STELLARTON, NS, Jan. 18 /CNW/ – Crombie Real Estate Investment Trust ("Crombie") (TSX: CRR.UN) announced that, as of January 1, 2008, Crombie believes it has organized its assets and operations to permit Crombie to satisfy the criteria contained in the Income Tax Act (Canada), and as further clarified in the proposed technical amendments issued by the Department of Finance (Canada) on December 20, 2007, in regard to the definition of "real estate investment trust" ("REIT"). The relevant tests apply throughout the taxation year of Crombie and, as such, the actual status of Crombie for any particular taxation year can only be ascertained at the end of the particular year.
During the fourth quarter of 2007 Crombie's management and their advisors underwent an extensive review of Crombie's organizational structure and operations to support Crombie's assertion that it meets the REIT criteria at January 1, 2008.
In addition, the issuance of proposed technical amendments on December 20, 2007 provided further clarity to the tax rules and criteria that were part of Bill C-52 and applicable to Crombie. These technical amendments provided more certainty that Crombie qualifies as a REIT.
A trust that satisfies the criteria of a REIT throughout its taxation year will not be subject to income tax in respect of distributions to its Unitholders or be subject to the restrictions on its growth that would apply to trusts classified as specified investment flow-through entities ("SIFTs"). Thus Crombie will continue its activities in accordance with its business strategy.
Crombie is an open-ended real estate investment trust established under, and governed by, the laws of the Province of Ontario. The trust invests in income-producing retail, office and mixed-use properties in Canada, with a future growth strategy focused primarily on the acquisition of retail properties. Crombie currently owns a portfolio of 52 commercial properties in six provinces, comprising approximately 7.9 million square feet of rentable space. More information about Crombie can be found at www.crombiereit.com.
This news release contains forward looking statements that reflect the current expectations of management of Crombie about Crombie's future results, performance, achievements, prospects and opportunities, including any future obligation of Crombie to pay income taxes. Wherever possible, words such as "may", "will", "estimate", "anticipate", "believe", "expect", "intention" and similar expressions have been used to identify these forward looking statements. These statements reflect current beliefs and are based on information currently available to management of Crombie. Forward looking statements necessarily involve known and unknown risks and uncertainties. A number of factors could cause actual results, performance, achievements, prospects or opportunities to differ materially from the results discussed or implied in the forward looking statements, including with respect to income taxes, any future legislative amendments or interpretations, or Crombie owning non-qualifying assets or earning material non-qualifying revenue. These factors should be considered carefully and a prospective purchaser should not place undue reliance on the forward looking statements. There can be no assurance that the expectations of management of Crombie will prove to be correct.
Contact: Scott Ball, C.A., Vice President, Chief Financial Officer and Secretary, Crombie REIT, (902) 755-8100