TSX SYMBOL: BEI.UN June 16, 2004
Boardwalk REIT Announces Fair Market Unit Value At May 3, 2004 And Launch Of Distribution Reinvestment Plan
Market Unit Value on Conversion of Boardwalk Equities Inc. to Boardwalk Real Estate Investment Trust (“Boardwalk REIT”)
Calgary, Alberta – June 16, 2004
Boardwalk Real Estate Investment Trust ("BEI.UN" – TSX)
Boardwalk Real Estate Investment Trust ("BEI.UN" – TSX)
announces that the fair market value of a REIT Unit of
Boardwalk REIT as of May 3, 2004 has been determined to
be C$15.95. The value of $15.95 was recently agreed to
by Boardwalk REIT and Boardwalk Equities Inc.
(“Boardwalk”), in accordance with the terms of the plan
of arrangement under the Business Corporations Act
(Alberta) effective May 3, 2004, pursuant to which
Boardwalk REIT acquired substantially all of the assets
of Boardwalk (the “Plan”). This number may be of
assistance to investors in preparing applicable
Canadian income tax filings or for other Canadian
income tax purposes.
The REIT Units of Boardwalk REIT began trading on The
Toronto Stock Exchange on May 5, 2004.
In general, based on a value of a REIT Unit of C$15.95
as at May 3, 2004, former shareholders of Boardwalk who
were deemed to dispose of their shares of Boardwalk on
May 3, 2004 under the Plan and ultimately received as
consideration one REIT Unit for each common share of
Boardwalk they held as capital property would have
proceeds of disposition for Canadian income tax
purposes, for each of their Boardwalk common shares,
of C$15.95.
The tax matters referred to in this press release do
not constitute tax advice to any investors, and
investors should consult their own tax advisors with
respect to any tax matters pertaining to their
circumstances. Investors are also referred to the
management information circular of Boardwalk dated
March 29, 2004 and, in particular, the summaries
under the heading "Material Canadian Federal Income
Tax Considerations" beginning at page 163 of the
circular.
The circular is available on SEDAR (www.sedar.com)
as a document of Boardwalk Equities Inc.
Distribution Reinvestment Plan
Boardwalk REIT is also pleased to announce that it
has adopted a distribution reinvestment plan
(the “DRIP”) for holders of REIT Units and the
holders of class B limited partnership units of
Boardwalk REIT Limited Partnership
(the “Partnership”).
Boardwalk REIT unitholders (the “unitholders”)
of record on June 30, 2004 may now elect to
participate in the DRIP commencing with the
monthly cash distribution payable on
July 15, 2004. To participate in the DRIP,
eligible registered unitholders must deliver
the appropriate properly completed and signed
authorization form provided by Boardwalk REIT
for such purpose to Computershare Trust Company
of Canada no later than 5:00 p.m. (E.S.T.) on
the fifth business day immediately preceding a
distribution record date in order for the cash
distribution to which such record date relates
to be reinvested under the DRIP.
The full text of the DRIP, an accompanying
series of questions and answers and
authorization forms will be mailed to
registered Boardwalk REIT unitholders.
Copies of these materials will also be made
available on Boardwalk REIT’s website at
www.BoardwalkREIT.com under the heading “DRIP”.
Beneficial owners of REIT Units (i.e. owners
of REIT Units that are held through a nominee
such as a broker or custodian) who wish to
participate in the DRIP should contact their
broker, investment dealer, financial
institution or other nominee who holds their
REIT Units to provide instruction regarding
their participation in the DRIP.
Participation in the DRIP is subject to
proration in certain events.
The DRIP will enable eligible Boardwalk
REIT unitholders to direct cash distributions
paid by Boardwalk REIT in respect of their
existing REIT Units be reinvested in
additional REIT Units at the average market
price of a REIT Unit on the applicable
distribution date. The DRIP also entitles
eligible Boardwalk REIT unitholders to a
“bonus” distribution of additional REIT
Units representing 3% of the amount of
the cash distribution reinvested pursuant
to the DRIP. Additional REIT Units
purchased under the DRIP will be credited
to an account for the unitholder in
accordance with the DRIP.
Boardwalk REIT reserves the right to
determine how much new equity is available
under the DRIP on any particular
distribution date. Accordingly,
participation may be pro-rated in certain
circumstances.
Please note that registered and
beneficial owners of REIT Units who are
not resident in Canada are not eligible
to participate in the DRIP.
Participation in the DRIP does not relieve
unitholders of any liability for taxes
that may be payable on cash distributions
or cash payments. Unitholders should
consult their tax advisors concerning
the tax implications of their
participation in the DRIP having regard
to their particular circumstances.
Unitholders are encouraged to carefully
read the complete text of the applicable
DRIP before making any decisions
regarding their participation in such DRIP.
Corporate Profile
Boardwalk REIT is an open-ended real estate
investment trust formed to acquire all of
the assets and undertakings of
Boardwalk Equities Inc. Boardwalk REIT’s
principal objectives are to provide its
unitholders with monthly cash distributions,
partially on a Canadian income tax-deferred
basis, and to increase the value of its
units through the effective management of
its residential multi-family revenue
producing properties and the acquisition
of additional properties. Boardwalk REIT
currently owns and operates in excess of
250 properties with over 31,400 units
totalling approximately 26 million net
rentable square feet, and is Canada’s
largest owner/operator of multi-family
rental communities. Boardwalk REIT’s
portfolio is concentrated in the
provinces of Alberta, Saskatchewan,
Ontario and Quebec.
Forward Looking Information
This press release may contain forward
looking statements. These statements
relate, but are not limited to,
Boardwalk REIT’s expectations,
intentions, plans and beliefs.
These forward looking statements
can generally be identified by the
use of words “anticipated”, “expected”
or the negative thereof or other
comparable terminology. You should
be aware that these statements are
subject to known and unknown risks,
uncertainties and other factors,
including the risks discussed under
the heading “Risk Factors” in the
Management Information Circular of
Boardwalk Equities Inc. available on
www.sedar.com. Actual events or
results may differ materially from
those suggested by any forward-looking
statements. You should not place undue
reliance on any forward-looking
statements contained in this
press release.
By their nature, forward-looking
statements involve numerous assumptions,
inherent risks and uncertainties, both
general and specific, that contribute to
the possibility that the predictions,
forecasts, projections and various
future events will not occur.
Although management of Boardwalk REIT
believes that the expectations reflected
in the forward-looking statements are
reasonable, there can be no assurances
that future results, levels of activity,
performance or achievements will occur
as anticipated. None of Boardwalk REIT
nor any other person assumes
responsibility for the accuracy
and completeness of any forward-looking
statements, and no one has any
obligations to update or revise any
forward-looking statement, whether
as a result of new information, future
events or such other factors which
affect this information, except as
required by law.
For further information please contact:
Boardwalk REIT
Sam Kolias,
President and CEO,
(403) 531-9255;
Roberto Geremia,
Senior Vice President, Finance
and Chief Financial Officer,
(403) 531-9255;
Paul Moon,
Director of Corporate Communications,
(403) 531-9255.
