Artis Real Estate Investment Pref Shs Series E T.AX.PR.E

NO DRIP

[Malpeque2]

We don't want shareholders dripping into the stock at a large discount to NAV.

That is the purpose of the buybacks of common.     If you drip you defeat that purpose of the buybacks at discounts.

[HermannHaller]

I agree completely, should be no DRIP, and particularly no DRIP at a discount. On the issue of a special distribution, this is a problem for them with the REIT structure. If they have to distribute the proceeds of asset sales, how then do they use the money to pay down debt and invest elsewhere?  This is why they asked shareholders at the AGM for the ability to change status. 

[cgytrader]

I agree with no DRIP. Kind of defeats the purpose of the NCIB/SIB process. I think it would only be wise to bring in a DRIP if the payout ratio was too high (i.e. reduce cash outflows by the DRIP's and this reduces the ratio) - but I don't think this is an issue.  With respect to the capital gains, the REIT can keep the non-taxable portion of the capital gain so they could retain 50%

[babybunny]

I urge Artis investors to embrace my proposal for a special distribution of the gain followed by a DRIP allowing investors to reinvest their special distributions.  Please bear with me as I tediously explain the benefit. If Artis followed this path and all Artis unitholders reinvested their distributions in the DRIP, the effect would be almost the same as if Artis had retained the gain

[MTLfinecity]

If artis has to make this special distribution, your proposal makes lots of sense! 

[HermannHaller]

Thanks for a thoughtful post. I'm not sure it would work that well. It depends on how big the taxable gain is, and how much uptake of the DRIP there would be. It could take a couple of years of DRIP for the special dividend $$ to get back into the company. And, presumably there are more asset sales to come. Also, as you issue more shares with the DRIP, those shares now get monthly

[babybunny]

Thanks Hermann for your thoughts. Just to be clear, my proposal regarding a DRIP is not to reinstate the regular monthly DRIP; rather, it is to put in place a special one-time DRIP for the special distribution.  The idea is for the trust to retain the capital gain rather than paying cash distributions; but to have the tax liability transferred to individual unitholders rather than being