Rmr Div Cptre FD Common Shrs (AMEX:RCR)
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From Jun 2019 to Jun 2024
RMR Funds today announced that it has called for redemption the amounts
of Fund preferred shares of certain Funds, as follows:
Fund
Amount of Preferred Shares Called for Redemption (liquidation
preference value)
Amount of Preferred Shares to be Outstanding After Redemption
(liquidation preference value)
RMR Real Estate Fund
$39,050,000
$10,950,000
(NYSE Alternext US: RMR)
RMR Hospitality and Real Estate Fund
$25,125,000
$2,875,000
(NYSE Alternext US: RHR)
RMR F.I.R.E. Fund
$9,625,000
$1,175,000
(NYSE Alternext US: RFR)
RMR Preferred Dividend Fund
$10,700,000
$3,600,000
(NYSE Alternext US: RDR)
RMR Dividend Capture Fund
$8,925,000
$1,075,000
(NYSE Alternext US: RCR)
On October 16, 2008, RMR Funds announced that payments of distributions
to common shareholders of each of the above listed Funds would be
suspended until further notice because each Fund did not meet the asset
coverage ratios of outstanding Fund preferred shares which are
preconditions to the payment of common share distributions established
by the Investment Company Act of 1940 (the “1940 Act”). On November 10,
2008 these Funds announced that they had been selling investment
securities in order to accumulate the cash necessary to redeem some of
their outstanding Fund preferred shares to bring these Funds into
compliance with the preconditions in the 1940 Act for the payment of
common share distributions. The amounts of preferred shares called for
redemption as listed in the table above are the preferred shares called
for redemption since November 10, 2008.
Upon completion of the redemptions announced today, each of these Funds
expects it will be in compliance with applicable preconditions in the
1940 Act for the payment of common shares distributions. However, in
addition to the preconditions for the payment of common share
distributions arising under the 1940 Act, the bylaws of each of these
Funds which were adopted at the times each of these Funds issued Fund
preferred shares require that each Fund maintain certain financial
ratios established by the rating agencies which rate the Fund’s
preferred shares. These bylaws require each Fund to be in compliance
with these ratios both at the time the concerned Fund declares a common
share distribution and at the time such distributions are paid. As of
the market close yesterday, each of these Funds was also in compliance
with its bylaws’ preconditions for the declaration of common share
distributions. In order to satisfy the bylaws’ preconditions for the
payment of common share distributions and because market conditions for
the securities in which each of these Funds’s invests remain volatile,
each of these Funds expects to sell additional investment securities to
raise cash for additional redemptions of Fund preferred shares.
Each of these Funds is principally invested in income paying securities
primarily issued by real estate investment trusts. These Funds expect to
calculate and pay distributions to common shareholders in December equal
to the approximate amounts of the income earned during 2008 which was
not previously distributed; however, the amounts of these distributions,
if any, are not known at this time. Also, in December 2008, these Funds
expect to consider their distribution policies for 2009 and to make
announcements concerning such policies at that time. It is expected that
the distributions payable to common shareholders in 2009, if any, will
be substantially less than the distribution rates paid before these
Funds suspended distributions in October 2008.
WARNING 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 SECURITIES LAWS. THESE FORWARD LOOKING STATEMENTS ARE BASED UPON
THE PRESENT BELIEFS AND EXPECTATIONS OF THE RMR FUNDS REFERENCED IN THIS
PRESS RELEASE. HOWEVER THESE FORWARD LOOKING STATEMENTS AND THEIR
IMPLICATIONS ARE NOT GUARANTEED TO OCCUR, AND THEY MAY NOT OCCUR FOR
VARIOUS REASONS, SOME OF WHICH ARE BEYOND THE CONTROL OF THE CONCERNED
FUNDS. FOR EXAMPLE:
THIS PRESS RELEASE STATES THAT EACH OF THE CONCERNED FUNDS BELIEVES IT
IS NOW IN COMPLIANCE WITH APPLICABLE PRECONDITIONS IN THE 1940 ACT FOR
THE PAYMENT OF COMMON SHARE DISTRIBUTIONS AND WITH EACH FUND’S BYLAWS’
PROVISIONS REGARDING THE DECLARATIONS OF COMMON SHARES DISTRIBUTIONS.
THIS PRESS RELEASE ALSO STATES THAT EACH FUND’S BYLAWS GOVERNING ITS
ISSUANCE OF FUND PREFERRED SHARES REQUIRE THAT THE FUND BE IN
COMPLIANCE WITH CERTAIN FINANCIAL RATIOS ESTABLISHED BY CERTAIN RATING
AGENCIES BOTH AT THE TIME THE FUND DECLARES COMMON SHARE DISTRIBUTIONS
AND AT THE TIME THE COMMON SHARE DISTRIBUTIONS ARE PAID. THE
IMPLICATIONS OF THESE STATEMENTS MAY BE THAT EACH OF THESE FUNDS MAY
RESUME PAYING DISTRIBUTIONS TO COMMON SHAREHOLDERS. HOWEVER, BECAUSE
THE MARKET VALUES FOR THE SECURITIES IN WHICH EACH OF THESE FUNDS HAS
INVESTED HAVE BEEN BOTH VOLATILE AND DECLINING, EACH FUND MAY NOT
REMAIN IN COMPLIANCE WITH THE 1940 ACT PRECONDITIONS OR BE IN
COMPLIANCE WITH ITS BYLAW REQUIREMENTS WHEN THE FUND INTENDS TO
DECLARE COMMON SHARE DISTRIBUTIONS OR AFTER IT DECLARES COMMON SHARE
DISTRIBUTIONS AT THE TIME SUCH DISTRIBUTIONS ARE PAYABLE. ACCORDINGLY,
THERE CAN BE NO ASSURANCE THAT THESE FUNDS, OR ANY OF THEM, WILL PAY
COMMON SHARE DISTRIBUTIONS.
THIS PRESS RELEASE STATES THAT THE FUNDS EXPECT TO DECLARE
DISTRIBUTIONS IN DECEMBER 2008 APPROXIMATELY EQUAL TO THE AMOUNTS OF
THEIR INCOME EARNED IN 2008 WHICH WAS NOT PREVIOUSLY DISTRIBUTED. THE
FINAL AMOUNTS OF THESE DISTRIBUTIONS ARE SUBJECT TO COMPLEX
CALCULATIONS BASED UPON THE CHARACTER OF THE INCOME RECEIVED BY EACH
FUND. ACCORDINGLY, THERE CAN BE NO ASSURANCE AS TO THE AMOUNTS OF SUCH
DISTRIBUTIONS, IF ANY. ALSO, ANY DISTRIBUTIONS MADE FROM A FUND WILL
REDUCE THE NET ASSET VALUE OF THAT FUND AND MAY RESULT IN A
CORRESPONDING DECREASE IN THE MARKET VALUE OF THE FUND’S COMMON SHARES.
THIS PRESS RELEASE STATES THAT EACH FUND EXPECTS TO RECONSIDER IN
DECEMBER 2008 ITS COMMON SHARE DISTRIBUTION POLICY FOR 2009. THE
IMPLICATION OF THIS STATEMENT IS THAT EACH FUND WILL IN FACT PAY
DISTRIBUTIONS IN 2009. THE SALES OF INVESTMENT SECURITIES AND THE
REDEMPTIONS OF FUND PREFERRED SHARES BY THESE FUNDS HAS SUBSTANTIALLY
REDUCED THE EARNINGS WHICH EACH FUND MAY REALIZE FROM ITS INVESTMENTS
AND SIMULTANEOUSLY INCREASED THE RATIOS OF OPERATING EXPENSES TO NET
ASSETS. IN THESE CIRCUMSTANCES, INVESTORS SHOULD EXPECT THAT FUTURE
COMMON SHARE DISTRIBUTION RATES WILL BE SUBSTANTIALLY DECREASED FROM
THE DISTRIBUTION RATES PREVIOUSLY PAID BY THESE FUNDS; AND, IN FACT,
THERE CAN BE NO ASSURANCE THAT ANY COMMON SHARE DISTRIBUTIONS WILL BE
PAID IN 2009.
FOR THESE REASONS, AMONG OTHERS, INVESTORS ARE CAUTIONED NOT TO PLACE
UNDUE RELIANCE UPON FORWARD LOOKING STATEMENTS IN THIS PRESS RELEASE.