PHILADELPHIA--(BUSINESS WIRE)--Today, Resource Real Estate Diversified Income Fund (the “Fund,” ticker RREDX) announced its quarterly distribution of $0.15* per share as of September 30, 2016. This represents a 5.9 percent distribution, placing it in excess of the Fund’s initial target of 5 percent.** This is the fourteenth consecutive quarterly distribution. The Fund began trading on March 12, 2013, and closed the quarter as of September 30, 2016 with an inception-to-date cumulative total return of 26.4 percent.
The Fund seeks current income, risk diversification and long-term appreciation by investing in a portfolio of private real estate equity, global traded REIT equity, and real estate credit.
Per Annum Fund Performance as of 9/30/16.
|As of 9/30/16||1-year||3-year||5-year||Since Inception (3/12/13)|
|The Fund with MOP***||4.0%||7.22%||N/A||5.05%|
The Fund’s expense ratio has been deducted from the Fund’s performance data. 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 a shareholder’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 September 10, 2018, 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 and reimbursements, the Fund’s total annual operating expenses with respect to Class A shares would be 2.68%. 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 the Fund’s prospectus for information about other share classes). For performance information current to the most recent month-end, please call toll-free (866) 773-4120.
*To calculate the quarterly distribution, the Fund takes the income received from the Fund’s portfolio, subtracts expenses and divides the result by the total number of shares owned by the Fund’s shareholders. Distributions are not guaranteed.
**Target yield is measured at the Fund level and is not equal to actual returns for a shareholder. 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 6.50%.
A portion of the distributions consists 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 a 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 Fund will continue to declare distributions or that distributions will continue at these rates. There can be no assurance that any investment by the Fund will be effective in achieving the Fund’s investment objectives, delivering positive returns or avoiding losses.
This distribution policy is subject to change. The Fund may make distributions that are treated as a return of capital. A return of capital may occur, for example, when some or all of the money that you invested in the Fund is paid back to you. A return of capital distribution does not necessarily reflect the 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 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 a 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 Fund will continue to declare distributions or that distributions will continue at these rates.
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.
Investing involves risk. Investment return and principal value of an investment will fluctuate, and a shareholder’s shares, when redeemed, may be worth more or less than their original cost. Certain of the Fund’s underlying investments, including alternative investment funds, ETFs, interval 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, an increase 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 may 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, regardless of how the Fund performs. 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 properties, 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.
The Fund is distributed by ALPS Distributors, Inc. (ALPS Distributors, Inc. 1290 Broadway, Suite 1100, Denver, CO 80203). Resource Real Estate, Inc. and ALPS Distributors, Inc. are not affiliated.
About Resource Real Estate, Inc.
Resource Real Estate, Inc. (“Resource”), the Fund’s investment advisor, specializes in direct real estate investments, commercial real estate lending and global securities. For over two decades, Resource and its affiliates have managed real estate assets for institutional and individual investors, and currently own and manage real estate assets with an aggregate value of approximately $4.2 billion as of June 30, 2016. Resource is a wholly-owned subsidiary of C-III Capital Partners LLC, a leading real estate investment management and commercial property services company.
RRE000429 – 1/31/2017