H&R Real Estate Investment Trust T.HR.UN

Special distribution ....

[CanSiamCyp]

... non cash portion will be treated just like a "phantom" non-cash distribution from an ETF. Taxable income which comprises the SD will appear on your 2021 T3 slip and you will pay tax. To offset the tax bill in 2021, your ACB will be increased by the non cash amount - resulting in an ultimate reduction in Capital Gains upon liquidation of the HR.un position. Trust HR.un to make a potentially simple transaction more complicated and less attractive to unitholders. I anticipate unit price weakness as soon as the reality sinks in!

[SNAKEYBOY]

How are shareholders benefiting from the Special distribution in units if they will be "consolidated". Can someone explain that to me? How are unit holders before the Dec 31 ex-div benefiting then? "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 num ber of

[apollojetic]

This doesn't appear to be "Special" at all because I don't feel special after reading the press release. Basically the share price now is about where it was after the big transformation announcement in late October. And this is the best they can do for an extra distribution because the Primaris spin off took our Christmas funds. Probably cost more to spin it out than they

[SNAKEYBOY]

True but at the end of the day money/NAV can't be created or destroyed.   The special distribution is essentially staying on the books, it seems like the 73 cents is just smoke and mirrors when really its like one doesn't exist

[alkhor]

The 10 cents is real, the other 63 cents worth of units also exists but is really passing the tax liability on to the unitholders. Read my previous post.

[CanSiamCyp]

Exactly! That  is why I said that I anticipated the unit price will drop "biggly" tomorrow as a result of this announcement. Many investors are not keen on "phantom" distributions cuz they pay tax today and all they have to show for it is an increased ACB - to offset potential future capital gains! This management team never, ever seem to learn how to market themselves!

[SNAKEYBOY]

Management owns 200 million..could they really be that stupid then. Theyll have to pay big taxes

[materialsgirl]

I too loathe this type of so called distribution mat