news—04.03.2023

Clarion Partners Real Estate Income Fund Raises Monthly Distribution

Press Release

​​​As interest rates have been rising, the Fund has been borrowing less, investing more creatively


NEW YORK, (April 3, 2023) – The Clarion Partners Real Estate Income Fund Inc. (“the Fund”), an Investment Company Act of 1940 tender offer fund designed to provide individual investors access to a portfolio of deeply researched, high-quality commercial real estate holdings, has raised its monthly distribution1 on Class I shares from $0.054 per share to $0.067 per share, which is a 24% increase and now equal to annualized distribution rate of 6.5% as of March 31, 2023.

Actively managed by Clarion Partners, which for more than 40 years has been a leader in building and managing private real estate portfolios for some of the world’s largest institutional investors, the Clarion Partners Real Estate Income Fund provides investors and advisors access to an institutional-quality2 portfolio of direct real estate holdings and structured investments comprising preferred equity and mezzanine debt.

​“As interest rates rise, banks are stepping back from providing liquidity to the private real estate space. Thanks to our highly flexible investment structure and the deep research we bring to every potential investment we have been able to identify and take advantage of a number of attractive structured equity and debt opportunities,” said Richard Schaupp, Clarion Partners Managing Director and Portfolio Manager for the Fund. “These investments have been delivering significant yields, which we are now able to pass on to our shareholders in the form of this distribution increase.”

Similar to Clarion’s overall portfolio composition built with decades of experience, the Fund’s investment strategy is focused on sectors in which Clarion has high conviction and present growth opportunities, specifically industrial warehouse and multifamily apartment.

“A disciplined investment approach is essential when it comes to sourcing opportunities,” added Janet Souk, Managing Director and Portfolio Manager. “It is even more important in markets such as the one in which we find ourselves today, where rates are rising, volatility is heightened, and investors are searching for new ways to add income, that we keep close eye on risk. We’re very proud of the track record we have built at Clarion and with the Clarion Partners Real Estate Income Fund, and we’re thrilled that our efforts are allowing us to announce this new, increased monthly distribution for our shareholders.”

For more information about the Clarion Partners Real Estate Income Fund, please visit https://www.cpreif.com/​.


Clarion Partners Real Estate Income Fund Inc. is distributed by Franklin Distributors, LLC.

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http://clarionpartnersprd/cpnews/Documents/press-releases/clarion_partners_CPREX_distribution.pdf​

Definitions

Footnotes

​1 The Fund expects to ordinarily pay distributions from its net investment income, if any, on a monthly basis; however, the Fund cannot guarantee that it will make distributions and the amount of distributions that the Fund may pay, if any, is uncertain.

2 Institutional Quality: while not a precisely defined term, an institutional-grade, or institutional-quality property generally refers to a property of sufficient size and stature to merit attention from large national or international investors.

3 Other fees and expenses may apply. Please see Fund prospectus for additional information.

4 “Other Expenses” are estimated on Fund net assets of $200 million and anticipated expenses. LMPFA has agreed to waive fees and/or reimburse the Fund’s expenses (including organizational and offering expenses, but excluding property management, acquisition, disposition expenses, any other expenses related to investments in real property, debt and real-estate related securities, expenses related to Borrowings or the issuance of Preferred Stock, interest, brokerage, tax and extraordinary expenses and acquired fund fees and expenses) to the extent necessary to ensure that the total annual Fund operating expenses (excluding Specified Expenses) attributable to Class I Shares will not exceed 1.75% of NAV, subject to recapture as described below. These arrangements cannot be terminated prior to December 31, 2023 without the Board’s consent. LMPFA is permitted to recapture amounts forgone or reimbursed within three years after the fiscal year in which LMPFA earned the fee or incurred the expense if the total annual Fund operating expenses have fallen to a level below the limit described herein. In no case will LMPFA recapture any amount that would result, on any particular business day of the Fund, in a relevant class’s total annual operating expenses exceeding the applicable limits described above or any other lower limit then in effect.​


Disclosures

Performance data quoted represents past performance, which does not guarantee future results. Current performance may be lower or higher than the figures shown. Principal value and investment returns will fluctuate, and investors' shares, when redeemed, may be worth more or less than the original cost. Performance would have been lower if fees had not been waived in various periods. Total returns assume the reinvestment of all distributions and the deduction of all Fund expenses. Returns with sales charge reflect a deduction of the stated maximum sales charge. Returns without sales charge would have been lower had sales charges been reflected. An investor cannot invest directly in an index, and unmanaged index returns do not reflect any fees, expenses or sales charges. Returns for periods of less than one year are not annualized.

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Investment in real estate is speculative and involves significant risk. For more information about certain of the material risks and limitations associated with Clarion Partners’ investment advisory products, strategies and services, please see Clarion’s current Form ADV Part 2A brochure, which is available on the SEC’s Investment Adviser Public Disclosure website at https://adviserinfo.sec.gov/firm/summary/108803. Investors should consider their investment objectives, and it is strongly suggested that the reader seek his or her own independent advice in relation to any investment, financial, legal, tax, accounting or regulatory risks and evaluate their own risk tolerance before investing.

This material does not constitute investment advice, nor does it constitute an offer in any product or strategy offered by Clarion Partners LLC or Clarion Partners Europe, and should not be viewed as a current or past recommendation to buy or sell any securities. Any specific investment referenced may or may not be held in a Clarion Partners client account. It should not be assumed that any investment, in any property or other asset, was or will be profitable.

All Clarion Partners LLC and Clarion Partners Europe statistics, data and charts, including but not limited to assets under management (AUM), ESG data, sector data and property data, as well as data related to our investors, tenants and employees, are as of March 31, 2023 unless otherwise noted.

Photos used in this website were selected based on visual appearance, are used for illustrative purposes only, and are not necessarily reflective of all the investments in a Clarion fund or portfolio or the investments a Clarion fund or portfolio will make in the future.

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