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 June 30, 2017. This represents a 5.9 percent distribution, placing it in excess of the Fund’s initial target of 5 percent.** This is the seventeenth consecutive quarterly distribution that has exceeded the Fund’s target yield. The Fund began trading on March 12, 2013, and closed the quarter as of June 30, 2017 with an inception-to-date cumulative total return of 32.8 percent.
The Fund also announced the launch of a new L Share class. The L Share has a maximum sales load of 4.25 percent and began trading on July 5, 2017.
|Class L Feesi|
|$250,000 to $499,999||2.50%|
|$500,000 to $999,999||1.50%|
|$1,000,000 and above||1.00%|
|Up-front Dealer-Manager Feeii||0.75%|
|Maximum Sales Load||4.25%|
|i The Fund is subject to additional fees and expenses, which are described in its prospectus.|
|ii Dealer-manager fee is reduced to 0.50% for an investment of $500,000 to $999,999 and 0.25% for an investment of $1,000,000 and above.|
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 6/30/17.
|As of 6/30/17||1-year||3-year||5-year||Since Inception (3/12/13)|
|The Fund with MOP***||2.5%||4.7%||N/A||5.4%|
Performance data quoted represents past performance. Past performance is no guarantee of future results and investment returns and principal value of the Fund will fluctuate so that shares, when redeemed, may be worth more or less than their original cost. Current performance may be lower or higher than the performance data quoted above. Performance information is reported net of the Fund’s fees and expenses. The Fund’s gross expenses are 2.93% and net expenses are 2.54%. Net fees are based on a contractual fee waiver and reimbursement agreement of 0.39% through at least September 9, 2018. 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 or visit www.RREDIF.com.
* 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 5.75%.
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 2017 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. Resource Real Estate, Inc., the Fund’s investment advisor, and ALPS Distributors, Inc. are not tax experts and do not offer legal or tax advice. It is recommended that shareholders consult with an accountant, tax advisor and/or lawyer. 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.
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. Resource is a wholly-owned subsidiary of C-III Capital Partners LLC, a leading real estate investment management and commercial property services company, with $12.3 billion in real estate and debt assets under management as of December 31, 2016.
RRE000650 – 10/31/2017