Real Estate Investment Trusts (REITs) and Mortgage Investment Corporations (MICs)

Units of REITs generally are qualified investments for registered plans provided they have at least 150 unitholders and otherwise qualify as a “mutual fund trust” under the Income Tax Act. MICs are investment management companies holding a portfolio of loans secured against Canadian real property and generally generate most of their income through interest and mortgage borrower fees. Shares of MICs are “qualified investments” (subject to certain exceptions) for the purposes of most deferred income tax plans, making it an attractive investment for retail investors. Working with clients’ tax advisors, we are experienced in structuring REITs and MICs, providing counseling in registration requirements and capital raising requirements, and preparing relevant documentation.