Park Lawn Income Trust

Park Lawn Income Trust

November 21, 2007 10:10 ET

Park Lawn Income Trust Announces November 2007 Cash Distribution, a Special Distribution and Increase in Cash Distributions

TORONTO, ONTARIO--(Marketwire - Nov. 21, 2007) - Park Lawn Income Trust (the "Fund") (TSX VENTURE:PLC.UN) announced today that a cash distribution of $0.055 per unit will be payable on December 14, 2007 to unitholders of record at November 30, 2007 and represents the monthly distribution for the period November 1, 2007 to November 30, 2007.

In addition, a special non-cash distribution in the amount of $0.087 per unit will be paid in additional units on December 14, 2007 to unitholders of record as at the close of business on November 30, 2007. This special distribution will be paid by way of additional units based on the weighted average TSX Venture Exchange trading price of a unit on November 30, 2007. At the current unit price of $5.00, the non-cash distribution would be at the rate of .0174 units per unit owned.

The special non-cash distribution is intended to ensure that, as required by its Declaration of Trust, the Fund will not be liable to pay income taxes in respect of its current taxation year ending December 31, 2007. The special distribution represents an increase of 1.74% in the number of units outstanding as of the record date of November 30, 2007 assuming the current unit price of $5.00. Park Lawn Income Trust anticipates it will continue its current regular monthly distributions at the rate of $0.055 per unit. Consequently, it is anticipated that the total distribution on January 15, 2008 will increase by 1.74%. Management is of the view that cash flow from operations will be adequate to meet the Fund's cash needs and the increased distributions. "We are pleased with the profitability of the company over the past year, which has resulted in a special distribution to the unitholders and are confident we can continue to sustain these higher distributions in the future", said Frank Mills, Chief Executive Officer.

Non-resident holders of Trust units will be subject to applicable Canadian withholding tax on the special in-kind distribution. The applicable withholding tax will be settled from the November 30, 2007 cash distribution paid on December 14, 2007. In general, taxable Canadian residents who hold Trust units will be required to include in income the amount of the special in-kind distribution to the extent it constitutes net income of the Trust and this same amount will be added to the adjusted cost base of the units held. For taxable United States residents who hold Trust units, the amount of the special in-kind distribution should not be included in income nor should it be included in the adjusted cost base of the units held.

Comments on the tax implications of the special in-kind distribution are provided as general information only. They are not intended to be legal or tax advice to any unitholder. All unitholders should consult legal, business and tax advisors about the tax implications of the special in-kind distribution.

Park Lawn Income Trust is a trust established to indirectly hold six cemeteries in the Greater Toronto Area and an interest in Bloorpark Developments Inc. Its units are listed on the TSX Venture Exchange.

Park Lawn Income Trust's Third Quarter Financial Statements and Management's Discussion & Analysis have been filed at SEDAR (

The TSX Venture Exchange has not reviewed and does not accept responsibility for the adequacy or accuracy of this release.

Contact Information

  • Park Lawn Income Trust
    Frank Mills
    Chief Executive Officer
    (416) 231-1462
    (416) 233-8155 (FAX)