Park Lawn Income Trust
TSX VENTURE : PLC.UN

Park Lawn Income Trust

November 15, 2010 12:36 ET

Park Lawn Income Trust Announces November 2010 Cash Distribution and Special Distribution

TORONTO, ONTARIO--(Marketwire - Nov. 15, 2010) - 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 15, 2010 to unitholders of record at November 30, 2010 and represents the monthly distribution for the period November 1, 2010 to November 30, 2010.

In addition, a special distribution in the amount of $0.343 per unit will be paid in cash and additional units on December 15, 2010 to unitholders of record as at the close of business on November 30, 2010. This special distribution will be paid by way of cash at the rate of $0.137 per unit and additional units based on the weighted average TSX Venture Exchange trading price of a unit from July 1, 2010 to November 12, 2010. At the current weighted average unit price of $6.01, the non-cash distribution would be at the rate of .0343 units per unit owned. The special 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, 2010.

Since the Fund commenced operations on September 16, 2006, the fund has paid continuous monthly distributions and one special distribution. Combined with the announced special distribution, the Fund will have paid unitholders a total value of $3.32 per unit to December 31, 2010. Upon conversion, the new Park Lawn Corporation will pay an initial monthly dividend of $0.038 per month per share ($0.46 per share per year). This represents a 7.7% dividend yield based on the average trading price from July 1, 2010 to November 12, 2010 of $6.01 per unit.

Non-resident holders of Trust units will be subject to applicable Canadian withholding tax on the special cash and in-kind distribution. The applicable withholding tax will be settled from the November 30, 2010 cash distribution paid on December 15, 2010. In general, taxable Canadian residents who hold Trust units will be required to include in income the amount of the special cash and in-kind distribution to the extent it constitutes net income of the Trust and the in-kind distribution 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 cash and 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 cash and 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 (www.sedar.com).

Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

Contact Information

  • Park Lawn Income Trust
    Frank Mills
    Chief Executive Officer
    416-231-1462