PIMCO Commercial Mortgage Securities Trust, Inc.: First Quarter Investment Performance Results and Statistical Portfolio Information

Newport Beach, California, UNITED STATES


NEWPORT BEACH, Calif., May 1, 2003 (PRIMEZONE) -- PIMCO Commercial Mortgage Securities Trust, Inc. (NYSE:PCM) today released its investment performance results and statistical portfolio information for the period January 1, 2003 through March 31, 2003 (first quarter).

PIMCO Commercial Mortgage Securities Trust, Inc. (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 $323 billion of assets under management as of March 31, 2003, 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:

 Performance for the periods ended 03/31/03
                              3       6      1       3         5
                             Mos     Mos    Year   Years(a)  Years(a)
 PCM Based on Net Asset
  Value (%)                 1.98     2.33   12.38   10.86      8.36

 Based on NYSE Share
  Price (%)                -0.02     0.97   11.25   15.24     10.50

 Lehman Aggregate
  Index (%)                1.39     2.99    11.69    9.81      7.51

  (a)  Annualized.

The Fund's total return investment performance is net of all fees and expenses and assumes the reinvestment of dividends.


                        Price Information

 Pricing Date            NYSE Share Price       Net Asset Value
 ------------            ----------------       ---------------
 03/31/2003                   $14.04                $12.77

 12/31/2002                   $14.32                $12.80

 03/31/2002                   $13.91                $12.66


 Date                        Premium/(Discount) to Net Asset Value
 ----                        -------------------------------------
 03/31/2003                                  9.95%

 12/31/2002                                 11.88%

 03/31/2002                                  9.87%
 
  
                          Dividend Information
                          --------------------
 Regular monthly dividend per share:                          $0.09375
 
 Total dividends declared in the quarter:                     $0.28125
 
 Annualized dividend yield at 3/31/03 based on NYSE share price: 8.01%
 
 Annualized dividend yield at 3/31/03 based on net asset value:  8.81%
 

                           Portfolio Statistics

     The Fund's investment portfolio had the following characteristics
     as of March 31, 2003:

 Net Assets:        $143.2 million
 Average Duration:  3.84 years
 Average Maturity:  5.01 years
 Quality Ratings:   38% AAA, 9% AA, 18% A, 16% BBB, 15% BB, 3% B, 
                    1% less than B
 Average Quality:   A
 Sector Weightings: 28.8% Multi-Family (apartment buildings), 7.4%
                    Healthcare (hospitals and nursing care
                    facilities), 8.8% Hospitality (hotels and motels),
                    33.9% Multi-Class (a mix of all commercial
                    property types, including office buildings and
                    industrial properties), 6.6% Real Estate ABS, 
                    10.5% Commercial Paper, 3.3% Other, 0.7% Corporate

Market Commentary

The flight to safe assets such as Treasuries that characterized financial markets for much of last year broadened into a move toward higher yielding fixed-income securities in the first quarter. Investors were dissatisfied with money market and Treasury yields near 40-year lows but remained nervous about stocks amid weak economic growth and geopolitical uncertainty. As a result, capital flocked to U.S. corporate and emerging market bonds that offered substantial yield premiums relative to the safest assets and lower volatility than stocks. Strong funds flows helped these fixed-income sectors outperform the broader bond and stock markets.

The broad U.S. bond market, represented by the Lehman Brothers Aggregate Bond Index, gained 1.39 percent during the quarter, held back by weakness in Treasuries. Treasury yields were volatile as investor sentiment regarding safe assets shifted back and forth depending on news about the war with Iraq. For the full quarter, two-year yields fell 12 basis points but yields on other maturities wound up little changed. The benchmark 10-year Treasury yield closed 2 basis points lower at 3.80 percent.

A critical question as the quarter drew to a close was whether the sluggish U.S. economy, long the engine of growth worldwide, would revive once the situation in Iraq became clarified. Federal Reserve Chairman Alan Greenspan took the optimistic side of this debate. The Fed left the federal funds rate unchanged despite slumping employment, retail sales and consumer confidence. With short-term rates already so low, it was unclear how much additional Fed easing would help. After 5.25 percent in cuts since 2001, the federal funds rate stood at 1.25 percent, which meant that the real, or inflation-adjusted rate was below zero.

Mortgages held up well despite heightened volatility. While nominal mortgage returns modestly lagged Treasuries, mortgages outperformed on a like-duration basis. Strong demand from banks caused mortgage yield premiums to tighten modestly. Less prepayment sensitive lower coupons outperformed as refinancings reached record levels. Volatility surged late in the quarter. During one 15-day span in March, rates jumped nine straight days for 51 basis points and then dropped the next six days for 36 basis points.

The Fund's portfolio of commercial mortgage backed securities ("CMBS") posted a 1.98 percent return for the first quarter based on net asset value and a -0.02 percent 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 1.39 percent for the same period. Spreads on CMBS widened due to increased uncertainty related to the Iraq conflict and concerns with weakness in the real estate market. AAA-rated CMBS spreads increased slightly, while BBB-rated spreads hit a 15-month wide. 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 8.01 percent based on the Fund's NYSE trading price as of March 31, 2003.

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.



        

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