The Trustees of the Romspen Mortgage Investment Fund (RMIF) have announced a distribution of $0.03 per unit and a net asset value of $9.666 per unit for the month of May 2023 payable June 15, 2023.

Fellow Unitholders:

We have communicated with you a number of times this month on the ongoing commercial real estate and credit market disruptions caused by the rapid rise in interest rates. These dislocations have prompted a significant decrease in transaction activity, as asset value uncertainty induces real estate market participants to remain on the sidelines, and large institutional providers of real estate credit introduce more stringent lending guidelines. These conditions have knock-on effects on the Fund’s resources, as borrowers’ efforts to refinance or sell properties are delayed and planned collateral monetization takes longer to complete.   

When these unprecedented macroeconomic conditions first began to manifest themselves, we advised that Fund distributions would likely be below historical norms until a new market equilibrium was reached, and transaction activity resumed. Unfortunately, that has not yet occurred, and while the Fund’s longer-term results remain strong, we recognize that these short‑term results fall short of your expectations. They fall short of ours, as well. Please be assured that the Trustees’ immediate goal continues to be preserving capital and generating liquidity and income in order to further the Fund’s objectives. 

We have previously stated that while the economy may have changed dramatically, our approach to commercial mortgage investing has not. The Fund’s portfolio is carefully underwritten to ensure a margin of safety and is well diversified across regions, markets, and asset classes. Our experience and size allow us to avoid being a forced seller. We believe the Fund continues to be positioned to continue to weather the current turbulence, and we remain steadfast in our commitment to returning to a level of monthly distributions in line with the Fund’s past performance.

We want to thank you for your patience and understanding as we continue to work diligently in our stewardship of the Fund. As always, we welcome your questions and comments. You can reach us at 416-966-1100 or InvestorRelations@romspen.com.  

Yours very truly,
The Trustees of the Romspen Mortgage Investment Fund