Allied Properties Real Estate Investment Trust T.AP.UN

Beautiful!

[masfortuna]

$5 in shares and .48 in cash for a total of $5.48. Combine that with the 3xFed rate cuts announced and we should see this trading higher over the next few weeks.

[Frankie10]

This happens every year - people fail to understand what is happening. The non-cash portion is NOT a good thing - it is a tax bill. You should speak to your accountant. All the best.

[stockrook86]

True, will be interesting to see how it goes. $5 is less than what analysts were expecting and the implied gain of the UDC sale from the purchase price of about $300 million, must have been other offsets or a lot of capitlized costs.  I think Scotia was expected a $1.50-$2.00 tax for highest tax bracket (maybe 7-8 phantom).  This is much better than that, but hard to know how investors

[Frankie10]

Yes, I tax planned for a total $2 special distribution, 75% of which was non-cash... needless to say, I underestimated the tax burden. I'm unphased however as I trimmed 6% of my Dream Office position yesterday (units purchased in the $8's) - so I'm flush with liquidity. Plenty of time to tax harvest for the big boys and even more time to RRSP plan for the little boys. The only people

[stockrook86]

Ha, very true - too late for the buyer that probably put in a market buy at $21 first thing this morning thinking they were going to get immmediate 25% return.

[Frankie10]

Lmao - "a fool and his money are soon parted"

[masfortuna]

 Ok thx Frankie.  I reread the release and it says the "balance of $5 paid in units" . It's a little confusing but at the end of the day I get .48 cents...

[masfortuna]

Also I have spoken to a few other individuals and from what they gather, they wil place $5 worth of shares per share in our account and then rebalance the account so you have the same amount of shares.  The detail you have left out is that the sp will increase by whatever the % increase in sp $5 worth of shares adds up to.

[Frankie10]

Correct that the number of total units will remain unchanged post consolidation. I disagree that the unit price will increase by $5. It's important to understand what exactly is happening. The Trust is paying out 48 cents of cash. So in theory, the Trust would be worth 48 cents less per unit (post consolidation). That said, there is an undisclosed liability in the Trust, which is the latent

[jack4567]

As a newbie to this kind of transaction, I appreciate your kind offer of help.  I understand that I am completely responsible for my own due diligence, and that you will not be providing any acutal investment/tax planning advice. Please let me know if my understanding of the special distribution sounds correct and complete, or if not, let me know where I have it wrong: The special

[Frankie10]

1. Correct regarding income classification - perhaps not all, but most of it will be classified as a capital gain. Per the PR: "The special distribution is being made primarily to distribute to unitholders a portion of the capital gain realized by Allied during the 12-month period ending December 31, 2023, from the sale of the UDC portfolio. Accordingly, the special distribution will be in

[TimeScape]

I have gotten distributions like this "special distribution" many, many times over the years.  Basically meaningless to the shareholder, except for the tax that will need to be paid.  The $5 distribution doesn't impact the share price in any meaningful way.  The only thing you need to consider is that you will have a capital gain of $5 a share, half of which will be

[jack4567]

Thanks, TimeScape--your specific example helps a lot.

[jack4567]

Frankie10, this helps a good deal!  Thanks very much.

[masfortuna]

 Not if it's in my TFSA :)

[jmkOttawa]

Correct