CIM Real Assets & Credit Fund (CIM RACR) reported its declared monthly cash dividends representing an annualized distribution rate of 8.5 percent of net asset value per share (as of the close of business on Oct. 12, 2023). In addition, a portion of RACR’s distribution may be tax deferred, whereas income from bonds and credit funds are typically 100 percent 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 percent credit (both real estate and corporate credit) and 30 percent direct private real assets and deploys capital based on market opportunity. As of Sept. 30