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  811-21172
 
DWS RREEF Real Estate Fund, Inc.
(Exact name of registrant as specified in charter)

345 Park Avenue
New York, NY  10154
(Address of principal executive offices)             (Zip code)
 

Paul Schubert
345 Park Avenue
New York, NY  10154-0004
(Name and address of agent for service)
 
Registrant's telephone number, including area code:   (212) 454-7190
 
Date of fiscal year end:   12/31
 
Date of reporting period: 3/31/10

ITEM 1.
SCHEDULE OF INVESTMENTS


Consolidated Investment Portfolio
as of March 31, 2010  (Unaudited

DWS RREEF Real Estate Fund, Inc.

 
Shares
 
Value ($)
 
 
 
Common Stocks 104.2%
 
Real Estate Investment Trusts (“REITs”) 104.2%
   
Apartments 15.8%
 
AvalonBay Communities, Inc.
 
45,400
 
3,920,290
 
BRE Properties, Inc.
 
88,900
 
3,178,175
 
Equity Residential
 
113,450
 
4,441,567
 
 
 
11,540,032
 
Diversified 15.0%
 
Digital Realty Trust, Inc.
 
17,750
 
962,050
 
Duke Realty Corp.
 
318,400
 
3,948,160
 
Starwood Property Trust, Inc.
 
170,250
 
3,285,825
 
Washington Real Estate Investment Trust
 
89,350
 
2,729,643
 
 
 
10,925,678
 
Health Care 18.6%
 
Cogdell Spencer, Inc.
 
213,150
 
1,577,310
 
HCP, Inc.
 
111,700
 
3,686,100
 
Health Care REIT, Inc.
 
45,450
 
2,055,704
 
LTC Properties, Inc.
 
38,250
 
1,035,045
 
Medical Properties Trust, Inc.
 
258,540
 
2,709,499
 
Senior Housing Properties Trust
 
114,150
 
2,528,422
 
 
 
13,592,080
 
Hotels 6.9%
 
Canyon Ranch Holdings LLC (Units) (a)
 
230,400
 
1,555,200
 
Hospitality Properties Trust
 
144,750
 
3,466,763
 
 
 
5,021,963
 
Industrial 10.6%
 
AMB Property Corp.
 
84,100
 
2,290,884
 
Liberty Property Trust
 
27,034
 
917,534
 
ProLogis
 
345,550
 
4,561,260
 
 
 
7,769,678
 
Office 13.0%
 
BioMed Realty Trust, Inc.
 
121,500
 
2,009,610
 
Government Properties Income Trust
 
33,300
 
866,133
 
HRPT Properties Trust
 
493,521
 
3,839,593
 
Kilroy Realty Corp.
 
90,100
 
2,778,684
 
 
 
9,494,020
 
Regional Malls 7.3%
 
Simon Property Group, Inc.
 
63,860
 
5,357,854
 
Shopping Centers 12.1%
 
Inland Real Estate Corp.
 
333,750
 
3,053,812
 
Ramco-Gershenson Properties Trust
 
48,250
 
543,295
 
Regency Centers Corp.
 
75,550
 
2,830,859
 
Weingarten Realty Investors
 
110,950
 
2,392,082
 
 
 
8,820,048
 
Storage 4.9%
 
Sovran Self Storage, Inc.
 
103,488
 
3,607,592
 
 
Total Common Stocks (Cost $60,679,484)
 
76,128,945
 
 
 
Preferred Stocks 3.7%
 
Real Estate Investment Trusts 3.7%
   
Apartments 0.1%
 
Associated Estates Realty Corp., Series II, 8.7%
 
3,500
 
85,750
 
Shopping Centers 3.6%
 
Urstadt Biddle Properties, Inc., Series C, 8.5%
 
25,700
 
2,601,323
 
 
Total Preferred Stocks (Cost $2,649,887)
 
2,687,073
 
 
 
Cash Equivalents 21.8%
 
Central Cash Management Fund, 0.16% (b)
(Cost $15,918,072)
   
15,918,072
 
15,918,072
 

 
% of
Net Assets
 
Value ($)
 
 
Total Consolidated Investment Portfolio (Cost $79,247,443) †
129.7
 
94,734,090
 
Other Assets and Liabilities, Net
0.4
 
318,131
 
Preferred Stock, at Liquidation Value
(30.1)
 
(22,000,000)
 
 
Net Assets Applicable to Common Shareholders
100.0
 
73,052,221
 

For information on the Fund's policies regarding the valuation of investments and other significant accounting policies, please refer to the Fund's most recent semi-annual or annual financial statements.
†
The cost for federal income tax purposes was $79,737,634.  At March 31, 2010, net unrealized appreciation for all securities based on tax cost was $14,996,456.  This consisted of aggregate gross unrealized appreciation for all securities in which there was an excess of value over tax cost of $22,130,676 and aggregate gross unrealized depreciation for all securities in which there was an excess of tax cost over value of $7,134,220.
(a)
The Fund may purchase securities that are subject to legal or contractual restrictions on resale ("restricted securities").  Restricted securities are securities which have not been registered with the Securities and Exchange Commission under the Securities Act of 1933.  The Fund may be unable to sell a restricted security and it may be more difficult to determine a market value for a restricted security.  Moreover, if adverse market conditions were to develop during the period between the Fund's decision to sell a restricted security and the point at which the Fund is permitted or able to sell such security, the Fund might obtain a price less favorable than the price that prevailed when it decided to sell.  This investment practice, therefore, could have the effect of increasing the level of illiquidity of the Fund.  The future value of these securities is uncertain and there may be changes in the estimated value of these securities.

 
Restricted Securities
Acquisition Date
 
Acquisition Cost ($)
   
Value ($)
   
Value as %
of Net Assets
 
Canyon Ranch Holdings LLC
January 2005
    5,760,000       1,555,200       2.1  

(b)
Affiliated fund managed by Deutsche Investment Management Americas Inc.  The rate shown is the annualized seven-day yield at period end.

Investment in Subsidiary

The Fund invests a portion of its assets in a wholly owned subsidiary organized as a corporation under the laws of the State of Delaware (the "Subsidiary"). As of March 31, 2010, the Fund’s Subsidiary only holds limited liability company units of Canyon Ranch Holdings LLC. As of March 31, 2010, the Fund held $1,555,200   in the Subsidiary, representing 2.1% of the Fund's net assets. The Fund’s Investment Portfolio has been consolidated and includes the accounts of the Fund and the Subsidiary.


Fair Value Measurements

Various inputs are used in determining the value of the Fund's investments. These inputs are summarized in three broad levels. Level 1 includes quoted prices in active markets for identical securities. Level 2 includes other significant observable inputs (including quoted prices for similar securities, interest rates, prepayment speeds, and credit risk). Level 3 includes significant unobservable inputs (including the Fund's own assumptions in determining the fair value of investments). The inputs or methodology used for valuing securities are not necessarily an indication of the risk associated with investing in those securities.

The following is a summary of the inputs used as of March 31, 2010 in valuing the Fund's investments.

   
Level 1
   
Level 2
   
Level 3
   
Total
 
Assets
                       
Common and Preferred Stocks
             
 
       
Apartments
  $ 11,625,782     $ —     $ —     $ 11,625,782  
Diversified
    10,925,678       —       —       10,925,678  
Health Care
    13,592,080       —       —       13,592,080  
Hotels
    3,466,763       —       1,555,200       5,021,963  
Industrial
    7,769,678       —       —       7,769,678  
Office
    9,494,020       —       —       9,494,020  
Regional Malls
    5,357,854       —       —       5,357,854  
Shopping Centers
    11,421,371       —       —       11,421,371  
Storage
    3,607,592       —       —       3,607,592  
Short-Term Investments
    15,918,072       —       —       15,918,072  
Total
  $ 93,178,890     $ —     $ 1,555,200     $ 94,734,090  

Level 3 Reconciliation

The following is a reconciliation of the Fund's Level 3 investments for which significant unobservable inputs were used in determining value:

   
Common Stock
 
Balance as of December 31, 2009
  $ 744,192  
Realized gains (loss)
    —  
Change in unrealized appreciation (depreciation)
    811,008  
Amortization premium/discount
    —  
Net purchases  (sales)
    —  
Transfers into Level 3
    —  
Transfers (out) of Level 3
    —  
Balance as of March 31, 2010
  $ 1,555,200  
Net change in unrealized appreciation (depreciation) from investments still held at March 31, 2010
  $ 811,008  




ITEM 2.
CONTROLS AND PROCEDURES
   
 
(a)     The Chief Executive and Financial Officers concluded that the Registrant’s Disclosure Controls and Procedures are effective based on the evaluation of the Disclosure Controls and Procedures as of a date within 90 days of the filing date of this report.
   
 
(b)     There have been no changes in the registrant’s internal control over financial reporting that occurred during the registrant’s last fiscal quarter that has materially affected, or is reasonably likely to materially affect, the registrant’s internal controls over financial reporting.
   
ITEM 3.
EXHIBITS
   
 
Certification pursuant to Rule 30a-2(a) under the Investment Company Act of 1940 (17 CFR 270.30a-2(a)) is filed and attached hereto as Exhibit 99.CERT.


 
 

 
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:
DWS RREEF Real Estate Fund, Inc.
   
By:
/s/Michael G. Clark
Michael G. Clark
President
   
Date:
May 21, 2010


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.

Registrant:
DWS RREEF Real Estate Fund, Inc.
   
By:
/s/Michael G. Clark
Michael G. Clark
President
   
Date:
May 21, 2010
   
   
   
By:
/s/Paul Schubert
Paul Schubert
Chief Financial Officer and Treasurer
   
Date:
May 21, 2010


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