RMR Real Estate Income Fund (NYSE Amex: RIF) today announced its regular quarterly distribution to common shareholders. The distribution of $0.42 per common share will be paid on or about December 30, 2011 to holders of record of common shares as of the close of business on December 23, 2011. RIF declared this quarterly distribution pursuant to its level rate dividend policy. There is no assurance that RIF will always be able to pay a distribution of any particular size, or that a distribution will consist only of net investment income. RIF’s ability to maintain a level distribution will depend on a number of factors, including the stability of income received from its investments, availability of capital gains, distributions paid on its preferred shares and the level of RIF’s expenses. In order to maintain a stable distribution amount, the distributions announced today, as well as future distributions, may consist of net investment income, realized capital gains and return of capital. RMR Asia Pacific Real Estate Fund (NYSE Amex: RAP) today announced a special distribution of previously undistributed net investment company taxable income to common shareholders. The distribution of $0.06 per common share will be paid on or about December 30, 2011 to holders of record of common shares as of the close of business on December 23, 2011. In compliance with Section 19 of the Investment Company Act of 1940, a notice will be provided for any distribution that does not consist solely of net investment income. Such a notice will be for informational purposes only, and will disclose, among other things, estimated portions of the distribution, if any, consisting of net investment income, capital gains and return of capital. No such notice will be included with the distribution announced today for RIF because, based upon information currently available to RIF, RIF believes this distribution consists solely of income received from its investments. Because RIF has substantial investments in real estate investment trusts, or REITs, which generally will characterize distributions to RIF subsequent to the end of a calendar year as ordinary income, net capital gain or return of capital, it is expected that distributions declared by RIF will be similarly characterized for tax purposes subsequent to year end.
A Section 19 notice is expected to be included with the distribution announced today for RAP. RAP generally invests in exchange listed or traded equity securities of Asia Pacific real estate companies. Certain of RAP’s investments are in real estate companies characterized as passive foreign investment companies (“PFICs”) for U.S. federal income tax purposes. On an annual basis, RAP is required to mark its PFIC investments to current market value and to recognize any unrealized gain as ordinary income for U.S. federal income tax purposes. As a result, PFIC investments may cause RAP to recognize and distribute to shareholders taxable ordinary income without a corresponding receipt of cash. RAP estimates that $0.005 of today’s announced special distribution is derived from PFIC mark to market adjustments and represents a distribution of ordinary income for U.S. federal tax reporting purposes and a return of capital for financial reporting purposes. RAP is not able to determine the actual characterization of this distribution until the end of the calendar year.Shareholders of RIF and RAP should not use the information provided in this press release or any notice delivered in compliance with Section 19 of the Investment Company Act of 1940 in preparing their tax returns. Shareholders of RIF and RAP will receive a Form 1099-DIV for the calendar year indicating how to report distributions from RIF and RAP for U.S. federal income tax purposes. RIF and RAP are closed end investment companies advised by RMR Advisors, Inc. WARNINGS REGARDING FORWARD LOOKING STATEMENTS THIS PRESS RELEASE CONTAINS FORWARD LOOKING STATEMENTS WITHIN THE MEANING OF THE PRIVATE SECURITIES LITIGATION REFORM ACT OF 1995 AND OTHER FEDERAL SECURITIES LAWS. THESE FORWARD LOOKING STATEMENTS ARE BASED UPON RIF’S AND RAP’S PRESENT BELIEFS AND EXPECTATIONS, BUT THEY ARE NOT GUARANTEED TO OCCUR AND MAY NOT OCCUR FOR NUMEROUS REASONS, SOME OF WHICH ARE BEYOND RIF’S AND RAP’S CONTROL. FOR EXAMPLE:
- THIS PRESS RELEASE DESCRIBES RIF’S DISTRIBUTION OF $0.42 PER SHARE AS A REGULAR QUARTERLY DISTRIBUTION AND REFERS TO RIF’S LEVEL RATE DIVIDEND POLICY. THE IMPLICATIONS OF THESE STATEMENTS MAY BE THAT RIF WILL CONSISTENTLY PAY A DIVIDEND OF $0.42 PER SHARE FOR EACH QUARTER. IN FACT, THE AMOUNT OF DIVIDENDS PAID BY RIF IN THE FUTURE WILL DEPEND PRIMARILY UPON RIF’S FUTURE EARNINGS. IN THE PAST, RIF’S PREDECESSORS HAVE LOWERED THEIR DIVIDEND RATES AND RIF CAN PROVIDE NO ASSURANCE THAT ITS FUTURE EARNINGS WILL BE SUFFICIENT TO ENABLE RIF TO PAY A REGULAR QUARTERLY DIVIDEND OF $0.42 PER SHARE.
- THIS PRESS RELEASE STATES THAT RIF BELIEVES THE DISTRIBUTION DESCRIBED IN THIS PRESS RELEASE CONSISTS SOLELY OF INCOME RECEIVED FROM ITS INVESTMENTS. AS NOTED IN THE PRESS RELEASE, THE DIVIDENDS WHICH RIF HAS RECEIVED FROM ITS INVESTMENTS IN REITS MAY BE CHARACTERIZED BY THOSE REITS DIFFERENTLY THAN RIF NOW EXPECTS. FOR THIS REASON, AMONG OTHERS, SOME OF THE DISTRIBUTION DESCRIBED IN THIS PRESS RELEASE MAY CONSIST OF CAPITAL GAINS OR RETURN OF CAPITAL.
- THIS PRESS RELEASE STATES THAT RAP BELIEVES THAT A PORTION OF THE DISTRIBUTION DESCRIBED IN THIS PRESS RELEASE REPRESENTS A RETURN OF CAPITAL FOR FINANCIAL REPORTING PURPOSES. AS NOTED IN THE PRESS RELEASE, RAP IS NOT ABLE TO DETERMINE THE ACTUAL CHARACTERIZATION OF THIS DISTRIBUTION UNTIL THE END OF THE CALENDAR YEAR. FOR THIS REASON, AMONG OTHERS, MORE OR LESS OF THE DISTRIBUTION DESCRIBED IN THIS PRESS RELEASE MAY REPRESENT A RETURN OF CAPITAL FOR FINANCIAL REPORTING PURPOSES.