#United States #New York #Stock Distribution #Royce Micro-Cap Trust #RMT

Royce Micro-Cap Trust Declares Quarterly Distribution of $0.18 Per Share

On June 2, 2025, Royce Micro-Cap Trust, Inc. (NYSE-RMT) made an important announcement concerning its quarterly common stock distribution. Shareholders can expect a distribution of $0.18 per share, marking a commitment to delivering value to investors. This amount represents a significant aspect of the Trust's strategy for investing in smaller-cap companies.

The distribution is scheduled to be paid on June 25, 2025, to all stockholders recorded as of the closing business on June 12, 2025. It is crucial to note that June 12 will also serve as the ex-dividend date. For those shareholders opting for reinvestment, additional shares of common stock will be offered, while others can choose to receive cash based on their election.

The pricing for shares issued under the reinvestment plan will be determined on June 20, 2025, allowing shareholders to capitalize on their investments effectively. Such distributions are part of a broader Distribution Policy that Royce Micro-Cap Trust has adopted, which focuses on quarterly payments based on a sustainable rate.

Distribution Policy Details

The Fund operates with a set annual distribution rate of 7%, calculated against the rolling average of the net asset values (NAVs) from the previous four calendar quarters. It’s important to point out that the fourth quarter distribution aims to be at least 1.75% over the average or reflect the minimum criteria outlined by IRS regulations. However, these policies may be modified at the discretion of the Fund's Board of Directors, showcasing the adaptable nature of the Trust's financial strategy.

Analysis of Distribution Allocations

Reviewing the estimated allocations for the upcoming distribution sets expectations for stakeholders. As of May 31, 2025, the allocations were as follows:

• - Net Investment Income: $0.00 (0%)
• - Net Realized Short-Term Gains: $0.00 (0%)
• - Net Realized Long-Term Gains: $0.18 (100%)
• - Return of Capital: $0.00 (0%)

This clearly indicates that the entire distribution will be derived from realized long-term gains, reflecting a strategy focused on capital appreciation rather than immediate income generation.

In terms of year-to-date estimates for 2025, the cumulative distribution per share stands at $0.37, with similar allocations — reinforcing the Trust's reliance on long-term gains for distribution purposes.

Performance Indicators

To gauge the success of such distribution strategies, various performance metrics of the Fund were assessed:
1. Average Annual Total Return: 12.71% over the last five years, ending May 31, 2025.
2. Annualized Current Distribution Rate: 7.24% based on NAV as of the same date.
3. Cumulative Total Return: A decline of -7.37% in relation to NAV for the fiscal year through May 31, 2025.
4. Cumulative Fiscal Year Distribution Rate: 3.72% as a function of the NAV.
This mixture of performance snapshots provides a nuanced understanding for investors, framing the context of returns relative to distributions.

About Royce Micro-Cap Trust, Inc.

Royce Micro-Cap Trust, Inc. is a closed-end, diversified management investment company listed on the New York Stock Exchange. Its overarching goal aims toward long-term capital growth, focusing its investments primarily on equity securities of companies with market capitalizations under $750 million. This niche positioning underscores its strategy, appealing to investors looking for exposure to smaller, potentially high-growth companies.

In conclusion, the announcement of the quarterly distribution accentuates the Trust’s ongoing commitment to its shareholders. With clear strategies in place for investment and distribution, Royce Micro-Cap Trust, Inc. continues to navigate the complexities of the micro-cap investment landscape effectively.