NEWTON, Mass.–(BUSINESS WIRE)–RMR
Real Estate Income Fund (NYSE American: RIF) today announced its
regular quarterly distribution to common shareholders. The distribution
of $0.33 per common share will be paid on or about June 28, 2019 to
holders of record of common shares as of the close of business on June
21, 2019. RIF’s distribution was approved by its Board of Trustees under
RIF’s managed distribution policy in accordance with exemptive relief
issued by the Securities and Exchange Commission. RIF intends to include
net realized capital gains, where applicable, as part of its regular
quarterly distribution to common shareholders.
The following table provides RIF’s estimated distribution sources for
the distribution declared today on common shares for the quarter ending
June 30, 2019 from the sources indicated pursuant to Section 19(a) of
the Investment Company Act of 1940, as amended.
|Quarter||Year to Date|
|Per Share Amount||% of Distribution||Per Share Amount||% of Distribution|
|Net investment income||$||0.27||81.82%||$||0.56||84.84%|
|Net realized short term capital gains||$||0.03||9.09%||$||0.05||7.58%|
|Net realized long term capital gains||$||0.03||9.09%||$||0.05||7.58%|
|Return of capital||$||0.00||0.00%||$||0.00||0.00%|
RIF’s net investment income is based on an estimate of the excess of
cash distributions received from its investments less its operating
expenses, interest expense and distributions to preferred shareholders
for the periods presented. RIF has substantial investments in real
estate investment trusts, or REITs, which generally will characterize
distributions to their shareholders, including RIF, as ordinary income,
net capital gain or return of capital. However, it is not possible for
RIF to characterize distributions received from REITs during interim
periods because the REIT issuers do not report the tax characterization
of their distributions until subsequent to year end. Therefore, it is
likely that some portion of RIF’s net investment income, and thus RIF’s
distributions to its common shareholders estimated to be from net
investment income, will be recharacterized as net capital gain and/or
return of capital subsequent to year end.
You should not draw any conclusions about the RIF’s investment
performance from the amount of this distribution or from the terms of
RIF’s managed distribution policy. The amounts and sources of
distribution reported in this press release are only estimates and are
not being provided for tax reporting purposes. The actual amounts and
sources of the amounts for tax reporting purposes will depend upon RIF’s
investment experience during the remainder of its fiscal year and may be
subject to changes based on tax regulations. RIF WILL SEND YOU A FORM
1099-DIV FOR THE CALENDAR YEAR THAT WILL TELL YOU HOW TO REPORT THESE
DISTRIBUTIONS FOR FEDERAL INCOME TAX PURPOSES.
RIF’s year to date cumulative total return for 2019 (January 1, 2019
through May 31, 2019) is set forth below. RIF’s average annual total
return for the five-year period ending May 31, 2019 is also set forth
RIF Performance and Distribution Rate
Information Based on Net Asset Value:
Year to date: January 1, 2019 to May 31, 2019
|Cumulative total return1||21.73%|
|Cumulative distribution rate2||2.83%|
Five year period ending May 31, 2019
|Average annual total return3||5.89%|
|Current annualized distribution rate4||5.65%|
The cumulative total return is the percentage change in net asset
value, or NAV, per common share from the last completed fiscal year to
the NAV per common share on the last day of the period indicated
assuming distributions paid are reinvested at NAV per common share on
the ex-dividend dates.
Cumulative distribution rate is the cumulative distribution per common
share declared in 2019 as of the date of this press release as a
percentage of the NAV per common share as of May 31, 2019.
Average annual total return is the annualized percentage change in the
Fund’s NAV over the five year period ending May 31, 2019, including
distributions paid and assuming that the distributions paid are
reinvested at NAV on the ex-dividend dates.
The current annualized distribution rate is the current annualized
distribution rate as a percentage of the NAV per common share as of
May 31, 2019.
Performance results reflect past performance and are no guarantee of
future results. Investment return and principal value of shares will
fluctuate so that shares, when sold, may be worth more or less than
their original cost. Current performance may be higher or lower than the
performance data quoted.
RIF is a closed end investment company advised by RMR Advisors LLC. RMR
Advisors LLC is a wholly owned subsidiary of The RMR Group LLC, an
alternative asset management company. The RMR Group LLC is a majority
owned subsidiary of The RMR Group Inc. (Nasdaq: RMR). The RMR Group Inc.
is headquartered in Newton, MA.
WARNINGS REGARDING FORWARD-LOOKING STATEMENTS
This press release contains statements that constitute forward-looking
statements within the meaning of the private securities litigation
reform act of 1995 and other securities laws. These forward-looking
statements are based upon RIF’s present intent, beliefs and
expectations, but forward-looking statements are not guaranteed to occur
and may not occur for numerous reasons, some of which are beyond RIF’s
control. For example:
This press release describes RIF’s distribution of $0.33 per common
share as a fixed quarterly distribution and refers to RIF’s managed
distribution policy. The implications of these statements may be that
RIF will consistently pay a distribution of $0.33 per share for each
quarter. In fact, the amount of distributions paid by RIF in the
future will depend primarily upon RIF’s future earnings. RIF can
provide no assurance that its future earnings will be sufficient to
enable RIF to pay a fixed quarterly distribution of $0.33 per share.
The board of trustees of RIF may amend, terminate or suspend the
managed distribution policy at any time, which could result in a
reduction of the quarterly distribution amount or a complete
elimination of the quarterly distribution.
This press release includes various information regarding the
estimated sources for the distribution on RIF common shares that was
declared today as well as various RIF performance, returns and
distribution metrics and information. The ultimate sources of RIF’s
distribution will depend on RIF’s investment performance and
experience for 2019 and the sources of the distributions it receives
on its investments. For these and other reasons, the estimated sources
may subsequently change and prove to be inaccurate. Further, RIF’s
performance returns and distribution metrics for 2019 and other
periods may differ significantly from the amounts listed in this press
RIF’s ability to pay quarterly distributions may be affected by a
number of factors, including market conditions, the stability of
income received from its investments, the availability of capital
gains, distributions paid on its preferred shares, interest paid on
borrowings, the extent of RIF’s leverage and the amount of RIF’s
expenses. There is no assurance that RIF will always be able to pay
distributions of a particular size, or that a distribution will
consist solely of net investment income and/or realized capital gains.
For these and other reasons, investors should not place undue reliance
upon forward-looking statements. Except as required by law, RIF does not
intend to update or change any forward-looking statements as a result of
new information, future events or otherwise.
Joselyn Fine, Investor Relations Analyst