PRT Forest Regeneration Income Fund

PRT Forest Regeneration Income Fund

December 19, 2008 15:22 ET

PRT Announces December 2008 Distribution and Distribution Change for 2009

VICTORIA, BRITISH COLUMBIA--(Marketwire - Dec. 19, 2008) - The PRT Forest Regeneration Income Fund (TSX:PRT.UN) announced today a cash distribution of $0.02 per unit for the month ending December 31, 2008. The distribution will be payable on January 15, 2009 to unitholders of record at the close of business on December 31, 2008. For Canadian income tax purposes, the distribution is comprised of taxable interest income of $0.005968 per unit, a return of capital of $0.002369 per unit and a taxable dividend income of $0.011663.

The Fund also announced that it will be suspending distributions for 2009 as a result of expectations of reduced cash flow arising from the current economic environment, and in particular the downturn in the forestry market caused by the reduction in North American housing construction. PRT indicated that it currently expects 2009 order volumes to decline due to worsening forest industry conditions in its key market areas.

Under the structure of the Fund, the Trust is required to allocate its undistributed earnings to unitholders on an annual basis. The Fund is reviewing opportunities to minimize the impact of non-cash taxable income allocations that may arise in 2009 to taxable unitholders as a result of this decision, and will provide additional information on this in due course.

About the Fund

The PRT Forest Regeneration Income Fund is an open ended, single purpose trust created to own all the common shares and subordinated notes of Pacific Regeneration Technologies Inc. PRT is the largest producer of container grown forest seedlings in North America, operating 14 nurseries in Canada and the USA. The Fund's units are listed for trading on the Toronto Stock Exchange under the symbol PRT.UN.

Contact Information

  • PRT Forest Regeneration Income Fund
    Tony Pollard
    VP Finance/CFO
    1-866-553-8733 ext. 229