WINNIPEG, MB, Dec. 20,
2022 /CNW/ - Artis Real Estate Investment Trust
("Artis" or the "REIT") (TSX: AX.UN) announced that its trustees
have declared a special distribution of $0.16 per trust unit ("Unit"), which will
comprise of $0.08 per Unit payable in
cash and $0.08 per Unit payable in
Units. This special distribution is in addition to the monthly
distributions totaling $0.60 per unit
during 2022. The special distribution will be payable on
December 31, 2022 to unitholders (the
"Unitholders") of record as of December 31,
2022, with payment of the cash distribution to be made as
soon as practicable after the payable date. Immediately following
the issuance of Units pursuant to the special distribution, the
outstanding Units of Artis will be consolidated such that each
Unitholder will hold, after the consolidation, the same number of
Units as such Unitholder held before the special distribution.
The special distribution is principally being made to distribute
to Unitholders foreign income realized by the REIT from
transactions completed in the U.S. during the year ending
December 31, 2022. The cash portion
of the special distribution is intended to provide liquidity to
Unitholders to cover all or part of any Canadian income tax or
non-resident withholding tax obligations that may arise in relation
to the special distribution.
As at the date hereof, there
are an aggregate of 115,795,094 Units issued and outstanding.
Tax Considerations
Unitholders who are residents of Canada
The amount of the special distribution payable in Units will
increase the adjusted cost base of Unitholders' consolidated Units.
Canadian resident Unitholders that are not exempt from income tax
will generally be required to include their proportionate share of
the REIT's income for the 2022 tax year, as allocated and
designated by the REIT, in computing their income for the 2022 tax
year. Artis incurred U.S. income tax on the sales of U.S.
properties and this tax will be allocated proportionately to
unitholders to allow Unitholders to claim either a foreign tax
credit or deduction, subject to the detailed rules and limitations
set out in the Income Tax Act.
Unitholders who are not residents of Canada
Unitholders not resident in Canada for Canadian federal
income tax purposes
may be subject to applicable withholding taxes in connection
with the payment of the special distribution.
Artis cautions that the foregoing comments are not intended to
be, and should not be construed as,
legal or tax advice to any Unitholder. Artis recommends that Unitholders consult
their own tax advisors
regarding the income tax consequences to them of this anticipated special distribution and related
Unit consolidation.
Artis is a diversified Canadian real estate
investment trust with a portfolio of industrial, office and retail
properties in Canada and the United
States. Artis' vision is to build a
best-in-class asset management and investment platform
focused on growing net asset value per unit and distributions for
investors through value investing in real estate.
Suite 600 – 220 Portage Avenue
Winnipeg, MB R 3
C 0 A 5
T 204. 947 .1250 F 204 .947. 0453
www. artisreit. com
AX.UN on the TSX
SOURCE Artis Real Estate Investment Trust