PHILADELPHIA--(BUSINESS WIRE)--Today, Resource Real Estate Diversified Income Fund (the “Fund,” ticker RREDX) announced its quarterly distribution of $0.15* as of June 30, 2016. This represents a 6.0 percent distribution and is the thirteenth consecutive quarterly distribution, placing it in excess of the Fund’s initial target of 5 percent.** The Fund began trading on March 12, 2013, and closed the quarter as of June 30, 2016 with an inception-to-date total net return of 21.15 percent.
The Fund seeks current income, risk diversification and long-term appreciation by investing in a portfolio of publicly traded REITs, REIT preferred equity and non-traded REITs.
Fund Performance as of 6/30/16.
|As of 6/30/16||1-year||3-year||5-year||Since Inception (3/12/13)|
|The Fund||6.1%||23.2 %||N/A||21.2%|
|The Fund with MOP***||(0.8%)||16.1%||N/A||14.2%|
The Fund’s expense ratio has been deducted from the Fund performance. The performance data quoted here represents past performance. Current performance may be lower or higher than the performance data quoted above. Past performance is no guarantee of future results. The investment return and principal value of an investment will fluctuate so that investor's shares, when redeemed, may be worth more or less than their original cost. The Fund’s investment advisor has contractually agreed to reduce its fees and/or absorb expenses of the Fund, at least until January 31, 2017, to ensure that the net annual Fund operating expenses will not exceed 1.99%, subject to possible recoupment from the Fund in future years. Without these waivers, the Fund’s total annual operating expenses would be 4.86%. Please review the Fund’s prospectus for more information regarding the Fund’s fees and expenses. Performance and expenses shown are for Class A shares (please see a prospectus for information about other share classes). For performance information current to the most recent month-end, please call toll-free (866) 773-4120.
This distribution policy is subject to change. The Fund may make distributions that are treated as return of capital. A return of capital may occur for example, when some or all of the money that you invested in a Fund is paid back to you. A return of capital distribution does not necessarily reflect a Fund’s investment performance and should not be confused with “yield,” “income” or “profit.” The Fund’s distribution amounts were calculated based on the ordinary income received from the underlying investments, including net investment income. Shareholders should not assume that the source of a distribution from the Fund is net profit. A portion of the distributions consist of a return of capital based on the character of the distributions received from the underlying holdings, primarily Real Estate Investment Trusts (REITs). The final determination of the source and tax characteristics of all distributions in 2016 will be made after the end of the year. Shareholders should note that return of capital will reduce the tax basis of their shares and potentially increase the taxable gain, if any, upon disposition of their shares. There is no assurance that the Company will continue to declare distributions or that they will continue at these rates.
*To calculate the quarterly distribution, the Fund’s management will take the income received from the Fund’s portfolio, subtract expenses and divide the result by the total number of shares the Fund’s investors own.
**Target yield is measured at the Fund level and is not equal to actual returns for an investor. As portfolio and market conditions change, future distributions will vary and target yields may not be obtained in the future.
*** Maximum Offering Price (MOP) for Class A shares includes the Fund’s maximum sales charge of 6.5%.
About Resource Real Estate
Resource Real Estate (“Resource”) is a firm that specializes in direct real estate investments, commercial real estate lending and global real estate securities. For over two decades, Resource and its affiliates have managed real estate assets for institutional and individual investors. Resource and its parent company have offices in New York, Los Angeles, Denver, London, Singapore, Sydney as well as its headquarters in Philadelphia and additional locations across the U.S.
Resource owns and manages real estate assets with an aggregate value of approximately $4.0 billion. Resource is a wholly owned subsidiary of Resource America (NASDAQ: REXI). As of March 31, 2016, Resource America managed $22.4 billion across various asset classes.
A portion of the distributions consist of a return of capital based on the character of the distributions received from the underlying holdings, primarily Real Estate Investment Trusts. The final determination of the source and tax characteristics of all distributions in 2016 will be made after the end of the year. Shareholders should note that return of capital will reduce the tax basis of their shares and potentially increase the taxable gain, if any, upon disposition of their shares. There is no assurance that the Company will continue to declare distributions or that they will continue at these rates. There can be no assurance that any investment will be effective in achieving the Fund’s investment objectives, delivering positive returns or avoiding losses.
An investor should consider the investment objectives, risks, charges and expenses of the Fund carefully before investing. To obtain a prospectus containing this and other information, please call (866) 773-4120 or download the file from www.RREDIF.com. Read the prospectus carefully before you invest.
The Fund is distributed by ALPS Distributors, Inc. Resource Real Estate, Inc. and ALPS Distributors, Inc. are not affiliated.
Investing involves risk. Investment return and principal value of an investment will fluctuate, and an investor’s shares, when redeemed, may be worth more or less than their original cost. Alternative investment funds, ETFs, mutual funds and closed-end funds are subject to management and other expenses, which will be indirectly paid by the Fund. Preferred securities are subject to credit risk and interest rate risk. Convertible securities are typically issued as bonds or preferred shares with the option to convert to equities. As a result, convertible securities are hybrids that have characteristics of both bonds and common stocks and are subject to risks associated with both debt securities and equity securities. Issuers of debt securities may not make scheduled interest and principal payments, resulting in losses to the Fund. Typically, a rise in interest rates causes a decline in the value of fixed income securities. The use of leverage, such as borrowing money to purchase securities, will cause the Fund to incur additional expenses and magnify the Fund's gains or losses.
There currently is no secondary market for the Fund's shares and the Fund expects that no secondary market will develop. Limited liquidity is provided to shareholders only through the Fund's quarterly repurchase offers. Investments in lesser-known, small and medium capitalization companies may be more vulnerable than larger, more established organizations. The Fund will not invest in real estate directly, but because the Fund will concentrate its investments in securities of REITs, its portfolio will be significantly impacted by the performance of the real estate market. There are risks associated with REITs. Risks include declines from deteriorating economic conditions, changes in the value of the underlying property, and defaults by borrowers. The sales of securities to fund repurchases could reduce the market price of those securities, which in turn would reduce the Fund's NAV.
RRE000365 – 7/31/2017