Toronto, May 28, 2025 – Unitholders of Sun Residential Real Estate Investment Trust (TSXV: SRES) have overwhelmingly approved the sale of its remaining properties and the subsequent wind-up and termination of the trust.
At the annual and special meeting, unitholders passed two key resolutions. The first concerned the sale of Sun’s 51% interest in Evergreen at Southwood, a Class A multi-family property with 288 rental units in Tallahassee, Florida, and the 4815 Tudor Drive, an 8-unit residential complex in Cape Coral, Florida. This resolution passed with 99.94% of votes in favor, excluding those of parties directly involved in the transactions.
The second resolution approved the formal wind-up and termination of the REIT, also with 99.94% support. Additionally, all five current trustees were re-elected, and PricewaterhouseCoopers LLP was reappointed as auditor.
The closing of both sales is expected no earlier than May 30, 2025. Net proceeds will be distributed to unitholders in two stages: first, more than 90% of the proceeds will be returned, followed by a residual final distribution before the trust is formally dissolved.
Tax Considerations for Unitholders
According to Jeffrey D. Sherman, CFO of Sun REIT, the tax treatment of the distributions is not yet finalized. However, he anticipates that the majority of the distribution will be treated as a return of capital. For Canadian residents, T3 slips are typically issued through their brokers. Non-resident unitholders, including those who hold units beneficially through investment dealers, should expect that their broker will handle applicable withholding taxes on their behalf, as with the existing quarterly distributions.
A Strong Result for Real Estate Investors
Sun REIT has delivered outstanding performance: since being added to our real estate investment portfolio on June 26, 2024, the stock has appreciated by nearly 98% in less than one year.
About Sun REIT
Sun Residential REIT was established in 2019 to invest in multi-family residential properties in the Sunbelt region of the United States. Its dissolution marks the end of its real estate investment activities.
Further updates will be provided as the sales, distributions, and wind-up progress. Additional information is available on the website of Sun Residential Real Estate Investment Trust.