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PIMCO COMMERCIAL MORTGAGE SECURITIES TRUST INC. HIGHLIGHTS PROGRESS OF PORTFOLIO

 NEWPORT BEACH, Calif. Nov. 19 /PRNewswire/ -- The PIMCO Commercial Mortgage Securities Trust Inc. (NYSE: PCM), a closed-end management investment company organized to invest primarily in commercial mortgage- backed securities, today reported the following information on the progress of the fund, which commenced operations on Sept. 2, 1993:
 Dividends
 Fund management intends to recommend to the board of directors that a dividend of $0.25 per share be declared in December 1993, to be paid in January 1994. The fund has become fully invested during its initial operating period. It is anticipated that, with a fully invested portfolio throughout the first quarter of 1994, the dividend to be paid in April 1994 will be at an annual rate of 7.5 percent, based on the initial public offering price of $15 per share.
 Portfolio Statistics
 The fund currently has 84 percent of its total assets invested in commercial mortgage-backed securities, with 10 percent and 6 percent, respectively, invested in corporate bonds and commercial paper. The current weighted average portfolio quality is A, and the average duration is 3.9 years. The NAV per share calculated on Nov. 18, 1993, was $13.97, up $0.03 from the prior week's calculation.
 Outlook for Commercial Mortgage-Backed Securities
 PIMCO, the fund's investment manager, believes there are several factors that warrant a positive outlook for commercial mortgage-backed securities. Commercial real estate values appear to be recovering along with the general economy, a trend which PIMCO expects will continue for some time. The virtual cessation of construction activity which took place during the recent recession should lead to a reduction in vacancy rates for most types of commercial real estate, resulting in a rise in property values. An increase in values would further strengthen the collateral underlying the commercial mortgage-backed securities held by the fund, thereby improving the credit quality of the securities and offering the potential for capital gains. At the same time, because comme ?mortgage-backed securities are not generally subject to prepayment risk, they are substantially protected from the refinancing activity that has harmed residential mortgage-backed securities. Finally, commercial mortgage-backed securities continue to yield more than comparably rated corporate securities, a fact which, together with the potential for capital appreciation, results in PIMCO's opinion in relatively attractive prospects for total return over time.
 -0- 11/19/93
 /CONTACT: Jeff Sargent, 714-760-4743/
 (PCM)


CO: PIMCO Mortgage Securities Trust Inc. ST: California IN: FIN SU:

NY-EH -- LA018 -- 6630 11/19/93 15:29 EST
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Publication:PR Newswire
Date:Nov 19, 1993
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