NEW GLASGOW, NS, Dec. 12, 2019 /CNW/ -
Crombie REIT announced today that its Board of Trustees has declared a special distribution of $0.56 per unit. The distribution will be payable in units ($0.46 per unit) and cash ($0.10 per unit) to all Unitholders of record as at December 31, 2019.
The distribution arises from the increase in income generated by capital recycling transactions completed and anticipated to be completed during the twelve-month period ended December 31, 2019. Crombie is making the special distribution payable partially in cash and partially in units, in order to provide Unitholders with cash to help fund any additional tax that may arise associated with the special distribution, while most of the net cash proceeds generated by the sale transactions has been reinvested in value creation opportunities with Empire and our major developments in line with Crombie's strategy.
"This special distribution reflects Crombie's successful capital recycling and our commitment to our strategy of creating long-term value for our unitholders," said Don Clow, President and CEO.
Immediately following the special distribution, the outstanding units of Crombie will be consolidated such that each Unitholder will hold, after the consolidation, the same number of units as such Unitholder held before the special distribution. The amount of the special distribution payable in units will increase the tax cost basis of Unitholders' consolidated units. The remaining portion of the special distribution will be paid in cash on January 15, 2020.
Crombie cautions that the foregoing comments are not intended to be, and should not be construed as, legal or tax advice to any Unitholder. Crombie recommends that Unitholders consult their own tax advisors regarding the income tax consequences to them of this anticipated special distribution and related unit consolidation.
About Crombie REIT
Crombie Real Estate Investment Trust ("Crombie") is an unincorporated, open-ended real estate investment trust established under, and governed by, the laws of the Province of Ontario. Crombie is one of the country's leading national retail property landlords with a strategy to own, operate and develop a portfolio of high quality grocery- and drugstore-anchored shopping centres, freestanding stores and mixed-use developments primarily in Canada's top urban and suburban markets. More information about Crombie can be found at www.crombiereit.ca.
SOURCE Crombie REIT
For further information: Media Contact: Clinton Keay, CPA, CA, Chief Financial Officer and Secretary, 902-755-8100