Canadian Apartment Properties Real Estate Investment Trust
Unitholder Distribution Reinvestment Plan
CAPREIT's Distribution Reinvestment Plan (the "Plan") allows Unitholders to use their monthly cash distributions to steadily increase ownership in CAPREIT without incurring any commission or other transaction costs.
To encourage participation, investors registered in the Plan will each receive a right to receive an additional amount equal to 5% of their distributions which they have elected to reinvest, which amount will be paid in the form of additional Units.
The right to receive the additional Units is being provided for no additional consideration, and, in addition to there being no commission or transaction fees applied in respect of Units purchased through the Plan, this will represent a compelling reason to enroll in the Plan and increase ownership in CAPREIT.
Please note that if your Units are held in an investment dealer's account and are not registered in your name, you may still arrange to participate in the Plan by contacting your investment dealer.
Many frequently asked questions are answered below. An electronic version of the Unitholder Distribution Reinvestment Plan is available on our website (www.caprent.com) for your review, as well as an authorization form to enroll in the Plan.
Frequently Asked Questions
The following Frequently Asked Questions have been developed to assist CAPREIT's Unitholders in understanding its Distribution Reinvestment Plan (the "Plan"). Unitholders are encouraged to carefully read the full details of the Plan before enrolling.
What is the Distribution Reinvestment Plan?
The Plan allows Unitholders of CAPREIT to have their monthly cash distributions reinvested in additional Units. In addition, Unitholders registered in the Plan will receive a right to receive an additional amount equal to 5% of their monthly distributions reinvested in Units, which amount shall be paid in the form of additional Units.
What price do I pay for the Units?
Unitholders registered in the Plan will pay the weighted average closing price for CAPREIT Units on the Toronto Stock Exchange for the five trading days immediately preceding the distribution date, which is on or about the 15th day of each month.
What are the benefits to enrolling in the Plan?
Unitholders enrolling in the Plan can steadily increase their ownership of CAPREIT on a convenient monthly basis. You pay no commissions, service charges or brokerage fees because Units are acquired directly from CAPREIT. You also receive additional Units representing 5% of each distribution reinvested pursuant to the Plan.
How will the Plan work?
The following is an example of how the distribution proceeds will be reinvested pursuant to the Plan.
|Example:||Distribution amount: $200|
|Market Price of one Unit: $10|
Based on the above amounts, the number of Units a participant will receive under the Plan will be 21 (20 + 1 additional Unit), with a cost for tax purposes of $200. The tax cost of these Units will be averaged with the tax cost of the other Units held by such participant from time to time.
Who administers the Plan?
The Plan is administered by CAPREIT's transfer agent, Computershare Trust Company (formerly, Montreal Trust) (the "Agent") or, arrangements can be made through your investment advisor if your investment dealer participates in the plan.
Will I receive a report of my purchases under the Plan?
The Agent or your investment dealer will send you statements of your purchases in the Plan. If you hold your Units in registered form, the Agent will deliver your statement on a monthly basis. Otherwise you will receive your statement in accordance with your investment dealer's usual practice. You will also receive appropriate tax information for reporting distributions paid on Units in the Plan.
Are there any tax consequences of enrolling in the Plan?
The Plan contains a summary of certain tax implications resulting from your participation. CAPREIT encourages you to seek advice relating to the tax consequences of enrolling in the Plan from your tax advisor.
When can I join the Plan?
You can join the Plan at any time. If your authorization form is received before the record date of a distribution, the immediately following cash distribution will be invested in the Plan.
How do I terminate my participation in the Plan?
You can terminate your participation in the Plan at any time by advising your investment dealer or, in the case of registered holders, the Agent in writing. Upon termination in the Plan you will be issued a certificate for whole Units and a cash payment for any fraction of a Unit, unless you make alternative arrangements with your investment dealer. The cash payment will be based on the sale price of the last board lot of Units traded on the TSE prior to the effective date of termination of participation in the Plan.
Who can join the Plan?
Any Unitholder is eligible to join the Plan. If your Units are held in an investment dealer's account and not registered in your name, you may also arrange to participate in the Plan by contacting your investment dealer.
How do I enroll in the Plan?
You may call your investment advisor and simply ask your investment advisor to make the necessary arrangements. Otherwise, if your Units are registered in your name, you can complete the Authorization Form included in this package (and located on our website) and forward it to the Agent.
|  Click here for a detailed version of the DRIP and Authorization form||December 21, 2000|