RMR Real Estate Income Fund (NYSE Amex: RIF) today announced its regular quarterly distribution to common shareholders. The distribution of $0.21 per common share will be paid on or about March 30, 2012 to holders of record of common shares as of the close of business on March 19, 2012. This distribution represents the equivalent of a $0.02 per share per quarter increase to the quarterly distribution rate, and an $0.08 per share increase in the distribution rate on an annualized basis, of Old RMR Real Estate Income Fund (“Old RIF”) prior to the merger of Old RIF into RIF on January 20, 2012. The RIF Board of Trustees has determined to pay a full quarterly distribution for this first post merger distribution despite the merger having occurred during the period to which the distribution relates. 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. 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 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 their shareholders, including 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 attributable to its investments in REITs will be similarly characterized for tax purposes subsequent to year end. Shareholders 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 will receive a Form 1099-DIV for the calendar year indicating how to report distributions from RIF for U.S. Federal income tax purposes.
RIF is a closed end investment company 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 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 CONTROL. FOR EXAMPLE:
- THIS PRESS RELEASE DESCRIBES THE DISTRIBUTION OF $0.21 PER SHARE AS A REGULAR QUARTERLY DISTRIBUTION, STATES THAT SUCH RATE OF DISTRIBUTION IS EQUIVALENTLY GREATER THAN THE DISTRIBUTION RATE OF OLD RIF PRIOR TO THE MERGER OF OLD RIF INTO RIF AND REFERS TO RIF’S LEVEL RATE DIVIDEND POLICY. THE IMPLICATIONS OF THESE STATEMENTS MAY BE THAT RIF WILL CONSISTENTLY PAY A DIVIDEND OF $0.21 PER SHARE FOR EACH QUARTER AND THAT THE DIVIDEND RATE RIF MAY PAY WILL CONTINUE TO EXCEED THE EQUIVALENT RATE PAID BY OLD RIF PRIOR TO ITS MERGER INTO RIF. IN FACT, THE AMOUNT OF DIVIDENDS 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 REGULAR QUARTERLY DIVIDEND OF $0.21 PER SHARE OR AT A RATE GREATER THAN THE EQUIVALENT RATE PAID BY OLD RIF PRIOR TO ITS MERGER INTO RIF.
- 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.