PHILADELPHIA--(BUSINESS WIRE)--Today, Resource Real Estate Diversified Income Fund (the “Fund”) announces its quarterly distribution of $0.153* as of September 30, 2014. This represents a 6.2 percent distribution and is the sixth 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 September 30, 2014 with an inception-to-date total return of 7.06 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.
The Fund began trading on March 12, 2013 and closed the quarter as of September 30, 2014, with an inception-to-date, annualized total return of 4.94 percent (Class A shares, excluding sales load). The Fund closed the quarter as of September 30, 2014, with an inception-to-date, annualized total return of -0.93 percent (Class A shares, with load). The Fund’s one-year, annualized total return as of September 30, 2014 was 10.77 percent (Class A shares, excluding sales load) and 4.83 percent (Class A shares, with load).
Maximum sales charge for Class A is 6.5 percent. 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 June 30, 2015, to ensure that the net annual Fund operating expenses will not exceed 1.99 percent, subject to possible recoupment from the Fund in future years. Without these waivers, the Fund's total annual operating expenses would be 24.8 percent. Please review the Fund’s prospectus for more information regarding the Fund’s fees and expenses. Performance shown is 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 (855) 747-9559.
*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.
About Resource Real Estate
Resource Real Estate (“RRE”) is a firm that specializes in direct real estate investments, commercial real estate lending and global real estate securities. For over two decades, RRE and its affiliates have managed real estate assets for institutional and individual investors. RRE and its parent company have offices in New York, Los Angeles, Denver, Houston, London, Singapore, Sydney as well as its headquarters in Philadelphia and additional locations across the U.S.
RRE owns and manages real estate assets with an aggregate value of approximately $2.8 billion. RRE is a wholly owned subsidiary of Resource America (NASDAQ: REXI). As of June 30, 2014, Resource America managed $18.9 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 2014 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.
Investors should carefully consider the investment objectives, risks, charges and expenses of the Fund. This and other important information about the Fund is contained in the prospectus, which can be obtained by calling (855) 747-9559. The prospectus should be read carefully before investing. The Fund is distributed by Northern Lights Distributors, LLC, member of FINRA. Resource Real Estate, Inc. and Northern Lights Distributors, LLC 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.