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Follower ○○○

RIF Conversion

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Participant ○

Re: RIF Conversion

I don't know much about such conversions, but I know that individuals with sponsor RMR have had in the past many intertwined financial relationships with other related real estate entities, with some non-arm's-length transactions, so investors need to keep an eye on that.  

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Contributor ○○

Re: RIF Conversion

RMR already has an mREIT that I believe changes hands at 50c of NAV/Book Value.

So if running a CEF trading at 20% discount isn't bad enough for shareholders.....they can vote for the conversion and make themselves even worse off.

This mgmt team is UNINVESTABLE

Normally, everything has a price.  

Even bad/poor governance.

Just bake in a deep enough discount.

These are some of the few widgets where I don't think that rule can protect investors.

Someone probably reasonably thought the existing discount was enough margin of safety, but no, the advisor can make things even worse.

There's no evidence that these guys know any thing more about property lending that they did about REIT stock picking.

I don't understand how they get past an investment banks reputational risk comte.  

Normally good underwriters don't want to get sullied with dodgy issuers, so they end up having to go through the sad little regionals.  Somehow RMR has periodically gotten real firms to help them.

Its crazy.

Contributor ○

Re: RIF Conversion

@Foghorn wrote:

Anyone know of any other CEF to company conversions and how they worked out?

Global Self Storage (SELF) changed from being an investment company (Global Income Fund - a CEF) to an operating company (a REIT in this case). The SEC filings are here:

There is also a proposal for High Income Securities Fund (PCF) to deregister as an investment company.


I would be more inclined to look into the history of RMR's governance of RIF and the REITs it manages now or managed in the past.

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