Lanesborough Real Estate Investment Trust V.LRT.UN

ISN'T IT TIME FOR LANESBOROUGH TO ANNOUNCE

[alkhor]

Their annual special distribution of units? Of course the units will be immediatly consolidated back to the same number issue, basically passing their tax burden to the unitholders, at least those that have the units in a taxable account. Unfortunatly some other REITs found out about the Lanesborough manouver and have been copying it, but thet usually include a bit of cash in the distribution, something Lanesborough have never done.

[riverrrow]

I would hope everybody is holding their shares in a tax sheltered account.

[BobTheKnob2]

Why would it matter? If someone held the debentures when the conversion occured last spring, I understand. That was a taxable event that would have involved a large tax liability if the debentures were held in a taxable account at time of conversion. However, now? The units haven't moved outside of the range of $0.005 to $0.005 since the conversion. They are going to go nowhere until

[alkhor]

"Not to sound negative, but why would you put this in to a tax sheltered account?" In the past number of years LREIT has issued a phantom distribution of units which, after issueing did a consolidation of the units so you ended up having the exact same number of units as you did before the distribution. In a tax sheltered account there was no effect, you never saw anything happen. In a

[quicksilver545]

Yes, that's such a scummy thing to do, pretending like this distribution is some kind of reward for patient investors, only to realize it's just worthless units rather than cash. This management is incredibly investor-unfriendly, they have no interest in enriching shareholders in the slightest. For what it's worth, I put up 15 million units on the ask at 0.005 on a GTC order. Given

[BobTheKnob2]

Thanks for that. I agree that it seems a bit smarmy doing that, but, I guess business is business.  I was not aware that the company was prone to doing some sort of contra payment to unit holders, leaving them holding the bag on the tax liability in exchange for nothing. Scummy is right. I now understand why the original poster suggested holding the units in a tax sheltered account. I

[alkhor]

Be thankful they didn't do the special distribution of units this year. The tax bill you reveived would be more than the value of the units, plus you would be stuck with it as you cant get rid of your units.