PIMCO Commercial Mortgage Securities Trust, Inc. - Third Quarter investment performance results and statistical portfolio information


NEWPORT BEACH, Calif., Oct. 23, 2003 (PRIMEZONE) -- PIMCO Commercial Mortgage Securities Trust, Inc. (NYSE: PCM) today released its investment performance results and statistical portfolio information for the period July 1, 2003 through September 30, 2003 (third 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 $356 billion of assets under management as of September 30, 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 9/30/03

                       3      6     1      3         5        10
                      Mos    Mos   Year  Years(1)  Years(1)  Years(1)
 PCM Based on Net
  Asset Value (%)    0.30   2.29   4.67   10.05      7.68     8.46

 PCM Based on NYSE
  Share Price (%)    2.52   5.73   6.75   16.80     11.43     10.01

 Lehman Aggregate
  Index (%)         -0.15   2.35   5.41    8.94      6.63      6.92

 (1) 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
 ------------           ----------------       ---------------
   9/30/2003                 $14.27                 $12.49
   6/30/2003                 $14.20                 $12.74
   9/30/2002                 $14.75                 $13.32



      Date                Premium/(Discount) to Net Asset Value
      ----                -------------------------------------
   9/30/2003                             14.25%
   6/30/2003                             11.46%
   9/30/2002                             10.74%


                         Dividend Information

 Regular monthly dividend per share:               $0.09375
 Total dividends declared in the quarter:          $0.28125
 Annualized dividend yield at 9/30/03 based
  on NYSE share price:                                 7.88%
 Annualized dividend yield at 9/30/03 based
  on net asset value:                                  9.01%

                        Portfolio Statistics

 The Fund's investment portfolio had the following characteristics as
 of September 30, 2003:


 Net Assets:               $139.3 million
 Average Duration:         4.7 years
 Average Maturity:         5.8 years

 Quality Ratings:          46% AAA, 8% AA, 10% A, 18% BBB, 15% BB,
                           3% B, 0% less than B
 Average Quality:          A+
 Sector Weightings:        30.0% Multi-Family (apartment buildings),
                           6.9% Healthcare (hospitals and nursing care
                           facilities), 8.1% Hospitality (hotels and
                           motels), 37.1% Multi-Class (a mix of all
                           commercial property types, including office
                           buildings and industrial properties), 10.2%
                           Real Estate ABS, 2.0% Commercial Paper,
                           5.7% Other, 0.0% Corporate

 % Leverage (9/30/03):     31.2% (The Fund's leverage is subject to
                           change at any time.)

Market Commentary

Most investment grade bonds lost ground in the third quarter because of a sharp rise in interest rates in July, the worst month for the U.S. government bond market in more than 23 years. Yields on benchmark 10-year Treasuries soared more than 1.3% in July, reversing a rally that had seen the 10-year yield plunge to a 45-year low, near 3%, in June. Though bonds bounced back later in the quarter, the damage in July was enough to push returns for the broad market into negative territory for the full 3-month period, as the Lehman Brothers Aggregate Bond Index posted a modest loss of 0.15%.

The July swoon came amid expectations for stronger economic growth in the second half of 2003 and worries about higher interest rates. The trigger for the sell-off was a suggestion by the Federal Reserve that it was less inclined to pursue a so-called "unconventional" approach to reflating the economy than it had previously led investors to believe. Demand for Treasuries fell because this approach entails driving down longer term interest rates by purchasing Treasuries further out the yield curve.

During the third quarter, spreads of CMBS continued to tighten. The 10-year Treasury yield finished the quarter at 3.94%, up 0.42% from the prior quarter but not far from where it started the year. Bonds bounced back later in the third quarter as lingering overcapacity, weak labor markets and faster productivity growth gave investors confidence that inflation would remain well contained. Corporate managers, not yet convinced that economic growth will accelerate, remained cautious about investment and hiring. Their reluctance contributed to rapid labor productivity growth as companies squeezed more out of their existing capital stock and employees. In a soft labor market, companies captured the gains from this enhanced productivity in the form of higher profits.

The Fund's portfolio of commercial mortgage-backed securities ("CMBS") posted a 0.30% return for the third quarter based on net asset value and a 2.52% 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 -0.15% 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 7.88% based on the Fund's NYSE trading price as of September 30, 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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