RMR REAL ESTATE INCOME FUND
(Exact name of registrant as specified in charter)

TWO NEWTON PLACE
255 WASHINGTON STREET, SUITE 300
NEWTON, MASSACHUSETTS 02458
(Address of principal executive offices)(Zip code)

THE AGREEMENT AND DECLARATION OF TRUST OF RMR REAL ESTATE INCOME FUND, A COPY OF WHICH, TOGETHER WITH ALL AMENDMENTS AND SUPPLEMENTS THERETO, ARE DULY FILED AT THE PRINCIPAL OFFICE OF THE FUND, PROVIDES THAT NO TRUSTEE, OFFICER, SHAREHOLDER, EMPLOYEE OR AGENT OF THE FUND SHALL BE HELD TO ANY PERSONAL LIABILITY, JOINTLY OR SEVERALLY, FOR ANY OBLIGATION OF, OR CLAIM AGAINST, THE FUND. ALL PERSONS DEALING WITH THE FUND IN ANY WAY SHALL LOOK ONLY TO THE ASSETS OF THE FUND FOR THE PAYMENT OF ANY SUM OR THE PERFORMANCE OF ANY OBLIGATION.

SUBJECT TO CERTAIN EXCEPTIONS, THE AGREEMENT AND DECLARATION OF TRUST OF RMR REAL ESTATE INCOME FUND CONTAINS PROVISIONS WHICH LIMIT OWNERSHIP BY ANY SHAREHOLDER OR GROUP OF SHAREHOLDERS WHO ARE AFFILIATED OR ACTING TOGETHER TO 9.8% OF THE TOTAL SHARES, OR ANY CLASS OR SERIES OF SHARES, OUTSTANDING OF RMR REAL ESTATE INCOME FUND.

In the pages that follow, you will find data summarizing the Fund's financial results for the year ended December 31, 2017 and financial position as of December 31, 2017. We encourage you to read the information contained in this report and to view our website at www.rmrfunds.com* where the most recent information and important announcements regarding the Fund are posted.

Real Estate Industry Fundamentals. The U.S. economy continued its long expansion during 2017. During the year, the U.S. economy created an average of 181,000 new jobs per month (according to the Bureau of Labor Statistics), compared to 195,000 per month in 2016, and the unemployment rate dropped from 4.7% to 4.1%. U.S. gross domestic product (GDP) growth was modest in the first quarter of 2017, up 1.2%, but improved in the second, third and fourth quarters, up 3.1%, 3.2% and 2.6%, respectively. Stronger consumer spending, an increase in business investment and higher inventories contributed to stronger GDP data during the second quarter and the second half of the year. As economic conditions continued to improve during the year, the U.S. Federal Reserve (the "Fed") increased short term interest rates by an additional 0.25% in each of March, June and December. Despite these increases in short term interest rates, the yield on U.S. 10-year Treasury obligations modestly declined, finishing the year at 2.41% compared to 2.45% at the beginning of the year.

U.S. real estate fundamentals remained favorable during 2017, as a result of strong employment growth and moderate new development activity. Industrial properties benefited from growth in e-commerce activity and the trend toward faster delivery of online purchases to consumers. Warehouse vacancy rates were low and rent growth at such properties in 2017 was strong, as demand and absorption outpaced new development. In the residential property sub-sector, solid household formation and the desire by young professionals to live in urban areas resulted in a propensity to rent that drove demand for apartments in 2017. While there were some markets, such as New York City and Los Angeles, that saw increased supply, apartment vacancy rates remained low and rent growth remained positive in most U.S. markets. During 2017, many retail properties struggled with store closures resulting from the growth in internet shopping. Some mall landlords replaced retailers with entertainment and food venues, sometimes at comparable or higher rents, but sometimes at little or no rent to maintain customer traffic.

Many real estate companies took advantage of low interest rates during 2017 to refinance debt at attractive rates. Lower interest expense, together with the improvement in real estate operating fundamentals discussed above, allowed many real estate investment trusts, or REITs, to increase their dividend distributions during 2017. During 2017 (according to S&P Global Market Intelligence), 111 U.S. REITs increased dividend rates.

U.S. REITs raised approximately 31% more capital in 2017 than in 2016. During the year, REITs raised $53 billion in debt capital and $30 billion in common equity capital. REIT preferred securities also experienced increased new issuances, with approximately $9 billion raised in the REIT preferred securities market during 2017 compared to about $4 billion in the prior year.

During 2017, 15 real estate company mergers and acquisition, or M&A, transactions were announced totaling about $35.6 billion in transaction value. Of these 15 M&A announced transactions, most

involved health care, residential and data centers properties, but two involved office properties and one hotel properties.

Real Estate Securities Technicals. The total return (i.e., share price changes and dividends combined) for REIT common securities during 2017, as measured by the MSCI U.S. REIT Total Return Index, or the RMS Index (an unmanaged index of REIT common stocks), was 5.1%. This provided an unfavorable comparison to the S&P 500 Index total return of 21.8% during 2017. An important factor that contributed to the REIT market's relatively poor performance during 2017 compared to the broader market appears to have been investor expectations that increasing interest rates will cause real estate to decrease in value and lower share prices for dividend paying REIT securities.

The best performing REIT sub-sectors during 2017, according to the National Association of Real Estate Investment Trusts, were the data centers and manufactured homes sub-sectors with total returns of 28.4% and 24.9%, respectively. The sub-sector with the lowest return for 2017 was the shopping centers sub-sector with a total return of negative 11.4%.

Our primary investment objective is to earn and pay a high level of current income to our common shareholders. Our secondary investment objective is capital appreciation. We pursue our investment objectives by investing in securities issued by real estate companies, including REITs. There can be no assurance that we will achieve our investment objectives.

In September 2017, the Fund successfully completed a transferable rights offering by issuing 2,550,502 new common shares at an average subscription price of $17.75 per common share and raised $45.2 million in common equity capital. The Fund received the entire proceeds from the rights offering because RMR Advisors LLC, the Fund's investment adviser, paid the dealer manager fee and all other expenses related to the rights offering.

Subsequent to the rights offering, the Fund increased the outstanding borrowings under its revolving credit facility with BNP Paribas Prime Brokerage International, Ltd. by $28 million to $88 million. There was no change to the interest rate on the credit facility as a result of this increase, which remained at LIBOR plus 95 basis points. Proceeds from the rights offering and the additional credit facility borrowings were used to invest in securities of U.S. real estate companies and for general business purposes.

During the year ended December 31, 2017, our total return on net asset value, or NAV (including NAV changes and assuming a hypothetical reinvestment of distributions at NAV), was negative 3.9%. The annualized distribution rate on our NAV at December 31, 2017, based on our annualized fourth quarter dividend, was 5.7%. During the year ended December 31, 2017, our total return on the market price of our common shares (including hypothetical reinvestment of distributions at market price) was negative 0.5%. The annualized distribution rate on the market price of our common shares at December 31, 2017, based on our annualized fourth quarter dividend, was 6.9%.

As noted above, the total return for the RMS Index in 2017 was 5.1%. The Fund's underperformance compared to the RMS Index during 2017 was primarily due to the dilution resulting from the rights offering that was completed in September. Also the Fund has an overweight position in higher yielding REIT common securities in its investment portfolio compared to the RMS Index, and those securities appear to have been particularly adversely impacted by rising interest rate concerns toward year end.

In April, the Fund announced that it had completed its redomestication from a Delaware statutory trust to a Maryland statutory trust. The Fund's shareholders had previously approved the redomestication and a related agreement and plan of redomestication at the Fund's 2017 annual meeting of shareholders on April 13, 2017.

Portfolio holdings by sub-sector as a percentage of investments
(as of December 31, 2017)* (unaudited)

Portfolio holdings by type of security (as of December 31, 2017)* (unaudited)



Company	Shares		Value

COMMON STOCKS – 110.1% REAL ESTATE INVESTMENT TRUSTS – 108.0%
DATA CENTERS – 3.5%
CyrusOne, Inc. (a)		48,000	$	2,857,440
Digital Realty Trust, Inc. (a)(b)		44,000		5,011,600
QTS Realty Trust, Inc.		10,000		541,600

				8,410,640

DIVERSIFIED – 8.9%
Armada Hoffler Properties, Inc. (a)		155,000		2,407,150
Colony NorthStar, Inc.		104,980		1,197,822
Gramercy Property Trust (a)		79,681		2,124,295
Investors Real Estate Trust		62,810		356,761
JBG SMITH Properties (a)		22,417		778,542
Lexington Realty Trust (a)		468,638		4,522,357
One Liberty Properties, Inc.		46,976		1,217,618
VEREIT, Inc. (a)		283,716		2,210,148
Vornado Realty Trust (a)(b)		44,835		3,505,200
Whitestone REIT (a)		124,535		1,794,549
WP Carey, Inc.		14,700		1,012,830

				21,127,272

FREE STANDING – 5.5%
Agree Realty Corp.		19,309		993,255
Four Corners Property Trust, Inc.		20,000		514,000
Getty Realty Corp.		30,015		815,207
National Retail Properties, Inc. (a)(b)		134,600		5,805,298
Realty Income Corp. (a)		59,900		3,415,498
Spirit Realty Capital, Inc.		60,000		514,800
STORE Capital Corp.		40,000		1,041,600

				13,099,658

HEALTH CARE – 16.3%
Global Medical REIT, Inc.		345,330		2,831,706
HCP, Inc. (a)(b)		116,029		3,026,036
Healthcare Realty Trust, Inc. (a)(b)		50,897		1,634,812
Healthcare Trust of America, Inc.		28,000		841,120
LTC Properties, Inc. (a)(b)		75,021		3,267,164
MedEquities Realty Trust, Inc.		35,000		392,700
Medical Properties Trust, Inc. (a)(b)		415,320		5,723,110
National Health Investors, Inc. (a)		64,709		4,877,764
New Senior Investment Group, Inc.		104,121		787,155
Omega Healthcare Investors, Inc. (a)(b)		66,298		1,825,847
Sabra Health Care REIT, Inc. (a)(b)		122,254		2,294,708
Ventas, Inc. (a)		98,200		5,892,982
Physicians Realty Trust (a)		179,791	$	3,234,440
Welltower, Inc. (a)(b)		34,200		2,180,934

				38,810,478

INDUSTRIAL – 8.8%
DCT Industrial Trust, Inc. (a)(b)		42,862		2,519,428
Duke Realty Corp. (a)(b)		73,059		1,987,936
Liberty Property Trust (a)		79,737		3,429,488
Monmouth Real Estate Investment Corp. (a)(b)		114,962		2,046,324
Prologis, Inc. (a)(b)		63,088		4,069,807
Rexford Industrial Realty, Inc. (a)		39,176		1,142,372
STAG Industrial, Inc. (a)		209,693		5,730,910

				20,926,265

LODGING/RESORTS – 8.6%
Apple Hospitality REIT, Inc.		71,400		1,400,154
Ashford Hospitality Prime, Inc. (a)		111,762		1,087,444
Ashford Hospitality Trust, Inc. (a)		247,552		1,666,025
Chatham Lodging Trust (a)		71,000		1,615,960
Chesapeake Lodging Trust (a)		70,900		1,920,681
Condor Hospitality Trust, Inc.		59,420		591,229
DiamondRock Hospitality Co. (a)		95,603		1,079,358
Hersha Hospitality Trust (a)		120,475		2,096,265
Host Hotels & Resorts, Inc. (a)		67,000		1,329,950
LaSalle Hotel Properties (a)		51,500		1,445,605
Park Hotels & Resorts, Inc.		4,328		124,430
Pebblebrook Hotel Trust (a)		43,100		1,602,027
RLJ Lodging Trust (a)		68,688		1,509,075
Ryman Hospitality Properties, Inc.		8,000		552,160
Summit Hotel Properties, Inc. (a)(b)		98,203		1,495,632
Sunstone Hotel Investors, Inc.		30,000		495,900
Xenia Hotels & Resorts, Inc.		17,600		379,984

				20,391,879

MANUFACTURED HOMES – 4.0%
Sun Communities, Inc. (a)		72,856		6,759,580
UMH Properties, Inc. (a)(b)		184,661		2,751,449

				9,511,029

MORTGAGE – 2.9%
Annaly Capital Management, Inc. (a)		124,998		1,486,226
Blackstone Mortgage Trust, Inc.		56,030		1,803,046
Jernigan Capital, Inc.		101,421		1,928,013
RAIT Financial Trust		178,419		66,907
Starwood Property Trust, Inc.		75,100		1,603,385

				6,887,577



Company	Shares		Value

COMMON STOCKS – CONTINUED REAL ESTATE INVESTMENT TRUSTS – CONTINUED
OFFICE – 12.7%
Alexandria Real Estate Equities, Inc. (a)		39,300	$	5,132,187
Boston Properties, Inc. (a)		27,100		3,523,813
Brandywine Realty Trust (a)		165,300		3,006,807
City Office REIT, Inc. (a)		187,415		2,438,269
Corporate Office Properties Trust (a)		83,500		2,438,200
Douglas Emmett, Inc. (a)		51,322		2,107,281
Franklin Street Properties Corp.		76,269		819,129
Highwoods Properties, Inc. (a)(b)		50,000		2,545,500
Hudson Pacific Properties, Inc.		26,000		890,500
Kilroy Realty Corp. (a)		35,600		2,657,540
Mack-Cali Realty Corp. (a)		78,030		1,682,327
SL Green Realty Corp. (a)		27,900		2,815,947

				30,057,500

REGIONAL MALLS – 7.0%
CBL & Associates Properties, Inc. (a)		233,963		1,324,230
GGP, Inc.		57,591		1,347,053
Pennsylvania Real Estate Investment Trust (a)(b)		147,628		1,755,297
Simon Property Group, Inc. (a)(b)		47,927		8,230,983
Taubman Centers, Inc.		4,200		274,806
The Macerich Co. (a)(b)		31,370		2,060,382
Washington Prime Group, Inc. (a)		231,148		1,645,774

				16,638,525

RESIDENTIAL – 15.4%
American Campus Communities, Inc. (a)(b)		26,900		1,103,707
American Homes 4 Rent		16,100		351,624
Apartment Investment & Management Co. (a)(b)		38,745		1,693,544
AvalonBay Communities, Inc. (a)		34,375		6,132,844
Bluerock Residential Growth REIT, Inc. (a)		350,884		3,547,437
Camden Property Trust		11,300		1,040,278
Equity Residential (a)		94,000		5,994,380
Essex Property Trust, Inc. (a)		16,500		3,982,605
Independence Realty Trust, Inc. (a)		512,361		5,169,722
Invitation Homes, Inc.		46,806		1,103,217
Mid-America Apartment Communities, Inc. (a)		29,671		2,983,716
NexPoint Residential Trust, Inc.		25,267		705,960
Preferred Apartment Communities, Inc.		36,479		738,700
UDR, Inc. (a)		52,000		2,003,040

				36,550,774

SHOPPING CENTERS – 5.6%
Acadia Realty Trust		30,000	$	820,800
Brixmor Property Group, Inc.		30,000		559,800
Cedar Realty Trust, Inc. (a)(b)		103,627		630,052
DDR Corp. (a)(b)		137,000		1,227,520
Kimco Realty Corp. (a)		137,000		2,486,550
Kite Realty Group Trust (a)		80,125		1,570,450
Ramco-Gershenson Properties Trust		82,220		1,211,101
Retail Opportunity Investments Corp.		35,000		698,250
Retail Properties of America, Inc.		21,500		288,960
Tanger Factory Outlet Centers, Inc.		4,400		116,644
Urstadt Biddle Properties, Inc.		30,000		652,200
Weingarten Realty Investors (a)		91,225		2,998,566

				13,260,893

SPECIALTY – 5.3%
American Tower Corp.		5,000		713,350
CatchMark Timber Trust, Inc.		25,000		328,250
Crown Castle International Corp.		3,700		410,737
EPR Properties (a)		102,194		6,689,619
Farmland Partners, Inc. (a)		109,344		949,106
Gladstone Commercial Corp.		82,564		1,738,798
Gladstone Land Corp.		37,935		509,467
Iron Mountain, Inc.		30,000		1,131,900

				12,471,227

STORAGE – 3.5%
CubeSmart (a)		45,000		1,301,400
Extra Space Storage, Inc. (a)(b)		17,390		1,520,756
Life Storage, Inc. (a)(b)		21,000		1,870,470
Public Storage (a)(b)		17,700		3,699,300

				8,391,926

Total Real Estate Investment Trusts (Cost $211,046,848)				256,535,643

OTHER – 2.1%
Carador PLC		5,496,600		3,840,749
Marriott International, Inc. (a)(b)		8,000		1,085,840

Total Other (Cost $7,887,004)				4,926,589

Total Common Stocks (Cost $218,933,852)				261,462,232

PREFERRED STOCKS – 31.2% REAL ESTATE INVESTMENT TRUSTS – 31.2%
DATA CENTERS – 0.7%
Digital Realty Trust, Inc., Series C, 6.63%		35,000		965,650
Digital Realty Trust, Inc., Series G, 5.88%		30,000		764,700

				1,730,350



Company	Shares		Value

PREFERRED STOCKS – CONTINUED REAL ESTATE INVESTMENT TRUSTS – CONTINUED
DIVERSIFIED – 0.7%
Colony NorthStar, Inc., Series B, 8.25%		9,609	$	244,261
Colony NorthStar, Inc., Series D, 8.50%		13,000		332,280
Colony NorthStar, Inc., Series E, 8.75%		36,999		983,063

				1,559,604

HEALTH CARE – 1.1%
Global Medical REIT, Inc., Series A, 7.50%		44,000		1,114,080
Sabra Health Care REIT, Inc., Series A, 7.13% (a)(b)		60,600		1,543,482

				2,657,562

INDUSTRIAL – 2.2%
Plymouth Industrial REIT, Inc., Series A, 7.50%		70,000		1,760,500
Rexford Industrial Realty, Inc., Series B, 5.88%		40,000		1,017,600
STAG Industrial, Inc., Series B, 6.63%		37,700		951,925
STAG Industrial, Inc., Series C, 6.88% (a)(b)		55,000		1,439,900

				5,169,925

LODGING/RESORTS – 9.9%
Ashford Hospitality Prime, Inc., Series B, 5.50% (c)		25,000		499,750
Ashford Hospitality Trust, Inc., Series D, 8.45%		39,304		989,675
Ashford Hospitality Trust, Inc., Series F, 7.38%		74,565		1,893,951
Ashford Hospitality Trust, Inc., Series G, 7.38% (a)		250,000		6,280,000
Ashford Hospitality Trust, Inc., Series H, 7.50%		60,000		1,524,600
Ashford Hospitality Trust, Inc., Series I, 7.50%		60,000		1,506,600
Hersha Hospitality Trust, Series C, 6.88% (a)		46,000		1,156,210
Hersha Hospitality Trust, Series D, 6.50%		70,000		1,726,200
Hersha Hospitality Trust, Series E, 6.50%		29,500		729,830
Pebblebrook Hotel Trust, Series C, 6.50% (a)		78,684		1,988,345
RLJ Lodging Trust, Series A, 1.95% (c)		96,117		2,596,120
Sotherly Hotels, Inc., Series C, 7.88%		40,000		1,016,000
Summit Hotel Properties, Inc., Series C, 7.13% (a)(b)		32,582		827,257
Summit Hotel Properties, Inc., Series E, 6.25%		33,200		852,244

				23,586,782

MANUFACTURED HOMES – 1.0%
UMH Properties, Inc., Series B, 8.00%		66,650	$	1,818,212
UMH Properties, Inc., Series C, 6.75%		20,000		544,000

				2,362,212

MORTGAGE – 3.0%
Annaly Capital Management, Inc., Series E, 7.63%		10,200		257,550
Annaly Capital Management, Inc., Series F, 6.95%		40,000		1,032,800
ARMOUR Residential REIT, Inc., Series B, 7.88%		30,000		750,600
iStar, Inc., Series D, 8.00%		11,810		299,620
iStar, Inc., Series G, 7.65%		21,241		542,070
iStar, Inc., Series I, 7.50%		15,100		383,072
MFA Financial, Inc., Series B, 7.50%		17,171		434,426
New York Mortgage Trust, Inc., Series B, 7.75%		33,450		839,930
New York Mortgage Trust, Inc., Series D, 8.00%		20,000		493,800
RAIT Financial Trust, Series A, 7.75%		136,497		1,658,439
RAIT Financial Trust, Series B, 8.38%		35,122		441,132

				7,133,439

OFFICE – 0.4%
SL Green Realty Corp., Series I, 6.50% (a)		40,000		1,003,200

REGIONAL MALLS – 3.2%
CBL & Associates Properties, Inc., Series D, 7.38% (a)(b)		132,461		2,895,597
CBL & Associates Properties, Inc., Series E, 6.63%		25,000		551,250
Pennsylvania Real Estate Investment Trust, Series B, 7.38% (a)(b)		40,000		1,007,200
Pennsylvania Real Estate Investment Trust, Series D, 6.88%		30,000		753,300
Washington Prime Group, Inc., Series H, 7.50%		65,000		1,599,000
Washington Prime Group, Inc., Series I, 6.88%		30,000		743,100

				7,549,447



Company	Shares		Value

PREFERRED STOCKS – CONTINUED REAL ESTATE INVESTMENT TRUSTS – CONTINUED
RESIDENTIAL – 2.5%
Bluerock Residential Growth REIT, Inc., Series A, 8.25% (a)(b)		180,000	$	4,747,950
Bluerock Residential Growth REIT, Inc., Series C, 7.63% (a)(b)		37,645		958,065
Bluerock Residential Growth REIT, Inc., Series D, 7.13%		11,900		299,880

				6,005,895

SHOPPING CENTERS – 4.3%
Cedar Realty Trust, Inc., Series B, 7.25%		57,726		1,458,159
Cedar Realty Trust, Inc., Series C, 6.50%		85,246		2,134,560
DDR Corp., Series J, 6.50% (a)		45,586		1,144,209
DDR Corp., Series K, 6.25% (a)		86,000		2,207,620
Seritage Growth Properties, Series A, 7.00%		80,000		1,944,000
Wheeler Real Estate Investment Trust, Inc., Series D, 8.75% (c)		61,354		1,233,215

				10,121,763

SPECIALTY – 2.2%
CorEnergy Infrastructure Trust, Inc., Series A, 7.38%		24,800		638,352
EPR Properties, Series E, 9.00% (a)(c)		16,400		599,420
Gladstone Commercial Corp., Series D, 7.00% (a)(b)		100,000		2,590,000
Global Net Lease, Inc., Series A, 7.25%		55,000		1,413,500

				5,241,272

Total Real Estate Investment Trusts (Cost $74,034,692)				74,121,451

Total Preferred Stocks (Cost $74,034,692)				74,121,451

INVESTMENT COMPANIES – 1.5%
Alpine Global Premier Properties Fund		188,026		1,267,295
BlackRock Credit Allocation Income Trust		19,451		259,087
Cohen & Steers Quality Income Realty Fund, Inc. (a)(b)		100,297	$	1,268,757
Eaton Vance Enhanced Equity Income Fund II		35,188		535,561
Nuveen Real Estate Income Fund (a)		13,293		149,746

Total Investment Companies (Cost $3,271,662)				3,480,446

SHORT-TERM INVESTMENTS – 0.8%
MONEY MARKET FUNDS – 0.8%
State Street Institutional U.S. Government Money Market Fund, 1.43% (d) (Cost $1,856,768)		1,856,768		1,856,768

Total Investments – 143.6% (Cost $298,096,974)				340,920,897

Other assets less liabilities – 0.5%				1,219,076
Revolving credit facility – (37.1)%				(88,000,000	)
Preferred Shares, at liquidation preference – (7.0)%				(16,675,000	)

Net Assets applicable to common shareholders – 100.0%			$	237,464,973



	December 31, 2017

Assets
Investments in securities, at value (cost of $298,096,974)	$	340,920,897
Dividends and interest receivable		2,567,903
Prepaid expenses		101,986

Total assets		343,590,786

Liabilities
Revolving credit facility		88,000,000
Payable for securities purchased		1,025,667
Advisory fee payable		242,650
Compliance and internal audit		34,564
Interest payable		25,856
Distributions payable on preferred shares		10,995
Administrative		8,636
Accrued expenses and other liabilities		102,445

Total liabilities		89,450,813

Auction preferred shares, Series M, Series T, Series W, Series Th and Series F; $0.001 par value per share; 667 shares issued and outstanding at $25,000 per share liquidation preference		16,675,000

Net assets attributable to common shares	$	237,464,973

Composition of net assets attributable to common shares
Common shares, $0.001 par value per share; unlimited number of shares authorized	$	10,202
Additional paid-in capital		198,782,313
Distributions in excess of net investment income		(14,975	)
Accumulated net realized loss on investments		(4,136,490	)
Net unrealized appreciation on investments		42,823,923

Net assets attributable to common shares	$	237,464,973

Common shares outstanding		10,202,009

Net asset value per share attributable to common shares	$	23.28



	For the Year Ended December 31, 2017

Investment Income
Dividend income	$	10,562,881
Reimbursement of IRS settlement		360,059
Interest income		53,575
Other income		27,741

		11,004,256

Expenses
Advisory		2,436,151
Legal		389,313
IRS settlement		360,059
Investor support services		143,303
Compliance and internal audit		137,521
Custodian		90,002
Administrative		88,001
Shareholder reporting		87,999
Preferred share remarketing and auction fees		72,310
Audit		64,554
Trustees' fees and expenses		46,850
Other		132,246

Total expenses before interest expense		4,048,309
Interest expense		1,396,946

Total expenses after interest expense		5,445,255

Net investment income		5,559,001

Realized and unrealized gain (loss) on investments
Net realized gain on investments		6,984,651
Net change in unrealized appreciation on investments		(4,323,093	)

Net realized and unrealized gain on investments		2,661,558

Net increase in net assets before preferred distributions resulting from operations		8,220,559
Distributions to preferred shareholders from net investment income		(277,231	)
Distributions to preferred shareholders from net realized gain on investments		(158,504	)

Net increase in net assets attributable to common shares resulting from operations	$	7,784,824



	Year Ended December 31, 2017			Year Ended December 31, 2016

Increase (decrease) in net assets resulting from operations
Net investment income	$	5,559,001		$	5,271,701
Net realized gain on investments		6,984,651			6,819,832
Net change in unrealized appreciation on investments		(4,323,093	)		13,721,441
Distributions to preferred shareholders from:
Net investment income		(277,231	)		(332,939	)
Net realized gain on investments		(158,504	)		—

Net increase in net assets attributable to common shares resulting from operations		7,784,824			25,480,035

Distributions to common shareholders from:
Net investment income		(6,961,499	)		(10,099,988	)
Net realized gain on investments		(3,980,155	)		—

Total distributions to common shareholders		(10,941,654	)		(10,099,988	)

Capital shares transactions
Net proceeds from sale of common shares		45,186,282			—

Total increase in net assets attributable to common shares		42,029,452			15,380,047

Net assets attributable to common shares
Beginning of year		195,435,521			180,055,474

End of year (including distributions in excess of net investment income of $14,975 and $8,250, respectively)	$	237,464,973		$	195,435,521

Common shares issued and repurchased
Shares outstanding, beginning of year		7,651,507			7,651,507
Shares issued		2,550,502			—

Shares outstanding, end of year		10,202,009			7,651,507



	Year Ended December 31, 2017

Cash flows from operating activities
Net increase in net assets before preferred distributions resulting from operations	$	8,220,559
Adjustments to reconcile net increase in net assets before preferred distributions resulting from operations to cash provided by operating activities:
Purchases of long term investments		(111,752,219	)
Proceeds from sales of long term investments		45,591,018
Net (purchases) and sales of short term investments		(1,288,390	)
Changes in assets and liabilities:
Increase in dividends and interest receivable		(638,616	)
Decrease in receivable for securities sold		37,210
Increase in prepaid expenses		(99,369	)
Increase in interest payable		16,133
Increase in payable for securities purchased		720,818
Increase in advisory fee payable		49,984
Increase in compliance and internal audit payable		568
Increase in administrative payable		1,346
Decrease in accrued expenses and other liabilities		(9,122	)
Net change in unrealized appreciation on investments		4,323,093
Net realized gain on investments		(6,984,651	)

Cash used in operating activities		(61,811,638	)

Cash flows from financing activities
Distributions paid to preferred shareholders		(432,990	)
Distributions paid to common shareholders		(10,941,654	)
Proceeds from sale of shares		45,186,282
Proceeds from revolving line of credit		28,000,000

Cash provided by financing activities		61,811,638

Increase in cash		—

Cash at beginning of year		—

Cash at end of year	$	—

Supplemental cash flow information:
Cash paid for interest on borrowings	$	1,380,813



	For the Year Ended December 31,
	2017			2016			2015			2014			2013

Per Common Share Operating
Performance (a)
Net asset value, beginning of year	$	25.54		$	23.53		$	25.17		$	19.76		$	20.87

Income from Investment Operations
Net investment income (b)		0.67			0.69			0.80			0.88			0.78
Net realized and unrealized appreciation/(depreciation) on investments		0.29			2.68			(1.08	)		5.88			(0.56	)
Distributions to preferred shareholders (common stock equivalent basis) from:
Net investment income		(0.03	)		(0.04	)		(0.04	)		(0.03	)		(0.02	)
Net realized gain on investments		(0.02	)		—			—			—			—

Net increase (decrease) in net asset value from operations		0.91			3.33			(0.32	)		6.73			0.20
Less: Distributions to common shareholders from:
Net investment income		(0.84	)		(1.32	)		(1.32	)		(1.30	)		(0.77	)
Net realized gain on investments		(0.48	)		—			—			—			—
Return of capital		—			—			—			(0.02	)		(0.54	)
Dilutive effect of rights offering		(1.85	)(c)		—			—			—			—

Net asset value, end of year	$	23.28		$	25.54		$	23.53		$	25.17		$	19.76

Market price, beginning of year	$	20.46		$	19.28		$	20.82		$	16.91		$	18.21

Market price, end of year	$	19.09		$	20.46		$	19.28		$	20.82		$	16.91

Total Return
Total investment return based on:
Market price (d)		(0.46	)%		13.25	%		(0.81	)%		31.74	%		(0.42	)%
Net asset value (d)		(3.89	)%		14.32	%		(1.21	)%		34.84	%		0.72	%

Ratios/Supplemental Data:
Ratio to average net assets attributable to common shares of:
Net investment income, before total preferred share distributions (b)		2.67	%		2.76	%		3.29	%		3.86	%		3.58	%
Total preferred share distributions		0.21	%		0.17	%		0.16	%		0.14	%		0.10	%
Net investment income, net of preferred share distributions (b)		2.46	%		2.59	%		3.13	%		3.72	%		3.48	%
Expenses, including interest expense		2.62	%(e)		2.28	%		2.06	%		2.12	%		2.19	%
Expenses, excluding interest expense		1.94	%(e)		1.75	%		1.69	%		1.74	%		1.79	%
Portfolio turnover rate		13.89	%		10.48	%		17.10	%		14.90	%		22.77	%
Net assets attributable to common shares	$	237,464,973		$	195,435,521		$	180,055,474		$	192,623,260		$	151,164,057
Borrowings on revolving credit facility	$	88,000,000		$	60,000,000		$	60,000,000		$	60,000,000		$	60,000,000
Asset coverage ratio of borrowings (f)		389	%		454	%		428	%		449	%		380	%
Liquidation preference of outstanding preferred shares	$	16,675,000		$	16,675,000		$	16,675,000		$	16,675,000		$	16,675,000
Asset coverage ratio of preferred shares (g)		1,524	%		1,272	%		1,180	%		1,255	%		1,007	%
Asset coverage ratio of borrowings and preferred shares (h)		327	%		355	%		335	%		351	%		297	%

assumed to be reinvested at NAV on the ex-dividend date. All assumed purchases, sales and reinvestments noted in the preceding sentences are assumed to have been executed as of the close of trading on the assumed date. Results represent past performance and do not guarantee future results.

(e): The Fund incurred a one time non-recurring expense equal to 0.17% of net assets attributable to common shares, fully reimbursed to the Fund by the Advisor. If the non-recurring reimbursed expense was not included, Expenses, including interest expense, would have been 2.45% and Expenses, excluding interest expense, would have been 1.77%. For more details please refer to Note A (6) of the Notes to Financial Statements.
(f): Asset coverage ratio of borrowings equals net assets attributable to common shares plus the outstanding balance under our revolving credit facility plus the liquidation preference of our outstanding preferred shares divided by the outstanding balance under our revolving credit facility.
(g): Asset coverage ratio of preferred shares equals net assets attributable to common shares plus the liquidation preference of our outstanding preferred shares divided by the liquidation preference of our preferred shares.
(h): Asset coverage ratio of borrowings and liquidation preference of our preferred shares equals net assets attributable to common shares plus the outstanding balance under our revolving credit facility plus the liquidation preference of our outstanding preferred shares divided by the outstanding balance under our revolving credit facility plus the liquidation preference of our outstanding preferred shares.

RMR Real Estate Income Fund
Notes to Financial Statements

December 31, 2017

RMR Real Estate Income Fund, or the Fund, or RIF, was organized as a Delaware statutory trust on December 17, 2008, and is registered under the Investment Company Act of 1940, as amended, or the 1940 Act, as a non-diversified closed end management investment company. At the Fund's annual meeting on April 13, 2017, the shareholders approved the redomestication of the Fund from a Delaware statutory trust to a Maryland statutory trust. The redomestication was completed on April 18, 2017, and RIF then became and continues to be a Maryland statutory trust. Although RIF is registered as a non-diversified fund, it has operated as a diversified fund since the merger with Old RMR Real Estate Income Fund on January 20, 2012. Therefore, the 1940 Act obliges the Fund to continue to operate as a diversified fund unless the Fund obtains shareholder approval to operate as a non-diversified fund. The Fund applies investment company accounting and reporting guidance.

Preparation of these financial statements in conformity with accounting principles generally accepted in the United States requires the Fund's management to make estimates and assumptions that may affect the amounts reported in the financial statements and related notes. The actual results could differ from these estimates.

Investment securities of the Fund are valued as of the close of trading at the latest sales price whenever that price is readily available on that day; securities for which no sales were reported on that day, unless otherwise noted, are valued at the average of the closing bid and ask prices on that day. Securities traded primarily on The Nasdaq Stock Market, or Nasdaq, are normally valued by the Fund at the Nasdaq Official Closing Price, or NOCP, provided by Nasdaq each business day. The NOCP is the most recently reported price as of 4:00:02 p.m., eastern time, unless that price is outside the range of the "inside" bid and asked prices (i.e., the bid and asked prices that dealers quote to each other when trading for their own accounts); in that case, Nasdaq will adjust the price to equal the inside bid or asked price, whichever is closer to the most recently reported price as of 4:00:02 p.m., eastern time, that day. Some fixed income securities may be valued using values provided by a pricing service.

To the extent the Fund holds foreign securities in its portfolio, those are valued at the latest sales price reflected on the consolidated tape of the exchange that reflects the principal market for such securities whenever that price is readily available on that day; securities for which no sales were reported on that day, unless otherwise noted, are valued at the average of the closing bid and ask prices on that day. Some foreign markets close before the close of customary trading sessions on the New York Stock Exchange, or NYSE (usually 4:00 p.m. eastern time). Often, events occur after the principal foreign exchange on which foreign securities trade has closed, but before the NYSE closes, that the Fund determines could affect the value of the foreign securities the Fund owns or cause their earlier trading prices to be unreliable as a basis for determining value. If these events are expected to materially affect the Fund's net asset value, or NAV, the prices of such securities are adjusted to reflect their estimated

fair value as of the close of the NYSE, as determined in good faith under procedures established by the Fund's board of trustees.

Any of the Fund's securities which are not readily marketable, which are not traded or which have other characteristics of illiquidity are valued by the Fund at fair value as determined in good faith under procedures established by the Fund's board of trustees.

Numerous factors may be considered when determining fair value of a security, including cost at date of purchase, type of security, the nature and duration of restrictions on disposition of the security and whether the issuer of the security being fair valued has other securities of the same type outstanding. See Note A (4) for a further description of fair value measurements.

Short term debt securities with less than 60 days until maturity may be valued at amortized cost plus interest accrued or, if lower, the carrying value, in each case if such value approximates fair value.

The Fund reports the value of its securities at their fair value. Fair value is defined as the price that the Fund would receive upon selling an investment in a timely transaction to an independent buyer in the principal or most advantageous market for the investment. When valuing portfolio securities, the Fund uses observable market data when possible and otherwise uses other significant observable or unobservable inputs for fair value measurements. Inputs refer broadly to the assumptions the Fund believes that market participants would use in valuing the asset or liability, including assumptions about risk; for example, the risk inherent in using a particular valuation technique to measure fair value and the risk inherent in the inputs to the valuation technique. Inputs may be observable or unobservable. Observable inputs are inputs that reflect the assumptions market participants would use in valuing the asset or liability developed based on market data obtained from independent sources. Unobservable inputs are inputs that reflect the Fund's own assumptions about the assumptions market participants would use in valuing the asset or liability developed based on the best information available in the circumstances. The three tier hierarchy of inputs used to value securities reported in these financial statements is summarized below:

The Fund uses broker quotes, issuer company financial information and other market indicators to value the securities whose prices are not readily available. The types of inputs used to value a security may change as the markets fluctuate and/or the availability of data used in an investment's valuation changes.

When the S&P 500 Index (an unmanaged index published as Standard & Poor's Composite Index of 500 common stocks) fluctuates more than 0.75% from the previous day close, the Fund believes that the closing price of foreign securities on the principal foreign exchange on which they trade may no

longer represent the fair value of those securities at the time the U.S. market closes, in which case, the Fund fair values those foreign securities. In such circumstances, the Fund reports holdings in foreign securities at their fair values as determined by an independent security pricing service. The service uses a multi-factor model that includes such information as the security's local closing price, relevant general and sector indices, currency fluctuations, depository receipts and futures, as applicable. The model generates an adjustment factor for each security that is applied to the local closing price to adjust it for post closing events, resulting in the security's reported fair value. The adjustment factor is applied to a security only if the minimum confidence interval is 75% or more. The types of inputs may change as the markets fluctuate and/or the availability of data used in an investment's valuation changes.

All of the Fund's investments were valued using Level 1 inputs on December 31, 2017. The Fund recognizes interperiod transfers between the input levels as of the end of the period. At December 31, 2017, there were no transfers of investments between Level 1, Level 2 and Level 3.

The Fund records securities transactions on a trade date basis, dividend income on the ex-dividend date and any non-cash dividends at the fair market value of the securities received. The Fund uses the accrual method for recording interest income, including accretion of original issue discount, where applicable, and accretion of discount on short term investments and identified cost basis for realized gains and losses from securities transactions.

The Fund has qualified and intends to qualify in the future as a "regulated investment company" and to comply with the applicable provisions of subchapter M of the Internal Revenue Code of 1986, as amended, so that it will generally not be subject to U.S. federal income tax. However, the Fund may be subject to a 4% excise tax to the extent it does not distribute substantially all of its taxable earnings each year.

The Fund has adopted the provisions of the Topic of the Financial Accounting Standards Board Accounting Standard Codification, or ASC 740. ASC 740 sets forth a minimum threshold for financial statement recognition of a tax position taken, or expected to be taken, in a tax return. Financial reporting records are adjusted for permanent book/tax differences to reflect tax character. These reclassifications have no impact on net assets or results of operations. The Fund recognizes interest and penalties, if any, related to unrecognized tax positions as an income tax expense in the Statement of Operations. At December 31, 2017, the Fund did not have any unrecognized tax positions. Each of the tax years in the four year period ended December 31, 2017 remains subject to examination by the Internal Revenue Service.

On February 27, 2017, the Fund entered into an agreement with the Internal Revenue Service, or IRS, acknowledging that, due to an error, it had understated the ordinary income component and overstated the return of capital component of distributions to the Fund's common shareholders for the year ended December 31, 2013. The Fund paid the Internal Revenue Service $360,059 as settlement of this matter. RMR Advisors LLC, or RMR Advisors, the Fund's advisor, reimbursed the Fund this amount.

The Fund earns income, net of expenses, daily on its investments. It is the policy of the Fund to pay a level distribution amount to common shareholders on a quarterly basis if, when and in such amounts as may be determined by the Fund's board of trustees in its discretion in light of such factors as may be considered by the board of trustees, which may include market and economic conditions, and subject to compliance with applicable law, the Fund's Agreement and Declaration of Trust, the Fund's bylaws, the Fund's revolving credit agreement, described in Note F, and other factors. This policy is not fundamental and may be changed by the Fund's board of trustees without shareholder approval. The Fund's distributions to its common shareholders are recorded on the ex-dividend date. The Fund's distributions to its common shareholders may consist of ordinary income (net investment income and short term capital gains), long term capital gains or return of capital. To the extent the Fund's net realized capital gains, if any, can be offset by capital loss carry forwards, it is the policy of the Fund not to distribute such gains. Distributions to preferred shareholders are determined as described in Note D.

The Fund has substantial investments in real estate investment trusts, or REITs, which are generally not subject to federal income taxes. Distributions that the Fund receives from REITs can be classified as ordinary income, capital gain income or return of capital by the REITs that make these distributions to the Fund. The Fund has excluded from its investment income the portions of the distributions received from REITs classified by those REITs as capital gain income and return of capital. The Fund has included in its "net realized gain on investments" that portion of the distributions received from REITs that is classified by those REITs as capital gain income. The Fund has credited its "net change in unrealized appreciation on investments" with that portion of the distributions received from REITs that is classified by those REITs as return of capital. In addition, if the Fund uses capital loss carryforwards to offset capital gains, that portion of the Fund's distributions to common shareholders may be classified as ordinary income for U.S. federal income tax purposes. Further, the Fund's distributions to common shareholders for the years ended December 31, 2017 and 2016 did not exceed the aggregate of the cash distributions the Fund received from its investments less the Fund's expenses and distributions to preferred shareholders. The classifications of distributions received from the Fund's investments were as follows:

Only distributions in excess of accumulated tax basis earnings and profits are reported in the financial statements as a return of capital for tax purposes. Differences in the recognition or classification of income between the financial statements and tax earnings and profits which result in temporary over distributions for financial statement purposes are classified as distributions in excess of net investment income or accumulated net realized gains in the components of net assets on the Statement of Assets and Liabilities.

The tax character of distributions made by the Fund during the years ended December 31, 2017 and December 31, 2016, were as follows:

As of December 31, 2017, the components of distributable earnings on a federal income tax basis were as follows:

The cost, gross unrealized appreciation and gross unrealized depreciation of the Fund's investments for federal income tax purposes as of December 31, 2017, are as follows:

The $818,845 difference between the financial reporting cost basis, tax cost basis and unrealized appreciation/depreciation of the Fund's investments as of December 31, 2017 is due to $1,066,177 of wash sales of portfolio investments less $247,332 from non-taxable distributions received from portfolio investments for financial and tax reporting purposes.

Net capital loss carryforwards may be applied against any net realized taxable gains in succeeding years, subject to the carryforward period limitations, where applicable. Effective for taxable years beginning after December 22, 2010, the Regulated Investment Company Modernization Act of 2010, or the Modernization Act, changed the capital loss carry forward rules. Capital losses generated in tax years beginning after the date of enactment may now be carried forward indefinitely, and retain the character of the original loss. Under pre-enactment law, capital losses could be carried forward for up to eight tax years as short-term capital losses. The provisions affecting the utilization of capital loss carryforwards

under the Modernization Act also require the utilization of post-enactment losses prior to the utilization of pre-enactment losses.

At December 31, 2017, the Fund had post-enactment accumulated capital loss carryovers which can be used to offset future realized long term capital gains of $1,769,752.

As of December 31, 2017, the Fund had pre-enactment accumulated capital loss carryforwards, subject to the eight-year carryforward period and possible expiration of $1,551,873, all of which expires in 2018.

During the year ended December 31, 2017, the Fund utilized net capital loss carryforwards of $2,821,295

Under normal market conditions, the Fund's investments are concentrated in income producing common shares, preferred shares and debt securities, including convertible preferred and debt securities, issued by real estate companies, including REITs. The value of the Fund's shares may fluctuate more than the shares of a fund not concentrated in the real estate industry due to economic, legal, regulatory, technological or other developments affecting the United States real estate industry.

The value of certain dividend and interest paying securities in the Fund's portfolio could be affected by interest rate fluctuations. Generally, when market interest rates fall, the values of dividend and interest paying securities rise, and vice versa. Interest rate risk is the risk that the securities in the Fund's portfolio will decline because of increases in market interest rates. The prices of long term securities generally fluctuate more than prices of shorter term securities as interest rate change. Additionally, the Fund's revolving credit facility requires interest to be paid at a variable interest rate and the Fund pays distributions on its outstanding preferred shares at a rate set at auctions held generally every seven days. When interest rates increase, the Fund's interest costs will be higher and the distribution rate on its preferred shares may increase which could adversely affect the Fund's cash flow and ability to pay common share distributions. These risks may be greater in the current market environment because certain interest rates are near historically low levels and the Federal Reserve has begun to raise certain benchmark interest rates.

The Fund may invest in illiquid or less liquid securities or securities in which no secondary market is readily available or which are otherwise illiquid, including private placement securities. The Fund may not be able to readily dispose of such securities at prices that approximate those at which the Fund could sell such securities if they were more widely traded and, as a result of such illiquidity, the Fund may have to sell other investments or engage in borrowing transactions if necessary to raise cash to meet its obligations. Limited liquidity can also affect the market price of securities, thereby adversely affecting the Fund's net asset value and ability to make dividend distributions. The financial markets in general have in recent years experienced periods of extreme secondary market supply and demand imbalance, resulting in a loss of liquidity during which market prices were suddenly and substantially below traditional measures of intrinsic value. During such periods, some securities could be sold only at arbitrary prices and with substantial losses. Periods of such market dislocation may occur again at any time.

Additionally, periods of market volatility remain, and may continue to occur in the future, in response to various political, social and economic events both within and outside of the United States. Such conditions could result in greater price volatility, less liquidity, widening credit spreads and lack of price transparency, and many securities could become illiquid and of uncertain value. Such market conditions may make valuation of some of the Fund's securities uncertain and/or result in sudden and significant valuation increases or declines in its holdings. If there is a significant decline in the value of the Fund's portfolio, this may impact the asset coverage levels for the Fund's outstanding leverage, and impair the Fund's ability to pay common share distributions and achieve its investment objectives.

Advisory and Administration Agreements and Other Transactions with Affiliates; Other Agreements

The Fund has an investment advisory agreement with RMR Advisors to provide the Fund with a continuous investment program, to make day to day investment decisions and to generally manage the business affairs of the Fund in accordance with its investment objectives and policies. Pursuant to the agreement, RMR Advisors is compensated at an annual rate of 0.85% of the Fund's average daily managed assets. Managed assets means the total assets of the Fund less liabilities other than any indebtedness entered into for purposes of leverage. Thus, for purposes of calculating managed assets, the Fund's revolving credit facility and the liquidation preference of the Fund's preferred shares are not considered a liability and they are considered indebtedness entered into for purposes of leverage. The Fund incurred advisory fees of $2,436,151 during the year ended December 31, 2017.

RMR Advisors also performs administrative functions for the Fund pursuant to an administration agreement with the Fund. RMR Advisors has entered into a subadministration agreement with State Street Bank and Trust Company, or State Street, to perform substantially all fund accounting and other administrative services for the Fund. Under the administration agreement, RMR Advisors is entitled to reimbursement of the cost of providing administrative services. The Fund paid RMR Advisors $88,001 for subadministrative fees charged by State Street for the year ended December 31, 2017.

Each trustee who is not a director, officer or employee of RMR Advisors, and who is not an "interested person" of the Fund, as defined under the 1940 Act, is considered to be a "disinterested trustee". Disinterested trustees are each paid by the Fund an annual retainer plus attendance fees for board and committee meetings. The Fund incurred trustee fees and expenses of $46,850 during the year ended December 31, 2017.

The Fund's board of trustees, and separately the disinterested trustees, has authorized the Fund to make payments to RMR Advisors for costs related to the Fund's compliance and internal audit programs. The Fund incurred compliance and internal audit expenses of $137,521, which includes the Fund's allocated portion of the compensation of its chief compliance officer and director of internal audit as well as compliance and internal audit related costs, during the year ended December 31, 2017.

The Fund has retained Destra Capital Investments LLC, or Destra, to provide investor support services in connection with the ongoing operation of the Fund. Such services include providing ongoing contact with respect to the Fund and its performance with financial advisors that are representatives of broker

dealers and other financial intermediaries, communicating with the NYSE American LLC, or NYSE American, specialist for the Fund's common shares, and with the closed end fund analyst community regarding the Fund on a regular basis. The Fund pays Destra a service fee in an annual amount equal to 0.05% of the Fund's average daily managed assets. The term of this agreement renews annually each December 14, unless the Fund terminates the agreement. The Fund paid Destra $143,303 for these services for the year ended December 31, 2017.

Cost of purchases and proceeds from sales of investments, excluding short-term securities, and brokerage commissions on these transactions during the year ended December 31, 2017, were as follows:

The Fund has issued 64 Series M, 438 Series T, 47 Series W, 91 Series Th and 27 Series F auction preferred shares with a total liquidation preference of $16,675,000. The preferred shares are senior to the Fund's common shares and rank on parity with each other class or series of preferred shares of the Fund as to the payment of periodic distributions, including distribution of assets upon liquidation. If the Fund does not timely cure a failure to (1) maintain asset coverage for the preferred shares as required by any applicable rating agency rating the Fund's preferred shares, or (2) maintain "asset coverage", as defined in the 1940 Act, of at least 200%, the preferred shares will be subject to mandatory and/or optional redemption in accordance with the terms of such preferred shares contained in the Fund's bylaws in an amount equal to their liquidation preference plus accumulated but unpaid distributions. The holders of the preferred shares have per share voting rights equal to the per share voting rights of the holders of the Fund's common shares and generally vote together with the holders of the common shares as a single class; however, holders of the preferred shares, voting as a separate class, also are entitled to elect two of the Fund's trustees. The Fund pays distributions on the preferred shares at a rate set at auctions held for each series of preferred shares generally every seven days.

Distributions are generally payable every seven days. The annualized preferred share distribution rate for each series was as follows as of December 31, 2017.

To date, no auctions for preferred securities of the Fund have failed to attract sufficient clearing bids (such auctions are commonly referred to as "failed" auctions). However, RBC Capital Markets, LLC, an affiliate of the Fund's lead broker dealer for its preferred securities, has from time to time acquired for its own account a portion of the Fund's preferred securities in the auctions, which at times have constituted a substantial portion of the Fund's preferred securities and it may from time to time continue to purchase the Fund's preferred securities in the auctions for its own account, including possibly acquiring all or substantially all of such preferred securities. According to the Royal Bank of Canada's (the parent company of RBC Capital Markets, LLC) Schedule 13G filings, as of December 31, 2017, it owned, in the aggregate, 547 shares of the Fund's issued and outstanding preferred shares, or 82.01% of the Fund's issued and outstanding preferred shares. If RBC Capital Markets, LLC had not been a purchaser of preferred securities in the Fund's auctions, some auctions likely would have failed and holders of the Fund's preferred shares would not have been able to sell their preferred shares in some auctions. There can be no assurance that RBC Capital Markets, LLC or any other of its affiliates will purchase the Fund's preferred shares in any future auction of the Fund's preferred securities in which demand is insufficient for holders of the Fund's preferred shares to sell all offered preferred shares, or that the Fund will not have any auction for its preferred securities fail. If an auction of the Fund's preferred shares should fail, the dividend rate for the next succeeding dividend period is set according to a pre-determined formula, and the resulting rate may be higher than the rate which the Fund would otherwise pay as a result of a successful auction. If an auction fails, holders of the Fund's preferred shares may not be able to sell their preferred shares in that auction. If auctions for the Fund's preferred shares fail, or if market conditions generally frustrate the Fund's ability to enhance investment results through the investment of capital attributable to its outstanding preferred shares, such factors may cause the Fund to change the form and/or amount of investment leverage used by the Fund and may result in the Fund realizing reduced investment returns.

The Fund actively manages compliance with asset coverage and other financial ratio requirements applicable to the preferred shares. In order to facilitate compliance with such requirements, and without further notice of its intention to do so, the Fund may from time to time purchase or otherwise acquire its outstanding preferred shares in the open market, in other nondiscriminatory secondary market transactions, pursuant to tender offers or other offers to repurchase preferred shares, or in other permissible purchase transactions, and also may from time to time call or redeem preferred shares in accordance with their terms.

On August 21, 2017 the Fund commenced a transferrable rights offering to common shareholders of record to subscribe for up to an aggregate of 2,550,502 of the Fund's common shares. The offering expired on September 19, 2017, or the Expiration Date. Each record date shareholder received one right for each outstanding whole common share held, which entitled their holders to purchase one new Fund common share for every three rights held. In addition, record date shareholders who fully exercised their rights (other than those rights that could not be exercised because they represented the right to acquire less than one common share) were entitled to subscribe for additional common shares of the Fund that remained unsubscribed as a result of any unexercised rights. The subscription price per common share was determined based upon a formula equal to 90% of the last reported sales price of the Fund's common shares on the NYSE American on the Expiration Date, and each of the four preceding trading days, subject to a minimum subscription price of 70% of the Fund's net asset value per common share on the Expiration Date. The rights holders subscribed for all 2,550,502 common shares at an average price per share of $17.75. Proceeds from the offering were $45,186,282. The Fund received the entire proceeds of the offering since RMR Advisors paid the dealer manager fee and other expenses of the offering totaling $2,314,995.

The Fund has an $88,000,000 revolving credit facility, or the Facility, with BNP Paribas Prime Brokerage Inc., or BNPP. Prior to November 30, 2017, the Facility was $60,000,000. On December 1, 2016 BNPP assigned the Facility to BNP Paribas Prime Brokerage International, Ltd. (PBL). The Facility has a 270-day rolling term that resets daily; however, if the Fund fails to satisfy certain NAV requirements, the Facility may convert to a 60-day rolling term that resets daily. The Fund is required to pay interest on outstanding borrowings under the Facility at an annual rate of three months LIBOR plus 95 basis points. In addition, in the event the long term credit rating of BNP Paribas, the parent company of PBL, declines three or more levels below its highest rating by any of Standard & Poor's Rating Services, Moody's Investors Service, Inc. or Fitch Ratings, Ltd. on March 16, 2016, PBL shall have the option to terminate the Facility immediately upon notice. The Fund pays a facility fee of 55 basis points per annum on the unused portion, if any, of the Facility. The Fund is required to pledge portfolio securities as collateral equal to a minimum of 200%, and up to a maximum amount of 250%, of the loan balance outstanding and has granted a security interest in the securities pledged to, and in favor of, PBL as security for the loan balance outstanding. As of December 31, 2017, the Fund has pledged portfolio securities with a market value of $182,659,582 as collateral for the Facility. During the year ended December 31, 2017, the Fund had no unused portion of the Facility and did not pay a facility fee. If the Fund fails to meet certain requirements, or maintain other financial covenants required under the Facility, the Fund may be required to repay immediately, in part or in full, the loan balance outstanding under the Facility, which may require the Fund to sell portfolio securities at potentially inopportune times if other financing is not then available to the Fund on acceptable terms.

The Facility also permits, subject to certain conditions, PBL to rehypothecate portfolio securities pledged by the Fund up to the amount of the loan balance outstanding. The Fund continues to receive dividends and interest on rehypothecated securities. The Fund also has the right under the Facility to recall the rehypothecated securities from PBL on demand. If PBL fails to deliver the recalled security in a timely manner, the Fund will be compensated by PBL for any fees or losses related to the failed delivery or, in the event a recalled security will not be returned by PBL, the Fund, upon notice to PBL, may reduce the loan balance outstanding by the amount of the recalled security failed to be returned. The Fund will receive a portion of the fees earned by PBL in connection with the rehypothecation of portfolio securities. As of December 31, 2017, the aggregated value of rehypothecated securities was $73,147,150. Those rehypothecated securities were included among the portfolio securities pledged by the Fund as collateral for the Facility. During the year ended December 31, 2017, the Fund earned $26,639 in fees from rehypothecated securities.

As of December 31, 2017, the Fund had outstanding borrowings of $88,000,000 under the Facility. During the year ended December 31, 2017, the average outstanding daily balance under the Facility was $61,841,096 at a weighted average annual borrowing cost of 2.21%.

We have audited the accompanying statements of assets and liabilities of RMR Real Estate Income Fund (the "Fund"), including the portfolio of investments, as of December 31, 2017, and the related statements of operations and cash flows for the year then ended, the statements of changes in net assets for each of the two years in the period then ended, the financial highlights for each of the five years in the period then ended and the related notes (collectively referred to as the "financial statements"). In our opinion, the financial statements present fairly, in all material respects, the financial position of the Fund at December 31, 2017, and the results of its operations and its cash flows for the year then ended, the changes in its net assets for each of the two years in the period then ended, and its financial highlights for each of the five years in the period then ended, in conformity with U.S. generally accepted accounting principles.

These financial statements are the responsibility of the Fund's management. Our responsibility is to express an opinion on the Fund's financial statements based on our audits. We are a public accounting firm registered with the Public Company Accounting Oversight Board (United States) ("PCAOB") and are required to be independent with respect to the Fund in accordance with the U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB.

We conducted our audits in accordance with the standards of the PCAOB. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement, whether due to error or fraud. The Fund is not required to have, nor were we engaged to perform, an audit of the Fund's internal control over financial reporting. As part of our audits, we are required to obtain an understanding of internal control over financial reporting, but not for the purpose of expressing an opinion on the effectiveness of the Fund's internal control over financial reporting. Accordingly, we express no such opinion.

Our audits included performing procedures to assess the risks of material misstatement of the financial statements, whether due to error or fraud, and performing procedures that respond to those risks. Such procedures included examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements. Our procedures included confirmation of securities owned as of December 31, 2017, by correspondence with the custodian and others, or by other appropriate auditing procedures where replies from others were not received. Our audits also included evaluating the accounting principles used and significant estimates made by management, as well as evaluating the overall presentation of the financial statements. We believe that our audits provide a reasonable basis for our opinion.

We have served as the auditor of one or more RMR investment companies since 2003.
Boston, Massachusetts
February 21, 2018

Consideration of Continuation of the Investment Advisory Agreement (unaudited)

The Board of Trustees (the "Board") of RMR Real Estate Income Fund ("RIF") considered the benefits of retaining RMR Advisors LLC (the "Advisor") as RIF's investment adviser in connection with the renewal of RIF's existing investment advisory agreement (the "Advisory Agreement") with the Advisor for an additional one year term. The Board consists of five trustees, three of whom are Independent Trustees and thus not "interested persons" of RIF as defined in the Investment Company Act. RIF's other two trustees are Managing Trustee who are "interested persons" of RIF as defined in the Investment Company Act and are affiliated with the Advisor. The Board met in person to consider whether to renew the Advisory Agreement and, as part of its deliberations, the Independent Trustees met separately in executive session outside of the presence of the Managing Trustees. During the executive session the Independent Trustees engaged in a discussion of the matters described below, which were also considered by the full Board, and reached the same conclusions as those attributed to the full Board.

The Board considered the nature, extent and quality of services that the Advisor has provided to RIF and its predecessor funds; the quality and experience of personnel in the Advisor's organization, as well as the depth of such personnel at the Advisor; the experience and expertise of the Advisor as an investment adviser; the capacity and future commitment of the Advisor to perform its duties; the level of investment advisory fees to be paid by RIF, as compared to similar funds; the Advisor's performance history as investment adviser to RIF; the potential for economies of scale; the financial condition and profitability of the Advisor; and any indirect benefits to be derived by the Advisor from its relationship with RIF.

In connection with considering RIF's performance and expenses relative to other similar funds, the Board was provided with two separate reports: (i) a comparative fee and performance analysis of a peer group of funds chosen by Morningstar, an independent third party service that ranks and provides information about investment companies (the "Morningstar Report"); and (ii) a comparative fee and performance analysis of U.S. real estate closed end funds chosen by the Advisor (the "Advisor Report"). The Morningstar Report compared RIF to a peer group (the "Morningstar Peer Group") of three other closed end funds chosen pursuant to Morningstar's methodology, as well as to RIF's Morningstar classification group (the "Morningstar Classification Group"), which is comprised of closed end funds in the Real Estate category that are single funds (non fund of funds) and actively managed. The Advisor Report compared RIF to a peer group (the "Advisor Peer Group") of five other closed end funds chosen by the Advisor that invest in U.S. real estate securities. The Board noted that the Advisor Peer Group was consistent with the peer group consistently reviewed by the Board at its regular meetings when considering various matters regarding RIF's performance and other relevant metrics. In evaluating whether to continue the Advisory Agreement, the Board considered both the Morningstar Report and the Advisor Report, and generally agreed that the Morningstar Report and the Advisor Report contained consistent results.

In addition, the Board considered the following matters in determining whether to renew the Advisory Agreement.

The Board considered the level and depth of knowledge of the Advisor. The Board took into account its familiarity with the Advisor and its management of RIF and its predecessor funds, noting RIF's performance relative to the Morningstar Peer Group and the Advisor Peer Group. The Board also considered the Advisor's record of compliance with its own policies and procedures, the Advisor's record

of adherence to RIF's compliance policies and procedures and whether RIF had operated within its investment objectives. Additionally, the Board considered the extent of specialized knowledge of the Advisor, noting that the Advisor specialized in the area of real estate investment management.

The Board reviewed a comparative analysis of RIF's advisory expense and total expenses to those of the Morningstar Peer Group and the Advisor Peer Group. The Board considered that RIF's total net expenses were above the median of the Morningstar Peer Group and discussed some of the reasons why this might be the case. The Board first noted that, on an absolute basis, RIF's total net expense ratio ranked in the fourth quartile within both the Morningstar Peer Group and the Morningstar Classification Group, exceeding the Morningstar Peer Group median by 23 basis points and the Morningstar Classification Group median by 44 basis points. The Board further noted that RIF's net expenses increased by six basis points since 2015 as assets rose. The Board then discussed how the increase in RIF's total expense ratio resulted from an increase in the cost of RIF's leverage as well as a onetime non-recurring expense as a result of a settlement with the IRS acknowledging an error that had understated the ordinary income component and overstated the return of capital component of certain prior year distributions that RIF made on its common shares. The Board noted that RIF's expense ratio, excluding that onetime non-recurring expense, was 2.51% for the nine month period ended September 30, 2017 and that this onetime expense was reimbursed by the Advisor to RIF in February 2017, but which reimbursement was recorded as other income by RIF in accordance with generally accepted accounting principles. The Board further noted that the "Other" expenses component of RIF's net expense ratio was higher than that of the Morningstar Peer Group and its evaluation that "Other" expenses generally consisted of fixed costs. The Board concluded that, as a result of RIF's small amount of net assets relative to most members of the Morningstar Peer Group, it has a smaller asset base over which to spread these fixed costs, thus contributing to a generally higher expense ratio compared to the Morningstar Peer Group.

The Board then evaluated RIF's total net expense ratio against the Advisor Peer Group, noting that the members of the Advisor Peer Group generally had total net expense ratios lower than that of RIF. The Board in particular considered and discussed that RIF shared the highest net advisory fee rate of the Advisor Peer Group with another member of the Advisor Peer Group, but that, relative to the Morningstar Classification Group, RIF's advisory fee was at the median. The Board considered the differences and similarities between the Morningstar Peer Group and the Advisor Peer Group, as well as the absolute level of RIF's advisory fee rate and overall expenses. The Board, after considerable discussion and analysis, then expressed its view that RIF's advisory fee rate was within the range of advisory fee rates charged by comparable funds, and concluded that RIF's expenses were within industry norms and were reasonable and appropriate in light of the quality of service and commitment rendered by the Advisor.

In evaluating the performance of RIF and the Advisor, the Board also considered and discussed that it reviews, on a regular basis, RIF's performance results, portfolio composition and investment strategies. In connection with its evaluation of the Advisor's performance in managing RIF's portfolio, the Board considered RIF's performance results contained in the Morningstar Report (as of July 31, 2017 and September 30, 2017) and the Advisor Report (as of June 30, 2017 and September 30, 2017). The Board discussed several aspects of the Morningstar Report, including that (i) RIF's NAV returns relative to the Morningstar Peer Group ranked in the bottom quartile for the one and three year periods ended September 30, 2017; and (ii) RIF's NAV returns relative to the Morningstar Peer Group ranked in the third quartile for the five, ten year, and since inception periods ended September 30, 2017. The Board

noted that RIF's underperformance across all time periods ended September 30, 2017 was the result of share dilution associated with RIF's rights offering, which expired on September 19, 2017. The Board further noted that, while RIF's NAV return ranked in the fourth quartile relative to the Morningstar Peer Group and the Morningstar Classification Group for the one year period as of July 31, 2017, RIF's NAV return ranked in the first quartile relative to the Morningstar Peer Group for the three and five year periods ended July 31, 2017 and the second quartile relative to the Morningstar Classification Group for the three and five year periods ended July 31, 2017. The Board also considered the Advisor Report as of June 30, 2017 and noted that it contained favorable NAV performance results for RIF relative to the Advisor Peer Group for the one year period and comparable (albeit slightly lower) performance results for RIF relative to the Advisor Peer Group for the three and five year periods. The Board also considered the Advisor Report as of June 30, 2017 and noted that it contained favorable NAV performance results for RIF relative to the MSCI REIT Total Return Index (the "Index"), an unmanaged index of U.S. real estate common stocks, for the one, three, and five year periods ended June 30, 2017. The Board noted that RIF's performance as of June 30, 2017 relative to the Index was generally consistent with its performance relative to comparable funds and that the Index was a relevant benchmark because RIF invests in the common stocks of real estate investment trusts covered by the Index. The Board noted that the Index is unmanaged and that the return indicated for the Index did not reflect deductions for fees and expenses.

The Board considered the Advisor Report as of September 30, 2017 and reviewed RIF's NAV performance results relative to the Advisor Peer Group and the Index, for the one, three, five, and ten year periods ended September 30, 2017 and since inception. Additionally, the Board discussed how RIF uses leverage in an attempt to enhance its investment returns and, as a result, out performance relative to the Index on the upside was often accompanied by under performance relative to the Index on the downside. The Board concluded that, while RIF's performance has varied over time and RIF underperformed for all periods ended September 30, 2017 as a result of share dilution associated with RIF's rights offering, RIF's performance has been strong in recent years and was reflective of the high quality of service the Advisor provides. The Board also took note of the success of the rights offering, the fact that the share dilution associated with the rights offering was within the expected range and the Advisor's role and contributions in connection with that offering, including the Advisor's payment of the offering costs.

The Board had a general discussion of RIF's market price discount to its NAV. The Board noted in particular that it received information on a quarterly basis regarding RIF's discount to NAV and that it monitored both RIF's discount and efforts undertaken by the Advisor to narrow RIF's discount. In this respect, the Board discussed the pattern of RIF's discount since its merger with Old RMR Real Estate Income Fund in January 2012 and noted various matters which may have affected the discount, including RIF's regular quarterly dividend and that the Board historically had decided not to increase its dividend through returns of capital as it appeared certain other funds were doing. The Board also reviewed and discussed various initiatives undertaken by the Advisor to seek to narrow RIF's discount, noting the Board's role in determining any such actions taken or which may be taken, and among other matters discussed were the continued retention of Destra, a third party fund distributor and registered broker dealer, to provide secondary market support services to RIF and the use of RIF's line of credit in an effort to take advantage of investment opportunities and to seek to generate additional investment income. The Board then indicated its satisfaction with the Advisor's performance despite the NAV discount and concluded that the Advisor had contributed positively to the performance of RIF, was likely to contribute positively to the performance of RIF in the future, and determined that continuing the Advisory Agreement would be in RIF's and its shareholders' best interests.

The Board discussed the experience of the Advisor in general and considered the Advisor's financial statements as of September 30, 2017 and for the fiscal year then ended, and the Advisor's financial condition. The Board also discussed with members of the Advisor's management their income projections for the Advisor's 2018 fiscal year. In particular, the Board considered a presentation by the Advisor's management with respect to its financial condition and prospects for growth and continued viability. The Board noted that the Advisor had historically operated at a loss due to the significant start up costs associated with RIF and its predecessors, but that for the year ended September 30, 2016 it had realized a profit and expected to realize another profit from its current business operations during its current fiscal year, which would end on September 30, 2018. The Advisor's management noted that, while the Advisor had a net loss for its fiscal year ended September 30, 2017, such loss was due to the fact that it paid all costs associated with RIF's rights offering. The Advisor's management expressed its belief that the Advisor would continue to be profitable. The Advisor's management also discussed with the Board various growth initiatives it had been undertaking during the past year, including RIF's rights offering and new product ideas, all of which were aimed at increasing the Advisor's and its affiliates' assets under management. In light of the Advisor's profitability for the fiscal year ended September 30, 2016 and expected profitability for the current fiscal year, and in light of the fee, expense and performance considerations discussed earlier, the Board also considered whether to seek a revision to RIF's advisory fee. After consideration, the Board determined that, in light of the Advisor's historical start up losses, the small incremental expense savings that any such revision likely would produce, its view that any such savings would not be sufficient to take actions with measurable impact for shareholders or to the market for RIF's shares and its earlier conclusions regarding RIF's expenses and performance, it was not appropriate to seek a revision to RIF's advisory fee.

The Board also considered and discussed the Advisor's commitment to RIF and its registered investment company platform, noting in particular the expressed commitment of Messrs. Barry Portnoy and Adam Portnoy (the Advisor's control persons and owners, who are also Managing Trustees of RIF) to RIF. Upon reviewing this information, the Board concluded that the Advisor continued to have the financial wherewithal to perform the services required under the Advisory Agreement.

The Board also considered the potential economies of scale that could be realized by RIF. The Board noted that RIF's asset base recently increased further as a result of its rights offering in September 2017, which was expected to result in economies of scale and efficiencies for RIF. The Board also noted that certain economies of scale and operational efficiencies may have been achieved in connection with RIF's merger with Old RMR Real Estate Income Fund in January 2012. In particular, the Board recognized that certain administrative operating costs, such as custody expenses, subadministration expenses, audit fees, legal expenses, mailing costs and other expenses are now able to be spread over RIF's larger asset base than before the 2012 merger and the rights offering, as applicable. The Board concluded that, to the extent any economies of scale were able to be achieved as a result of operational efficiencies, they were appropriately reflected in RIF's expense structure.

The Board also considered the indirect benefits to be derived by the Advisor from its relationship with RIF. In particular, the Board considered that the Advisor may realize the value of research it receives from brokers when determining best execution of portfolio transactions, and that RIF may pay higher

commissions to brokers providing research than would be available from other brokers who do not do so. As such, a portion of the brokerage commissions paid by RIF may be used to obtain research related services that may benefit the Advisor and its affiliates by making available to them research that they might otherwise determine to purchase or prepare at their own expense. In light of the potential benefits to RIF of the availability of such research to the Advisor and the relatively low absolute additional potential brokerage expenses associated with this practice, the Board did not consider this a material factor in its analysis. Additionally, the Board noted that the Advisor had reported that the brokers with whom it has placed portfolio transactions on behalf of RIF to date typically have not conditioned the availability of research on commission related factors.

The Board considered that RIF had entered into a separate Administration Agreement with the Advisor and that it was also considering the renewal of the Administration Agreement for an additional one year term. The Board noted that, pursuant to the Administration Agreement, the Advisor had engaged a third party subadministrator to perform substantially all fund accounting and other administrative services for RIF. The Board considered that the only compensation the Advisor has been paid under the Administration Agreement is reimbursement of expenses incurred by it or its affiliates in providing the administration services provided for therein. The Board discussed that, to date, amounts paid or payable to the Advisor under the Administration Agreement have been limited to reimbursements for the fees charged to the Advisor for RIF by the third party subadministrator and reimbursement payments to the Advisor by RIF for compliance and internal audit services for RIF, which were authorized by the Compensation Committee and the Board, and separately the Independent Trustees. After reviewing and discussing the Administration Agreement, the Board concluded that the Administration Agreement was in the best interests of RIF and its shareholders, that the services performed pursuant to the Administration Agreement are required for the operation of RIF, that the Advisor provides services of a nature and quality which are at least equal to those provided by other unaffiliated service providers offering the same or similar services, and that the fees charged under the Administration Agreement are fair and reasonable in light of the usual and customary charges made by unaffiliated service providers for services of the same nature and quality.

In considering the continuation of the Advisory Agreement, the Board noted that it did not identify any single factor as controlling. Based on the Trustees' evaluation of all factors that they deemed to be relevant, the Board, including each of the Independent Trustees, concluded that (i) the Advisor has demonstrated that it possesses the capability and resources to perform the duties required of it under the Advisory Agreement; (ii) the Advisor maintains an appropriate compliance program; (iii) the performance of RIF is reasonable in relation to the performance of funds with similar investment objectives and of relevant benchmark indices; (iv) the advisory fee rate is fair and reasonable, given the scope and quality of the services to be rendered by the Advisor; and (v) approval of the continuation of the Advisory Agreement for an additional one year term is in the best interests of RIF and its shareholders.

Subject to the supervision of the board of trustees, the Advisor is authorized to employ such securities brokers and dealers for the purchase and sale of Fund assets and to select the brokerage commission rates at which such transactions are effected. In selecting brokers or dealers to execute transactions for the Fund, the Advisor seeks the best execution available, which may or may not result in paying the lowest available brokerage commission or lowest spread. In so doing, the Advisor considers all factors it believes are relevant to obtaining best execution, including such factors as: the best price available; the reliability, integrity and financial condition of the broker; the size of and difficulty in executing the order; the value of the expected contribution of the broker; and the scope and quality of research it provides.

The Advisor may select brokers that furnish it or its affiliates or personnel, directly or through third party or correspondent relationships, with research or brokerage services which provide, in its view, appropriate assistance to it in the investment decision making or trade execution processes. Such research or brokerage services may include, without limitation and to the extent permitted by applicable law: research reports on companies, industries and securities; economic and financial data; financial publications; and broker sponsored industry conferences. Research or brokerage services obtained in this manner may be used in servicing any of the Advisor's or its affiliates' clients. Such products and services may disproportionately benefit one client relative to another client based on the amount of brokerage commissions paid by such client and such other clients, including the Fund. To the extent that the Advisor uses commission dollars to obtain research or brokerage services, it will not have to pay for those products and services itself.

The Advisor may endeavor, subject to best execution, to execute trades through brokers who, pursuant to such arrangements, provide research or brokerage services in order to ensure the continued receipt of research or brokerage services it believes are useful in its decision making or trade execution processes.

The Advisor may pay, or be deemed to have paid, commission rates higher than it could have otherwise paid in order to obtain research or brokerage services. Such higher commissions would be paid in accordance with Section 28(e) of the Securities Exchange Act of 1934, which requires the Advisor to determine in good faith that the commission paid is reasonable in relation to the value of the research or brokerage services provided. The Advisor believes that using commission dollars to obtain the type of research or brokerage services mentioned above enhances its investment research and trading processes, thereby increasing the prospect for higher investment returns.

The Fund recognizes and respects the privacy of its prospective, current, inactive and former shareholders, including you, and takes precautions to maintain the privacy of your "nonpublic personal information." This notice is provided to help you understand what personal information the Fund collects, how the Fund protects that information and why in certain cases the Fund shares that information with select parties.

The Fund collects and shares "nonpublic personal information" about you and your financial transactions with the Fund. For example, such information may include, without limitation, your social security number, account balance, bank account information, purchase history and transaction history.

The Fund collects your nonpublic personal information from different sources, including the following:

The Fund does not sell your name or other information about you to anyone, nor does it share your information with affiliates and other third parties for marketing purposes. The Fund does not disclose nonpublic personal information about its shareholders except to its affiliates and certain service providers, such as the Fund's subadministrator, transfer agent, attorneys and other financial or non financial service providers, for the Fund's business purposes or as permitted by law. For example, the Fund may disclose your nonpublic personal information:

The Fund conducts its business through trustees, officers and third parties that provide services pursuant to agreements with the Fund (for example, the service providers described above). The Fund has no employees. The Fund restricts access to your nonpublic personal information to those persons who need to know that information in order to provide services to you or the Fund. The Fund maintains physical, electronic and procedural safeguards that comply with federal and state standards to guard your nonpublic personal information. When disclosing your information to affiliates and other nonaffiliated third parties, the Fund will require these companies to protect the confidentiality and security of your nonpublic personal information and to use that information only for its intended purpose.

Please note that if you hold shares of the Fund through a financial intermediary such as a broker dealer, bank or trust company and that intermediary, not you, is the record owner of your shares, then the privacy policy of your financial intermediary will govern how your nonpublic personal information collected by that intermediary may be shared by that intermediary.

If you have any questions concerning this privacy notice, please contact Investor Relations at 617-796-8253.

An annual meeting of shareholders of the Fund is expected to be held in April 2018, at Two Newton Place, 255 Washington Street, Newton, Massachusetts. A Notice of Internet Availability of Proxy Materials or other proxy materials will be mailed to the shareholders of record of the Fund each of whom is invited to attend.

A description of the policies and procedures that are used to vote proxies relating to the Fund's portfolio securities is available: (1) without charge, upon request, by calling us at (866) 790-8165; and (2) as an exhibit to the Fund's annual report on Form N-CSR, which is available on the website of the U.S. Securities and Exchange Commission (the "Commission") at http://www.sec.gov. Information regarding how the Fund voted proxies relating to the Fund's portfolio securities during the most recent 12-month period ended June 30 is available: (1) without charge, on request, by calling us at (866) 790-8165; or (2) by visiting the Commission's website at http://www.sec.gov and accessing the Fund's Form N-PX.

Procedures for the Submission of Confidential and Anonymous Concerns or Complaints about Accounting, Internal Accounting Controls or Auditing Matters

The Fund is committed to compliance with all applicable securities laws and regulations, accounting standards, accounting controls and audit practices and has established procedures for handling concerns or complaints about accounting, internal accounting controls or auditing matters. Any shareholder or other interested party who desires to communicate with our independent trustees or any other trustees, individually, or as a group, may do so by writing to the party for whom the communication is intended, care of Secretary, RMR Funds, Two Newton Place, 255 Washington Street, Suite 300, Newton, MA 02458 or email secretary@rmrfunds.com. The communications will then be delivered to the appropriate party or parties.

The Fund files its complete schedule of portfolio holdings with the Commission for the first and third quarters of each fiscal year on Form N-Q, which is available on the Commission's website at http://www.sec.gov. The Fund's Form N-Q may also be reviewed and copied at the Commission's Public Reference Room in Washington, D.C. Information on the operation of the Public Reference Room may be obtained by calling the Commission at 1-800-SEC-0330. The Fund provides additional data on its website at http://www.rmrfunds.com.

The Fund's principal executive officer and principal financial officer certifications required by section 302 of the Sarbanes-Oxley Act of 2002 and filed with Fund's Forms N-CSR and N-Q are available on the Commission's website at http://www.sec.gov.

For federal income tax purposes, the following information is furnished with respect to the distributions paid by the Fund during the year ended December 31, 2017.

Shareholders of the Fund have been or will be advised on Internal Revenue Service Form 1099 DIV as to the federal tax status of the distributions received from the Fund during calendar year 2017. Shareholders are advised to consult with their own tax advisors as to the federal, state and local tax status of the distributions received from the Fund.

The board of trustees of the Fund has adopted a Dividend Reinvestment and Cash Purchase Plan, or the Plan, sometimes referred to as an opt-out plan. You will have all your cash distributions invested in common shares automatically unless you elect to receive cash. As part of the Plan, you will have the opportunity to purchase additional common shares by submitting a cash payment for the purchase of such shares, or the Cash Purchase Option. Your cash payment, if any, for the additional shares may not exceed $10,000 per quarter, per Plan and must be for a minimum of $100 per quarter. Equiniti Trust Company is the plan agent and paying agent for the Plan. The plan agent will receive your distributions and additional cash payments under the Cash Purchase Option and either purchase common shares in the open market for your account or directly from the Fund. If you elect not to participate in the Plan, you will receive all distributions in cash paid by check mailed to you (or, generally, if your shares are held in street name, to your broker) by the paying agent.

The number of common shares of the Fund you will receive if you do not opt out of a Plan will be determined as follows:

You may withdraw from the Plan at any time by giving written notice to the plan agent. If you withdraw or the Plan is terminated, the plan agent will transfer the shares in your account to you

(which may include a cash payment for any fraction of a share in your account). If you wish, the plan agent will sell your shares and send you the proceeds, minus brokerage commissions to be paid by you.

The plan agent is not authorized to make any purchases of shares for your account if doing so will result in your owning shares in excess of 9.8% of the total shares outstanding in the Fund. Dividends or Cash Purchase Option payments which may result in such prohibited transactions will be paid to you in cash.

The plan agent's administrative fees will be paid by the Fund. There will be no brokerage commission charged with respect to common shares issued directly by the Fund. Each participant will pay a pro rata share of brokerage commissions incurred by the plan agent when it makes open market purchases of the Fund's shares pursuant to the Plan including the Cash Purchase Option.

The Fund may amend or terminate its Plan or the Cash Purchase Option if its board of trustees determines the change is appropriate. However, no additional charges will be imposed upon participants by amendment to the Plan except after prior notice to participants.

Participation in the Plan will not relieve you of any federal, state or local income tax that may be payable (or required to be withheld) as a result of distributions you receive which are credited to your account under the Plan rather than paid in cash. Automatic reinvestment of distributions in the Fund's common shares will not relieve you of tax obligations arising from your receipt of that Fund's distributions even though you do not receive any cash.

All correspondence* about the Plan should be directed to EQ Shareowner Services, P.O. Box 64856, St. Paul, MN 55164-0856 or by telephone at 1-866-877-6331 and by overnight mail to EQ Shareowner Services, 1110 Centre Point Curve, Suite 101, Mendota Heights, MN 55120-4100.




Name, Address and Year of Birth.⁽¹⁾	Position held with the Fund, current term and length of time served.⁽²⁾	Principal occupation(s) or employment in past 5 years and other public company directorships held by Trustee in past 5 years.	Number of portfolios in fund complex overseen by Trustee.⁽³⁾



Interested Trustees⁽⁴⁾



Barry M. Portnoy⁽⁵⁾ (1945)	Class III Managing Trustee to serve until 2019; Portfolio Manager of the Fund; since 2002	Director of the Advisor since 2002, and Vice President of the Advisor from 2002 to 2017; Managing Director of The RMR Group Inc. since 2015; Director of RMR LLC from 1986 until 2015 and Chairman since 1998; Director of Tremont Realty Advisors LLC since 2016; Managing Trustee of Tremont Mortgage Trust since 2017; Managing Trustee of Hospitality Properties Trust since 1995; Managing Trustee of Senior Housing Properties Trust since 1999; Managing Director of Five Star Senior Living Inc. since 2001; Managing Director of TravelCenters of America LLC since 2006; Managing Trustee of Government Properties Income Trust since 2009; Managing Trustee of Select Income REIT since 2011; Managing Trustee of Equity Commonwealth (formerly CommonWealth REIT) from 1986 to 2014; Managing Trustee of Industrial Logistics Properties Trust since 2017; owner and Director of Sonesta International Hotels Corporation since 2012; and prior to becoming a full time employee of RMR LLC in 1997, was partner and chairman of Sullivan & Worcester LLP, a law firm.	1

Adam D. Portnoy⁽⁵⁾ (1970)	Class II Managing Trustee to serve until 2018; Portfolio Manager of the Fund; since 2007 (Class II Trustee since 2009)	Director of the Advisor since 2007, President of the Advisor from 2007 to 2017 and Chief Executive Officer of the Advisor from 2015 to 2017; Managing Director, President and Chief Executive Officer of The RMR Group Inc. since 2015; Director of RMR LLC from 2006 to 2015 and President and Chief Executive Officer of RMR LLC since 2006; President and Chief Executive Officer of the Fund from 2007 to 2015; Director of Tremont Realty Advisors LLC since 2016 and President and Chief Executive Officer from 2016 to 2017; Managing Trustee of Tremont Mortgage Trust since 2017; Managing Trustee of Hospitality Properties	1




Name, Address and Year of Birth.⁽¹⁾	Position held with the Fund, current term and length of time served.⁽²⁾	Principal occupation(s) or employment in past 5 years and other public company directorships held by Trustee in past 5 years.	Number of portfolios in fund complex overseen by Trustee.⁽³⁾



		Trust since 2007; Managing Trustee of Senior Housing Properties Trust since 2007; Managing Trustee of Government Properties Income Trust since 2009 (President from 2009 to 2011); Managing Trustee of Select Income REIT since 2011; Managing Trustee of Equity Commonwealth (formerly CommonWealth REIT) from 2006 to 2014 (President from 2011 to 2014); Managing Trustee of Industrial Logistics Properties Trust since 2017; Managing Director of TravelCenters of America LLC since 2018; owner and Director of Sonesta International Hotels Corporation since 2012; currently serves as the Honorary Consul General of the Republic of Bulgaria in Massachusetts; previously served on the Board of Governors for the National Association of Real Estate Investment Trusts and the Board of Trustees of Occidental College; and prior to joining RMR LLC in 2003, was investment banker at Donaldson, Lufkin & Jenrette, worked in private equity at DLJ Merchant Banking Partners and at the International Finance Corporation (a member of the World Bank Group), and previously founded and served as CEO of a privately financed telecommunication company.

Independent Trustees



John L. Harrington (1936)	Class I Independent Trustee to serve until 2020; since 2003	Trustee of the Yawkey Foundation (a charitable trust) since 1982 (Chairman of the Board from 2002 to 2003 and since 2007) and Executive Director of the Yawkey Foundation from 1982 to 2006; Trustee of the JRY Trust (a charitable trust) from 1982 to 2009; President of Boston Trust Management Corp. from 1981 to 2006; Chief Executive Officer and General Partner of the Boston Red Sox Baseball Club from 1986 to 2002 and Vice President and Chief Financial Officer prior to that time; Principal of Bingham McCutchen Sports Consulting LLC from 2007 to 2008; represented the Boston Red Sox majority interest in co-founding The New England Sports Network, or NESN, managing NESN from 1981 to 2002; Director of Fleet Bank from 1995 to 1999; Director of Shawmut Bank of Boston from 1986 to 1995; member of the Major League Baseball Executive Council from 1998 to 2001; Assistant Secretary of Administration and Finance for the Commonwealth of Massachusetts in 1980; Treasurer of the American League of Professional Baseball Clubs from 1970 to 1972; Assistant Professor and Director of Admissions, Carroll Graduate School of Management at Boston College from 1967 through 1970; Supervisory Auditor for the U.S. General Accounting Office from 1961 through 1966; Independent Trustee of Hospitality Properties Trust since 1995 and Lead Independent Trustee since 2015; Independent Trustee of Senior Housing Properties Trust since 1999; and Independent Trustee of Government Properties Income Trust since 2009; Independent Trustee of Tremont Mortgage Trust since 2017.	1




Name, Address and Year of Birth.⁽¹⁾	Position held with the Fund, current term and length of time served.⁽²⁾	Principal occupation(s) or employment in past 5 years and other public company directorships held by Trustee in past 5 years.	Number of portfolios in fund complex overseen by Trustee.⁽³⁾



Jeffrey P. Somers (1943)	Class II Independent Trustee to serve until 2018; since 2009	Of Counsel, Morse, Barnes-Brown & Pendleton, PC (law firm) since 2010 (Equity Member from 1995 to 2009 and Managing Member for six of those years); Director of Cantella Management Corp. (holding company for Cantella & Co., Inc., an SEC registered broker dealer) from 2002 until January 2014, when the company was acquired by a third party; Independent Trustee of Tremont Mortgage Trust since 2017; Independent Trustee of Senior Housing Properties Trust since 2009 and Lead Independent Trustee since 2015; Independent Trustee of Government Properties Income Trust since 2009; Independent Trustee of Select Income REIT since 2012; Trustee of Pictet Funds from 1995 to 2001; previously a Trustee of Glover Hospital, a private not for profit regional hospital.	1

Joseph L. Morea (1955)⁽⁴⁾	Class III Independent Trustee to serve until 2019; since 2016	Independent Director of TravelCenters of America LLC since 2015; Independent Trustee of THL Credit Senior Loan Fund since 2013; Independent Trustee of Eagle Growth and Income Opportunities Fund since 2015; Independent Director of Garrison Capital Inc. (a business development company) since 2015; Independent Trustee of Tremont Mortgage Trust since 2017; Independent Trustee of Industrial Logistics Properties Trust since 2018; Independent Trustee of Equity Commonwealth from 2012 to 2014; and Vice Chairman and Managing Director, serving as head of U.S. Equity Capital Markets, at RBC Capital Markets from 2003 to 2012; head of U.S. Investment Banking for RBC Capital Markets from 2008 to 2009; previously employed as an investment banker, including as a Managing Director and the co-head of U.S. Equity Capital Markets at UBS, Inc., the Chief Operating Officer of the Investment Banking Division and head of U.S. Equity Capital Markets at PaineWebber, Inc., and a Managing Director of Equity Capital Markets at Smith Barney, Inc.	1




Name, Address and Year of Birth.⁽¹⁾	Position held with the Fund, current term and length of time served.⁽²⁾	Other principal occupation(s) in past 5 years.	Number of portfolios in fund complex overseen by Officer.⁽³⁾



Executive Officers



Fernando Diaz⁽⁴⁾ (1968)	President (serves at the discretion of the Board); Senior Portfolio Manager of the Fund; since 2015	Vice President and Portfolio Manager of the Fund from 2007 to 2015; Vice President of the Advisor since 2007; Senior REIT Analyst and Assistant Portfolio Manager, State Street Global Advisors/The Tuckerman Group from 2001 to 2006; and Senior REIT Analyst and Assistant Portfolio Manager, GID Securities, LLC from 2006 to 2007.	1



Mark L. Kleifges (1960)	Treasurer and Chief Financial Officer (serves at the discretion of the Board); since 2003	President and Chief Executive Officer of the Advisor since 2017; Treasurer and Chief Financial Officer of the Advisor from 2004 to 2017; Executive Vice President of RMR LLC since 2008; Treasurer and Chief Financial Officer of Hospitality Properties Trust since 2002; and Treasurer and Chief Financial Officer of Government Properties Income Trust since 2011.	1



Jennifer B. Clark (1961)	Secretary and Chief Legal Officer (serves at the discretion of the Board); since 2002	General Counsel of the Advisor since 2017, Director of the Advisor since 2015, Secretary or Clerk and Vice President of the Advisor since 2002; Executive Vice President, General Counsel and Secretary of Tremont Realty Advisors LLC since 2016; Executive Vice President, General Counsel and Secretary of The RMR Group Inc. since 2015; Secretary of RMR LLC since 2015; and Executive Vice President and General Counsel of RMR LLC since 2008; Secretary of Hospitality Properties Trust since 2008; Secretary of Senior Housing Properties Trust since 2008; Secretary of Five Star Senior Living Inc. since 2012 (Assistant Secretary from 2001 to 2012); Secretary of TravelCenters of America LLC since 2007; Secretary of Government Properties Income Trust since 2009; Secretary of Select Income REIT since 2011; and Secretary of Equity Commonwealth (formerly CommonWealth REIT) from 2008 to 2014.	1

The information required under Item 6 is included as part of the report to shareholders filed under Item 1 of this Form N-CSR.

Item 7. Disclosure of Proxy Voting Policies and Procedures for Closed-End Management Investment Companies.

Attached to this Form N-CSR as Exhibit 12(c) is a copy of the proxy voting policies and procedures of the registrant.

Fernando Diaz. Mr. Diaz is the President and Senior Portfolio Manager of the registrant since February 2015. Mr. Diaz served as a Vice President of the registrant between May 2007 and February 2015; prior to the registrant's merger with Old RMR Real Estate Income Fund, or Old RIF, on

January 20, 2012, Mr. Diaz was a Vice President and a portfolio manager of Old RIF, both offices he served in from May 2007 until the closing of such merger on January 20, 2012. Upon the closing of such merger, Mr. Diaz became a portfolio manager of the registrant and served in that capacity until February 2015 when he became the Senior Portfolio Manager of the registrant. Mr. Diaz is also Vice President of RMR Advisors LLC (since 2007); Senior REIT Analyst and Assistant Portfolio Manager, State Street Global Advisors/The Tuckerman Group (from 2001 to 2006); and Senior REIT Analyst and Assistant Portfolio Manager, GID Securities, LLC (from 2006 to 2007).

Adam D. Portnoy. Mr. Portnoy is a Managing Trustee and a portfolio manager of the registrant. Mr. Portnoy has served as a Managing Trustee of the registrant since March 2009. Mr. Portnoy was also the President and Chief Executive Officer of the registrant from May 2007 to February 2015. Prior to the registrant's merger with Old RIF on January 20, 2012, Mr. Portnoy was a Managing Trustee of Old RIF (from March 2009) and the President and a portfolio manager of Old RIF (each from May 2007), each being offices he served in until the closing of such merger on January 20, 2012. Upon the closing of such merger, Mr. Portnoy became a portfolio manager of the registrant and has served in that capacity since such time. Mr. Portnoy is also a Director of RMR Advisors LLC since 2007 and was the President and Chief Executive Officer of RMR Advisors LLC from 2015 to September 2017; Managing Director, President and Chief Executive Officer of The RMR Group Inc. since 2015; President and Chief Executive Officer of The RMR Group LLC ("RMR LLC") since 2006; Director of RMR LLC from 2006 to 2015; Director of Tremont Realty Advisors LLC since 2016 and President and Chief Executive Officer from 2016 to 2017; Managing Trustee of Tremont Mortgage Trust since 2017; Managing Trustee of Hospitality Properties Trust since 2007; Managing Trustee of Senior Housing Properties Trust since 2007; Managing Trustee of Government Properties Income Trust since 2009 (President from 2009 to 2011); Managing Trustee of Select Income REIT since 2011; Managing Trustee of Equity Commonwealth (formerly CommonWealth REIT) from 2006 to 2014 (President from 2011 to 2014); Managing Trustee of Industrial Logistics Properties Trust since 2017; Managing Director of TravelCenters of America LLC since 2018; owner and Director of Sonesta International Hotels Corporation since 2012; currently serves as the Honorary Consul General of the Republic of Bulgaria in Massachusetts; previously served on the Board of Governors for the National Association of Real Estate Investment Trusts and the Board of Trustees of Occidental College; and prior to joining RMR LLC in 2003, he was investment banker at Donaldson, Lufkin & Jenrette, worked in private equity at DLJ Merchant Banking Partners and at the International Finance Corporation, and previously founded and served as CEO of a privately financed telecommunication company. Mr. Portnoy is the son of a Barry M. Portnoy, a Managing Trustee of the registrant and a portfolio manager of the registrant.

Barry M. Portnoy. Mr. Portnoy is a Managing Trustee and a portfolio manager of the registrant. Mr. Portnoy has served as a Managing Trustee of the registrant since its inception. Prior to the registrant's merger with Old RIF on January 20, 2012, Mr. Portnoy was a Managing Trustee and a portfolio manager of Old RIF, both offices he served in from Old RIF's inception until the closing of such merger on January 20, 2012. Upon the closing of such merger, Mr. Portnoy became a portfolio manager of the registrant and has served in that capacity since such time. Mr. Portnoy has also been a Director of RMR Advisors LLC since 2002 and Vice President of RMR Advisors LLC from 2002 to 2017; Managing Director of The RMR Group Inc. since 2015; Director of RMR LLC from 1986 until 2015 and Chairman since 1998; Director of Tremont Realty Advisors LLC since 2016; Managing Trustee of Tremont Mortgage Trust since 2017; Managing Trustee of Hospitality Properties Trust since 1995; Managing Trustee of Senior Housing Properties Trust since 1999; Managing Director of Five Star Senior Living Inc. since 2001; Managing Director of TravelCenters of America LLC since 2006; Managing Trustee of Government Properties Income Trust since 2009; Managing Trustee of Select Income REIT since 2011; Managing Trustee of Equity Commonwealth (formerly CommonWealth REIT) from 1986 to 2014; Managing Trustee of Industrial Logistics Properties Trust since 2017; owner

and Director of Sonesta International Hotels Corporation since 2012; and prior to becoming a full time employee of RMR LLC in 1997, he was a partner and Chairman of Sullivan & Worcester LLP.

The portfolio managers generally function as a team. Mr. Barry Portnoy and Mr. Adam Portnoy provide strategic guidance to the team, while Mr. Fernando Diaz is in charge of substantially all of the day to day operations, research and trading functions. The length of time served in positions with the registrant and Old RIF by Messrs. Diaz, Adam Portnoy and Barry Portnoy include time served in those positions with such funds' predecessor funds.

CONFLICTS OF INTEREST: Messrs. Diaz is only responsible for the day to day management of the registrant's account. Mr. Adam Portnoy and Mr. Barry Portnoy are also responsible for strategic guidance for the registrant and for accounts managed by Tremont Realty Advisors LLC, an affiliate of RMR LLC. The accounts managed by Tremont Realty Advisors LLC do not invest in the same type of investments as the registrant. Therefore, there are no conflicts of interest with allocation of trades. Nonetheless, the portfolio managers may have conflicts of interest with respect to the brokers selected to execute portfolio transactions for the registrant. Subject to the supervision of the registrant's board of trustees, RMR Advisors LLC, the registrant's investment adviser (the "Advisor"), is authorized to employ such securities brokers and dealers for the purchase and sale of fund assets and to select the brokerage commission rates at which such transactions are effected. In selecting brokers or dealers to execute transactions for the registrant, the Advisor seeks the best execution available (which may or may not result in paying the lowest available brokerage commission or lowest spread). In so doing, the Advisor considers all factors it believes are relevant to obtaining best execution, including such factors as: the best price available; the reliability, integrity and financial condition of the broker; the size of and difficulty in executing the order; the value of the expected contribution of the broker and the scope and quality of research it provides.

Thus, a portfolio manager might have a conflict of interest with respect to the brokers selected to execute portfolio transactions for the registrant since the Advisor may select brokers that furnish the Advisor or its affiliates or personnel, directly or through third-party or correspondent relationships, with research or brokerage services which provide, in the Advisor's view, appropriate assistance to the Advisor in the investment decision-making or trade execution processes. Such research or brokerage services may include, without limitation and to the extent permitted by applicable law: research reports on companies, industries and securities; economic and financial data; financial publications; and broker sponsored industry conferences. Research or brokerage services obtained in this manner may be used in servicing any or all of the Advisor's or its affiliates' clients. Such products and services may disproportionately benefit other client accounts relative to the registrant's account based on the amount of brokerage commissions paid by the registrant and such other client accounts. To the extent that the Advisor uses commission dollars to obtain research or brokerage services, it will not have to pay for those products and services itself.

The Advisor may endeavor, subject to best execution, to execute trades through brokers who, pursuant to such arrangements, provide research or brokerage services in order to ensure the continued receipt of research or brokerage services the Advisor believes are useful in its decision-making or trade execution processes.

The Advisor may pay, or be deemed to have paid, commission rates higher than it could have otherwise paid in order to obtain research or brokerage services. Such higher commissions would be paid in accordance with Section 28(e) of the Exchange Act, which requires the Advisor to determine in good faith that the commission paid is reasonable in relation to the value of the research or brokerage services provided. The Advisor believes that using commission dollars to obtain the type of research or brokerage services mentioned above enhances its investment research and trading processes, thereby increasing the prospect for higher investment returns. Because of this, and the low absolute dollar amount that any such higher commissions typically represent, the Advisor believes that the risk of a

material conflict of interest developing is limited and will not affect the portfolio managers' professional judgment in managing the registrant's account.

COMPENSATION: The Advisor pays no direct compensation to Messrs. Barry and Adam Portnoy for their services.

The other portfolio manager, Mr. Fernando Diaz, is paid based upon the discretion of the board of directors of the Advisor. Compensation of Mr. Diaz includes base salary, annual cash bonus and he has the opportunity to participate in other employee benefit plans available to all of the employees of the Advisor. The level of compensation is not based upon a formula with reference to fund performance or the value of fund assets; however, these factors, among others, may be considered by individual directors of the Advisor. Other factors which may be considered in setting the compensation of the portfolio manager are his historical levels of compensation and levels of compensation paid for similar services or to persons with similar responsibilities in the market generally and in the geographic area where the Advisor is located. Messrs. Barry Portnoy and Adam Portnoy receive compensation for their services to affiliates of the Advisor.

OWNERSHIP OF SECURITIES: The following table sets forth, for each portfolio manager, the aggregate dollar range of the registrant's equity securities beneficially owned as of December 31, 2017.


Name of Portfolio Manager		Dollar Range of Equity Securities in the Registrant as of December 31, 2017
Fernando Diaz		$10,001 - $50,000
Adam D. Portnoy		Over $1,000,000*
Barry M. Portnoy		Over $1,000,000*

Item 9. Purchases of Equity Securities by Closed-End Management Investment Company and Affiliated Purchasers.

During the fiscal year ended December 31, 2017, there were no purchases made by or on behalf of the registrant or any "affiliated purchaser" as defined in Rule 10b-18(a)(3) under the Exchange Act (17 CFR 240.10b-18(a)(3)), of shares of the registrant's equity securities that are registered by the registrant pursuant to Section 12 of the Exchange Act.

There have been no material changes to the procedures by which shareholders may recommend nominees to the registrant's board of trustees since the registrant last provided disclosure in response to the requirements of Item 407(c)(2)(iv) of Regulation S-K.

Item 12. Disclosure of Securities Lending Activities for Closed-End Management Investment Companies.

Reference is made to the report to shareholders filed under Item 1 of this Form N-CSR for additional details regarding the arrangements described in response to this Item 12.

Rule 30b1-4 under the Investment Company Act of 1940, as amended (the "1940 Act"), requires that mutual funds annually file Form N-PX, which contain the mutual fund's complete proxy voting record for the 12-month period ending on June 30th each year. Each mutual fund must adopt policies and procedures that it uses in deciding how to vote proxies, including procedures the mutual fund uses when deciding how to vote proxies on issues presenting a conflict between the interests of mutual fund shareholders and those of the mutual fund's investment advisor, subadvisor(s), administrator, subadministrator, transfer agents, underwriter, or certain of their affiliates, if any.

It is the policy of the Trusts that any proxies received from issuers whose securities are held by a Trust are voted solely in the interests of the shareholders of the Trust. Any conflict of interest must be resolved in the way that will most benefit the shareholders of the applicable Trust.

The Policies and Procedures for Voting Proxies are designed to ensure that proxies are voted in an appropriate manner. Such procedures are designed to resolve conflicts on interest that the Trusts' investment advisor may have in voting proxies on behalf of the Trusts.

1. Purpose. The purpose of this document is to describe the policies and procedures for voting proxies received from issuers whose securities are held by the Trusts and any other investment company then advised by the Trusts' investment advisor. These policies and procedures are to be implemented by the investment advisor or sub-advisor, if any, (the "Advisor") to the Trusts.

2. Definition of Proxy. A proxy permits a shareholder to vote without being present at annual or special meetings. A proxy is the form whereby a person who is eligible to vote on corporate matters transmits written instructions for voting or transfers the right to vote to another person in place of the eligible voter

The vote with respect to most routine issues presented in proxy statements should be cast in accordance with the position of the company's management, unless it is determined that supporting management's position would adversely affect the investment merits of owning the stock. However, each issue should be considered on its own merits, and the position of the company's management should not be supported in any situation where it is found not to be in the best interests of the Trusts' shareholders.

4. Conflicts of Interest. The Trusts recognize that under certain circumstances their Advisor may have a conflict of interest in voting proxies on behalf of the Trusts. Such circumstances may include, but are not limited to, situations where the Advisor or one or more of its affiliates, including officers, directors and employees, has or is seeking a client relationship with the issuer of the security that is the subject of the proxy vote. The Advisor shall periodically inform its employees that they are under an obligation to be aware of the potential for conflicts of interest on the part of the Advisor with respect to voting proxies on behalf of Trusts, both as a result of the employee's personal relationships and due to circumstances that may arise during the conduct of the Advisor's business, and to bring conflicts of interest of which they become aware to the attention of the proxy manager (see below). The Advisor shall not vote proxies relating to such issuers on behalf of its client accounts until it has determined that the conflict of interest is not material or a method of resolving such conflict of interest has been agreed upon by the Board of Trustees. A conflict of interest will be considered material to the extent that it is determined that such conflict has the potential to influence the Advisor's decision-making in voting a proxy. Materiality determinations will be based upon an assessment of the particular facts and circumstances. If the proxy manager determines that a conflict of interest is not material, the Advisor may vote proxies notwithstanding the existence of a conflict. If the conflict of interest is determined to be material, the conflict shall be disclosed to the Board of Trustees and the Advisor shall follow the instructions of the Board of Trustees. The proxy manager shall keep a record of all materiality decisions and report them to the Board of Trustees on a quarterly basis.

5. Proxy Manager Approval. Votes are subject to approval by the proxy manager, the Trust's treasurer or the Trust's portfolio manager. The Trust's President or his delegatee shall be the proxy manager.

6. Proxy Voting Procedures. Proxy voting will be conducted in compliance with the policies and practices described in this memorandum and is subject to the proxy manager's supervision. A reasonable effort should be made to obtain proxy material and to vote in a timely fashion. Records should be maintained regarding the voting of proxies under these policies and procedures.

7. Report to the Board. On a quarterly basis, the proxy manager or his designee will report in writing to the Board of Trustees on the general manner in which proxy proposals relating to anti-takeover, social and political issues were voted, as well as proposals that were voted in opposition to management's recommendations.

Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.

Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, this report has been signed below by the following persons on behalf of the registrant and in the capacities and on the dates indicated.


(Name and Address of Agent for Service)		Copy to:
Fernando Diaz, President		Michael K. Hoffman, Esq.
RMR Real Estate Income Fund Two Newton Place 255 Washington Street, Suite 300 Newton, Massachusetts 02458		Skadden, Arps, Slate, Meagher & Flom LLP 4 Times Square New York, New York 10036-6522 Karen Jacoppo-Wood, Esq. State Street Bank and Trust Company One Lincoln Street Boston, Massachusetts 02111


Common Securities	77	%
Preferred Securities	22	%
Other, including short term investments	1	%

Total investments	100	%

	Year ended December 31, 2017		Year ended December 31, 2016

Ordinary income⁽¹⁾	$	10,644,197	$	9,626,275
Capital gain income⁽²⁾		3,327,878		3,456,244
Return of capital⁽³⁾		2,899,319		3,200,513

Total distributions received	$	16,871,394	$	16,283,032

	Year ended December 31, 2017		Year ended December 31, 2016

Ordinary income	$	7,238,730	$	10,432,927
Long term capital gains		4,138,659		—

	$	11,377,389	$	10,432,927


Undistributed ordinary income	$	—
Undistributed net long term capital gains		—
Net unrealized appreciation/(depreciation)		42,005,078


REITs
Lodging/Resorts	13	%
Residential	13	%
Health Care	12	%
Others, less than 10% each	60	%

Total REITs	98	%
Other, including short term investments	2	%

Total investments	100	%


Cost	$	298,915,819

Gross unrealized appreciation	$	59,310,350
Gross unrealized depreciation		(17,305,272	)

Net unrealized appreciation	$	42,005,078

Series			Date of Auction

Series M	3.000	%	12/29/2017
Series T	3.000	%	12/26/2017
Series W	3.000	%	12/27/2017
Series Th	3.000	%	12/28/2017
Series F	3.000	%	12/29/2017


RMR REAL ESTATE INCOME FUND
By:
/s/ FERNANDO DIAZ Fernando Diaz President Date: February 22, 2018


By:
/s/ FERNANDO DIAZ Fernando Diaz President Date: February 22, 2018
By:
/s/ MARK L. KLEIFGES Mark L. Kleifges Treasurer Date: February 22, 2018

Purchases⁽¹⁾		Sales⁽¹⁾			Brokerage Commissions

$111,752,219		$	45,591,018		$	59,152

Dividend Received Deduction⁽¹⁾		Long Term Capital Gains Distribution		Qualified Income Distribution

0.10%		$4,138,659		$137,659





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