Schedule of Investments(unaudited)
April 30, 2020
BlackRock Real Estate Securities Fund
(Percentages shown are based on Net Assets)
Security | Shares | Value | |
Common Stocks | |||
Diversified Telecommunication Services — 1.0% | |||
Cellnex Telecom SA(a) | 40,964 | $ 2,142,622 | |
Health Care — 8.7% | |||
CareTrust REIT, Inc. | 68,288 | 1,125,386 | |
Ensign Group, Inc. | 16,765 | 627,179 | |
Healthcare Trust of America, Inc., Class A | 105,590 | 2,600,682 | |
Healthpeak Properties, Inc. | 208,040 | 5,438,165 | |
Omega Healthcare Investors, Inc. | 98,154 | 2,861,189 | |
Ventas, Inc. | 65,256 | 2,111,032 | |
Welltower, Inc. | 93,520 | 4,791,030 | |
19,554,663 | |||
Industrial — 14.4% | |||
Prologis, Inc. | 259,907 | 23,191,501 | |
Rexford Industrial Realty, Inc. | 220,144 | 8,964,264 | |
32,155,765 | |||
Lodging — 3.0% | |||
Hilton Worldwide Holdings, Inc. | 20,707 | 1,567,727 | |
Host Hotels & Resorts, Inc. | 133,890 | 1,648,186 | |
Pebblebrook Hotel Trust | 152,439 | 1,804,877 | |
RLJ Lodging Trust | 195,689 | 1,817,951 | |
6,838,741 | |||
Office — 12.1% | |||
Alexandria Real Estate Equities, Inc.(b) | 64,052 | 10,061,929 | |
Boston Properties, Inc. | 87,328 | 8,486,535 | |
Cousins Properties, Inc. | 153,199 | 4,622,014 | |
Hudson Pacific Properties, Inc. | 157,345 | 3,867,540 | |
27,038,018 | |||
Residential — 19.7% | |||
American Homes 4 Rent, Class A | 241,770 | 5,836,328 | |
AvalonBay Communities, Inc. | 11,880 | 1,935,846 | |
Equity Residential | 161,884 | 10,532,173 | |
Mid-America Apartment Communities, Inc. | 83,256 | 9,318,010 | |
Sun Communities, Inc. | 70,722 | 9,505,037 | |
UDR, Inc. | 186,125 | 6,974,104 | |
44,101,498 | |||
Retail — 5.8% | |||
Federal Realty Investment Trust | 44,071 | 3,669,792 | |
Regency Centers Corp. | 98,360 | 4,318,988 | |
Simon Property Group, Inc. | 74,818 | 4,995,598 | |
12,984,378 | |||
Self Storage — 5.7% | |||
Extra Space Storage, Inc. | 102,944 | 9,083,778 | |
Life Storage, Inc. | 43,301 | 3,792,735 | |
12,876,513 |
Security | Shares | Value | |
Specialty — 17.3% | |||
CoreSite Realty Corp. | 24,524 | $ 2,972,064 | |
Crown Castle International Corp. | 13,282 | 2,117,549 | |
CyrusOne, Inc. | 92,922 | 6,518,478 | |
Digital Realty Trust, Inc. | 14,243 | 2,129,186 | |
Equinix, Inc. | 29,251 | 19,750,275 | |
GDS Holdings Ltd., ADR(c) | 26,987 | 1,546,895 | |
SBA Communications Corp. | 7,521 | 2,180,488 | |
Switch, Inc., Class A | 92,897 | 1,595,042 | |
38,809,977 | |||
Triple Net Lease — 9.7% | |||
EPR Properties | 112,378 | 3,306,161 | |
Plymouth Industrial REIT, Inc. | 6,097 | 85,419 | |
Spirit Realty Capital, Inc. | 163,811 | 5,038,826 | |
STAG Industrial, Inc. | 122,851 | 3,224,839 | |
VEREIT, Inc. | 650,115 | 3,562,630 | |
VICI Properties, Inc. | 367,753 | 6,406,257 | |
21,624,132 | |||
Total Long-Term Investments — 97.4% (Cost $248,855,659) | 218,126,307 | ||
Short-Term Securities(d)(e) | |||
Money Market Funds — 5.8% | |||
BlackRock Liquidity Funds, T-Fund, Institutional Class, 0.12% | 5,646,048 | 5,646,048 | |
SL Liquidity Series, LLC, Money Market Series, 0.79%(f) | 7,320,492 | 7,326,349 | |
Total Short-Term Securities — 5.8% (Cost: $12,967,647) | 12,972,397 | ||
Total Investments — 103.2% (Cost: $261,823,306) | 231,098,704 | ||
Liabilities in Excess of Other Assets — (3.2)% | (7,229,181) | ||
Net Assets — 100.0% | $223,869,523 |
(a) | Security exempt from registration pursuant to Rule 144A under the Securities Act of 1933, as amended. These securities may be resold in transactions exempt from registration to qualified institutional investors. |
(b) | Security, or a portion of the security, is on loan. |
(c) | Non-income producing security. |
(d) | Affiliate of the Fund. |
(e) | Annualized 7-day yield as of period end. |
(f) | Security was purchased with the cash collateral from loaned securities. |
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Schedule of Investments(unaudited) (continued)
April 30, 2020
BlackRock Real Estate Securities Fund
Affiliates
Investments in issuers considered to be an affiliate/affiliates of the Fund during the period ended April 30, 2020 for purposes of Section 2(a)(3) of the Investment Company Act of 1940, as amended, were as follows:
Affiliated Issuer | Shares Held at 01/31/20 | Shares Purchased | Shares Sold | Shares Held at 04/30/20 | Value at 04/30/20 | Income | Net Realized Gain (Loss)(a) | Change in Unrealized Appreciation (Depreciation) | |||
BlackRock Liquidity Funds, T-Fund, Institutional Class | 5,653,201 | — | (7,153) (b) | 5,646,048 | $ 5,646,048 | $ 11,100 | $ — | $ — | |||
SL Liquidity Series, LLC, Money Market Series | 3,666,580 | 3,653,912(b) | — | 7,320,492 | 7,326,349 | 2,781(c) | 917 | 4,750 | |||
$ 12,972,397 | $ 13,881 | $ 917 | $ 4,750 |
(a) | Includes net capital gain distributions, if applicable. |
(b) | Represents net shares/investment value purchased (sold). |
(c) | Represents securities lending income earned from the reinvestment of cash collateral from loaned securities, net of fees and collateral investment expenses, and other payments to and from borrowers of securities. |
For Fund compliance purposes, the Fund's industry classifications refer to one or more of the industry sub-classifications used by one or more widely recognized market indexes or rating group indexes, and/or as defined by the investment adviser. These definitions may not apply for purposes of this report, which may combine such industry sub-classifications for reporting ease.
Currency Abbreviation | |
EUR | Euro |
USD | United States Dollar |
Portfolio Abbreviation | |
ADR | American Depositary Receipt |
OTC | Over-the-Counter |
REIT | Real Estate Investment Trust |
Derivative Financial Instruments Outstanding as of Period End
Forward Foreign Currency Exchange Contracts
Currency Purchased | Currency Sold | Counterparty | Settlement Date | Unrealized Appreciation (Depreciation) | ||
EUR | 394,000 | USD | 428,402 | Morgan Stanley & Co. International PLC | 07/15/20 | $ 4,047 |
USD | 2,250,854 | EUR | 2,058,000 | Morgan Stanley & Co. International PLC | 07/15/20 | (7,980) |
$ (3,933) | ||||||
OTC Total Return Swaps(a)
Reference Entity | Counterparty | Termination Date | Net Notional | Unrealized Appreciation (Depreciation) | Net Value of Reference Entity | Gross Notional Amount Net Asset Percentage | |
Equity Securities Long/Short | Morgan Stanley & Co. LLC | 06/09/20 | $ 1,835,801 | $ 261,223(b) | $ 2,075,953 | 0.9% |
(a) | The Fund receives the total return on the underlying portfolio and pays a variable rate of interest, based on a specified benchmark, plus or minus a spread of 20 basis points. The benchmark and spread are determined based upon the country and/or currency of the individual underlying positions. The following are the specified benchmarks used in determining the variable rate of interest: U.S. Federal Funds Effective Rate |
(b) | Amount includes $21,071 of net dividends and financing fees. |
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Schedule of Investments(unaudited) (continued)
April 30, 2020
BlackRock Real Estate Securities Fund
The following table represents the individual long positions and related values of equity securities underlying the total return swap with Morgan Stanley & Co. LLC, as of period end, termination date June 9, 2020:
Shares | Value | % of Basket Value | ||
Reference Entity — Long | ||||
Common Stocks | ||||
Health Care | ||||
CareTrust REIT, Inc. | 82,852 | $ 1,365,401 | 65.8% | |
Triple Net Lease | ||||
EPR Properties | 24,152 | 710,552 | 34.2 | |
Net Value of Reference Entity — Morgan Stanley & Co. LLC | $ 2,075,953 |
Fair Value Hierarchy as of Period End
Various inputs are used in determining the fair value of investments and derivative financial instruments. These inputs to valuation techniques are categorized into a fair value hierarchy consisting of three broad levels for financial reporting purposes as follows:
• Level 1 — Unadjusted price quotations in active markets/exchanges for identical assets or liabilities that the Fund has the ability to access
• Level 2 — Other observable inputs (including, but not limited to, quoted prices for similar assets or liabilities in markets that are active, quoted prices for identical or similar assets or liabilities in markets that are not active, inputs other than quoted prices that are observable for the assets or liabilities (such as interest rates, yield curves, volatilities, prepayment speeds, loss severities, credit risks and default rates) or other market–corroborated inputs)
• Level 3 — Unobservable inputs based on the best information available in the circumstances, to the extent observable inputs are not available (including the BlackRock Global Valuation Methodologies Committee’s (the “Global Valuation Committee’s”) assumptions used in determining the fair value of investments and derivative financial instruments)
The hierarchy gives the highest priority to unadjusted quoted prices in active markets for identical assets or liabilities (Level 1 measurements) and the lowest priority to unobservable inputs (Level 3 measurements). Accordingly, the degree of judgment exercised in determining fair value is greatest for instruments categorized in Level 3. The inputs used to measure fair value may fall into different levels of the fair value hierarchy. In such cases, for disclosure purposes, the fair value hierarchy classification is determined based on the lowest level input that is significant to the fair value measurement in its entirety. Investments classified within Level 3 have significant unobservable inputs used by the Global Valuation Committee in determining the price for Fair Valued Investments. Level 3 investments include equity or debt issued by privately held companies or funds. There may not be a secondary market, and/or there are a limited number of investors. The categorization of a value determined for investments and derivative financial instruments is based on the pricing transparency of the investments and derivative financial instruments and is not necessarily an indication of the risks associated with investing in those securities. For information about the Fund’s policy regarding valuation of investments and derivative financial instruments, refer to the Fund’s most recent financial statements as contained in its annual report.
Certain investments of the Fund were fair valued using net asset value ("NAV") per share as no quoted market value is available and therefore have been excluded from the fair value hierarchy.
The following table summarizes the Fund’s investments and derivative financial instruments categorized in the disclosure hierarchy:
Level 1 | Level 2 | Level 3 | Total | |
Assets | ||||
Investments | ||||
Long-Term Investments | ||||
Common Stocks | ||||
Diversified Telecommunication Services | $ — | $ 2,142,622 | $ — | $ 2,142,622 |
Health Care | 19,554,663 | — | — | 19,554,663 |
Industrial | 32,155,765 | — | — | 32,155,765 |
Lodging | 6,838,741 | — | — | 6,838,741 |
Office | 27,038,018 | — | — | 27,038,018 |
Residential | 44,101,498 | — | — | 44,101,498 |
Retail | 12,984,378 | — | — | 12,984,378 |
Self Storage | 12,876,513 | — | — | 12,876,513 |
Specialty | 38,809,977 | — | — | 38,809,977 |
Triple Net Lease | 21,624,132 | — | — | 21,624,132 |
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Schedule of Investments(unaudited) (continued)
April 30, 2020
BlackRock Real Estate Securities Fund
Level 1 | Level 2 | Level 3 | Total | ||||
Short-Term Securities | |||||||
Money Market Funds | $ 5,646,048 | $ — | $ — | $ 5,646,048 | |||
$ 221,629,733 | $ 2,142,622 | $ — | 223,772,355 | ||||
Investments Valued at NAV(a) | 7,326,349 | ||||||
$ 231,098,704 | |||||||
Derivative Financial Instruments(b) | |||||||
Assets | |||||||
Equity Contracts | $ — | $ 261,223 | $ — | $ 261,223 | |||
Foreign Currency Exchange Contracts | — | 4,047 | — | 4,047 | |||
Liabilities | |||||||
Foreign Currency Exchange Contracts | — | (7,980) | — | (7,980) | |||
$ — | $ 257,290 | $ — | $ 257,290 |
(a) | Certain investments of the Fund were fair valued using NAV per share as no quoted market value is available and therefore have been excluded from the fair value hierarchy. |
(b) | Derivative financial instruments are swaps and forward foreign currency exchange contracts. Swaps and forward foreign currency exchange contracts are valued at the unrealized appreciation (depreciation) on the instrument. |
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