As interest rates have been rising, the Fund has been borrowing less, investing more creatively

Strategic increase in structured private real estate investments has allowed the Fund to increase monthly distribution¹ by more than 125 basis points (bps) to 6.5%

The Clarion Partners Real Estate Income Fund Inc. (“the Fund”), an Investment Company Act of 1940 tender offer fund designed to provide individual investors access to a portfolio of deeply researched, high-quality commercial real estate holdings, has raised its monthly distribution on Class I shares from $0.054 per share to $0.067 per share, which is a 24% increase and now equal to annualized distribution rate of 6.5% as of March 31, 2023.

Actively managed by Clarion Partners, which for more than 40 years has been a leader in building and managing private real estate portfolios for some of the world’s largest institutional investors, the Clarion Partners Real Estate Income Fund provides investors and advisors access to an institutional-quality² portfolio of direct real estate holdings and structured investments comprising preferred equity and mezzanine debt.

“As interest rates rise, banks are stepping back from providing liquidity to the private real estate space. Thanks to our highly flexible investment structure and the deep research we bring to every potential investment we have been able to identify and take advantage of a number of attractive structured equity and debt opportunities,” said Richard Schaupp, Clarion Partners Managing Director and Portfolio Manager for the Fund. “These investments have been delivering significant yields, which we are now able to pass on to our shareholders in the form of this distribution increase.”

Similar to Clarion’s overall portfolio composition built with decades of experience, the Fund’s investment strategy is focused on sectors in which Clarion has high conviction and present growth opportunities, specifically industrial warehouse and multi-family apartment.

“A disciplined investment approach is essential when it comes to sourcing opportunities,” added Janet Souk, Managing Director and Portfolio Manager. “It is even more important in markets such as the one in which we find ourselves today, where rates are rising, volatility is heightened, and investors are searching for new ways to add income, that we keep close eye on risk. We’re very proud of the track record we have built at Clarion and with the Clarion Partners Real Estate Income Fund, and we’re thrilled that our efforts are allowing us to announce this new, increased monthly distribution for our shareholders.”

For more information about the Clarion Partners Real Estate Income Fund, please visit https://www.cpreif.com/.

Performance data quoted represents past performance, which does not guarantee future results. Current performance may be lower or higher than the figures shown. Principal value and investment returns will fluctuate, and investors' shares, when redeemed, may be worth more or less than the original cost. Performance would have been lower if fees had not been waived in various periods. Total returns assume the reinvestment of all distributions and the deduction of all Fund expenses. Returns with sales charge reflect a deduction of the stated maximum sales charge. Returns without sales charge would have been lower had sales charges been reflected. An investor cannot invest directly in an index, and unmanaged index returns do not reflect any fees, expenses or sales charges. Returns for periods of less than one year are not annualized.

1 The Fund expects to ordinarily pay distributions from its net investment income, if any, on a monthly basis; however, the Fund cannot guarantee that it will make distributions and the amount of distributions that the Fund may pay, if any, is uncertain.

2 Institutional Quality: while not a precisely defined term, an institutional-grade, or institutional-quality property generally refers to a property of sufficient size and stature to merit attention from large national or international investors.

3 Other fees and expenses may apply. Please see Fund prospectus for additional information.

4 “Other Expenses” are estimated on Fund net assets of $200 million and anticipated expenses. LMPFA has agreed to waive fees and/or reimburse the Fund’s expenses (including organizational and offering expenses, but excluding property management, acquisition, disposition expenses, any other expenses related to investments in real property, debt and real-estate related securities, expenses related to Borrowings or the issuance of Preferred Stock, interest, brokerage, tax and extraordinary expenses and acquired fund fees and expenses) to the extent necessary to ensure that the total annual Fund operating expenses (excluding Specified Expenses) attributable to Class I Shares will not exceed 1.75% of NAV, subject to recapture as described below. These arrangements cannot be terminated prior to December 31, 2023 without the Board’s consent. LMPFA is permitted to recapture amounts forgone or reimbursed within three years after the fiscal year in which LMPFA earned the fee or incurred the expense if the total annual Fund operating expenses have fallen to a level below the limit described herein. In no case will LMPFA recapture any amount that would result, on any particular business day of the Fund, in a relevant class’s total annual operating expenses exceeding the applicable limits described above or any other lower limit then in effect.

About Clarion Partners Real Estate Income Fund Inc.

The Fund offers individual investors direct access to a portfolio of privately-held, income-producing commercial real estate properties through an innovative investment fund driven by Clarion's deep real estate expertise. The Fund is a non-diversified, closed-end management investment company that continuously offers its common stock. The Fund’s investment manager, Legg Mason Partners Fund Advisor, LLC is an indirect, wholly owned subsidiary of Franklin Resources, Inc. (“Franklin One Franklin Parkway San Mateo, CA 94403-1906 tel (650) 312--2000 franklintempleton.com Resources”) and the fund’s investment sub-adviser, Clarion Partners, is an indirect, majority-owned subsidiary of Franklin Resources. In addition, the Fund’s securities sub-adviser, Western Asset Management, also is an indirect wholly owned subsidiary of Franklin Resources. Hard copies of the Fund’s complete audited financial statements are available free of charge upon request. More information about the Fund is available at CPREIF.com.

About Clarion Partners

Clarion Partners, an SEC registered investment adviser with FCA-authorized and FINRA member affiliates, has been a leading U.S. real estate investment manager for 40 years. Headquartered in New York, the firm maintains strategically located offices across the United States and Europe. With $82.4 billion in total assets under management, Clarion Partners offers a broad range of real estate strategies across the risk/return spectrum to its 500 domestic and international institutional investors. More information about the firm is available at www.clarionpartners.com.

About Franklin Templeton

Franklin Resources, Inc. [NYSE:BEN] is a global investment management organization with subsidiaries operating as Franklin Templeton and serving clients in over 155 countries. Franklin Templeton’s mission is to help clients achieve better outcomes through investment management expertise, wealth management and technology solutions. Through its specialist investment managers, the company offers specialization on a global scale, bringing extensive capabilities in fixed income, equity, alternatives and multi-asset solutions. With offices in more than 30 countries and approximately 1,300 investment professionals, the California-based company has over 75 years of investment experience and approximately $1.4 trillion in assets under management as of January 31, 2023. For more information, please visit franklintempleton.com and follow us on LinkedIn, Twitter and Facebook.

Disclosures

Investment Risks

Past performance is no guarantee of future results. All investments involve risk, including loss of principal. The Fund is subject to a high degree of risk; specific risk considerations are listed below.

An investment should be considered long-term within a multi-asset portfolio and should not be viewed individually as a complete investment program.

Liquidity Risks:

The Fund should be viewed as a long-term investment, as it is inherently illiquid and suitable only for investors who can bear the risks associated with the limited liquidity of the Fund. Limited liquidity is provided to shareholders only through the Fund’s quarterly repurchase offers for no more than 5% of the Fund’s shares outstanding at net asset value. There is no guarantee these repurchases will occur as scheduled, or at all. Shareholders may not be able to sell their shares in the Fund at all or at a favorable price.

Real Estate Investment Risks:

The Fund’s investments are highly concentrated in real estate investments, and therefore will be subject to the risks typically associated with real estate, including but not limited to fluctuations in lease occupancy rates and operating expenses, variations in rental schedules, which in turn may be adversely affected by local, state, national or international economic conditions. Such conditions may be impacted by the supply and demand for real estate properties, zoning laws, rent control laws, real property taxes, the availability and costs of financing, and environmental laws.

Furthermore, investments in real estate are also impacted by market disruptions caused by regional concerns, political upheaval, sovereign debt crises, and uninsured losses (generally from catastrophic events such as earthquakes, floods and wars). Investments in real estate related securities, such as asset-backed or mortgage-backed securities are subject to prepayment and extension risks.

Other Investments Risks:

An investment in the Fund is suitable only for investors who can bear the risks associated with private market investments (such as private credit and private equity) with potential limited liquidity. Shares will not be listed on a public exchange, and no secondary market is expected to develop. Private equity investments involve a high degree of risk and is suitable only for investors who can afford to risk the loss of all or substantially all of such investment. Private equity investments may hold illiquid investments and its performance may be volatile. The Fund and/or its subsidiaries employ leverage, which increases the volatility of investment returns and subjects the Fund to magnified losses if an underlying fund’s investments decline in value. The Fund may use derivatives, such as options and futures, which can be illiquid, may disproportionately increase losses, and have a potentially large impact on Fund performance. Fixed income securities involve interest rate, credit, inflation and reinvestment risks. As interest rates rise, the value of fixed income securities fall. High-yield bonds possess greater price volatility, illiquidity and possibility of default.

Before investing, carefully consider a Fund's investment objectives, risks, charges and expenses. You can find this and other information in each prospectus, or summary prospectus, if available, at www.franklintempleton.com. Please read it carefully.

Any information, statement or opinion set forth herein is general in nature, is not directed to or based on the financial situation or needs of any particular investor, and does not constitute, and should not be construed as, investment advice, forecast of future events, a guarantee of future results, or a recommendation with respect to any particular security or investment strategy or type of retirement account. Investors seeking financial advice regarding the appropriateness of investing in any securities or investment strategies should consult their financial professional.

INVESTMENT PRODUCTS: NOT FDIC INSURED | NO BANK GUARANTEE | MAY LOSE VALUE ©2023 Franklin Distributors, LLC, member FINRA, SIPC. Franklin Distributors, LLC, and Clarion Partners, LLC are all subsidiaries of Franklin Resources, Inc.

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"Thanks to our highly flexible investment structure and the deep research we bring to every potential investment we have been able to identify and take advantage of a number of attractive structured equity and debt opportunities,” said Richard Schaupp.