Media contact: Charles Keller
612-678-7786
charles.r.keller@ampf.com
Stockholder contact:
Chris Moran
617-218-3864
christopher.m.moran@ampf.com
SELIGMAN LASALLE INTERNATIONAL REAL ESTATE FUND, INC.
(NYSE: SLS)
ANNOUNCES CHANGES TO DISTRIBUTION POLICY;
NO CHANGE TO STOCK REPURCHASE PROGRAM
NEW YORK, January 8, 2009 - Seligman LaSalle International Real Estate Fund,
Inc. (the "Fund") (NYSE: SLS) today announced changes to its distribution
policy. The Fund also announced that, at the current time, there are no changes
to its stock repurchase program.
Effective today, the Fund has eliminated its level rate distribution policy
under which the Fund has paid quarterly distributions to Stockholders equal to
1.75% of the Fund's initial public offering price of $25.00, or approximately 7%
on an annual basis (the "Level Distribution Policy"). Effective today, the Fund
has adopted an earned distribution policy, meaning that the Fund generally
intends to make distributions to holders of Common Stock ("Stockholders") that
are approximately equal to all distributions received by the Fund from its
underlying portfolio investments (regardless of their characterization for tax
purposes), less Fund expenses. These distributions received by the Fund from its
underlying portfolio investments may include returns of capital from such
investments. In addition, the Fund may, from time to time, make distributions in
excess of the foregoing, and this excess may be a return of capital distributed
from the Fund's assets. The change being implemented by the Fund is driven
largely by market factors and is consistent with the experience of other
closed-end funds, many of which have reduced or are expected to reduce
distributions to their stockholders.
As was the case with the Level Distribution Policy, distributions to be paid to
Stockholders by the Fund under the new, earned distribution policy are subject
to recharacterization for tax purposes because the securities (e.g., real estate
investment trusts) in which the Fund invests may not provide complete tax
information to the Fund as to the tax character of the dividends distributed by
such company (e.g., income, capital gain or return of capital) until after the
Fund has made its distribution to Stockholders. This recharacterization could
result in a proportionate increase in returns of capital to Stockholders.
In eliminating the Level Distribution Policy, the Fund's Board of Directors
determined at a meeting held today (the "Meeting") that such policy should not
be continued in light of current market conditions and other factors. The Board
considered that the distribution rate under the Level Distribution Policy was
not dependent upon the amount of the
Fund's earned income or realized capital gains, and resulted in over half of the
2008 distributions to Stockholders being deemed a return of capital. The Board
also considered potential adverse tax consequences associated with maintaining
the Level Distribution Policy. In certain situations, returns of capital could
be taxable for federal income tax purposes, and all or a portion of the Fund's
capital loss carryforwards from prior years could effectively be forfeited.
The Fund expects distributions to be paid quarterly in March, June, September
and December.
The Board also considered at the Meeting the Fund's stock repurchase program and
determined that, at the current time, no changes were necessary. Under the
Fund's Dividend Investment Plan, unless a Stockholder elects otherwise, any
dividends, distributions of capital gains, and other distributions of the Fund
are automatically reinvested in additional shares of Common Stock of the Fund.
The Fund's stock repurchase program allows the Fund to make open market
purchases of its Common Stock from time to time, when the Fund is trading at a
discount to its net asset value, in an amount approximately sufficient to offset
the growth in the number of its shares of Common Stock issued as a result of the
reinvestment of the portion of its distributions to Stockholders that are
attributable to distributions received by the Fund from its underlying portfolio
investments. Assets of the Fund used to repurchase its Common Stock are not
available for investment in accordance with the Fund's investment objective and
policies.
Effective November 7, 2008, the Fund is managed by RiverSource Investments, LLC,
a wholly owned subsidiary of Ameriprise Financial, Inc. Prior to then, the Fund
was managed by J. & W. Seligman & Co. Incorporated. Seligman Advisors, Inc. is
the principal underwriter of the RiverSource family of funds, which includes the
Fund.
The net asset value of shares may not always correspond to the market price of
such shares. Common stock of many closed-end funds frequently trade at a
discount from their net asset value. The Fund is subject to stock market risk,
which is the risk that stock prices overall will decline over short or long
periods, adversely affecting the value of an investment in the Fund.
Investments in real estate securities may be subject to specific risks, such as
risks to general and local economic conditions, and risks related to individual
properties. Investing in one economic sector, such as real estate, may result in
greater price fluctuations than owning a portfolio of diversified investments.
You should consider the investment objectives, risks, charges, and expenses of
the Fund carefully before investing. You can obtain the Fund's most recent
periodic reports, when available, and other regulatory filings by contacting
your financial advisor or Seligman Services, Inc. at 800-597-6068. These reports
and other filings can also be found on the Securities and Exchange Commission's
EDGAR Database. You should read these reports and other filings carefully before
investing.
There is no guarantee that the Fund's investment goals/objectives will be met or
that distributions will be made, and you could lose money.
NOT FDIC INSURED MAY LOSE VALUE NO BANK GUARANTEE
NOT A DEPOSIT NOT INSURED BY ANY FEDERAL GOVERNMENT AGENCY