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MainStay CBRE Global Infrastructure Megatrends Term Fund (NYSE: MEGI) Declares Monthly Distribution for June 2024 and Availability of 19(a) Notice

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MainStay CBRE Global Infrastructure Megatrends Term Fund (NYSE: MEGI) has declared a monthly distribution of $0.1250 per common share for June 2024, with an annualized distribution rate of 11.79% based on a closing price of $12.72, and 10.32% based on a closing NAV of $14.54. The ex-dividend and record dates are June 25, 2024, with the payable date being June 28, 2024. The distribution for June is sourced entirely from net investment income. As of May 31, 2024, the Fund's average annual total return is –3.32%, with a cumulative total return of 2.74% for the fiscal year. The Board of Trustees reviews distributions quarterly, aiming to match net investment income and realized capital gains. Future earnings and distribution rates are not guaranteed and may change based on the Fund's performance and tax regulations.

Positive
  • Declared monthly distribution of $0.1250 per share for June 2024.
  • Annualized distribution rate of 11.79% based on closing price of $12.72.
  • Distribution sourced entirely from net investment income, showing income stability.
  • Cumulative total return of 2.74% for the fiscal year ending May 31, 2024.
Negative
  • Average annual total return of –3.32% as of May 31, 2024.
  • Future earnings and distribution rates are not guaranteed.
  • Distributions may be subject to changes based on tax regulations.
  • Potential tax consequences from return of capital distributions if shares are sold at a loss.

MainStay CBRE Global Infrastructure Megatrends Term Fund (NYSE: MEGI) has announced a monthly distribution of $0.1250 per common share for June 2024. This creates an annualized distribution rate of 11.79% based on the recent closing price of $12.72 and 10.32% based on the NAV of $14.54. These high yield figures are attractive, especially in a low-interest-rate environment, but investors should tread cautiously. While a high distribution rate can be appealing, it’s important to consider the sustainability of such payouts.

The fund's performance metrics, such as an average annual total return of -3.32% and a cumulative total return of 2.74%, show that the distributions are not necessarily indicative of robust returns. The 10.03% annualized distribution rate relative to the month-end NAV indicates that the fund is committed to returning capital to shareholders, though this might come with some risks.

It's also important to note that 100% of the current distribution comes from the fund's net investment income. There is no return of capital, which is a positive sign as distributions are not eroding the NAV. The fund's ability to maintain this level of distribution will depend heavily on its future investment performance and market conditions.

Investors should closely monitor the fund’s NAV and performance metrics. While the high distribution is enticing, the negative total return in relation to the NAV raises a red flag about the fund's capital appreciation potential. This is a reminder to look at the total returns and not just the yield.

Market conditions are fundamental when evaluating this fund. Given that it invests heavily in income-producing equity securities from infrastructure companies, its performance is tied to the health of the infrastructure sector. Factors such as government investment plans, regulatory changes and macroeconomic conditions can significantly impact infrastructure investments.

The 11.79% distribution rate is certainly high compared to industry norms and could face scrutiny if there's any downturn in infrastructure spending or economic slowdown. Moreover, despite the attractive yield, potential investors need to consider the potential volatility of the securities held by the fund.

Closed-end funds like this one often trade at a discount or premium to their NAV. The current closing price is lower than the NAV, which implies the market may have concerns about the fund's future performance or sustainability of distributions. This could present an opportunity for investors if they believe the market is undervaluing the fund's assets or future income potential.

Understanding market sentiment is essential, as it can influence the pricing of such funds. Currently, the sector's outlook seems moderately stable, but any shifts in market dynamics or infrastructure spending patterns can affect the fund’s returns.

NEW YORK, June 14, 2024 /PRNewswire/ -- MainStay CBRE Global Infrastructure Megatrends Term Fund (the "Fund") (NYSE: MEGI) today announced the Fund's monthly distributions for June 2024 of $0.1250 per common share. The Fund's current annualized distribution rate is 11.79% based upon the closing price of $12.72 on June 12, 2024, and 10.32% based upon the Fund's closing NAV of $14.54 as of the same date.

Dividend Distribution Schedule:


Ex-Dividend Date

Record Date

Payable Date

June

6-25-2024

6-25-2024

6-28-2024

 

The amounts and sources of distributions reported in this Notice are only estimates and are not being provided for tax reporting purposes. The actual amounts and sources of the amounts for tax reporting purposes will depend upon the Fund's investment experience during the remainder of its fiscal year and may be subject to changes based on tax regulations. The Fund will send you a Form 1099-DIV for the calendar year that will tell you how to report these distributions for federal income tax purposes.

You should not draw any conclusions about the Fund's investment performance from the amount of this distribution or from the terms of the Fund's Distribution Policy.

Future earnings of the Fund cannot be guaranteed, and the Fund's distribution policy is subject to change. For more information on the Fund, please visit the Fund's website here.

The Fund's monthly distribution is set by its Board of Trustees. The Board reviews the Fund's distribution on a quarterly basis in view of its net investment income, realized and unrealized gains, and other net unrealized appreciation or income expected during the remainder of the year. The Fund strives to establish a level monthly distribution that, over the course of the year, will serve to distribute an amount closely approximating the Fund's net investment income and net realized capital gains during the year.

The following table sets forth the estimated sources of income of the current distribution, and the cumulative distributions paid this fiscal year to date from the following sources: net investment income, net realized short-term capital gains, net realized long-term capital gains and return of capital or other capital source. All amounts are expressed on a per share of common stock basis and as a percentage of the distribution amount.

Data as of 6/30/2024

Source

Current
Distribution per
Share

Percent of
Current
Distribution

Fiscal YTD

Cumulative
Distribution per Share

Fiscal YTD Percent of
Total Cumulative Distributions

Net Investment Income

$0.1250

100 %

$0.1250

100 %

Net Realized Short-Term Capital Gains

$0.0000

0 %

$0.0000

0 %

Net Realized Long-Term Capital Gains

$0.0000

0 %

$0.0000

0 %

Return of Capital or Other Capital Sources

$0.0000

0 %

$0.0000

0 %

Total per Share

$0.1250

100 %

$0.1250

100 %



Fund Performance and Distribution Rate Information as of 5/31/2024


Average annual total return1 (in relation to the net asset value (NAV))

3.32%

Annualized current distribution rate expressed as a percentage of month end NAV as of
5/31/2024

10.03%2

Cumulative total return3 (in relation to NAV (not annualized)) for the fiscal period ending
5/31/2024

2.74 %

Cumulative fiscal year distribution rate as a percentage of NAV as of 5/31/2024

9.80%4



  1. Represents the annualized total return in relation to the change in NAV from inception (10/27/2021) through 5/31/2024.
  2. Represents the current monthly distribution rate annualized as a percentage of NAV as of 5/31/2024.
  3. Represents the cumulative total return in relation to the change in NAV for the current fiscal period 6/1/2023 through 5/31/2024.
  4. Represents the cumulative distribution rate for the current fiscal period 6/1/2023 through 5/31/2024, which is determined by dividing the dollar value of distributions in the period by the NAV as of 5/31/2024.

 


 

There is no assurance the Fund will continue to pay regular monthly distributions or that it will do so at a particular rate.

You should not draw any conclusions about the Fund's investment performance from the amount of its distribution to shareholders.

Any distributions in excess of the Fund's current and accumulated earnings and profits will be treated first, as a tax-deferred return of capital, which is applied against and will reduce the adjusted tax basis of shares and, after such adjusted basis is reduced to zero, will generally constitute capital gains. A return of capital distribution may lower a shareholder's basis in the Fund, causing a potential future tax consequence in connection with the sale of Fund shares, even if such shares are sold at a loss to the shareholder's initial investments.

Any amounts and sources of distributions are only estimated and are not being provided for tax reporting purposes. The actual amounts and sources of income of the amounts for tax reporting purposes will depend on the Fund's investment experience during the remainder of its fiscal year and may be subject to changes based on tax regulations. The Fund will send a Form 1099-DIV for the calendar year that will advise how to report these distributions for federal income tax purposes.

The Fund is a closed-end fund, which is traded on the New York Stock Exchange and invests primarily in income-producing equity securities issued by infrastructure companies. Holdings are subject to change. Past performance is no guarantee of future results.

The Fund's daily New York Stock Exchange closing prices, net asset values per share, as well as other information are available by clicking here or by calling the Fund's shareholder servicing agent at (855) 456-9683.

Before considering an investment in the Fund, you should understand that you could lose money. There are risks inherent in all investments.

For more information about the Fund, including specific risks, please visit our website here.

About New York Life Investments
With over $725 billion in Assets Under Management* as of March 31, 2024, New York Life Investments, Pensions and Investments' 25th Largest Money Manager**, is comprised of the affiliated global asset management businesses of its parent company, New York Life Insurance Company, and offers clients access to specialized, independent investment teams through its family of affiliated boutiques. New York Life Investments remains committed to clients through a combination of the diverse perspectives of its boutiques and a long-lasting focus on sustainable relationships.

*Assets under management (AUM) includes assets of the investment advisers that make up "New York Life Investments" as of 3/31/2024.  AUM includes certain assets, such as non-discretionary AUM, external fund selection, and overlay services, including ESG screening services, advisory consulting services, white labeling services, and model portfolio delivery services, that are not necessarily considered Regulatory Assets Under Management according to the SEC's Form ADV. AUM is reported in USD.  AUM not denominated in USD is converted at the spot rate as of 3/31/2024. The total AUM figure of "New York Life Investments" is less than the sum of the AUM of each affiliated investment adviser in the group because it does not count AUM where the same assets can be counted by more than one affiliated investment adviser.

** On June 12, 2023, New York Life Investments was ranked #25 in Pensions & Investments' Largest Money Managers 2023 for the time period 12/31/21 – 12/31/22. (Managers are ranked by total worldwide institutional assets under management. Full list here.) No direct or indirect compensation was paid for the creation and distribution of this ranking. For more information about ranking click here - Largest Money Managers 2023 | Pensions & Investments (pionline.com)

"New York Life Investments" is both a service mark, and the common trade name, of certain investment advisors affiliated with New York Life Insurance Company.

About CBRE Investment Management
CBRE Investment Management Listed Real Assets LLC is the listed real assets arm of CBRE Investment Management, a leading global real assets investment management firm with $144 billion in assets under management* as of March 31, 2024, operating in more than 30 offices and 20 countries around the world. Through its investor-operator culture, the firm seeks to deliver sustainable investment solutions across real assets categories, geographies, risk profiles and execution formats so that its clients, people and communities thrive.

CBRE Investment Management is an independently operated affiliate of CBRE Group, Inc. (NYSE:CBRE), the world's largest commercial real estate services and investment firm (based on 2023 revenue). The company has more than 130,000 employees (including Turner & Townsend employees) serving clients in more than 100 countries. CBRE Investment Management harnesses CBRE's data and market insights, investment sourcing and other resources for the benefit of its clients. For more information, please visit www.cbreim.com.

*Assets under management (AUM) refers to the fair market value of real assets-related investments with respect to which CBRE Investment Management provides, on a global basis, oversight, investment management services and other advice and which generally consist of investments in real assets; equity in funds and joint ventures; securities portfolios; operating companies and real assets-related loans. This AUM is intended principally to reflect the extent of CBRE Investment Management's presence in the global real assets market, and its calculation of AUM may differ from the calculations of other asset managers and from its calculation of regulatory assets under management for purposes of certain regulatory filings.

This press release is not an offer to sell securities and is not a solicitation of an offer to buy securities, nor will there be any sales of securities in any jurisdiction where the offer or sale is not permitted.

New York Life Investment Management LLC engages the services of SEC-registered advisors. CBRE Investment Management Listed Real Assets (CBRE Investment Management) is unaffiliated with New York Life Investment Management LLC. The MainStay Funds® are managed by New York Life Investment Management LLC and distributed by NYLIFE Distributors LLC, 30 Hudson Street, Jersey City, NJ 07302, a wholly owned subsidiary of New York Life Insurance Company. NYLIFE Distributors LLC is a Member FINRA/SIPC.

Media Contacts:
New York Life Investments:                                                  
Sara Guenoun
Sara_J_Guenoun@newyorklife.com

 

Cision View original content:https://www.prnewswire.com/news-releases/mainstay-cbre-global-infrastructure-megatrends-term-fund-nyse-megi-declares-monthly-distribution-for-june-2024-and-availability-of-19a-notice-302172786.html

SOURCE New York Life Investments

FAQ

What is the distribution amount declared by MainStay CBRE Global Infrastructure Megatrends Term Fund (MEGI) for June 2024?

The declared distribution amount for June 2024 is $0.1250 per common share.

What is the annualized distribution rate for MEGI based on the closing price?

The annualized distribution rate is 11.79% based on a closing price of $12.72 as of June 12, 2024.

When are the ex-dividend and payable dates for MEGI's June 2024 distribution?

The ex-dividend and record dates are June 25, 2024, with the payable date on June 28, 2024.

What source is the June 2024 distribution for MEGI derived from?

The June 2024 distribution is sourced entirely from net investment income.

What is MEGI's average annual total return as of May 31, 2024?

MEGI's average annual total return is –3.32% as of May 31, 2024.

What is the cumulative total return for MEGI for the fiscal year ending May 31, 2024?

The cumulative total return for the fiscal year ending May 31, 2024, is 2.74%.

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