Dri Healthcare Trust T.DHT.UN

RE:Taxes on this company

[SONOFFERGUS]

I hope you got to do some loving at $12.40 before Friday's melt up. Still great with a $13-handle IMHO.

Yeah, taxes on DRI and other mutual fund trusts are annoying.

First and foremost, DRI's income flows out to unitholders as regular income, meaning the units are best held in a TFSA or deferred account.

Mechanically, around Xmas DRI will drop a press release down the chimney like this one from last year:

https://drihealthcare.com/dri-healthcare-trust-declares-special-distributions-2/

The special distribution cleans out the trust's taxable income for the year (that hasn't been distributed in prevous quarters) and passes it to unitholders.  Unlike dividends, distributions are taxed when recorded, not paid, so any special distribution will be 2024 income.  Here's the 2023 T3 that shows the press release amounts for Q4:

https://drihealthcare.com/wp-content/uploads/2024/03/DRI-Healthcare-Trust-2023-T3-Statement-of-Income-Allocation-and-Designations.pdf

DRI might decide to pay the special distribution in cash, in kind (through issuance of units), or bit of both.  Any distribution paid with units is added to a unitholder's adjusted cost base.  Better than nothing, but not great of course.

The special distribution was huge last year because the trust sold a royalty interest for big $$$, so I would expect a distribution more in line with 2023's $0.1655.  Only DRI knows ofc and it's a weird that there is zero disclosure or guidance.  

Good luck to all longs!