UNITED STATES SECURITIES AND EXCHANGE COMMISSION

Washington, DC 20549

FORM N-Q

QUARTERLY SCHEDULE OF PORTFOLIO HOLDINGS OF REGISTERED MANAGEMENT INVESTMENT COMPANY

Investment Company Act file number   811-10491

Nuveen Real Estate Income Fund

(Exact name of registrant as specified in charter)

     333 West Wacker Drive, Chicago, Illinois 60606     
(Address of principal executive offices) (Zip code)

Kevin J. McCarthy—Vice President and Secretary
     333 West Wacker Drive, Chicago, Illinois 60606     
(Name and address of agent for service)

Registrant’s telephone number, including area code:      312-917-7700     

Date of fiscal year end:        12/31      

Date of reporting period:    3/31/2008   

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.

 

 

Nuveen Real Estate Income Fund (JRS)
March 31, 2008

Shares				Description (1)								Value
				Real Estate Investment Trust Common Stocks – 113.3% (69.1% of total investments)
				Hotels Restaurants & Leisure – 1.9%
	175,000			Starwood Hotels & Resorts Worldwide, Inc.								$	9,056,250
				Industrial – 3.8%
	1,823,900			DCT Industrial Trust Inc.									18,166,045
				Office – 19.7%
	153,400			Boston Properties, Inc.									14,123,538
	1,195,300			Brandywine Realty Trust									20,272,288
	1,090,500			Mack-Cali Realty Corporation									38,941,755
	246,400			SL Green Realty Corporation									20,074,208
				Total Office									93,411,789
				Residential – 21.7%
	329,162			Apartment Investment & Management Company, Class A									11,787,298
	464,500			AvalonBay Communities, Inc.									44,833,540
	727,700			Equity Residential									30,192,273
	418,700			Post Properties, Inc.									16,170,194
				Total Residential									102,983,305
				Retail – 32.7%
	413,800			Federal Realty Investment Trust									32,255,710
	691,000			Macerich Company									48,556,569
	450,000			Simon Property Group, Inc.									41,809,500
	449,800			Weingarten Realty Investors Trust									15,491,112
	1,043,100			Westfield Group									17,084,248
				Total Retail									155,197,139
				Specialized – 33.5%
	1,263,400			Ashford Hospitality Trust Inc.									7,176,112
	791,400			Cogdell Spencer Inc.									12,440,808
	1,029,600			DiamondRock Hospitality Company									13,045,032
	1,960,000			Extra Space Storage Inc.									31,732,400
	933,800			Health Care Property Investors Inc.									31,571,778
	1,217,400			Senior Housing Properties Trust									28,852,380
	759,300			Ventas Inc.									34,100,163
				Total Specialized									158,918,673
				Total Real Estate Investment Trust Common Stocks (cost $476,751,734)									537,733,201

Shares				Description (1)		Coupon						Value
				Real Estate Investment Trust Preferred Stocks – 48.9% (29.8% of total investments)
				Diversified – 8.4%
	529,942			Duke-Weeks Realty Corporation		6.950%						$	11,907,797
	150,000			Lexington Corporate Properties Trust, Series B		8.050%							3,187,500
	850,000			Lexington Realty Trust		7.550%							16,065,000
	400,000			PS Business Parks, Inc., Series O		7.375%							8,910,000
				Total Diversified									40,070,297
				Mortgage – 1.6%
	400,000			Gramercy Capital Corporation		8.125%							7,300,000
				Office – 7.0%
	160,000			Alexandria Real Estate Equities Inc., Series C		8.375%							4,076,800
	12,141			Highwoods Properties, Inc., Series A		8.625%							13,753,477
	57,612			Highwoods Properties, Inc., Series B		8.000%							1,388,449
	81,000			HRPT Properties Trust, Series C		7.125%							1,555,200
	1,046,200			Maguire Properties, Inc., Series A		7.625%							12,345,160
				Total Office									33,119,086
				Residential – 6.0%
	511,100			Apartment Investment & Management Company, Series U		7.750%							11,566,193
	183,000			Apartment Investment & Management Company, Series Y		7.875%							4,060,770
	101,900			BRE Properties, Series C		6.750%							2,178,622
	505,900			BRE Properties, Series D		6.750%							10,808,554
				Total Residential									28,614,139
				Retail – 8.0%
	160,000			Cedar Shopping Centers Inc., Series A		8.875%							3,699,200
	113,000			Glimcher Realty Trust, Series F		8.750%							2,116,490
	154,300			Glimcher Realty Trust, Series G		8.125%							2,627,729
	400,000			Kimco Realty Corporation, Series G		7.750%							9,530,000
	307,000			Saul Centers, Inc.		9.000%							7,675,000
	125,000			Saul Centers, Inc.		8.000%							3,062,500
	400,000			Taubman Centers, Inc., Series H		7.625%							9,172,000
				Total Retail									37,882,919
				Specialized – 17.9%
	640,000			Ashford Hospitality Trust, Inc., Series D		8.450%							11,648,000
	130,000			Ashford Hospitality Trust, Series A		8.550%							2,405,000
	546,900			FelCor Lodging Trust Inc., Series C		8.000%							10,746,584
	120,000			Hersha Hospitality Trust, Series A		8.000%							2,580,000
	800,000			Hospitality Properties Trust, Series C		7.000%							15,600,000
	989,400			Public Storage, Inc., Series I		7.250%							23,656,554
	151,700			Public Storage, Inc.		6.750%							3,299,475
	175,000			Strategic Hotel Capital Inc., Series B		8.250%							3,367,000
	320,000			Strategic Hotel Capital Inc., Series C		8.250%							6,020,800
	300,000			Sunstone Hotel Investors Inc., Series A		8.000%							5,625,000
				Total Specialized									84,948,413
				Total Real Estate Investment Trust Preferred Stocks (cost $281,115,537)									231,934,854

Principal
Amount (000)				Description (1)		Coupon		Maturity				Value
				Short-Term Investments – 1.7% (1.1% of Total Investments)
$	8,110			Repurchase Agreement with Fixed Income Clearing Corporation, dated 3/31/08, repurchase price $8,110,388 collateralized by $5,610,000 U.S. Treasury Bonds, 8.750% due 8/15/20, value $8,274,750		1.100%		4/01/08				$	8,110,140
				Total Short-Term Investments (cost $8,110,140)									8,110,140
				Total Investments (cost $765,977,411) – 163.9%									777,778,195
				Borrowings – (14.7)% (2)									(70,000,000	)
				Other Assets Less Liabilities – (2.4)%									(11,113,701	)
				Taxable Auctioned Preferred Shares, at Liquidation Value – (46.8)% (2)									(222,000,000	)
				Net Assets Applicable to Common Shares – 100%								$	474,664,494

Fund

Fixed

Pay/Receive

Floating

Rate

Unrealized

Notional

Floating

Rate

Fixed Rate

Payment

Termination

Appreciation

Counterparty

Amount

Rate

Index

(Annualized)

Frequency

Date

(Depreciation)

Citigroup Inc.

$

43,000,000

Receive

1-Month USD-LIBOR

5.190%

Monthly

2/06/09

$

(1,102,568

)

USD-LIBOR (United States Dollar-London Inter-Bank Offered Rate)

(1)		All percentages shown in the Portfolio of Investments are based on net assets applicable to Common shares unless otherwise noted.
(2)		Borrowings and Taxable Auctioned Preferred shares, at Liquidation Value as a percentage of total investment are (9.0)% and (28.5)%, respectively.

Fair Value Measurements

During the current fiscal period, the Fund adopted the provisions of Statement of Financial Accounting Standards No. 157, Fair Value Measurements (SFAS 157). SFAS 157 defines fair value, establishes a framework for measuring fair value in generally accepted accounting principles, and expands disclosure about fair value measurements. In determining the value of the Fund’s investments various inputs are used. These inputs are summarized in the three broad levels listed below:

Level 1 -

Quoted prices in active markets for identical securities.

Level 2 -

Other significant observable inputs (including quoted prices for similar securities, interest rates, prepayment speeds, credit risk, etc.).

Level 3 -

Significant unobservable inputs (including management’s assumptions in determining the fair value of investments).

The inputs or methodology used for valuing securities are not an indication of the risk associated with investing in those securities.

The following is a summary of the Fund’s fair value measurements as of March 31, 2008:

			Level 1				Level 2				Level 3				Total
Investments		$	753,018,947			$	24,759,248			$	-					$777,778,195
Derivatives*			-				(1,102,568	)			-					(1,102,568	)
Total		$	753,018,947			$	23,656,680			$	-					$776,675,627

* Represents net unrealized appreciation (depreciation).

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 recognition of income on REIT investments and timing differences in recognizing certain gains and losses on investment transactions. To the extent that differences arise that are permanent in nature, such amounts are reclassified within the capital accounts on the Statement of Assets and Liabilities presented in the annual report, based on their federal tax basis treatment; temporary differences do not require reclassification. Temporary and permanent differences do not impact the net asset value of the Fund.

At March 31, 2008, the cost of investments was $765,977,411.

Gross unrealized appreciation and gross unrealized depreciation of investments at March 31, 2008, were as follows:

Gross unrealized:
Appreciation		$	119,396,026
Depreciation			(107,595,242	)
Net unrealized appreciation (depreciation) of investments		$	11,800,784

Item 2. Controls and Procedures.

	a.		The registrant’s principal executive and principal financial officers, or persons performing similar functions, have concluded that the registrant’s disclosure controls and procedures (as defined in Rule 30a-3(c) under the Investment Company Act of 1940, as amended (the “1940 Act”) (17 CFR 270.30a-3(c))) are effective, as of a date within 90 days of the filing date of this report that includes the disclosure required by this paragraph, based on their evaluation of the controls and procedures required by Rule 30a-3(b) under the 1940 Act (17 CFR 270.30a-3(b)) and Rule 13a-15(b) or 15d-15(b) under the Securities Exchange Act of 1934 (17 CFR 240.13a-15(b) or 240.15d-15(b)).
	b.		There were no changes in the registrant’s internal control over financial reporting (as defined in Rule 30a-3(d) under the 1940 Act (17 CFR 270.30a-3(d)) that occurred during the registrant’s last fiscal quarter that have materially affected, or are reasonably likely to materially affect, the registrant’s internal control over financial reporting.

Item 3. Exhibits.

File as exhibits as part of this Form a separate certification for each principal executive officer and principal financial officer of the registrant as required by Rule 30a-2(a) under the 1940 Act (17 CFR 270.30a-2(a)), exactly as set forth below: EX-99 CERT Attached hereto.

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.

(Registrant)   Nuveen Real Estate Income Fund

Date May 30, 2008

Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, this report has been signed below by the following persons on behalf of the registrant and in the capacities and on the dates indicated.

Date May 30, 2008

Date May 30, 2008