Canadian Apartment Properties Real Estate Investment Trust

Canadian Apartment Properties Real Estate Investment Trust

December 24, 2010 12:45 ET

Canadian Apartment Properties Real Estate Investment Trust Announces Completion of Restructuring to Qualify as a REIT Commencing January 1, 2011

TORONTO, ONTARIO--(Marketwire - Dec. 24, 2010) - Canadian Apartment Properties Real Estate Investment Trust (TSX:CAR.UN) ("CAPREIT") today announced that it has completed the necessary tax restructuring to qualify as a real estate investment trust ("REIT") under Canadian income tax legislation affecting the tax treatment of publicly traded investment trusts commencing for the 2011 taxation year. A trust which qualifies as a REIT for a taxation year is exempt from taxation as a specified investment flow through trust (or "SIFT"). Accordingly, CAPREIT will continue to be able to flow income through to Unitholders on a tax effective basis.

Generally, to qualify as a REIT, CAPREIT's assets must be limited to income producing real property and substantially all of CAPREIT's revenues must be derived from rental revenue and capital gains. CAPREIT's assets and operating activities were largely unaffected by the restructuring. All non-compliant assets have either been disposed of or restructured as necessary. As a result of the completion of its restructuring, the non-cash future income tax liability of $53.2 million recorded at September 30, 2010 that arose primarily as a result of the introduction of the SIFT Legislation in 2007, is expected to reverse in the fourth quarter of 2010 through the consolidated statement of income and comprehensive income as a one-time non-cash future income tax recovery.

"CAPREIT has a long history of providing stable and sustainable cash distributions to its Unitholders, and we look for this strong track record to continue going forward," commented Thomas Schwartz, President and Chief Executive Officer. "We also expect this restructuring will have no material impact on our operating and financial performance."

As one of Canada's largest residential landlords, CAPREIT is a growth-oriented investment trust owning interests in 27,172 residential suites and two manufactured home communities comprising 1,325 land lease sites located in and near major urban centres across Canada. Since its Initial Public Offering in May 1997, CAPREIT has grown monthly distributions per Unit by 51%. For more information about CAPREIT, its business and its investment highlights, please refer to our public disclosure which can be found under our profile at

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

Contact Information

    Mr. Michael Stein
    (416) 861-5788
    Mr. Thomas Schwartz
    President & CEO
    (416) 861-9404
    Mr. Richard J. Smith
    Chief Financial Officer
    (416) 861-5771