# Question about REIT



## jignesh (May 13, 2016)

I am studying Appraisal of Real Estate and there I have come across REIT.
REIT carry out distribution at the end of year. It also carries out repayment of equity at times. So whats difference between return of equity and distribution ? 

Thanks


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## OnlyMyOpinion (Sep 1, 2013)

The distribution is the total amount paid out to the unitholder. It may include some return of equity (more commonly called return of capital or ROC) as well as other forms of income (capital gains, other income, dividend, etc.). The distributions may be made annually but I would say that monthly distributions are more common.

Refer to a few REIT investor sites like this one for Boardwalk (BEI.UN) to see how they classify their payments: https://www.bwalk.com/Content/Investors/IncomeTax/BREIT-T32015.pdf.


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## jignesh (May 13, 2016)

OnlyMyOpinion said:


> The distribution is the total amount paid out to the unitholder. It may include some return of equity (more commonly called return of capital or ROC) as well as other forms of income (capital gains, other income, dividend, etc.). The distributions may be made annually but I would say that monthly distributions are more common.


Does it mean that, whenever there is a distribution, there is always some CCA (Capital Cost Allowance) in it ? As REIT may profit or loss, but CCA will always be there in its account books.

Thanks


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## OnlyMyOpinion (Sep 1, 2013)

The source of ROC should be the capital cost allowance that the REIT has deducted for depreciation of their properties.


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## gibor365 (Apr 1, 2011)

Curious how Canadian REITs gonna be affected by US interest hike? 
P.S. Don't believe Canada gonna raise interest rates any foreseeable future


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