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RMR Real Estate Income Fund Announces Regular Quarterly Distribution to Common Shareholders and Implementation of a Managed Distribution Policy

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 March 29, 2019 to holders of record of common shares as of the close of business on March 21, 2019.

RIF’s Board of Trustees has implemented a managed distribution policy in accordance with exemptive relief issued by the Securities and Exchange Commission. This policy will provide RIF with greater flexibility to realize long-term capital gains throughout the year and to distribute those gains on a regular quarterly basis to shareholders through regular quarterly distributions declared at a fixed rate per common share. If RIF’s aggregate net investment income and net realized capital gains are less than the amount of the distribution level, the difference will be distributed from RIF’s assets and will constitute a return of shareholder capital. A return of capital is not taxable; rather it reduces shareholders’ tax basis in their shares of the Fund. At the time of each quarterly distribution, information regarding the estimated characteristics of RIF’s distribution will be posted to www.rmrfunds.com and mailed to shareholders in a concurrent notice. In addition, distributions from the Fund’s investments in real estate investment trusts (REITs) may later be characterized as capital gains and/or a return of capital, depending on the character of the dividends reported after year-end by the securities issued by Real Estate Investment Trusts, or REITS, that are held by the Fund. The Board of Trustees of RIF may amend, terminate or suspend the managed distribution policy at any time.

The following table provides RIF’s estimated distribution sources for the distribution declared today on common shares for the quarter ending March 31, 2019 from the sources indicated pursuant to Section 19(a) of the Investment Company Act of 1940, as amended.

       
Quarter   Year to Date

Source

  Per Share Amount   % of Distribution   Per Share Amount   % of Distribution
Net investment income $ 0.27 81.82% $ 0.27 81.82%
Net realized short term capital gains $ 0.01 3.03% $ 0.01 3.03%
Net realized long term capital gains $ 0.05 15.15% $ 0.05 15.15%
Return of capital $ 0.00 0.00% $ 0.00 0.00%
Total distribution $ 0.33 100.00% $ 0.33 100.00%
 

You should not draw any conclusions about the Fund’s investment performance from the amount of this distribution or from the terms of Fund’s Managed Distribution Plan. 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. THE FUND 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 February 28, 2019) is set forth below. RIF’s average annual total return for the five-year period ending February 28, 2019 is also set forth below.

RIF Performance and Distribution Rate Information Based on Net Asset Value:

Year to date: January 1, 2019 to February 28, 2019

Cumulative total return1     17.93%
Cumulative distribution rate2 1.44%
 

Five year period ending February 28, 2019

Average annual total return3 6.78%
Current annualized distribution rate4 5.75%
 
1.     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.
2. 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 February 28, 2019.
3. Average annual total return is the annualized percentage change in the Fund’s NAV over the five year period ending February 28, 2019, including distributions paid and assuming that the distributions paid are reinvested at NAV on the ex-dividend dates.
4. The current annualized distribution rate is the current annualized distribution rate as a percentage of the NAV per common share as of February 28, 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. (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 EXPEREINCE 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 RELEASE.
  • 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 LEVEL OF RIF’S LEVERAGE AND THE LEVEL 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.

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