
meeting and $300 per telephone conference call. Officers of the Fund are
compensated by CGM.
The following table shows the compensation paid by the Fund to each person
who was a Director during the Fund's last fiscal year:
Aggregate Pension or Total
Compensation Retirement Compensation Total Number
from Fund Benefits from Fund and of Funds for
for the fiscal Accrued as part Fund Complex Which Director
Name of year ended of Fund for the year Serves within
Person 12/31/04 Expenses ended 12/31/04 Fund Complex
------- -------------- --------------- --------------- --------------
Non-Interested Directors
Allan J. Bloostein* $8,300 0 $133,400 None
Dwight B. Crane 9,900 0 214,788 50
Paolo M. Cucchi 7,900 0 97,259 7
Robert A. Frankel 9,100 0 51,650 24
Paul Hardin 8,400 0 133,800 34
William R. Hutchinson 8,300 0 338,000 44
George M. Pavia 8,400 0 54,700 7
Interested Director
R. Jay Gerken* 0 0 0 219
----------
* Mr. Bloostein became an Emeritus Director as of December 31, 2004.
** Designates a Director who is an "interested person" of the Fund as defined
under the 1940 Act because he is a Managing Director of CGM, which is an
affiliate of the manager.
At the end of the calendar year in which he or she attains age 80, a Fund
Director is required to change to emeritus status. An Emeritus Director is
entitled to serve in emeritus status for a maximum of 10 years during which time
he is paid 50% of the annual retainer fee and meeting fees otherwise applicable
to Fund Directors, together with reasonable out-of-pocket expenses for each
meeting attended. Currently there is one Director Emeritus.
Beneficial Ownership Reporting Compliance
Section 30(h) of the 1940 Act requires the Fund's officers and Directors,
investment adviser, sub-investment adviser and certain affiliated persons
thereof, and any persons who beneficially own more than ten percent of the
Fund's outstanding Shares, to file reports of ownership with the Securities and
Exchange Commission (the "SEC"), the New York Stock Exchange, Inc. (the "NYSE")
and the Fund. Based solely upon its review of the copies of such forms received
by it and representations from certain such persons, the Fund believes that
during its fiscal year ended December 31, 2004, all filing requirements
applicable to such persons were met.
7
The names of the principal officers of the Fund are listed in the table
below together with certain additional information. Each of the officers of the
Fund will hold such office until a successor is voted upon by the Board of
Directors.
Principal Occupations and
Position Other Affiliations for the Past
Name (Year First Elected) Five Years and Year of Birth
---- -------------------- -------------------------------
R. Jay Gerken Chief Executive Officer (See table of Directors)
(2002), Chairman of the
Board (2002) and
President (2002)
Andrew B. Shoup Senior Vice President Director of CAM; Senior
(2003) and Chief Vice President and Chief
Administrative Officer Administrative Officer of
(2003) mutual funds associated with
Citigroup; Treasurer of
certain mutual funds
associated with Citigroup;
Head of International Funds
Administration of CAM (from
2001 to 2003); Director of
Global Funds Administration
of CAM (from 2000 to 2001);
Head of U.S. Citibank Funds
Administration of CAM (from
1998 to 2000); Year of Birth:
1951
James Giallanza Treasurer and Chief Director of CGM; Chief
Financial Officer Financial Officer and
(2004) Treasurer of certain mutual
funds associated with
Citigroup; Director and
Controller of the U.S.
wholesale business at UBS
Global Asset Management (from
2001-2004); Director of
Global Funds Administration
at CAM (from 2000-2001);
Treasurer of the Lazard Funds
(from 1998-2000). Year of
Birth: 1966
Kevin Kennedy Vice President and Managing Director of CAM;
Investment Officer Year of Birth: 1954
(2002)
Andrew Beagley Chief Compliance Director of CGM (since 2000);
Officer (2004) and Director of Compliance, North
Chief Anti-Money America, CAM (since 2000);
Laundering Compliance Chief Anti-Money Laundering
Officer (2002) Compliance Officer of mutual
funds associated with
Citigroup Inc.; Director of
Compliance, Europe, the
Middle East and Africa,
Citigroup Asset Management
(from 1999 to 2000); Year of
Birth: 1962
8
Principal Occupations and
Position Other Affiliations for the Past
Name (Year First Elected) Five Years and Year of Birth
---- -------------------- -------------------------------
Matthew A. Troxell, CFA Investment Officer Principal and Portfolio
(2002) Manager of AEW Capital
Management, L.P.; prior to
July 2000 Director and
Portfolio Manager of AEW
Capital Management, L.P.;
Year of Birth: 1958
Robert I. Frenkel Secretary (2003) Managing Director and General
Counsel of Global Mutual
Funds for CAM and its
predecessor (since 1994);
Secretary of CFM; Secretary
and Chief Legal Officer of
mutual funds associated with
Citigroup; Year of Birth:
1954
The election of each Director will require a plurality of the votes cast
with a quorum present.
The principal business address of Messrs. Gerken, Beagley and Kennedy is
399 Park Avenue, New York, New York 10022. The principal business address of
Messrs. Shoup and Giallanza is 125 Broad Street, New York, New York 10004. The
principal business address of Mr. Troxel is World Trade Center East, Two Seaport
Lane, 16th Floor, Boston, MA 02210. The principal business address of Mr.
Frenkel is 300 First Stamford Place, Stamford, Connecticut 06902.
THE BOARD OF DIRECTORS, INCLUDING ALL THE INDEPENDENT DIRECTORS,
RECOMMENDS THAT SHAREHOLDERS VOTE "FOR" THE ELECTION OF ALL NOMINEES TO THE
BOARD.
The Fund has a separately designated standing Audit Committee. The Fund's
Audit Committee is composed of all the Directors who are not "interested
persons" of the Fund, CFM or their affiliates within the meaning of the 1940
Act, and who are "independent" as defined in the NYSE listing standards, namely
Messrs. Crane, Cucchi, Frankel, Hardin, Hutchinson and Pavia. All of the members
of the Audit Committee are financially literate. The principal functions of the
Audit Committee are to (a) assist Board oversight of (i) the integrity of the
Fund's financial statements, (ii) the Fund's compliance with legal and
regulatory requirements, (iii) the qualifications and independence of the Fund's
independent registered public accounting firm, and (iv) the performance of the
Fund's internal audit functions and independent registered public accounting
firm; (b) approve, and recommend to the Independent Board Members (as such term
is defined in the Audit Committee Charter) for their ratification, the
selection, appointment, retention or termination of the Fund's independent
registered public accounting firm, as well as approving the compensation
thereof; (c) approve all audit and permissible non-audit services provided to
the Fund and certain other persons by such independent registered public
accounting firm; and (d) prepare the report required to be prepared by the Audit
Committee pursuant to SEC rules for inclusion in the Annual Proxy Statement.
This Committee met four times during the fiscal year ended December 31, 2004.
The
9
Fund adopted an Amended and Restated Audit Committee Charter at a meeting held
on February 11, 2004.
The Fund has a separately designated standing Nominating Committee. The
Nominating Committee, the principal function of which is to select and nominate
candidates for election or appointment by the Board as Directors of the Fund, is
currently composed of Messrs. Crane, Cucchi, Frankel, Hardin, Hutchinson and
Pavia. Only Directors who are not "interested persons" of the Fund as defined in
the 1940 Act and who are "independent" as defined in the NYSE listing standards
are members of the Nominating Committee. The Nominating Committee may consider
nominees recommended by a shareholder as it deems appropriate. Shareholders who
wish to recommend a nominee should send recommendations to the Fund's Secretary
that include all information relating to such person that is required to be
disclosed in solicitations of proxies for the election of Directors. A
recommendation must be accompanied by a written consent of the individual to
stand for election if nominated by the Board of Directors and to serve if
elected by the shareholders. The Nominating Committee met once during the Fund's
fiscal year ended December 31, 2004. The Fund adopted a Nominating Committee
Charter at a meeting held on February 11, 2004. The Nominating Committee Charter
was included in the Fund's March 31, 2004 Proxy Statement.
The Nominating Committee identifies potential nominees through its network
of contacts, and may also engage, if it deems appropriate, a professional search
firm. The Committee meets to discuss and consider such candidates'
qualifications and then chooses a candidate by majority vote. The Nominating
Committee does not have specific, minimum qualifications for nominees and has
not established specific qualities or skills that it regards as necessary for
one or more of the Fund's Directors to possess (other than any qualities or
skills that may be required by applicable law, regulation or listing standard).
However, as set forth in the Nominating Committee Charter, in evaluating a
person as a potential nominee to serve as a Director of the Fund, the Committee
may consider the following factors, among any others it may deem relevant:
o whether or not the person is an "interested person" as defined in
the 1940 Act and whether the person is otherwise qualified under
applicable laws and regulations to serve as a Director of the Fund;
o whether or not the person has any relationships that might impair
his or her independence, such as any business, financial or family
relationships with Fund management, the Manager of the Fund, Fund
service providers or their affiliates;
o whether or not the person serves on boards of, or is otherwise
affiliated with, competing financial service organizations or their
related mutual fund complexes;
o whether or not the person is willing to serve, and willing and able
to commit the time necessary for the performance of the duties of a
Director of the Fund;
10
o the contribution which the person can make to the Board and the Fund
(or, if the person has previously served as a Director of the Fund,
the contribution which the person made to the Board during his or
her previous term of service), with consideration being given to the
person's business and professional experience, education and such
other factors as the Committee may consider relevant;
o the character and integrity of the person; and
o whether or not the selection and nomination of the person would be
consistent with the requirements of the Fund's retirement policies.
Report of the Audit Committee
At a meeting of the Audit Committee on February 24, 2005, the Audit
Committee reported that it: (i) reviewed and discussed the Fund's audited
financial statements with management; (ii) discussed with KPMG LLP ("KPMG"), the
Fund's independent registered public accounting firm, the matters required to be
discussed by Statement on Auditing Standards No. 61; and (iii) received written
confirmation from KPMG that it is independent and disclosures regarding such
independence, as required by Independence Standards Board Standard No. 1, and
discussed with the auditors the auditors' independence. Based on the review and
discussions referred to in items (i) through (iii) above, the Audit Committee
recommended to the Board of Directors (and the Board approved) that the audited
financial statements be included in the Fund's annual report for the Fund's
fiscal year ended December 31, 2004.
Submitted by the Audit Committee of the
Fund's Board of Directors
Dwight B. Crane
Paolo M. Cucchi
Paul Hardin
William R. Hutchinson
George M. Pavia
Representatives of KPMG are not expected to be present at the Meeting but
have been given the opportunity to make a statement if they so desire and will
be available should any matter arise requiring their presence.
Audit Fees. Fees for the annual audit of the Fund's financial statements
by KPMG for the fiscal year ended December 31, 2003 and the fiscal year ended
December 31, 2004 were $40,000 and $40,000, respectively.
Audit-Related Fees. Fees for services related to the audit of the Fund's
financial statements rendered by KPMG for the fiscal year ended December 31,
2003 and fiscal year ended December 31, 2004 were $0 and $0, respectively.
These amounts represent procedures performed and prepared for in an agreed upon
procedures letter in accordance with the terms of the Articles Supplementary.
11
Tax Fees. Fees for services rendered by KPMG for tax compliance for the
fiscal year ended December 31, 2003 and the fiscal year ended December 31, 2004
were $3,500 and $0, respectively. These amounts represent aggregate fees paid
for tax compliance, tax advice and tax planning services, which include the
filing and amendment of federal, state and local income tax returns, timely tax
qualification review and tax distribution and analysis planning rendered by KPMG
to the Fund.
All Other Fees. There were no other fees billed to KPMG for services
rendered to the Fund for the last two fiscal years.
Pre-Approval Policies and Procedures. The Audit Committee Charter requires
that the Audit Committee shall approve (a) all audit and permissible non-audit
services to be provided to the Fund and (b) all permissible non-audit services
to be provided by the Fund's independent registered public accounting firm to
the Manager and any service providers controlling, controlled by or under common
control with the Manager that provide ongoing services to the Fund ("Covered
Service Providers") if the engagement relates directly to the operations and
financial reporting of the Fund. The Audit Committee may implement policies and
procedures by which such services are approved other than by the full Committee.
The Audit Committee may not approve non-audit services that the Committee
believes may impair the independence of the independent registered public
accounting firm. As of the date of the approval of the Audit Committee Charter,
permissible non-audit services include any professional services (including tax
services), that are not prohibited services as described below, provided to the
Fund by the independent registered public accounting firm, other than those
provided to the Fund in connection with an audit or a review of the financial
statements of the Fund. Permissible non-audit services may not include: (i)
bookkeeping or other services related to the accounting records or financial
statements of the Fund; (ii) financial information systems design and
implementation; (iii) appraisal or valuation services, fairness opinions or
contribution-in-kind reports; (iv) actuarial services; (v) internal audit
outsourcing services; (vi) management functions or human resources; (vii) broker
or dealer, investment adviser or investment banking services; (viii) legal
services and expert services unrelated to the audit; and (ix) any other service
the Public Company Accounting Oversight Board determines, by regulation, is
impermissible.
Pre-approval by the Audit Committee of any permissible non-audit services
is not required so long as: (i) the aggregate amount of all such permissible
non-audit services provided to the Fund, the Manager and any Covered Service
Provider constitutes not more than 5% of the total amount of revenues paid to
the independent registered public accounting firm during the fiscal year in
which the permissible non-audit services are provided to (a) the Fund, (b) the
Manager and (c) any Covered Service Provider during the fiscal year in which the
services are provided that would not have to be approved by the Committee; (ii)
the permissible non-audit services were not recognized by the Fund at the time
of the engagement to be non-audit services; and (iii) such services are promptly
brought to the attention of the Audit
12
Committee and approved by the Committee (or its delegate(s)) prior to the
completion of the audit.
There were no services rendered by KPMG to the Fund for which the
pre-approval requirement was waived.
Aggregate Non-Audit Fees. The aggregate non-audit fees billed by KPMG for
non-audit services rendered to the Fund, the Manager and Covered Service
Providers for the fiscal year ended December 31, 2003 and the fiscal year
ended December 31, 2004 were $24,000 and $40,000, respectively.
The Fund's Audit Committee has considered whether the provision of
non-audit services that were rendered by KPMG to the Manager and Covered Service
Providers which were not pre-approved (not requiring pre-approval) is compatible
with maintaining KPMG's independence. All services provided by KPMG to the Fund,
the Manager or Covered Service Providers which were required to be pre-approved
were pre-approved as required.
SHAREHOLDER PROPOSALS AND OTHER
SHAREHOLDER COMMUNICATIONS
Shareholder proposals intended to be presented at the 2006 Annual Meeting
of Shareholders of the Fund must be received by November 28, 2005 to be included
in the proxy statement and the form of proxy relating to that meeting, as the
Fund expects that the 2006 Annual Meeting will be held in April of 2006. The
submission by a shareholder of a proposal for inclusion in the proxy statement
does not guarantee that it will be included. Any shareholder who desires to
submit a proposal at the 2006 Annual Meeting of Shareholders without including
such proposal in the Fund's proxy statement must deliver written notice thereof
to the Secretary of the Fund (addressed to Real Estate Income Fund, 125 Broad
Street, New York, New York 10004) during the period from January 26, 2006 to
February 25, 2006. However, if the 2006 Annual Meeting of Shareholders is held
earlier than March 31, 2006, or later than June 30, 2006, such written notice
must be delivered to the Secretary of the Fund during the period from 90 days
before the date of the 2006 Annual Meeting to the later of 60 days prior to the
date of the 2006 Annual Meeting or 10 days following the public announcement of
the date of the 2006 Annual Meeting. Shareholder proposals are subject to
certain regulations under the federal securities laws.
The persons named as proxies for the 2006 Annual Meeting of Shareholders
will have discretionary authority to vote on any matter presented by a
shareholder for action at that meeting unless the Fund receives notice of the
matter between January 26, 2006 and February 25, 2006, in which case these
persons will not have discretionary voting authority except as provided in the
Securities and Exchange Commission's rules governing shareholder proposals.
The Fund's Audit Committee has established guidelines and procedures
regarding the receipt, retention and treatment of complaints regarding
accounting, internal accounting controls or auditing matters (collectively,
"Accounting Matters").
13
Persons with complaints or concerns regarding Accounting Matters may submit
their complaints to the Citigroup Chief Compliance Officer ("CCO"). Persons who
are uncomfortable submitting complaints to the CCO, including complaints
involving the CCO, may submit complaints directly to the Fund's Audit Committee
Chair (together with the CCO, "Complaint Officers"). Complaints may be submitted
on an anonymous basis.
The CCO may be contacted at:
Citigroup Asset Management
Compliance Department
399 Park Avenue, 4th Floor
New York, NY 10022
Complaints may also be submitted by telephone at 800-742-5274. Complaints
submitted through this number will be received by the CCO.
The Fund's Audit Committee Chair may be contacted at:
Real Estate Income Fund Inc.
Audit Committee Chair
Robert A. Frankel
1961 Deergrass Way
Carlsbad, CA 92009
A shareholder who wishes to send any other communications to the Board
should also deliver such communications to the Secretary of the Fund, Robert I.
Frenkel, 300 First Stamford Place, 4th Floor, Stamford, CT 06902. The Secretary
is responsible for determining, in consultation with other officers of the Fund,
counsel, and other advisers as appropriate, which shareholder communications
will be relayed to the Board.
OTHER MATTERS TO COME BEFORE THE MEETING
The Board does not intend to present any other business at the Meeting,
nor is the Fund aware of any shareholder proposals. If, however, any other
matters are properly brought before the Meeting, the persons named as proxies in
the accompanying form of proxy will vote thereon in accordance with their
judgment, to the extent permissible under applicable law.
March 11, 2005
It is important that proxies be returned promptly. Shareholders who do not
expect to attend the meeting are therefore urged to complete and sign, date and
return the proxy card as soon as possible in the enclosed postage-paid envelope.
14
ANNEX A
AUDIT COMMITTEE CHARTER
AMENDED AND RESTATED AS OF FEBRUARY 11, 2004
ESTABLISHMENT AND PURPOSE
This document serves as the Charter for the Audit Committee (the
"Committee") of the Board of each registered investment company (the "Fund")
advised by Smith Barney Fund Management or Salomon Brothers Asset Management or
one of their affiliates (each, an "Adviser") listed on Appendix A hereto (each
such Charter being a separate Charter). The primary purposes of the Committee
are to (a) assist Board oversight of (i) the integrity of the Fund's financial
statements, (ii) the Fund's compliance with legal and regulatory requirements,
(iii) the qualifications and independence of the Fund's independent auditors and
(iv) the performance of the Fund's internal audit function and independent
auditors; (b) approve, and recommend to the Independent Board Members (as such
term is defined below) for their ratification, the selection, appointment,
retention or termination of the Fund's independent auditors, as well as
approving the compensation thereof; (c) approve all audit and permissible
non-audit services provided to the Fund and certain other persons by the Fund's
independent auditors; and (d) for each closed-end Fund, prepare the report
required to be prepared by the Committee pursuant to the rules of the Securities
and Exchange Commission for inclusion in the Fund's annual Proxy Statement.
DUTIES AND RESPONSIBILITIES
The Fund's independent auditors are accountable to the Committee.
The Committee shall:
1. Bear direct responsibility for the appointment, compensation,
retention and oversight of the Fund's independent auditors, or of
any other public accounting firm engaged for the purpose of
performing other audit, review or attest services for the Fund.
2. Confirm with any independent auditor retained to provide audit
services that the independent auditor has ensured the appropriate
rotation of the lead audit partner pursuant to applicable
regulations.
3. Approve (a) all audit and permissible non-audit services(1) to be
provided to the Fund and (b) all permissible non-audit services to
be provided by the Fund's independent auditors to the Adviser and
any Covered Service Providers if the engagement relates directly to
the operations and financial reporting of the Fund. The Committee
may implement policies and proce-
----------
(1) The Committee shall not approve non-audit services that the Committee
believes may impair the independence of the auditors. As of the date of
the approval of this Audit Committee Charter, permissible non-audit
services include any professional services (including tax services), that
are not prohibited services as described below, provided to the Fund by
the independent auditors, other than
A-1
dures by which such services are approved other than by the full
Committee.
4. Discuss with the independent auditors any disclosed relationships or
services that may diminish the objectivity and independence of the
independent auditors and, if so determined by the Committee,
recommend that the Board take appropriate action to ensure the
independence of the independent auditors.
5. Review, in consultation with the independent auditors, the proposed
scope of the Fund's audit each year, including the audit procedures
to be utilized in the review of the Fund's financial statements.
6. Inquire of the Adviser and the independent auditors as to
significant tax and accounting policies elected by the Fund
(including matters affecting qualification under Subchapter M of the
Internal Revenue Code).
7. Review with the independent auditors any problems or difficulties
the auditors may have encountered during the conduct of the audit
and management's response, including a discussion with the
independent auditors of the matters required to be discussed by
Statement on Auditing Standards No. 61, 89, 90 or any subsequent
Statement, relating to the conduct of the audit.
8. Review, in consultation, as appropriate, with the independent
auditors and significant Fund service providers, matters relating to
internal controls over financial reporting and disclosure controls
and procedures of the Fund and of the Fund's significant service
providers.
9. Request, receive and/or review from the independent auditors such
other materials as deemed necessary or advisable by the Committee in
the exercise of its duties under this Charter; such materials may
include, without limitation, any other material written
communications bearing on the
those provided to the Fund in connection with an audit or a review of the
financial statements of the Fund. Permissible non-audit services may not
include: (i) bookkeeping or other services related to the accounting
records or financial statements of the Fund; (ii) financial information
systems design and implementation; (iii) appraisal or valuation services,
fairness opinions or contribution-in-kind reports; (iv) actuarial
services; (v) internal audit outsourcing services; (vi) management
functions or human resources; (vii) broker or dealer, investment adviser
or investment banking services; (viii) legal services and expert services
unrelated to the audit; and (ix) any other service the Public Company
Accounting Oversight Board determines, by regulation, is impermissible.
Pre-approval by the Committee of any permissible non-audit services is not
required so long as: (i) the aggregate amount of all such permissible
non-audit services provided to the Fund, the Adviser and any service
providers controlling, controlled by or under common control with the
Adviser that provide ongoing services to the Fund ("Covered Service
Providers") constitutes not more than 5% of the total amount of revenues
paid to the independent auditors during the fiscal year in which the
permissible non-audit services are provided to (a) the Fund, (b) the
Adviser and (c) any entity controlling, controlled by or under common
control with the Adviser that provides ongoing services to the Fund during
the fiscal year in which the services are provided that would have to be
approved by the Committee; (ii) the permissible non-audit services were
not recognized by the Fund at the time of the engagement to be non-audit
services; and (iii) such services are promptly brought to the attention of
the Committee and approved by the Committee (or its delegate(s)) prior to
the completion of the audit.
A-2
Fund's financial statements, or internal or disclosure controls,
between the independent auditors and the Fund, the Adviser or other
Fund service providers, such as any management letter or schedule of
unadjusted differences, and any comment or "deficiency" letter (to
the extent such letters relate to financial reporting) received from
a regulatory or self-regulatory organization addressed to the Fund
or the Adviser that relates to services rendered to the Fund.
10. For each closed-end Fund, establish procedures regarding the
receipt, retention and treatment of complaints that the Fund may
receive regarding Fund accounting, internal accounting controls or
auditing matters, including procedures for the confidential or
anonymous submission by Fund officers, employees, stockholders or
service providers of concerns regarding questionable accounting or
auditing matters related to the Fund.
11. For each closed-end Fund, obtain and review a report by the Fund's
independent auditors describing (i) the auditing firm's internal
quality-control procedures; (ii) any material issues raised by the
most recent internal quality-control review, or peer review, of the
auditing firm, or by any inquiry or investigation by governmental or
professional authorities, within the preceding five years,
respecting one or more independent audits carried out by the
auditing firm, and any steps taken to deal with any such issues; and
(iii) (to assess the auditor's independence) all relationships
between the independent auditor and the Fund.
12. For each closed-end Fund, discuss policies with respect to risk
assessment and risk management.
13. For each closed-end Fund, review hiring policies for employees or
former employees of the Fund's independent auditors.
14. For each closed-end Fund, discuss with management and the Fund's
independent auditors the Fund's audit and discuss with management
the Fund's unaudited financial statements, including any narrative
discussion by management concerning the Fund's financial condition
and investment performance and, if appropriate, recommend the
publication of the Fund's annual audited financial statements in the
Fund's annual report in advance of the printing and publication of
the annual report.
15. For each closed-end Fund, discuss the Fund's earnings press
releases, as well as financial information and earnings guidance
provided to analysts and rating agencies;
16. For each closed-end Fund, review and evaluate annually the
performance of the Committee and the adequacy of this Charter and
recommend any proposed changes to the Charter to the Board for
approval.
A-3
The Committee shall have the resources and authority appropriate to
discharge its responsibilities, including the authority to retain, as it deems
necessary to carry out its duties, special counsel and other experts or
consultants at the expense of the Fund. The Fund shall provide appropriate
funding, as determined by the Committee, for the Committee to carry out its
duties and its responsibilities, including (a) for compensation to be paid to,
or services to be provided by, the Fund's independent auditors or other public
accounting firm providing audit, review or attest services for the Fund, (b) for
payment of compensation to any outside legal, accounting or other advisors,
counsel or consultants employed by the Committee and (c) for the ordinary
administrative expenses of the Committee. In performing its duties, the
Committee shall consult as it deems appropriate with the members of the Board,
officers and employees of the Fund, the Adviser, the Fund's sub-adviser(s), if
any, the Fund's counsel, counsel to the Independent Board Members and the Fund's
other service providers.
COMPOSITION
The Committee shall be composed of each Board member who has been
determined not to be an "interested person," as that term is defined in Section
2(a)(19) of the Investment Company Act of 1940, as amended ("1940 Act"), of the
Fund (the "Independent Board Members"), or such lesser number as the Board of
the Fund may specifically determine and reflect in the Board's minutes, each of
whom shall be financially literate and at least one of whom shall have
accounting or related financial management expertise as determined by the Fund's
Board in its business judgment. Each member of the Committee must also meet the
independence and experience requirements as set forth in the New York Stock
Exchange's Listed Company Manual or as set forth in Section 121(a) of the
American Stock Exchange's listing standards, as applicable, and the independence
requirements applicable to investment companies set forth in Rule 10A-3 under of
the Securities Exchange Act of 1934. For those Funds listed on the New York
Stock Exchange, no member of the Committee may serve on the audit committees of
more than three public companies, including the Funds, unless the Board
determines that such simultaneous service would not impair the ability of such
member to serve on the Committee effectively. The Committee shall elect a
Chairperson, who shall preside over Committee meetings. The Chairperson shall
serve for a term of three years, which term may be renewed from time to time.
MEETINGS
The Committee shall meet on a regular basis, but not less frequently than
twice a year. Special meetings may also be held upon reasonable notice to the
members of the Committee. An agenda shall be established for each meeting. The
Committee may request any officer or employee of the Fund, the Fund's counsel,
counsel to the Independent Board Members, the Adviser, the Fund's independent
auditors or other interested persons to attend a meeting of the Committee or to
meet with any members of, or consultants to, the Committee. The Committee will
meet periodically with the Fund's independent auditors outside the presence of
the Fund's and the
A-4
Adviser's officers and employees. The Committee will also meet periodically with
the Fund's management outside the presence of the Fund's independent auditors.
Meetings of the Committee may be held in person, by telephone or by other
appropriate means.
One-third of the Committee's members, but not fewer than two members,
shall constitute a quorum. At any meeting of the Committee, the decision of a
majority of the members present and voting shall be determinative as to any
matter submitted to a vote.
REPORTING
The Chairperson shall report regularly to the Board on the result of the
Committee's deliberations and make such recommendations as deemed appropriate.
LIMITS ON ROLE OF COMMITTEE
The function of the Committee is oversight. The Fund's management is
responsible for (i) the preparation, presentation and integrity of the Fund's
financial statements, (ii) the maintenance of appropriate accounting and
financial reporting principles and policies and (iii) the maintenance of
internal controls and procedures designed to assure compliance with accounting
standards and applicable laws and regulations. The independent auditors are
responsible for planning and carrying out proper audits and reviews. In
fulfilling their responsibilities hereunder, it is recognized that members of
the Committee are not employees of the Fund. As such, it is not the duty or
responsibility of the Committee or its members to conduct "field work" or other
types of auditing or accounting reviews or procedures or to set auditor
independence standards. Each member of the Committee shall be entitled to rely
on (i) the integrity of those persons and organizations within and outside the
Fund from which it receives information and (ii) the accuracy of the financial
and other information provided to the Committee by such persons and
organizations absent actual knowledge to the contrary (which shall be promptly
reported to the Fund's Board) and (iii) statements made by the officers and
employees of the Fund, the Adviser or other third parties as to any information
technology, internal audit and other non-audit services provided by the
independent auditors to the Fund. The designation of a person as an "audit
committee financial expert," within the meaning of the rules adopted and
implemented under Section 407 of the Sarbanes-Oxley Act of 2002, shall not
impose any greater responsibility or liability on that person than the
responsibility and liability imposed on such person as a member of the
Committee, nor does it decrease the duties and obligations of other Committee
members or the Board.
In carrying out its responsibilities, the Committee's policies and
procedures shall be adapted, as appropriate, in order to best react to a
changing environment.
AMENDMENTS
This Charter may be amended by a vote of a majority of the Board members.
A-5
Appendix A
Citigroup Investments Corporate Loan Fund Inc.*
Managed High Income Portfolio Inc.*
Managed Municipals Portfolio Inc.*
Municipal High Income Fund Inc.*
Real Estate Income Fund Inc.*
SB Adjustable Rate Income Fund
Zenix Income Fund Inc.*
----------
* Closed-end Fund. The duties and responsibilities of paragraphs 10, 11, 12
and 13 and any other provision applicable exclusively to closed-end funds
apply to these funds only.
A-6
ANNUAL MEETING OF STOCKHOLDERS OF
REAL ESTATE INCOME FUND INC.
April 11, 2005
COMMON STOCK
Please date, sign and mail
your proxy card in the
envelope provided as soon
as possible.
Please detach along perforated line and mail in the envelope provided.
================================================================================
THE BOARD OF DIRECTORS RECOMMENDS A VOTE "FOR" THE ELECTION.
PLEASE SIGN, DATE AND RETURN PROMPTLY IN THE ENCLOSED ENVELOPE. PLEASE
MARK YOUR VOTE IN BLUE OR BLACK INK AS SHOWN HERE |X|
================================================================================
1. Election of Directors:
NOMINEES:
|_| FOR ALL NOMINEES O Robert A. Frankel For Class II Director
|_| WITHHOLD AUTHORITY
FOR ALL NOMINEES
|_| FOR ALL EXCEPT
(See instructions below)
INSTRUCTION: To withhold authority to vote for any individual nominee(s), mark
"FOR ALL EXCEPT" and fill in the circle next to each nominee you wish to
withhold, as shown here: O
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
To change the address on your account, please check the box at right and
indicate your new address in the address space above. Please note that |_|
changes to the registered name(s) on the account may not be submitted via
this method.
--------------------------------------------------------------------------------
2. Any other business that may properly come before the Meeting.
This proxy, if properly executed, will be voted in the manner directed by the
stockholder. If no direction is made, this proxy will be voted FOR the election
of the nominees as Directors.
Please refer to the Proxy Statement for a discussion of the Proposal.
Please check here if you plan to attend the Meeting. |_|
Signature of Stockholder ______________________________ Date: ______________
Signature of Stockholder ______________________________ Date: ______________
Note: Please sign exactly as your name or names appear on this Proxy. When
shares are held jointly, each holder should sign. When signing as
executor, administrator, attorney, trustee or guardian, please give full
title as such. If the signer is a corporation, please sign full corporate
name by duly authorized officer, giving full title as such. If signer is a
partnership, please sign in partnership name by authorized person.
O |_|
COMMON STOCK COMMON STOCK
REAL ESTATE INCOME FUND INC.
April 11, 2005
THIS PROXY IS SOLICITED ON BEHALF OF THE BOARD OF DIRECTORS
The undersigned hereby appoints R. Jay Gerken, Robert I. Frenkel and
Robert M. Nelson, and each of them, attorneys and proxies for the undersigned,
with full power of substitution and revocation to represent the undersigned and
to vote on behalf of the undersigned all shares of Common Stock of Real Estate
Income Fund Inc. (the "Fund") which the undersigned is entitled to vote at the
Annual Meeting of Stockholders of the Fund to be held at Citigroup Center, 153
East 53rd Street, 14th Floor Conference Center, New York, New York on Monday,
April 11, 2005, at 3:30 p.m., and at any adjournments thereof. The undersigned
hereby acknowledges receipt of the Notice of Meeting and accompanying Proxy
Statement and hereby instructs said attorneys and proxies to vote said shares as
indicated hereon. In their discretion, the proxies are authorized to vote upon
such other business as may properly come before the Meeting. A majority of the
proxies present and acting at the Meeting in person or by substitute (or, if
only one shall be so present, then that one) shall have and may exercise all of
the power and authority of said proxies hereunder. The undersigned hereby
revokes any proxy previously given.
(Continued and to be signed on the reverse side)
|_| 14475 |_|
ANNUAL MEETING OF STOCKHOLDERS OF
REAL ESTATE INCOME FUND INC.
April 11, 2005
PREFERRED STOCK
Please date, sign and mail your proxy card in the envelope
provided as soon as possible.
Please detach along perforated line and mail in the envelope provided.
================================================================================
THE BOARD OF DIRECTORS RECOMMENDS A VOTE "FOR" THE ELECTION.
PLEASE SIGN, DATE AND RETURN PROMPTLY IN THE ENCLOSED ENVELOPE. PLEASE
MARK YOUR VOTE IN BLUE OR BLACK INK AS SHOWN HERE |X|
================================================================================
1. Election of Directors:
NOMINEES:
|_| FOR ALL NOMINEES O Robert A. Frankel For Class II Director
O Paolo Cucchi For Class II Director
|_| WITHHOLD AUTHORITY
FOR ALL NOMINEES
|_| FOR ALL EXCEPT
(See instructions below)
INSTRUCTION: To withhold authority to vote for any individual nominee(s), mark
"FOR ALL EXCEPT" and fill in the circle next to each nominee you wish to
withhold, as shown here: O
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
To change the address on your account, please check the box at right and
indicate your new address in the address space above. Please note that |_|
changes to the registered name(s) on the account may not be submitted via
this method.
--------------------------------------------------------------------------------
2. Any other business that may properly come before the Meeting.
This proxy, if properly executed, will be voted in the manner directed by the
stockholder. If no direction is made, this proxy will be voted FOR the election
of the nominees as Directors.
Please refer to the Proxy Statement for a discussion of the Proposal.
Please check here if you plan to attend the Meeting. |_|
Signature of Stockholder ______________________________ Date: ______________
Signature of Stockholder ______________________________ Date: ______________
Note: Please sign exactly as your name or names appear on this Proxy. When
shares are held jointly, each holder should sign. When signing as
executor, administrator, attorney, trustee or guardian, please give full
title as such. If the signer is a corporation, please sign full corporate
name by duly authorized officer, giving full title as such. If signer is a
partnership, please sign in partnership name by authorized person.
O |_|
PREFERRED STOCK PREFERRED STOCK
REAL ESTATE INCOME FUND INC.
April 11, 2005
THIS PROXY IS SOLICITED ON BEHALF OF THE BOARD OF DIRECTORS
The undersigned hereby appoints R. Jay Gerken, Robert I. Frankel and
Robert M. Nelson, and each of them, attorneys and proxies for the undersigned,
with full power of substitution and revocation to represent the undersigned and
to vote on behalf of the undersigned all shares of Common Stock of Real Estate
Income Fund Inc. (the "Fund") which the undersigned is entitled to vote at the
Annual Meeting of Stockholders of the Fund to be held at Citigroup Center, 153
East 53rd Street, 14th Floor Conference Center, New York, New York on Monday,
April 11, 2005, at 3:30 p.m., and at any adjournments thereof. The undersigned
hereby acknowledges receipt of the Notice of Meeting and accompanying Proxy
Statement and hereby instructs said attorneys and proxies to vote said shares as
indicated hereon. In their discretion, the proxies are authorized to vote upon
such other business as may properly come before the Meeting. A majority of the
proxies present and acting at the Meeting in person or by substitute (or, if
only one shall be so present, then that one) shall have and may exercise all of
the power and authority of said proxies hereunder. The undersigned hereby
revokes any proxy previously given.
(Continued and to be signed on the reverse side)
|_| 14475 |_|