RMR Mortgage Trust (formerly RMR Real Estate Income Fund) Announces 2020 Dividend Allocation and Deemed Distribution of $0.783902 Per Share

Feb 23, 2021 05:00 pm
NEWTON, Mass. -- 

RMR Mortgage Trust (Nasdaq: RMRM), formerly RMR Real Estate Income Fund, today announced the characterization of dividends for 2020 income tax purposes and a $0.783902 deemed distribution to shareholders of record as of December 31, 2020.

Federal Tax Treatment of 2020 Dividends

RMRM paid common dividends totaling $0.630000 per share that are attributable to the tax year ended December 31, 2020, with approximately 73.61% of those dividends comprised of long-term capital gains and approximately 26.39% comprised of dividends, of which about 1.01% of the 26.39% constitute qualified dividend income and 25.38% of the 26.39% are taxable as ordinary income. RMRM has posted information regarding the U.S. federal income tax characteristics of its dividends and deemed distributions that are attributable to 2020 on its website www.rmrmortgagetrust.com/investors/stock-information. The preferred shareholders should also use the same percentages to allocate the preferred dividends received. The allocation for the preferred dividends can also be found on the NAREIT website (www.reit.com).

The amounts shown in the table below represent the final classification of RMRM’s 2020 common distributions. This information supersedes any estimated information you may have received during the year. Calendar-year 2020 common distributions are classified as follows:

Dividend Allocation

Per Share

 

Section

Total

Unrecaptured

Declaration

 

Record

 

Paid/Payable

 

Dividends

 

Ordinary

 

199A

 

Qualified

 

Capital

 

Section 1250

 

Return of

Dates

 

Dates

 

Dates

 

Per Share

 

Income

 

Dividend(1)

 

Dividend(2)

 

Gain

 

Gain(3)

 

Capital

3/11/2020

 

3/23/2020

 

3/31/2020

 

$0.330000

 

$0.087098

 

$0.083748

 

$0.003350

 

$0.242902

 

$0.027803

 

$0.000000

6/11/2020

 

6/22/2020

 

6/30/2020

 

$0.100000

 

$0.026393

 

$0.025378

 

$0.001015

 

$0.073607

 

$0.008425

 

$0.000000

9/11/2020

 

9/22/2020

 

9/30/2020

 

$0.100000

 

$0.026393

 

$0.025378

 

$0.001015

 

$0.073607

 

$0.008425

 

$0.000000

12/7/2020

 

12/22/2020

 

12/31/2020

 

$0.100000

 

$0.026393

 

$0.025378

 

$0.001015

 

$0.073607

 

$0.008425

 

$0.000000

 

 

 

 

TOTALS:

 

$0.630000

 

$0.166277

 

$0.159882

 

$0.006395

 

$0.463723

 

$0.053078

 

$0.000000

1)

Section 199A Dividends are a subset of, and included in, the Ordinary Income amount.

2)

Qualified Dividends are a subset of, and included in, the Ordinary Income amount.

3)

Unrecaptured Section 1250 Gain is a subset of, and included in, the Total Capital Gain amount.

RMRM’s common share CUSIP number is 76970B101. This information represents final income allocations.

Shareholders should look to IRS Form 1099-DIV and Form 2439 for their tax reporting. This press release is not intended to replace Form 1099-DIV or Form 2439.

Deemed Distribution of $0.783902 per share

RMRM also announced a deemed distribution of $0.783902 per share attributable to shareholders of record as of the close of business on December 31, 2020 and that such deemed distribution is characterized as long-term capital gain. RMRM has provided questions and answers on its website (www.rmrmortgagetrust.com/investors/stock-information) regarding deemed distributions generally, as we believe the concept of deemed distributions may be new to many of our shareholders.

RMRM does not provide tax advice to its shareholders. Please consult your personal tax advisor regarding questions about your individual tax situation.

RMR Mortgage Trust (Nasdaq: RMRM) is a real estate finance company that originates and invests in first mortgage loans secured by middle market and transitional commercial real estate. RMRM is managed by an affiliate of The RMR Group Inc. (Nasdaq: RMR). Substantially all of RMR’s business is conducted by its majority owned subsidiary, The RMR Group LLC, which is an alternative asset management company with more than $32 billion in assets under management and more than 30 years of institutional experience in buying, selling, financing and operating commercial real estate. For more information about RMRM, please visit www.rmrmortgagetrust.com.

WARNING CONCERNING FORWARD-LOOKING STATEMENTS

This press release contains statements that constitute forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995 and other securities laws. Also, whenever RMRM uses words such as “believe”, “expect”, “anticipate”, “intend”, “plan”, “estimate”, “will”, “may” and negatives or derivatives of these or similar expressions, RMRM is making forward-looking statements. These forward-looking statements are based upon RMRM’s present intent, beliefs or expectations, but forward-looking statements are not guaranteed to occur and may not occur. Actual results may differ materially from those contained in or implied by RMRM’s forward-looking statements as a result of various factors. Forward-looking statements involve known and unknown risks, uncertainties and other factors, some of which are beyond RMRM’s control.

The information contained in RMRM’s filings with the SEC, including under “Risk Factors” in RMRM’s periodic reports or incorporated therein, identifies other important factors that could cause RMRM’s actual results to differ materially from those stated in or implied by RMRM’s forward-looking statements. RMRM’s filings with the SEC are available on the SEC’s website at www.sec.gov.

You should not place undue reliance upon forward-looking statements.

Except as required by law, RMRM does not intend to update or change any forward-looking statements as a result of new information, future events or otherwise.

Kevin Barry, Manager, Investor Relations
(617) 658-0776
www.rmrmortgagetrust.com