How do I invest in BSR Real Estate Investment Trust?
BSR REIT’s units are listed on the Toronto Stock Exchange (TSX) under the symbol: HOM.U.
If I am a United States resident, can I buy units through a U.S.-based broker?
Most major U.S.-based investment dealers have the ability to acquire units of the REIT through direct membership in the TSX or through trading relationships with TSX members. We recommend that you talk to your broker directly for information.
How often does BSR pay its distributions?
BSR pays distributions on a monthly basis.
Why are the REIT’s units listed in Canada when all the assets are in the United States?
First, the TSX offers the right ecosystem for a mid-capitalization REIT, with proven banking, investor and sell-side analyst support. Second, we provide Canadian investors with exposure to higher growth U.S. sunbelt markets, which is generally less available on the TSX. Third, the TSX has already demonstrated receptivity to our asset class.
With the REIT’s units listed in Canada, are the distributions subject to specific tax consequences for U.S. investors?
Although BSR REIT is organized as an unincorporated trust under Canadian law, the REIT is classified as a corporation for U.S. federal income tax purposes under current Treasury Regulations. We recommend that investors consult with their tax advisors for greater detail.
With the assets in the U.S., are there tax consequences for Canadian investors?
Distributions paid by the REIT to Canadian investors that are made out of the REIT’s current or accumulated earnings and profits (as determined under U.S. federal income tax principles), generally will be subject to U.S. withholding tax at a rate of 30%, which may be reduced to 15% for investors that qualify for benefits under the United States-Canada Income Tax Convention (1980, as amended) (the “Treaty”) provided that the required form evidencing eligibility for such benefits is filed with the REIT or the appropriate withholding agent. To the extent a Canadian investor is subject to U.S. withholding tax in respect of distributions paid by the REIT on the Units out of the REIT’s current or accumulated earnings and profits, the amount of such tax generally will be eligible for foreign tax credit or deduction treatment, subject to the detailed rules and limitations under the Tax Act. So long as the Units continue to be regularly traded on an established securities market, distributions with respect to Units in excess of the REIT’s current and accumulated earnings and profits that are distributed to Canadian investors that have not owned (or been deemed to own) more than 10% of the outstanding Units generally will not be subject to U.S. withholding tax, although there can be no assurances that withholding on such amounts will not be required. We recommend that investors consult with their tax advisors for greater detail.