LMP Real Estate Income Fund Inc., which is listed on the New York Stock Exchange under the symbol "RIT," announced today monthly distributions of $0.0600 per common share for December 2009 and January, February and March 2010. The Fund had previously paid a monthly distribution of $0.0800.
The distribution schedule appears below:
Month | Â | Ex-Date | Â | Record Date | Â | Payable Date | Â | Amount |
| December | 12/16/2009 | 12/18/2009 | 12/28/2009 | $0.0600 | ||||
| January | 01/20/2010 | 01/22/2010 | 01/29/2010 | $0.0600 | ||||
| February | 02/17/2010 | 02/19/2010 | 02/26/2010 | $0.0600 | ||||
| March | 03/17/2010 | 03/19/2010 | 03/26/2010 | $0.0600 |
The change in the monthly distribution rate resulted from the severe contraction in the credit markets over the past year combined with the continued downward pressure on commercial real estate fundamentals that led many of the companies in which the Fund invests to reduce their payouts. In turn, this resulted in a reduction in the net investment income generated by the Fund. In the current environment, future distributions will continue to rely heavily on net investment income generated by the portfolio augmented, potentially, by a return of capital, rather than on any potential short-term or long-term capital gains component.
Under the terms of the Fund's managed distribution policy, the Fund seeks to maintain a consistent distribution level, stated as a fixed rate per common share per month, that may be paid in part or in full from net investment income and realized capital gains, or a combination thereof. Shareholders should note, however, that if the Fund's aggregate net investment income and net realized capital gains are less than the amount of the distribution level, the difference will be distributed from the Fund's assets and will constitute a return of the shareholder's capital. A return of capital is not taxable; rather it reduces a shareholder's tax basis in his or her shares of the Fund.
The Board of Directors may reduce the Fund's monthly distribution rate in the future or terminate or suspend the managed distribution policy at any time. Any such reduction in the monthly distribution rate, termination or suspension could have an adverse effect on the market price of the Fund's shares.
Based on the Fund's accounting records as of the date of this press release, the Fund estimates that approximately 43.39% of the cumulative distributions through its December 31, 2009 fiscal year end are sourced from net investment income and 56.61% constitutes a return of shareholder's capital. The Fund further estimates that approximately 77.85% of the cumulative distributions for January, February and March 2010 are sourced from net investment income and 22.15% constitutes a return of shareholder's capital. The estimated components of each distribution will be provided to shareholders of record in a separate notice.
Please note that neither this press release nor the separate notice should be used for tax reporting purposes and that each is being provided to announce the amount and estimated source of the Fund's distributions that have been declared by the Board of Directors. In early 2010 and 2011, after definitive information is available, the Fund will send shareholders a Form 1099-DIV, if applicable, specifying how the distributions paid by the Fund during the respective prior calendar year should be characterized for purposes of reporting the distributions on a shareholder's tax return (e.g., ordinary income, long-term capital gain or return of capital).
LMP Real Estate Income Fund Inc. is a non-diversified, closed-end management investment company. Legg Mason Partners Fund Advisor, LLC, a wholly-owned subsidiary of Legg Mason, Inc., serves as the Fund's investment manager and AEW Capital Management, L.P., serves as the Fund's sub-adviser.
Contact the Fund at 1-888-777-0102 for additional information, or consult the Fund's web site at www.leggmason.com/cef.
All data and commentary provided within this press release is for informational purposes only. Legg Mason, Inc. and all of its affiliates do not engage in selling any of the shares of the Fund. The Fund's common shares are traded on the New York Stock Exchange.
Contacts:
Legg Mason & Co., LLC
Brenda Grandell, 212-857-8087
Director,
Closed-End Funds
