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Cash, fees & liquidity
What are distributions?
A distribution is cash the REIT pays to unitholders. It is not a GIC coupon and not the same as property rent or a cap rate. InvestPlus disclosure states distributions may be reduced or suspended. How a payment is classified for tax (income vs. return of capital) is a separate question.
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Cash, fees & liquidity
What is return of capital?
Return of capital is a tax classification of cash paid to you. It typically reduces your adjusted cost base rather than being taxed as income in the year received, until ACB is exhausted. How InvestPlus payments are reported is in the offering documents and your tax slips. This is not tax advice.
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Cash, fees & liquidity
How does return of capital impact ROI?
ROC changes the tax timing and your cost base. It does not by itself mean the investment earned more. Compare cash received, remaining ACB, and change in Unit value — and read the Offering Memorandum. A tax advisor should review your situation.
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Cash, fees & liquidity
What fees should I understand?
A discovery call and requesting documents cost $0. If you subscribe, the Offering Memorandum discloses dealer compensation, asset-management fees, acquisition/transaction costs, property operating costs, financing costs, and any redemption or transfer costs. Percentages can change when a new offering is filed.
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Cash, fees & liquidity
How does InvestPlus use debt and leverage?
The REIT may use mortgages or other debt. Interest and related costs reduce cash available to the REIT. Leverage can enlarge equity gains and losses. Maturity dates, coupons, and coverage belong in the offering file — not in a headline loan-to-value number alone.
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Cash, fees & liquidity
How should I think about liquidity?
There is currently no public market for the Units, and no assurance one will develop. Redemptions, if offered, may be limited, delayed, or suspended. Do not invest money you may need quickly.
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Cash, fees & liquidity
How long should I stay invested?
Private REIT Units are a longer-horizon product because liquidity is limited. There is no required hold period stated on this page. Match the time you can leave capital invested to the redemption terms in the Offering Memorandum.
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Cash, fees & liquidity
How is unit value calculated?
Private REIT Units are not priced on an exchange. InvestPlus materials describe Unit value using periodic appraisals of the underlying properties rather than a daily stock quote. The method, frequency, and any adjustments are in the Offering Memorandum. Unit value can go down.