Canadian Real Estate Investment Trust

Canadian Real Estate Investment Trust

December 16, 2010 12:51 ET

Canadian Real Estate Investment Trust Announces December 2010 Distribution and Qualifying REIT Status

TORONTO, ONTARIO--(Marketwire - Dec. 16, 2010) - Canadian Real Estate Investment Trust ("CREIT") (TSX:REF.UN) today announced its December 2010 monthly distribution in the amount of 11.75 cents per Unit (C$1.41 annualized). The December distribution will be paid on January 17, 2011 to Unitholders of record of December 30, 2010.

CREIT will complete a reorganization of an existing subsidiary holding trust (the "Reorganization") before December 31, 2010 in order to qualify as a "real estate investment trust" for purposes of the Income Tax Act (Canada) (the "Tax Act"). As part of the Reorganization, on December 30, 2010, the assets of the holding trust will be transferred to CREIT Trust B, a subsidiary trust of CREIT created for the purpose of the Reorganization and CREIT will make a distribution to its Unitholders in the form of units of CREIT Trust B ("Trust B Units"). Each Unitholder of CREIT will receive one Trust B Unit for every CREIT Unit owned. The Trust B Units will then be immediately redeemed by CREIT Trust B and the redemption price will be paid by CREIT Trust B in the form of Units of CREIT. Following the redemption, CREIT will consolidate its Units so that, following the Reorganization, each Unitholder of CREIT will own the same number of CREIT Units that such Unitholder owned immediately prior to the Reorganization.

The Reorganization will not have any adverse Canadian income tax consequences for Unitholders of CREIT, except that withholding taxes will be exigible in respect of the distribution of Trust B Units to Unitholders that are non-residents of Canada for purposes of the Tax Act. CREIT will fund and remit such withholding taxes to the Canada Revenue Agency on behalf of such non-resident Unitholders (estimated to be less than $50,000 in aggregate).

This Reorganization is required as a result of, and to comply with, the definition of a qualifying REIT as set out in the Tax Act, which was introduced as part of the Specified Investment Flow Through ("SIFT") legislation.

CREIT is a real estate investment trust focused on accumulating a portfolio of high-quality real estate assets and delivering the benefits of real estate ownership to Unitholders. The primary benefit is a reliable and, over time, increasing monthly cash distribution. CREIT owns a diversified portfolio of retail, office and industrial properties.

Cautionary Statements Regarding Forward-Looking Statements

This news release contains forward-looking statements and information within the meaning of applicable securities legislation. Although CREIT believes that the anticipated future results, performance of achievements expressed or implied by the forward-looking statements and information are based upon reasonable assumptions and expectations, the reader should not place undue reliance on forward-looking statements and information because they involve assumptions, known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievements of CREIT to differ materially from anticipated future results, performance or achievements expressed or implied by such forward-looking statements and information. Accordingly, CREIT cannot give any assurance that its expectations will in fact occur and cautions that actual results may differ materially from those in the forward-looking statements. Forward-looking statements generally can be identified by the use of forward-looking terminology such as "to", "outlook", "objective", "may", "will", "would", "expect", "intend", "estimate", "anticipate", "believe", "should", "plan", "continue", or similar expressions suggesting future outcomes or events. Such forward-looking statements reflect management's current beliefs and are based on information currently available to management. All forward-looking statements in this news release are qualified by these cautionary statements.

Contact Information

  • Canadian Real Estate Investment Trust
    Tim McSorley
    Vice President and CFO
    Canadian Real Estate Investment Trust
    Judith Somerville, CA
    Trust Secretary