NEWPORT BEACH, Calif., April 28, 2004 (PRIMEZONE) -- PIMCO Commercial Mortgage Securities Trust, Inc. (NYSE:PCM) today released its investment performance results and statistical portfolio information for the period January 1, 2004 through March 31, 2004 (first quarter).
PIMCO Commercial Mortgage Securities Trust, Inc. ("PCM" or the "Fund") is a closed-end bond fund that invests principally in commercial mortgage-backed securities ("CMBS"). The primary investment objective of the Fund is to achieve high current income, with capital gain from the disposition of investments as a secondary objective. Pacific Investment Management Company LLC ("PIMCO"), an investment adviser with more than $394 billion of assets under management as of March 31, 2004, is responsible for managing the Fund's investment portfolio.
Investment Performance, Price and Dividend Information
The Fund's valuation and investment performance information
are as follows:
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Performance for the periods ended 3/31/04
3 6 1 3 5 10
Mos Mos Year Years Years Years
(1) (1) (1)
PCM Based on Net
Asset Value (%) 4.44 7.16 9.61 9.59 8.96 9.32
PCM Based on NYSE
Share Price (%) 3.11 7.07 13.20 12.76 12.39 11.43
Lehman Aggregate
Index (%) 2.66 2.98 5.40 7.44 7.29 7.54
(1) Annualized
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The Fund's total return investment performance is net of all fees and expenses and assumes the reinvestment of dividends.
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Price Information
Pricing Date NYSE Share Price Net Asset Value
------------ ---------------- ---------------
3/31/2004 $14.70 $12.80
12/31/2003 $14.53 $12.53
3/31/2003 $14.04 $12.77
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Date Premium/(Discount) to Net Asset Value
---- -------------------------------------
3/31/2004 14.84%
12/31/2003 15.96%
3/31/2003 9.95%
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Dividend Information
Regular monthly dividend per share: $0.09375
Total dividends declared in the quarter: $0.28125
Annualized dividend yield at 3/31/2004
based on NYSE share price: 7.65%
Annualized dividend yield at 3/31/2004
based on net asset value: 8.79%
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Portfolio Statistics
The Fund's investment portfolio had the following
characteristics as of March 31, 2004:
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Net Assets: $143.2 million
Average Duration: 4.2 years
Average Maturity: 4.6 years
Quality Ratings: 47% AAA, 4% AA, 6% A, 24% BAA, 14% BA,
4% B, 1% less than B
Average Quality: BAA+
Sector Weightings: 39.4% Multi-Class (a mix of all commercial
property types, including office buildings
and industrial properties), 32.0%
Multi-Family (apartment buildings), 8.8%
Real Estate ABS, 6.7% Hospitality (hotels
and motels), 3.9% Commercial Paper, 1.8%
Healthcare (hospitals and nursing care
facilities), 0.1% Corporate, 7.3% Other.
% Leverage (3/31/04): 32.9% (The Fund's use of leverage is
subject to change at any time.)
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Market Commentary
During the first quarter, the Fund's portfolio of commercial mortgage-backed securities ("CMBS") posted a 4.44% return based on net asset value and a 3.11% return based on its NYSE share price. In comparison, the Lehman Brothers Aggregate Bond Index (which includes Treasury, investment-grade corporate, and residential mortgage-backed securities) returned 2.66% for the same period. The Fund maintained an uninterrupted and constant dividend throughout the quarter, holding the monthly per share rate steady at $0.09375. These dividend payouts equate to an annualized dividend yield of 7.65% based on the Fund's NYSE trading price as of March 31, 2004.
Bonds gained ground in the first quarter of 2004, as concern about the durability of the U.S. economic recovery pushed already low interest rates even lower. Demand for relatively safe assets rose in March. The yield on the benchmark 10-year Treasury bond fell 0.41% to close at 3.84% percent. Lifted by the tailwind of falling rates, every fixed income sector was in positive territory for the quarter.
Confidence that the Federal Reserve would not raise the 1% federal funds rate anytime soon underpinned the bond rally. Markets expected the Fed to stay on hold while employment growth in the U.S. remained slower at this stage of expansion than in any recovery since World War II. Weakness in the labor market persisted even though growth overall continued to be robust and corporate profits surged. The reason was enhanced productivity, which allowed companies to meet rising demand with the same or fewer workers. Investors worried that even if hiring eventually picked up, it might not match that of previous expansions, thereby denting consumer confidence and undermining the recovery.
Even as concern mounted that the U.S. recovery could slow down, there were signs that expansion in Asia could take pressure off the U.S. as the main driver of global growth. Acceleration in consumer spending in Japan, the world's second largest economy, raised hopes that Japan could extend its export-led recovery. Surging demand from China, with whom Japan now runs a trade surplus, has helped revive the Japanese economy. Chinese demand was also a major reason for soaring commodity prices, as commodities posted double-digit returns during the first quarter.
For further information, please contact Jeff Sargent, PIMCO Commercial Mortgage Securities Trust, Inc., at (949) 720-4712.
Past performance is no guarantee of future results. Investment return, dividend rate, and share price will fluctuate so that shares, when sold, may be worth more or less than their original cost.