CAPREIT Announces December 2022 Distribution and Special Non-Cash Distribution
16 December 2022 - 9:00AM
Canadian Apartment Properties Real Estate Investment Trust
(“CAPREIT”) (TSX:CAR.UN) announced today its December 2022 monthly
distribution in the amount of $0.12083 per Unit (or $1.45 on an
annualized basis). The December distribution will be payable on
January 16, 2023 to Unitholders of record at the close of business
on December 30, 2022.
CAPREIT also announced that it has declared a
special non-cash distribution of $0.36 per Unit, payable in Units
of CAPREIT (the “Additional Units”) on December 30, 2022 to
Unitholders of record at the close of business on December 30, 2022
(the “Special Distribution”). The Special Distribution is
principally being made to distribute to Unitholders a portion of
the capital gain realized by CAPREIT from transactions completed
during the twelve-month period ending December 31, 2022, and will
therefore be in the form of a capital gain to Unitholders for
Canadian income tax purposes.
Throughout the year, as part of an active
management strategy focused on refreshing capital and rejuvenating
its portfolio, CAPREIT disposed of certain older, value-add
properties, each for consideration at or above IFRS fair value.
Combined with continued increases in Funds From Operations (“FFO”),
this has resulted in estimated total taxable income and capital
gain for fiscal 2022 exceeding distributions paid.
Canadian-resident Unitholders will generally be required to include
their proportionate share of CAPREIT’s income and net taxable
capital gain, as allocated and designated by CAPREIT, in computing
their respective income for the 2022 tax year.
The non-cash Special Distribution will be paid
at the close of business on December 30, 2022 by the issuance of
the Additional Units. The Additional Units will have a fair market
value equal to the dollar amount of the Special Distribution, which
will be based on the closing price of the Units on the Toronto
Stock Exchange on December 30, 2022.
Immediately after the payment of the Special
Distribution, the issued and outstanding Units of CAPREIT,
including the Additional Units, will be consolidated such that the
aggregate number of issued and outstanding Units immediately
following the Special Distribution will be the same as the
aggregate number of issued and outstanding Units of CAPREIT
immediately before the Special Distribution (the “Consolidation”).
Accordingly, each Unitholder immediately following the
Consolidation will hold the same number of Units as such Unitholder
held immediately before the Special Distribution. For Unitholders
who are residents of Canada for federal income tax purposes, the
amount of the Special Distribution will increase the adjusted cost
base of Unitholders’ consolidated Units. Unitholders who are 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.
CAPREIT cautions that the foregoing comments are
not intended to be, and should not be construed as, legal or tax
advice to any Unitholder. CAPREIT recommends that Unitholders
consult their own tax advisors regarding the income tax
consequences to them of this anticipated Special Distribution and
related Unit consolidation.
ABOUT CAPREITCAPREIT is
Canada’s largest publicly-traded provider of quality rental
housing. CAPREIT currently owns or has interests in approximately
67,000 residential apartment suites, townhomes and manufactured
housing community sites well-located across Canada and the
Netherlands, with approximately $17 billion of assets under
management globally. Since its Initial Public Offering in May 1997,
CAPREIT has grown monthly cash distributions per Unit by 103%. For
more information about CAPREIT, its business and its investment
highlights, please visit our website at www.capreit.ca and our
public disclosure which can be found under our profile at
www.sedar.com.
CAUTIONARY STATEMENTS REGARDING
FORWARD-LOOKING STATEMENTSAll statements in this press
release that do not relate to historical facts constitute
forward-looking statements. These statements represent CAPREIT’s
intentions, plans, expectations and beliefs and are subject to
certain risks and uncertainties that could result in actual results
differing materially from these forward-looking statements. These
risks and uncertainties are more fully described in regulatory
filings that can be obtained on SEDAR at www.sedar.com.
For more information, please
contact:
CAPREIT |
CAPREIT |
CAPREIT |
Mr. Mark Kenney |
Mr. Stephen Co |
Mr. Julian Schonfeldt |
President & Chief Executive Officer |
Chief Financial Officer |
Chief Investment Officer |
(416) 861-9404 |
(416) 306-3009 |
(647) 535-2544 |
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