EDMONTON, Alberta, Dec. 20, 2024 (GLOBE NEWSWIRE) -- Melcor Real Estate Investment Trust (“Melcor REIT” or the “REIT”) today announced that a special non-cash distribution in the amount of $0.36 per outstanding trust unit was declared payable to unitholders of record as at December 31, 2024. The amount of the special distribution is equal to the REIT’s estimated taxable income and capital gains for the 2024 taxation year net of any deductions available to the REIT from cash distributions made in the year. The special distribution is intended to reduce the REIT’s taxable income for the 2024 taxation year to nil.
The payment of the special distribution will be made at the close of business on December 31, 2024, in accordance with Section 11.3(c) of the REIT's Amended and Restated Declaration of Trust, by the issuance of additional trust units based on the closing market price of the units on the Toronto Stock Exchange on December 31, 2024. Immediately following the special distribution, the number of outstanding trust units will be consolidated so that each unitholder will hold exactly the same number of trust units after the consolidation as each unitholder held immediately prior to the special distribution.
The REIT cautions that the following comments are not intended and should not be construed to be legal or tax advice and recommends that unitholders consult their own tax advisers regarding the income tax consequences of the special distribution and related unit consolidation. The REIT expects that a unitholder of record on the record date of the special distribution who is a resident of Canada for tax purposes will generally be required to include in their computation of income the amount of net income or taxable capital gains distributed to them by the REIT during the 2024 taxation year or that become payable to them in 2024, as determined by the Income Tax Act (Canada), including by virtue of the special distribution. Furthermore, the REIT expects that the adjusted cost base to such a unitholder of its trust units for Canadian income tax purposes immediately after the special distribution will be increased by the Unitholder's proportionate share of the net income and taxable capital gains allocated to the Unitholder for the 2024 taxation year by virtue of the special distribution. Unitholders who are not residents of Canada for tax purposes may be subject to applicable withholding taxes in connection with the special distribution and should similarly realize an increase to their adjusted cost base of its trust units immediately following the special distribution.
About Melcor REIT
Melcor REIT is an unincorporated, open-ended real estate investment trust. Melcor REIT owns, acquires, manages and leases quality retail, office and industrial income-generating properties in western Canadian markets. Its portfolio is currently made up of interests in 35 properties representing approximately 3.04 million square feet of gross leasable area located across Alberta and in Regina, Saskatchewan.
Contact Information: Investor Relations Tel: 1.780-945-4795 ir@melcorreit.ca
