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CIM Interval Fund Raises Distribution Rate by 21%

CIM Interval Fund Raises Distribution Rate by 21%. Alternative investment, CIM, CIM Group, closed-end fund, credit, interval fund, investment, real estate
CIM Interval Fund Raises Distribution Rate by 21%. Alternative investment, CIM, CIM Group, closed-end fund, credit, interval fund, investment, real estate

CIM Real Assets & Credit Fund, a continuously offered closed-end interval fund, has raised its annualized distribution rate from 7.0% to 8.5% of net asset value, an increase of more than 21%, as of the close of the third quarter 2023. The fund had previously raised its distribution rate from 6.0% to 7.0% near the end of the first quarter 2023.

The increase in the distribution rate reflects increasing income on the fund’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 Real Assets & Credit Fund says it 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 Sept. 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, $0.167 per share of Class C common shares, $0.173 per share of Class I common shares and $0.170 per share of each Class L common shares for each of October, November and December 2023.

CIM Real Assets & Credit Fund is a non-diversified, closed-end management investment company, registered under the Investment Company Act of 1940, 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. The fund’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.

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