RMIF Monthly Distribution and Net Asset Value for September 2022

The Trustees of the Romspen Mortgage Investment Fund (RMIF) have announced a distribution of $0.04 per unit and a net asset value of $9.80 per unit for the month of September 2022, payable October 17, 2022. This represents an increase of 3.3 cents per unit for a total return of 0.75%.

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Dear Investors:

Last month, we updated you on how current volatile economic conditions are impacting commercial real estate markets and the Fund’s operations.   Transaction volume has declined, and, as a result, our mortgage repayments have declined.  We affirmed our confidence in the quality of the Fund’s underlying portfolio, and in our ability to navigate through this turbulence to a pattern of mortgage loan repayments and collateral realizations in line with the Fund’s historical baselines.

During the month, we also noted how elevated levels of unitholder redemption requests make these operational challenges more complex, and that unitholder liquidity must be balanced with the long-term interests of the Fund.  On September 26th, we invoked the “Run-Off Pool” provision of the Fund’s Declaration of Trust, offering redeeming unitholders the option to receive a share of the Fund’s assets, which would pay out over time as the underlying loans and assets in the pool are repaid and monetized.  Those who opted not to participate would be restricted from requesting a redemption for 12 months.

We will be evaluating the impact of the Run-Off Pool on the magnitude of redemption requests over the next couple of weeks, in conjunction with the level of refinancing and sale activity within the portfolio, and we will provide further regular updates as our assessment evolves.

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

The Trustees of the Romspen Mortgage Investment Fund