UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 8-K
CURRENT REPORT
Pursuant to Section 13 OR 15(d) of the Securities Exchange Act of 1934
Date of Report (Date of earliest event reported): August 16, 2007
SELIGMAN LASALLE INTERNATIONAL REAL ESTATE FUND, INC.
(Exact name of Registrant as specified in its charter)
Maryland 811-22031 20-8597138
(State or other jurisdiction of (Commission File Number) (I.R.S. Employer
incorporation) Identification No.)
100 Park Avenue,
New York, New York 10017
(Address of principal executive offices, zip code)
Registrant's telephone number, including area code (212) 850-1864
Not Applicable
(Former name or former address, if changed since last report.)
Check the appropriate box below if the Form 8-K filing is intended to
simultaneously satisfy the filing obligation of the registrant under any of the
following provisions (see General Instruction A.2. below):
|_| Written communications pursuant to Rule 425 under the Securities Act (17
CFR 230.425)
|_| Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR
240.14a-12)
|_| Pre-commencement communications pursuant to Rule 14d-2(b) under the
Exchange Act (17 CFR 240.14d-2(b))
|_| Pre-commencement communications pursuant to Rule13e-4(c) under the
Exchange Act (17CFR 240.13e-4(c))
SECTION 7 - REGULATION FD DISCLOSURE
Item 7.01 Regulation FD Disclosure.
The Registrant is furnishing the following information pursuant to Regulation
FD:
Seligman LaSalle International Real Estate Fund, Inc.
The following questions were received after the August 1, 2007 conference call
for Seligman LaSalle International Real Estate Fund, Inc. (NYSE: SLS). The
responses to these questions were provided by George Noon and Keith Pauley of
LaSalle Investment Management (Securities), L.P., one of the Fund's subadvisers.
1. What percent of the REITs held by the Fund are currently leveraged?
A: In general, most REITs use some leverage. At June 30, 2007, the
companies in the Fund's portfolio had a weighted-average leverage of
about 41%. The Fund itself is not leveraged.
2. Originally LaSalle has said that using leverage was not attractive.
Has LaSalle reconsidered the thought of using leverage now since the
markets have changed since inception?
A: While the yields on REIT stocks are certainly more attractive
today, there has also been a significant widening of spreads in the
debt market. We have no current plans to lever the portfolio.
3. Has there been any change in the country allocations following the
recent volatility in the global markets, in particular with regard
to the U.K.?
A: No. We believe we are well positioned for the future and see
attractive investment opportunities in the UK.
4. What percentage of the portfolio is in cash and available in order
to take advantage of some of the "opportunities" and "attractive
valuations" that LaSalle mentioned on the call?
A: Less than 1% at June 30, 2007. We run the portfolio on a fully
invested basis under ordinary circumstances with a cash balance
typically less than 2%. We constantly re-evaluate the relative
attractiveness of securities in the portfolio versus other
opportunities.
5. What percentage of the portfolio is now overseas vs. the U.S.?
A: At June 30, 2007, 18% was in the U.S., 81% in other countries.
6. What percentage of the portfolio was or still is invested in
mortgage backed REITs?
A: As of June 30, 2007, the portfolio had less than 1% in a
commercial mortgage trust, as classified by the FTSE-NAREIT Equity
REIT index.
7. I understand the effects of market sentiment on the market price,
however regarding the Fund's NAV - I just don't understand how it
could have dropped so quickly? Is there any REIT in particular that
has been hit harder than others?
A: The market for REIT stocks - and the broad markets - has
been unusually volatile since the Fund was launched. According
to the Wall Street Journal, as of July 31, one of the worst
performing sectors year-to-date was REITs.
Since the Fund commenced investment operations at the end of
May 2007 through July 31, 2007, the UBS Global Real Estate
Investors Index was down 11.66%, the UBS Global Real Estate
Investors Index ex-US was down 8.86%, and the FTSE NAREIT
Equity REIT Index was down 14.19% -- in US dollars. The
continuing weakness of the dollar has been a contributing
factor to this performance.
Once the Fund was substantially invested in mid-June, the
Fund's performance through the end of July has exceeded that
of the UBS Global Real Estate Investors Index and the
FTSE-NAREIT Equity REIT Index, and lagged the UBS Global Real
Estate Investors Index ex-US.
About 3% of the difference between the performance of the
Fund's portfolio and that of the indexes since the inception
of the Fund is the strong upward performance of the sector in
the first two days of the Fund's operation, when very little
money was invested due to timing of market openings around the
world.
There were no companies in the portfolio that "blew up" and
made a huge negative impact on the Fund's NAV.
Description of Indices (indices are unmanaged and investors cannot invest
directly in an unmanaged index):
UBS Global Real Estate Investors Index ex US:
The UBS Global Real Estate Investors Index tracks real estate securities within
the S&P/Citigroup World Property Index (Developed Markets) that derive
approximately 70% or more of their income from property rents (ownership
companies). This benchmark may invest in real estate securities in over 21
countries, excluding the United States.
UBS Global Real Estate Investors Index:
The UBS Global Real Estate Investors Index tracks real estate securities within
the S&P/Citigroup World Property Index (Developed Markets) that derive
approximately 70% or more of their income from property rents (ownership
companies). This benchmark may invest in real estate securities in over 21
countries, including the United States.
FTSE NAREIT Equity REIT Index:
The FTSE NAREIT Equity REIT Index is a commonly used index measuring the
performance of all publicly traded US real estate securities that are equity
REITs as determined by the National Association of Real Estate Investment
Trusts.
The opinions and views expressed herein by the Fund's portfolio managers are
provided for general information only and do not constitute specific tax, legal
or investment advice to any one person. Opinions, estimates and forecasts may be
changed without notice. There can no guarantee as to the accuracy of market
forecasts. It should not be assumed that any of the securities or holdings
discussed were or will prove to be profitable, or that investment
recommendations or decisions we make in the future will be profitable or will
equal the investment performance of the securities discussed herein.
Real estate investment may be subject to specific risks, such as risks to
general and local economic conditions, and risks related to individual
properties. Investing in one economic sector, such as real estate, may result in
greater price fluctuations than owning a portfolio of diversified investments.
There are specific risks associated with global investing, such as currency
fluctuations, foreign taxation, differences in financial reporting practices,
and rapid changes in political and economic conditions. There is no guarantee
that the Fund's investment goals/objectives will be met, and you could lose
money.
J. & W. Seligman & Co. Incorporated is the Fund's investment manager. The Fund
is subadvised by LaSalle Investment Management Securities, L.P. and LaSalle
Investment Management Securities B.V.
You should consider the investment objectives, risks, charges, and expenses of
the Fund carefully before investing. You can obtain the Fund's most recent
periodic reports, when available, and other regulatory filings by contacting
your financial advisor or Seligman Services, Inc. at 800-597-6068. These reports
and other filings can also be found on the Securities and Exchange Commission's
EDGAR Database. You should read these reports and other filings carefully before
investing or sending money.
SIGNATURE
Pursuant to the requirements of the Securities Exchange Act of 1934, the
Registrant has duly caused this report to be signed on its behalf by the
undersigned hereunto duly authorized.
SELIGMAN LASALLE INTERNATIONAL REAL
ESTATE FUND, INC.
Date: August 16, 2007
By: /s/ Joseph D'Alessandro
---------------------------
Joseph D'Alessandro
Assistant Secretary