Inovalis REIT Promotes Growth with Special Distribution Plan

Inovalis Real Estate Investment Trust Unveils Special Distribution

Inovalis Real Estate Investment Trust (the “REIT”) (TSX: INO.UN) has officially announced a special distribution aimed at enhancing the benefits to its Unitholders. This strategic move reflects the Board of Trustees' commitment to delivering value to investors while ensuring the REIT's financial growth remains on track.

Details of the Special Distribution

The Board has declared a special distribution of $0.225 per Unit, set to benefit Unitholders of record as of December 31, 2024. This decision is not only a financial step but also represents the REIT’s intention to share its success with its investors. The distribution will take the form of Units, ensuring that every Unitholder can see the tangible rewards of their investment.

Purpose of the Special Distribution

The primary purpose of this distribution is to allocate the taxable income generated from various transactions throughout the year. Such a move is indicative of the REIT's performance, underscoring its ability to generate income and provide returns to its investors.

Mechanics of the Distribution

This special distribution will be processed at the close of business on the record date. It will involve the issuance of Units, priced based on the closing value of the Units on the Toronto Stock Exchange that day. This mechanism allows Unitholders to benefit directly from the REIT’s income while maintaining the overall number of Units unchanged.

Implications for Unitholders

Unitholders can anticipate that this distribution will generally increase the tax cost basis of their Units, particularly for Canadian federal income tax purposes. However, an important consideration is that unitholders residing outside Canada may incur applicable withholding taxes associated with this special distribution.

Advisory to Unitholders

The REIT advises all Unitholders to seek guidance from their tax advisors concerning the potential tax impact of the upcoming distribution and related Unit consolidation. Such guidance is essential to ensure that investors understand how this distribution might affect their financial situation and obligations.

Overview of Inovalis REIT

Founded in 2013, Inovalis REIT specializes in real estate investment with a focus on office properties in key locations across Europe, including France, Germany, and Spain. Currently, the REIT manages 13 significant assets, expanding its footprint in the competitive real estate market.

Investment Approach

The REIT strategically acquires properties through CanCorpEurope, an Alternative Investment Fund (AIF) regulated by the CSSF in Luxembourg. This investment model not only diversifies the portfolio but is also aligned with long-term growth objectives.

About Inovalis Group

Inovalis S.A. operates as a prominent Alternative Investment Fund manager, recognized by the French Securities and Markets Authority (AMF) under AIFM regulations. The firm is dedicated to investing in and managing various real estate investment trusts, including the Inovalis REIT, alongside other real estate funds that showcase regional strength and stability, such as Eurovalys in Germany and Elialys in Southern Europe.

Group’s Market Position

With a massive portfolio totaling EUR 7 billion in assets under management and a highly skilled team of 300 professionals, Inovalis Group is positioned as a key player in the European real estate investment landscape. This includes providing advisory, fund management, and property management services.

Frequently Asked Questions

What is the special distribution amount declared by Inovalis REIT?

The declared special distribution is $0.225 per Unit.

When will the special distribution be paid to Unitholders?

The distribution will be effective at the close of business on December 31, 2024.

How does the special distribution affect the number of outstanding Units?

The total number of outstanding Units will remain unchanged post-distribution, as it will involve a consolidation process.

What tax implications should Unitholders consider?

Unitholders may need to consider potential withholding taxes and how the distribution affects their tax basis for Canadian federal income tax purposes.

What are the core markets for Inovalis REIT's investments?

Inovalis REIT primarily focuses on office properties in France, Germany, and Spain.

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