Agreed! When they made the announcement that they sold the Bow I made it so I only own HR in my tax sheltered accounts, cause I knew this would happen. As HR transforms into a residental/industrial REIT I think we'll see more of this every year end for the next 5 years (hopefully by not to this degree).

Anyways I'm of the belief that it's crazy to hold HR in a non tax sheltered account. I'm in HR for the long haul, but only in my RRSP. Had I held HR in my cash account, my taxes for 2021 would be much higher.

CanSiamCyp wrote: M2P:

Your comment is 100% accurate! It seems that many people just didn't understand the process. The non-cash component of the so-called Special Distribution is exactly what ETFs do at year-end to distribute some or all of their Capital Gains generated during the year: they issue a non-cash distribution, and the unitholder (in a non-registered account) has to pay CG tax in the current year AND should increase the ACB of their holding (thereby reducing CG tax in a future year). All the talk of issuing new units and then consolidating immediately - thereby maintaining the same unit total number but with a higher unit value - is too much for many to comprehend. Notwithstanding, this is a really undesirable form of sharing the Capital Gains realized by liquidatng assets. 

I am still holding my HR.un units, but I'm wondering if every year, as they continue to liquidate assets as part of the transition to an industrial/multi-family residential hybrid REIT, they will engage in this same exercise in futility. If so, this REIT may not be an attractive hold for the 5-year transition period (in a non-registered account).


my2pennies wrote: For an non tax sheltered account the 0.63/share special dividend is an upward ACB adjustment that will lower your future capital gain tax when you sell. It also will hit your 2021 tax year as an immediate capital gain. The other 0.10/share in cash ismeant to help pay for the additional 2021 tax burden the 0.63/share will cause outside a tax sheltered account. So in aren't getting any more HR shares. They really shouldn't call the 0.63/share a distribution as people think they are getting something instead of it costing them something. If you had a lot of HR and have a high income this is gonna rrally up your 2021 tax bill by quite a bit, and the 0.10 per share won't come close to covering it. It's one reason so many people dumped HR from their cash accounts once the announcement of the spot was made.
born2trade wrote: My understing was that all shareholders on record Dec 31 receive the special dividend of $0.63 a share in additional shares. If investment is held in non-registered accouts , then it can be used to pay the tax  Othersiwe , it is additional shares that can be sold later if held in TFSA or RRSP.  Did I miss something?

my2pennies wrote:
The 0.63 isn't actually any type of payment or stock issuance to's actually just a future tax bill (if held outside of a TFSA or registered tax shelter retirement account.