CIM Real Assets & Credit Fund Announces 21% Increase in Distribution Rate
New Rate Implies 8.5% Annualized Distribution Rate Based on Current NAV
LOS ANGELES--CIM Real Assets & Credit Fund (“CIM RACR” or the “Fund”) announced today that its Board of Directors has declared monthly cash dividends representing an annualized distribution rate of 8.5% of net asset value per share (as of the close of business on October 12, 2023). In addition, a portion of RACR’s distribution may be tax deferred whereas income from bonds and credit funds are typically 100% ordinary income and taxed at the highest rate.
The increase in the distribution rate reflects increasing income on CIM RACR’s floating rate real estate and credit investments and the expectation of improving net operating income on its real estate equity investments from recent strong leasing activity.
CIM RACR aims to generate income and appreciation with lower correlation to other income alternatives. The Fund has a long-term target allocation of 70% credit (both real estate and corporate credit) and 30% direct private real assets and deploys capital based on market opportunity. As of September 30, 2023, the fund is overweight in floating rate real estate debt and floating rate corporate credit (approximately 78% of the portfolio based on fair value) given the favorable environment to invest in floating rate credit.
The Board declared monthly cash dividends of $0.172 per share of Class A Common Shares (ARACX), $0.167 per share of Class C Common Shares (RACRX), $0.173 per share of Class I Common Shares (IRACX) and $0.170 per share of each Class L Common Shares (LRACX) for each of October, November and December 2023. The dividend will be payable as follows: November 3, 2023 to shareholders of record at the close of business on November 1, 2023; December 5, 2023 to shareholders of record at the close of business on December 1, 2023; and January 4, 2024 to shareholders of record at the close of business on January 2, 2024.
CCO Capital, LLC, Member FINRA/SIPC, is the exclusive wholesale marketing agent for CIM Real Assets & Credit Fund. Northern Lights Distributors, LLC (4221 North 203rd Street, Suite 100, Elkhorn, NE 68022, Member FINRA) is the distributor of CIM Real Assets & Credit Fund. CCO Capital and Northern Lights Distributors, LLC are not affiliated.
The Fund will ordinarily pay distributions from its net investment income, if any, once a month; however, the amount of distributions that the Fund may pay, if any, is uncertain. Based on current estimates, the Fund expects a portion of the distributions to be a return of capital. Please refer to the Fund’s most recent section 19(a) notice, available at www.cimgroup.com. There is no guarantee that investors will receive a distribution and the distribution rate should not be confused with yield or performance.
This is neither an offer to sell nor a solicitation to purchase any security. Investors should consider the investment objectives, risks, charges and expenses of the CIM Real Assets & Credit Fund (“Fund”, “CIM RACR” or “RACR”) carefully before investing. This and other information are contained in the Fund’s prospectus, which may be obtained by contacting your financial professional or visiting www.cimgroup.com. Please read the prospectus carefully before you invest.
All investing includes risk including the loss of principal. Interval funds are generally suitable only for investors who can bear the risks associated with the limited liquidity of the fund and should be viewed as a long-term investment. There can be no assurance that any fund will meet its objectives.
The Fund’s distributions may be funded from offering proceeds or borrowings, which may constitute a return of capital and reduce the amount of capital available to the Fund for investment. Although a return of capital will generally not be taxable to a shareholder, it would reduce the shareholder’s cost basis in the Common Shares and may result in higher capital gains taxes, or a lower capital loss, when Common Shares are sold. Any capital returned to shareholders through distributions will be distributed after payment of fees and expenses, as well as the sales load.
About CIM Real Assets & Credit Fund
CIM RACR is a non-diversified, closed-end management investment company, registered under the Investment Company Act of 1940, as amended, that continuously offers its common shares and is operated as an “interval fund.” The Fund invests across real assets and corporate credit, providing an opportunity to invest alongside CIM Group’s income-oriented strategies. CIM RACR’s investment objective is to generate current income through cash distributions and preserve and protect shareholders’ capital across various market cycles, with a secondary objective of capital appreciation. The Fund is advised by CIM Capital IC Management, LLC and sub-advised by CIM Capital SA Management, LLC and OFS Capital Management, LLC, each of which is an investment adviser registered under the Investment Advisers Act of 1940, as amended, and affiliates of CIM Group, LLC. For additional information, please visit www.cimgroup.com.
Statements in this press release regarding management's future expectations, beliefs, intentions, goals, strategies, plans or prospects, including statements relating management’s belief that CIM RACR will benefit from CIM Group’s combined real assets, credit and transaction experience and deal-sourcing capabilities; the composition of CIM RACR’s portfolio of real assets and corporate credit assets and the potential benefits to investors, which may not be realized; opportunities for individuals to invest alongside institutional partners, and whether those opportunities will align the interests among sponsors, partners and shareholders; and other factors may constitute forward-looking statements for purposes of the safe harbor protection under applicable securities laws. Forward-looking statements can be identified by terminology such as “anticipate,” “believe,” “could,” “could increase the likelihood,” “estimate,” “expect,” “intend,” “is planned,” “may,” “should,” “will,” “will enable,” “would be expected,” “look forward,” “may provide,” “would” or similar terms, variations of such terms or the negative of those terms. Such forward-looking statements involve known and unknown risks, uncertainties and other factors including those risks, uncertainties and factors referred to in CIM RACR’s Prospectus filed with the Securities and Exchange Commission (the “SEC”) on, June 23, 2023 under the section “Risks,” as well as other documents that may be filed by CIM RACR from time to time with the SEC. As a result of such risks, uncertainties and factors, actual results may differ materially from any future results, performance or achievements discussed in or implied by the forward-looking statements contained herein. CIM RACR is providing the information in this press release as of this date and assumes no obligations to update the information included in this press release or revise any forward-looking statements, whether as a result of new information, future events or otherwise.