TORONTO, Dec. 15, 2022 (GLOBE NEWSWIRE) — 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 CAPREIT
CAPREIT 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 STATEMENTS
All 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 |
