TORONTO, Nov. 21 /CNW/ - Home Equity Income Trust (TSX: HEQ.UN) ("HOMEQ"
or the "Trust") today announced a cash distribution of $0.09 per unit for the
month of November 2007 (equivalent to $1.08 per unit on an annualized basis).
The distribution is payable to unitholders of record on November 30 and will
be paid on December 17, 2007.
The Trust estimates that for 2007 approximately 75-85 percent of the
distributions will be treated as taxable income, while the remainder will be a
return of capital.
The Trust has an optional distribution reinvestment plan that permits
unitholders to use the monthly cash distribution paid on their existing units
to purchase additional units directly from the Trust without paying brokerage
commissions or service charges. Participants in the plan will receive
additional units equal in value to 4 percent of each distribution that is
reinvested. Complete plan details can be obtained at www.homeq.ca.
Forward Looking Statements
Home Equity Income Trust from time to time makes written and verbal
forward-looking statements about business objectives, operations, performance,
and financial condition, including, in particular, the forecast of cash
distributions and the likelihood of HOMEQ's success in developing and
expanding its business. These may be included in the Annual Reports,
regulatory filings, reports to unitholders, press releases, Trust
presentations and other communications. These forward-looking statements are
based upon a number of assumptions and estimates that are inherently subject
to significant uncertainties and contingencies, many of which are beyond the
control of HOMEQ. Actual results may differ materially from those expressed or
implied by such forward-looking statements. HOMEQ does not undertake to update
any forward-looking statement, whether written or verbal, that may be made
from time to time.
About Home Equity Income Trust
Home Equity Income Trust provides unitholders with stable monthly cash
distributions from a portfolio of reverse mortgages originated by its wholly
owned subsidiary Canadian Home Income Plan Corporation ("CHIP"). The Trust's
units are rated SR-2 by Standard and Poor's, which assigns this rating to
funds that have "a very high level of cash distribution stability relative to
other rated Canadian income funds." As of September 30, 2007, the portfolio
generating cash returns to the Trust comprised approximately 6,600 reverse
mortgages with an accrued value of $678.4 million, secured by residential
properties across Canada worth approximately of $1.9 billion. CHIP
(www.chip.ca), has been the main underwriter of reverse mortgages in Canada
since pioneering the concept in 1986.
The Trust's units trade on the Toronto Stock Exchange under the symbol
HEQ.UN. Additional information on HOMEQ, including annual and quarterly
reports and the Trust's distribution reinvestment plan, can be viewed at
For further information:
For further information: Gary Krikler, Senior Vice President and Chief
Financial Officer, (416) 413-4679, firstname.lastname@example.org; Scott Cameron, Vice
President, Finance, (416) 413-6605, email@example.com