Cash Distribution Policies
The Fund’s policy is to make equal monthly distributions to unitholders,
based on estimated annual distributable cash flow. Distributions are paid
on the 15th of each month (or the closest business day following) to unitholders
of record on the last business day of the preceding month.
View recent distributions
Subordination Feature
The vendor of the Coast business retained an indirect 35% interest in the Fund, held in the form of exchangeable units of Coast Wholesale Appliances LP. These units were initially subordinated to the Fund units until certain prescribed EBITDA and distribution targets were met. The conditions for removal of the subordination were met during 2007 and the subordination was removed on March 24, 2008. The units are now exchangeable on a one-for-one basis for units of the Fund at the option of the holder .
Tax Treatment of Cash Distributions
A component of the cash distributions of the Fund is taxable in the hands of the unitholder, unless held in a tax-deferred account. Of the distributions paid in 2007, 99% represented income and 1% a return of capital. The capital portion of the distributions will not be included in the taxable income of a unitholder, but will reduce the adjusted cost base of their units. The Fund estimates the split in fiscal 2008 will be approximately 99% income and 1% return of capital. However, the taxable portion of the cash distribution may vary, depending on Coast’s actual financial performance, cash distributions and taxable income. Prospective purchasers of units should consult their own tax advisors for advice with respect to the tax consequences to them, having regard to their particular circumstances.