Artis Real Estate Investment Pref Shs Series E T.AX.P.E

Alternate Symbol(s): T.AX.P.I | T.AX.UN | ARESF

Real Estate REIT - Diversified

Artis Real Estate Investment Trust is an unincorporated closed-end REIT based in Canada. Artis REIT's portfolio comprises properties located in Central and Western Canada and select markets throughout the United States, including regions such as Alberta, British Columbia, Manitoba, Ontario, Saskatchewan, Arizona, Minnesota, Colorado, New York, and Wisconsin. The properties are divided into three categories: office, retail, and industrial. The industrial properties account for most of the portfolio, followed by the office properties and the retail properties.

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Artis Real Estate Investment Pref Shs Series E > NO DRIP

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Comment by cgytraderon Jun 23, 2021 11:45am

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Post# 33434462

RE:RE:NO DRIP

I agree with no DRIP. Kind of defeats the purpose of the NCIB/SIB process. I think it would only be wise to bring in a DRIP if the payout ratio was too high (i.e. reduce cash outflows by the DRIP's and this reduces the ratio) - but I don't think this is an issue.

With respect to the capital gains, the REIT can keep the non-taxable portion of the capital gain so they could retain 50% of the capital gain to pay off debts and fund repurchases. What I am not certain of is how much gain there is for tax purposes, were they depreciating the properties (recapture = 100% tax)? Is there an allocation to land (100% gain as can't depreciate land)? So a couple unknowns there. But either way, they should be in a posiition to keep 100-200 million from the proceeds I would reckon so that is a good starting point.

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