Clarion Partners Real Estate Income Fund Inc. Announces Funds from Operations

Key Terms

funds from operations financial

Funds from operations (FFO) measures the cash a real estate-focused company generates from its core property operations by adjusting net income to add back non-cash expenses like building depreciation and removing one-time gains or losses from property sales. Investors use FFO like a household’s monthly take-home pay—it's a clearer view of ongoing cash available to pay dividends, maintain properties and fund growth than raw accounting profit.

adjusted funds from operations financial

Adjusted funds from operations is a financial measure that shows how much cash a real estate company generates from its property operations, excluding certain non-recurring items and accounting adjustments. It helps investors understand the company’s true cash flow ability to pay dividends or fund growth. This figure offers a clearer picture of ongoing financial performance by removing irregular or one-time factors that can distort regular income.

funds available for distribution financial

Funds available for distribution is the cash a company or fund has left to pay shareholders after collecting operating income and paying normal expenses, taxes and routine reserves for maintenance or repairs. Investors use it like a checking-account balance that shows how much can be safely paid out as dividends or distributions without tapping into borrowing or cutting essential operations, making it a practical gauge of payout sustainability.

non-GAAP financial

Non-GAAP refers to financial measures that companies use to show their earnings or performance without including certain expenses or income that are often added back to give a different picture. It matters because it can make a company's results look better or more favorable, but it may also hide important costs, so investors need to look at both GAAP (official rules) and non-GAAP numbers to get a full understanding.

real estate investment trust financial

A real estate investment trust (REIT) is a company that owns and manages income-producing properties—like apartment buildings, shopping centers, offices, or warehouses—and is required to pass most of its rental income to shareholders as dividends. Think of it as a shared property owner: instead of buying a whole building, investors buy a slice of a portfolio that pays regular income and can offer exposure to property values and rental markets without direct management. REITs matter to investors for predictable income, diversification, and liquidity compared with owning physical real estate.

GAAP financial

GAAP, or Generally Accepted Accounting Principles, are a set of standardized rules and guidelines that companies follow when preparing their financial statements. They ensure consistency, transparency, and comparability across different companies, making it easier for investors to understand and compare financial information accurately. This helps investors make informed decisions based on trustworthy and uniform financial reports.

closed-end management investment company financial

A closed-end management investment company is a pooled investment fund that raises a fixed amount of capital by issuing a set number of shares and then lists those shares for trading on an exchange; investors buy and sell shares on the market rather than redeeming them back to the fund. Think of it like a store with a fixed number of bottles on the shelf: the market price can be higher or lower than the underlying value of the assets, which matters to investors because it affects returns, liquidity and income characteristics independent of the fund’s actual holdings.

forward-looking statements regulatory

Forward-looking statements are predictions or plans that companies share about what they expect to happen in the future, like estimating sales or profits. They matter because they help investors understand a company's outlook, but since they are based on guesses and assumptions, they can sometimes be wrong.

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NEW YORK--(BUSINESS WIRE)-- Clarion Partners Real Estate Income Fund Inc. (the “Fund”) has announced funds from operations (“FFO”), adjusted funds from operations and funds available for distribution for the period of January 1, 2026 to March 31, 2026.

The Fund believes FFO is a meaningful supplemental non-GAAP operating metric. FFO is a standard real estate investment trust (“REIT”) industry metric defined by the National Association of Real Estate Investment Trusts (“NAREIT”). FFO as presented below is calculated as a net increase in net assets resulting from operations (computed in accordance with accounting principles generally accepted in the U.S. (“GAAP”)), excluding (i) gains or losses from sales of investments and (ii) the change in net unrealized appreciation (depreciation) of investments.

The Fund also believes that adjusted FFO (“AFFO”) is a meaningful non-GAAP supplemental disclosure of its operating results. AFFO further adjusts FFO in order for the Fund’s operating results to reflect the specific characteristics of its business by adjusting for items it believes are not related to its core operations. The Fund’s adjustments to FFO to arrive at AFFO include removing the impact of (i) amortization of premium (accretion of discount) on real estate securities, (ii) amortization of deferred origination fees and (iii) amortization of deferred loan financing costs.
Furthermore, the Fund believes that funds available for distribution (“FAD”) is an additional meaningful non-GAAP supplemental disclosure that provides useful information for considering Fund operating results and certain other items relative to the amount of Fund distributions by removing the impact of certain non-cash items from Fund operating results. FAD is calculated as AFFO excluding (i) recurring tenant improvements, leasing commissions and other capital expenditures and adjusted for (ii) undistributed/(overdistributed) income attributable to non- consolidated joint ventures. FAD is not indicative of cash available to fund the Fund’s cash needs and does not represent cash flows from operating activities in accordance with GAAP, as it excludes adjustments for working capital items.

FFO, AFFO and FAD should not be considered more relevant or accurate than the GAAP methodology in evaluating the Fund’s operating performance. In addition, FFO, AFFO and FAD should not be considered alternatives to net income (loss) as indications of the Fund’s performance or as alternatives to cash flows from operating activities as indications of liquidity, but rather should be reviewed in conjunction with these and other GAAP measurements. Further, FFO, AFFO and FAD are not intended to be used as liquidity measures indicative of cash flow available to fund the Fund’s cash needs, including its ability to make distributions to stockholders.

Funds from Operations, Adjusted Funds from Operations and Funds available for Distribution (unaudited)
For the period of January 1, 2026 to March 31, 2026
Net increase in net assets applicable to common shareholders resulting from operations	$ 19,217,830
Adjustments to arrive at FFO:
Net realized loss on investments	297,525
Change net unrealized appreciation (depreciation) of investments	(5,302,133)
FFO attributable to common shareholders	14,213,222
Adjustments to arrive at AFFO:
Amortization of premium (accretion of discount) on real estate securities	(219,181)
Amortization of deferred origination fees	(206,685)
Amortization of deferred loan and mortgage financing costs	143,972
Amount attributable to non-consolidated joint ventures for above adjustments	165,275
AFFO attributable to common shareholders	14,096,603
Adjustments to arrive at FAD:
Recurring tenant improvements, leasing commissions and other capital expenditures	(71,783)
Undistributed/(overdistributed) income attributable to non-consolidated joint ventures	(540,259)
Amount attributable to non-consolidated joint ventures for above adjustments	(381,759)
FAD attributable to common shareholders	$13,102,802
Distributions to common shareholders	$(22,440,996)

The Fund is a non-diversified, closed-end management investment company that continuously offers its common stock. The Fund’s investment manager, Franklin Templeton Fund Adviser, LLC, is an indirect, wholly-owned subsidiary of Franklin Resources, Inc. (“Franklin Resources”) and the Fund’s investment subadviser, Clarion Partners, LLC (“Clarion Partners”), is an indirect, majority-owned subsidiary of Franklin Resources. In addition, the Fund’s securities subadviser, Western Asset Management Company, LLC (“Western Asset”), also is an indirect, wholly-owned subsidiary of Franklin Resources.

Data and commentary provided in this press release are for informational purposes only. Hard copies of the Fund’s complete audited financial statements are available free of charge upon request. For more information on the Fund, go to www.cprex.com.

THIS PRESS RELEASE IS NOT A PROSPECTUS, CIRCULAR OR REPRESENTATION INTENDED FOR USE IN THE PURCHASE OR SALE OF FUND SHARES. THIS PRESS RELEASE MAY CONTAIN STATEMENTS REGARDING PLANS AND EXPECTATIONS FOR THE FUTURE THAT CONSTITUTE FORWARD-LOOKING STATEMENTS WITHIN THE PRIVATE SECURITIES LITIGATION REFORM ACT OF 1995. ALL STATEMENTS OTHER THAN STATEMENTS OF HISTORICAL FACT ARE FORWARD-LOOKING AND CAN BE IDENTIFIED BY THE USE OF WORDS SUCH AS “MAY,” “WILL,” “EXPECT,” “ANTICIPATE,” “ESTIMATE,” “BELIEVE,” “CONTINUE” OR OTHER SIMILAR WORDS. SUCH FORWARD-LOOKING STATEMENTS ARE BASED ON THE FUND’S CURRENT PLANS AND EXPECTATIONS, AND ARE SUBJECT TO RISKS AND UNCERTAINTIES THAT COULD CAUSE ACTUAL RESULTS TO DIFFER MATERIALLY FROM THOSE DESCRIBED IN THE FORWARD-LOOKING STATEMENTS. ADDITIONAL INFORMATION CONCERNING SUCH RISKS AND UNCERTAINTIES ARE CONTAINED IN THE FUND’S FILINGS WITH THE SECURITIES AND EXCHANGE COMMISSION (THE “SEC”).

Category: Fund Announcement
Source: Franklin Resources, Inc.
Source: Legg Mason Closed End Funds

View source version on businesswire.com: https://www.businesswire.com/news/home/20260526187213/en/

Franklin Templeton
Public Relations: Rebecca Radosevich (212) 632-3207
rebecca.radosevich@franklintempleton.com

Clients:
Franklin Templeton
AlternativesbyFTInvestorServices@franklintempleton.com

Investor: Fund Investor Services 1-888-777-0102
Media: Jeaneen Terrio
+1 (212) 632-4005
Jeaneen.Terrio@franklintempleton.com

Source: Franklin Resources, Inc. and Legg Mason Closed End Funds