− NOT FOR DISTRIBUTION TO U.S. NEWS WIRE SERVICES OR DISSEMINATION IN THE UNITED STATES −
TORONTO, Dec. 16, 2024 /CNW/ - Automotive Properties Real Estate Investment Trust (TSX: APR.UN) (the "REIT") today announced its regular monthly cash distribution to REIT unitholders ("Unitholders") for December 2024 (the "Regular Distribution") and a special distribution to Unitholders of $0.55 per REIT unit (the "Special Distribution").
The Regular Distribution of $0.067 per REIT unit ("Unit") for the month of December 2024, which represents $0.804 per Unit on an annualized basis, will be made on January 15, 2025 to Unitholders of record as at December 31, 2024.
The Special Distribution of $0.550 per Unit will be comprised of $0.081 per Unit payable in cash and $0.469 per Unit payable by the issuance of Units to Unitholders of record as at December 31, 2024.
The Special Distribution is being made primarily to distribute to Unitholders a portion of the capital gain realized by the REIT during the 12-month period ending December 31, 2024 from the previously announced sale of the Kennedy Lands on October 1, 2024. Accordingly, the Special Distribution will be in the form of a capital gain for income tax purposes. The cash portion of the Special Distribution is intended to assist Unitholders in funding any additional tax liability that may arise in connection with the Special Distribution.
The portion of the Special Distribution payable in Units will be paid on December 31, 2024 by the issuance of Units from treasury that have a fair market value equal to the dollar amount of the Special Distribution payable in Units based on the volume-weighted average trading price of the Units on the Toronto Stock Exchange for the five trading days ending on December 30, 2024. Immediately following the Special Distribution, the outstanding Units of the REIT will be consolidated such that each Unitholder will hold, after the consolidation, the same number of Units as held immediately prior to the Special Distribution. The cash portion of the Special Distribution will be paid to Unitholders on January 6, 2025.
For Unitholders who are residents of Canada for Canadian federal income tax purposes, the amount of the Special Distribution payable in Units will increase the aggregate adjusted cost base of each Unitholders' consolidated Units. Unitholders who are not resident in Canada for Canadian federal income tax purposes may be subject to applicable withholding taxes in connection with the payment of the Special Distribution.
The REIT cautions that the foregoing comments are not intended to be, and should not be construed as, legal or tax advice to any Unitholder. The REIT recommends that Unitholders consult their own tax advisors regarding the income tax consequences to them of this anticipated Special Distribution and the related Unit consolidation.
About Automotive Properties REIT
Automotive Properties REIT is an unincorporated, open-ended real estate investment trust focused on owning and acquiring primarily income-producing automotive and other OEM dealership and service properties located in Canada. The REIT's portfolio currently consists of 78 income-producing commercial properties, representing approximately 2.9 million square feet of gross leasable area, in metropolitan markets across British Columbia, Alberta, Saskatchewan, Manitoba, Ontario and Québec. Automotive Properties REIT is the only public vehicle in Canada focused on consolidating automotive and OEM dealership and service real estate properties. For more information, please visit: www.automotivepropertiesreit.ca.
Forward-Looking Information
This news release contains forward-looking information within the meaning of applicable securities legislation, which reflects the REIT's current expectations regarding future events and in some cases can be identified by such terms as "will" and "expected". Forward-looking information includes statements regarding the intended monthly cash distribution by the REIT and the Special Distribution. Forward-looking information is based on a number of assumptions and is subject to a number of risks and uncertainties, many of which are beyond the REIT's control that could cause actual results and events to differ materially from those that are disclosed in or implied by such forward-looking information. Such risks and uncertainties include, but are not limited to, the factors discussed under "Risks & Uncertainties, Critical Judgments & Estimates" in the REIT's Management's Discussion and Analysis (MD&A) for the year ended December 31, 2023 and in the REIT's MD&A for the interim period ended September 30, 2024, and under "Risk Factors" in the REIT's annual information form dated March 7, 2024, which are available on SEDAR+ (www.sedarplus.ca) and the REIT's website (www.automotivepropertiesreit.ca). The REIT does not undertake any obligation to update such forward-looking information, whether as a result of new information, future events or otherwise, except as expressly required by applicable law. This forward-looking information speaks only as of the date of this news release.
SOURCE Automotive Properties Real Estate Investment Trust
