NEWTON, Mass., Jun 18, 2009 (BUSINESS WIRE) -- After the close of business on Wednesday, June 17, 2009, RMR Real Estate
Fund (NYSE Amex: RMR) was reorganized into RMR Real Estate Income Fund.
On Wednesday, June 17, 2009, the NAV for RIF was $4.240, and RIF
completed a 4:1 reverse stock split. Accordingly, the opening NAV of RIF
on Thursday, June 18, 2009 will be $16.952. On Wednesday, June 17, 2009,
the closing net asset value per share ("NAV") of common stock for RMR
was $3.306. Since the reorganization was based on the relative NAVs of
these funds, the reorganization conversion ratio resulted in RMR common
shareholders receiving 0.195 shares of RIF common stock for each share
of RMR common stock they previously held. Common shareholders of RMR may
receive fractional shares in connection with the reorganization.
RMR Real Estate Income Fund will trade on the NYSE Amex using the ticker
symbol "RIF". RIF's NAV will be reported under the ticker "XRMRX" until
further notice.
As a result of the reorganization, preferred shareholders of RMR
received an equivalent number of shares of a new series of RIF preferred
stock, "Series T". The auction date, rate period, dividend payment date
and liquidation preference per share of the RIF preferred stock, Series
T, received by RMR preferred shareholders in the reorganization is the
same as the RMR preferred stock, Series T, that RMR preferred
shareholders exchanged in the reorganization.
The CUSIP numbers of the RIF common stock and preferred stock are
different from the CUSIP numbers of the RMR common stock and preferred
stock, respectively. RIF's common stock CUSIP number is 74964K609 and
RIF's preferred stock, Series T, CUSIP number is 74964K302.
As previously announced, common shareholders of record of RMR will
receive the following final cash distribution consisting of the fund's
estimated undistributed federal investment company taxable income and
net capital gains:
|
Record Date
| | | |
Pay Date*
| | | |
Amount Per Share
|
|
June 16, 2009
| | | |
June 30, 2009
| | | |
$0.0747
|
*On or about.
RMR has substantial investments in real estate investment trusts.
Because real estate investment trusts generally classify distributions
to RMR subsequent to the end of each calendar year as ordinary income,
net capital gain or return of capital, it is expected that some portion
of the distribution declared by RMR may be similarly characterized for
tax purposes subsequent to this year end.
The existing common shares and preferred shares of RMR will be cancelled
and the fund will be dissolved under applicable state law as soon as
practicable.
Also, as previously announced, subject to the satisfaction of certain
conditions set forth in each Agreement and Plan of Reorganization, the
reorganization of each of RMR Hospitality and Real Estate Fund (NYSE
Amex: RHR), RMR F.I.R.E. Fund (NYSE Amex: RFR), RMR Preferred Dividend
Fund (NYSE Amex: RDR) and RMR Dividend Capture Fund (NYSE Amex: RCR)
with RIF are currently expected to close after the end of business on
the following dates:
-
RFR: Thursday, June 18, 2009
-
RHR: Friday, June 19, 2009
-
RCR: Monday, June 22, 2009
-
RDR: Tuesday, June 23, 2009
Details of the common share conversions and dividend payment amounts, if
any, will be determined after the end of business on each of the
aforementioned closing dates and will be announced by press release
prior to the beginning of trading on the NYSE Amex on the first business
day following each closing date.
This communication is not intended to, and shall not, constitute an
offer to purchase or sell shares of any of the RMR Funds, including RIF,
the surviving fund in the reorganizations. Investors and security
holders of the funds are urged to read the Joint Proxy
Statements/Prospectus and other documents filed with the U.S. Securities
and Exchange Commission ("SEC") carefully in their entirety because they
contain important information about the proposed reorganizations.Investors
should consider the investment objectives, risks, charges and expenses
of their fund(s) carefully and consider in their entirety the Joint
Proxy Statements/Prospectus that contain important information regarding
the investment objectives, risks, charges, expenses and other important
information about RIF.
Investors may obtain free copies of the Joint Proxy
Statements/Prospectus and other documents filed with the SEC at the
SEC's web site at www.sec.gov.
In addition, free copies of the Joint Proxy Statements/Prospectus and
other documents filed with the SEC may also be obtained by directing a
request to: RMR Advisors, Inc., 400 Centre Street, Newton, MA, 02458 or
by calling: (617) 796-8253.
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 FEDERAL SECURITIES LAWS.THESE FORWARD LOOKING STATEMENTS
ARE BASED UPON THE PRESENT BELIEFS AND EXPECTATIONS OF THE FUNDS
IDENTIFIED 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.FOR EXAMPLE:
- THIS PRESS RELEASE STATES THAT THE OPENING NAV OF RIF ON THURSDAY,
JUNE 18, 2009 WILL BE $16.952. THE IMPLICATION OF THIS STATEMENT MAY
BE THAT THE TRADING PRICE OF RIF'S COMMON SHARES MAY BE EQUAL TO
$16.952. HOWEVER, COMMON SHARES OF CLOSED END INVESTMENT COMPANIES
FREQUENTLY TRADE AT A DISCOUNT TO NAV. THERE IS NO ASSURANCE THAT A
TRADING PRICE FOR RIF'S COMMON SHARES EQUAL TO OR GREATER THAN NAV
WILL RESULT AFTER RIF COMMON SHARES BEGIN TO TRADE.
- THIS PRESS RELEASE STATES THAT RFR, RHR, RCR AND RDR MAY BE
REORGANIZED WITH RIF. IN FACT, THESE REORGANIZATIONS MAY NOT OCCUR FOR
VARIOUS REASONS INCLUDING: (I) BECAUSE OF CHANGED CIRCUMSTANCES, THE
FUNDS' BOARDS, OR CERTAIN OF THEM, MAY DECIDE NOT TO PROCEED WITH
THESE REORGANIZATIONS; OR (II) THE CONDITIONS SET FORTH IN EACH
AGREEMENT AND PLAN OF REORGANIZATION AS DESCRIBED IN THE JOINT PROXY
STATEMENTS/PROSPECTUS MAY NOT BE MET.
FOR THESE AND OTHER REASONS INVESTORS ARE CAUTIONED NOT TO PLACE
UNDUE RELIANCE UPON FORWARD LOOKING STATEMENTS IN THIS PRESS RELEASE.
SOURCE: RMR Real Estate Fund
RMR Real Estate Fund
Timothy A. Bonang, 617-796-8253
Director of Investor Relations
or
Carlynn Finn, 617-796-8253
Manager of Investor Relations
www.rmrfunds.com
Copyright Business Wire 2009