NEWTON, Mass.--(BUSINESS WIRE)--RMR Real Estate Income Fund (NYSE American: RIF) (the “Fund”) today announced that the board of trustees of the Fund has approved the terms of the issuance of transferable rights to the holders of the Fund’s common shares of beneficial interest, par value $0.001 per share, as of the record date, entitling the holders of those Rights to subscribe for Common Shares. The Board has determined that it is in the best interests of the Fund and the holders of its Common Shares (the “Common Shareholders”) to conduct the Offer and thereby to increase the assets of the Fund available for investment. In making this determination, the Board considered a number of factors, including potential benefits and costs. In particular, the Board considered that the Offer would better enable the Fund to take advantage more fully of existing and future investment opportunities that may be or may become available, consistent with the Fund’s primary investment objective to provide a high level of current income. The Offer also seeks to provide an opportunity to existing Common Shareholders to purchase Common Shares at a discount to market price.
All of the costs of the Offer, including offering expenses and sales load, will be borne by RMR Advisors LLC, the Fund’s investment adviser, and not by the Fund and its Common Shareholders.
The record date for the Offer is August 21, 2017 (the “Record Date”). The Fund will distribute to Common Shareholders on the Record Date (“Record Date Common Shareholders”) one Right for each Common Share held on the Record Date. Common Shareholders will be entitled to purchase one new Common Share for every three Rights held (1 for 3); however, any Common Shareholder who is issued fewer than three Rights will be entitled to subscribe for one Common Share. Fractional Common Shares will not be issued.
About RMR Real Estate Income Fund
The Fund is a diversified, closed-end management investment company. The Fund’s primary investment objective is to earn and pay to its common shareholders a high level of current income by investing in real estate companies. Capital appreciation is the Fund's secondary objective. Under normal market conditions, the Fund will invest at least 90% of its managed assets (consisting of the net asset value of the Fund's common shares plus the liquidation preference of the Fund's preferred shares and the principal amount of the Fund's outstanding borrowings) in income producing securities issued by real estate companies, including common shares, preferred shares and debt; at least 75% of its managed assets in securities issued by REITs; and no more than 10% of its managed assets in securities denominated in currencies other than the U.S. dollar or traded on a non-U.S. stock exchange.