OSC Identifies Concerns With REIT Disclosure

On January 26, 2015, the Ontario Securities Commission issued the results of a staff review of disclosure relating to distributions by Ontario-based real estate investment trusts (OSC Staff Notice 51-724 – Report on Staff's Review of REIT Distributions Disclosure). The Report highlights several areas where the OSC believes REIT disclosure could be improved.

Background

The OSC and other provincial securities regulators first published National Policy 41-201 – Income Trusts and Other Indirect Offerings in 2004. It was intended to address disclosure deficiencies the regulators had identified on the part of REITs and other income trusts. The Report, in essence, highlights ways in which OSC Staff believe REITs currently are not adequately meeting certain requirements of the National Policy, most particularly in the quality of disclosure around distributions.