CAPREIT Declares December 2025 Monthly Distribution
Canadian Apartment Properties Real Estate Investment Trust (“CAPREIT”) (TSX:CAR.UN) has announced an important update regarding its distribution for December 2025. The monthly distribution will be set at $0.12917 per Unit, which translates to an annualized amount of $1.55. This regular distribution will be payable to Unitholders who are recorded as of the end of business on December 31, 2025, with the payment being made on January 15, 2026.
Special Non-Cash Distribution Details
In addition to the monthly distribution, CAPREIT has declared a special non-cash distribution valued at $0.90 per Unit, which will also be payable in Units of CAPREIT on December 31, 2025. This Special Distribution serves the purpose of allocating to Unitholders a portion of the net capital gains realized by CAPREIT within the fiscal year ending December 31, 2025. As such, it is classified as a capital gain for tax purposes in Canada.
Implications for Taxable Canadian Residents
Taxable Canadian-resident Unitholders will need to report their share of CAPREIT’s income, alongside their net taxable capital gain as designated by CAPREIT, for the tax year that ends on December 31, 2025. This requirement is important for compliance with tax regulations.
Understanding the Special Distribution
The Special Distribution will occur at the conclusion of business on December 31, 2025, through the issuance of Additional Units. The number of Units issued will correspond to the amount allocated for this Special Distribution, divided by the closing price of CAPREIT Units on that date on the Toronto Stock Exchange.
Impact on Unitholders' Units
After the payment of this Special Distribution, there will be a consolidation of issued and outstanding Units of CAPREIT. This consolidation aims to maintain the same aggregate number of Units as before the Special Distribution process. For Canadian federal income tax purposes, the Special Distribution will increase the adjusted cost base of the consolidated Units held by Unitholders. It's also worth noting that Unitholders not residing in Canada may face applicable withholding taxes.
Expert Guidance Suggested
CAPREIT encourages its Unitholders to seek advice from personal tax advisors to understand the implications of the Special Distribution on their individual tax situation. This consultation is crucial for navigating the complexities of income tax laws as they pertain to the distributions received.
CAPREIT at a Glance
As the largest publicly traded provider of quality rental housing in Canada, CAPREIT manages around 45,000 residential units and townhomes throughout Canada, as well as select properties in the Netherlands. The total fair value of their portfolio is approximately $14.5 billion. For more details about CAPREIT, including its investment highlights, interested parties can visit their official website.
Frequently Asked Questions
What is the amount of the monthly distribution for December 2025?
The monthly distribution for December 2025 has been set at $0.12917 per Unit.
What is the special non-cash distribution being offered?
A special non-cash distribution of $0.90 per Unit will be provided, payable in Additional Units.
When will the distributions be paid out?
The regular distribution will be paid on January 15, 2026, while the special distribution will take place on December 31, 2025.
What should Unitholders expect regarding taxes?
Taxable Canadian-resident Unitholders will need to include their portion of CAPREIT’s income and capital gains in their taxable income for the year.
Who can Unitholders contact for more information?
Unitholders can contact CAPREIT directly for inquiries or further details regarding distributions and tax implications.
