Distributions

AMIT

What is an Attribution Managed Investment Trust (AMIT)?

An AMIT is a managed investment trust that has chosen to apply the AMIT regime. Managed investment trusts include most listed trusts and other widely held trusts.

What is the AMIT regime?

The Tax Laws Amendment (New Tax System for Managed Investment Trusts) Act 2016 (the Act), which establishes a tax system for managed investment trusts (MITs), received Royal Assent on 5 May 2016. The rules apply from 1 July 2016.  Prior to the commencement of the AMIT regime, family trusts and large managed investment trusts were subject to the same set of tax laws. Many aspects of these laws were uncertain and difficult for managed investment trusts to apply in practice and resulted in unnecessary administration costs.

The AMIT regime provides a specific set of rules that are intended to provide greater flexibility in the operation of an AMIT’s tax affairs and to reduce administration costs.

Under the AMIT Regime, unitholders are taxed on the taxable income that is “attributed” to them by a Fund on a “fair and reasonable” basis.  Under this approach a Fund can attribute an amount of taxable income to unitholders that is greater than the cash paid.

The AMIT regime will not change the overall manner in which FET’s income is taxed or change the way in which investors complete the tax return. Consistent with the previous trust taxation regime:

  • FET itself will not be subject to tax;
  • an Australian resident FET unitholder will include their share of FET’s taxable income in their assessable income for the year to which the income relates (not the year in which it is received);
  • withholding tax will be deducted from distributions to non-resident FET unitholders;
  • investors will include the different components of their share of FET’s taxable income in the tax return labels; and
  • where cash distributed to Unitholders is greater than their share of the net income of FET, the Unitholder is required to reduce their cost base in the units of FET.

At this stage, Folkestone Investment Management Limited intends to continue with its current distribution policy and will attribute a Fund’s taxable income in the same manner as under the previous trust taxation regime which is in proportion to the cash distributed to each Unitholder.

Why is FET electing to opt-in to the AMIT Regime?

FIML has decided to elect for the AMIT Regime to apply to the Fund commencing from 1 July 2017 for the following reasons:

  • elimination of a number of areas of uncertainty in the existing laws;
  • tax status of Fund – The AMIT Regime deems FET to be a “fixed trust” providing certainty to FET to be eligible for certain tax concessions, such as the ability to recoup carried forward trust tax losses;
  • prescriptive treatment of under or over-distributions of taxable income (“overs” or “unders”) of a Fund which will reduce the requirement to amend prior year tax returns previously lodged; and
  • prevention of double taxation – The AMIT Regime provides the ability to make upward cost base adjustments to Fund units where cash distributions are less than the taxable income attributed to Unitholders.  In the absence of this, Unitholders may be taxed twice on certain amounts attributed to them.

When does the AMIT regime start?

Managed investment trusts can choose to be AMITs with effect from the year ended 30 June 2016 or any later year.  FET has elected to become an AMIT from 1 July 2017. FET will be an AMIT for all subsequent years as the election is irrevocable.

Distribution Policy & Payments

Distribution Policy

The Trust has a practice of distributing up to 100% of its distributable income which is calculated as the net accounting profit attributable to Unitholders less any unrealised components. The Trust can give no assurance as to the specific level of distributions, if any, as this depends, among other factors, on the Trust’s net earnings from its properties and its ability to raise both debt and equity at an appropriate cost of capital.

Distribution Payments

The Trust makes its distribution payments on a quarterly in arrears basis. The Trust makes all distribution payments via Electronic Funds Transfer to Unitholders’ bank accounts.

Distribution Performance (by Year)

Year Ending 30 June Cents Per Unit Tax Deferred Proportion %  
2018 15.1 N/A1

For the year ending 30 June 2018, FET’s ongoing asset recycling program has yielded discounted capital gains of approximately $11 million. The Responsible Entity has determined that these funds are best deployed in funding FET’s committed development pipeline rather than being distributed to Unitholders.

Under the Attribution Managed Investment Trust (AMIT) regime, which FET opted into effective 1 July 2017, capital gains derived from asset sales, together with other taxable income (e.g. rent) of 21.3 cents per unit were attributed to Unitholders for the year ended 30 June 2018.  This exceeded the cash distribution made to Unitholders of 15.1 cents per unit.

Under the AMIT regime, Unitholders will be required to include the attributed amounts (21.3 cpu) in their assessable income. Subject to the Unitholders tax circumstances, Unitholders should be able to revise upwards their cost base in FET units by the difference between the taxable income (including capital gains) attributed to them and the cash distribution received.  This amount is shown on investors 2018 Attribution Managed Investment Trust Member Annual Statement as “AMIT cost base net amount – shortfall”.

2017 14.20 1.3
2016 13.40 15
2015 12.80 19
2014 12.00 26
2013 10.70 34
2012 10.00 40
2011 4.25 100
2010 0.67 1.0
2009 4.00 100
2008 14.02 61.9
2007 14.60 60.1
2006 13.70 25.7
2005 10.50 N/A
(Note tax status of trust changed from 1 July 2005)

Distribution Performance (by Quarter)

Year Ending Quarter Ending Cents Per Unit
2018 31 March 3.77
2017 31 December 3.77
2017 30 September 3.77
2017 30 June 3.55
2017 31 March 3.55
2016 31 December 3.55
2016 30 September 3.55
2016 30 June 3.35
2016 31 March 3.35
2015 31 December 3.35
2015 30 September 3.35
2015 30 June 3.225
2015 31 March 3.225
2014 31 December 3.175
2014 30 September 3.175
2014 30 June 3.0
2014 31 March 3.0
2014 31 December 3.0
2014 30 September 3.0
2013 30 June 2.9
2013 31 March 2.8
2013 31 December 2.5
2013 30 September 2.5

Distribution Components

 

Information Regarding the Distribution for the Quarter Ended 30 June 2018

The following provides details in respect of FET’s distribution for the quarter ended 30 June 2018.  The distribution is 3.775 cents per unit and will be paid on 20 July 2018.

FET is a withholding managed investment trust for the purposes of Subdivision 12-H of the Taxation Administration Act 1953 and has elected to be an Attribution Managed Investment Trust in respect of the year ended 30 June 2018.

The components of the distribution has been prepared solely to assist entities with withholding tax obligations in respect of amounts distributed to non-residents.

For the Quarter Ended 30-6-2018 Cents per Unit
Taxable (including capital gains & excluding interest) 11.382
Taxable (interest) 0.149

The total fund payment is 11.382 cents per unit with respect to the income year ending 30 June 2018.  MIT withholding tax is to be calculated on the fund payment amount of 11.382 cents per unit, which exceeds the cash distribution of 3.775 cents per unit.

No part of the fund payment is attributable to a payment from a clean building MIT.

Australian resident investors should not rely on this information for the purpose of completing their income tax returns. Taxation components for the distributions for the year ended 30 June 2018 will be detailed on the Attribution managed investment trust member annual (AMMA) statement which will be provided to investors by the end of July 2018.

 

For the Quarter Ended 31-3-2018 Cents per Unit
Tax Deferred 0.503
Taxable (excluding capital gains & interest) 2.926
Taxable (interest) 0.346
Total payable 3.775

In accordance with section 12-395 of Schedule 1 of the Taxation Administration Act 1953 (Cth) the distribution includes a “fund payment” of 2.926 cents per unit with respect to the income year ending 30 June 2018. No part of the fund payment is attributable to a payment from a clean building MIT. FET is a registered Management Investment Scheme.

 

For the Quarter Ended 31-12-2017 Cents per Unit
Tax Deferred 0.503
Taxable (excluding capital gains & interest) 2.926
Taxable (interest) 0.346
Total payable 3.775

In accordance with section 12-395 of Schedule 1 of the Taxation Administration Act 1953 (Cth) the distribution includes a “fund payment” of 2.926 cents per unit with respect to the income year ending 30 June 2018. No part of the fund payment is attributable to a payment from a clean building MIT. FET is a registered Management Investment Scheme.

 

For the Quarter Ended 30-09-2017 Cents per Unit
Tax Deferred 0.503
Taxable (excluding capital gains & interest) 2.926
Taxable (interest) 0.346
Total payable 3.775

In accordance with section 12-395 of Schedule 1 of the Taxation Administration Act 1953 (Cth) the distribution includes a “fund payment” of 2.926 cents per unit with respect to the income year ending 30 June 2018. No part of the fund payment is attributable to a payment from a clean building MIT. FET is a registered Management Investment Scheme.

 

For the Quarter Ended 30-06-2017 Cents per Unit
Tax Deferred 0.515
Taxable (excluding capital gains & interest) 2.66
Taxable (interest) 0.375
Total payable 3.55

In accordance with section 12-395 of Schedule 1 of the Taxation Administration Act 1953 (Cth) the distribution includes a “fund payment” of 2.66 cents per unit with respect to the income year ending 30 June 2017. No part of the fund payment is attributable to a payment from a clean building MIT. FET is a registered Management Investment Scheme.

 

For the Quarter Ended 31-3-2017 Cents per Unit
Tax Deferred 0.515
Taxable (excluding capital gains & interest) 2.66
Taxable (interest) 0.375
Total payable 3.55

In accordance with section 12-395 of Schedule 1 of the Taxation Administration Act 1953 (Cth) the distribution includes a “fund payment” of 2.66 cents per unit with respect to the income year ending 30 June 2017. No part of the fund payment is attributable to a payment from a clean building MIT. FET is a registered Management Investment Scheme.

 

For the Quarter Ended 31-12-2016 Cents per Unit
Tax Deferred 0.515
Taxable (excluding capital gains & interest) 2.66
Taxable (interest) 0.375
Total payable 3.55

In accordance with section 12-395 of Schedule 1 of the Taxation Administration Act 1953 (Cth) the distribution includes a “fund payment” of 2.66 cents per unit with respect to the income year ending 30 June 2017. No part of the fund payment is attributable to a payment from a clean building MIT. FET is a registered Management Investment Scheme.

 

For the Quarter Ended 30-9-2016 Cents per Unit
Tax Deferred 0.515
Taxable (excluding capital gains & interest) 2.66
Taxable (interest) 0.375
Total payable 3.55

In accordance with section 12-395 of Schedule 1 of the Taxation Administration Act 1953 (Cth) the distribution includes a “fund payment” of 2.66 cents per unit with respect to the income year ending 30 June 2017. No part of the fund payment is attributable to a payment from a clean building MIT. FET is a registered Management Investment Scheme.

 

For the Quarter Ended 30-6-2016 Cents per Unit
Tax Deferred 0.523
Taxable (excluding capital gains & interest) 2.685
Taxable (interest) 0.142
Total payable 3.35

In accordance with section 12-395 of Schedule 1 of the Taxation Administration Act 1953 (Cth) the distribution includes a “fund payment” of 2.685 cents per unit with respect to the income year ending 30 June 2016. No part of the fund payment is attributable to a payment from a clean building MIT. FET is a registered Management Investment Scheme.

 

For the Quarter Ended 31-3-2016 Cents per Unit
Tax Deferred 0.523
Taxable (excluding capital gains & interest) 2.685
Taxable (interest) 0.142
Total payable 3.35

In accordance with section 12-395 of Schedule 1 of the Taxation Administration Act 1953 (Cth) the distribution includes a “fund payment” of 2.685 cents per unit with respect to the income year ending 30 June 2016. No part of the fund payment is attributable to a payment from a clean building MIT. FET is a registered Management Investment Scheme.

 

For the Quarter Ended 31-12-2015 Cents per Unit
Tax Deferred 0.523
Taxable (excluding capital gains & interest) 2.685
Taxable (interest) 0.142
Total payable 3.35

In accordance with section 12-395 of Schedule 1 of the Taxation Administration Act 1953 (Cth) the distribution includes a “fund payment” of 2.685 cents per unit with respect to the income year ending 30 June 2016. No part of the fund payment is attributable to a payment from a clean building MIT. FET is a registered Management Investment Scheme.

 

For the Quarter Ended 30-9-2015 Cents per Unit
Tax Deferred 0.523
Taxable (excluding capital gains & interest) 2.685
Taxable (interest) 0.142
Total payable 3.35

In accordance with section 12-395 of Schedule 1 of the Taxation Administration Act 1953 (Cth) the distribution includes a “fund payment” of 2.685 cents per unit with respect to the income year ending 30 June 2016. No part of the fund payment is attributable to a payment from a clean building MIT. FET is a registered Management Investment Scheme.

 

For the Quarter Ended 30-6-2015 Cents per Unit
Tax Deferred 0.672
Taxable (excluding capital gains & interest) 2.381
Taxable (interest) 0.172
Total payable 3.225

In accordance with section 12-395 of Schedule 1 of the Taxation Administration Act 1953 (Cth) the distribution includes a “fund payment” of 2.381 cents per unit with respect to the income year ending 30 June 2015. No part of the fund payment is attributable to a payment from a clean building MIT. FET is a registered Management Investment Scheme.

 

For the Quarter Ended 31-3-2015 Cents per Unit
Tax Deferred 0.672
Taxable (excluding capital gains & interest) 2.381
Taxable (interest) 0.172
Total payable 3.225

In accordance with section 12-395 of Schedule 1 of the Taxation Administration Act 1953 (Cth) the distribution includes a “fund payment” of 2.381 cents per unit with respect to the income year ending 30 June 2015. No part of the fund payment is attributable to a payment from a clean building MIT. FET is a registered Management Investment Scheme.

 

For the Quarter Ended 31-12-2014 Cents per Unit
Tax Deferred 0.661
Taxable (excluding capital gains & interest) 2.345
Taxable (interest) 0.169
Total payable 3.175

In accordance with section 12-395 of Schedule 1 of the Taxation Administration Act 1953 (Cth) the distribution includes a “fund payment” of 2.345 cents per unit with respect to the income year ending 30 June 2015. No part of the fund payment is attributable to a payment from a clean building MIT. FET is a registered Management Investment Scheme.

 

For the Quarter Ended 30-9-2014 Cents per Unit
Tax Deferred 0.661
Taxable (excluding capital gains & interest) 2.345
Taxable (interest) 0.169
Total payable 3.175

In accordance with section 12-395 of Schedule 1 of the Taxation Administration Act 1953 (Cth) the distribution includes a “fund payment” of 2.345 cents per unit with respect to the income year ending 30 June 2015. No part of the fund payment is attributable to a payment from a clean building MIT. FET is a registered Management Investment Scheme.

 

For the Year Ended 30-6-2014 Cents per Unit
Tax Deferred 3.14
Taxable (excluding capital gains & interest) 8.16
Taxable (interest) 0.70
Total payable 12.00

In accordance with section 12-395 of Schedule 1 of the Taxation Administration Act 1953 (Cth) the distribution includes a “fund payment” of 8.16 cents per unit with respect to the income year ending 30 June 2014. No part of the fund payment is attributable to a payment from a clean building MIT. FET is a registered Management Investment Scheme.

 

For the Year Ended 30-6-2013 Cents per Unit
Tax Deferred 3.62
Taxable (excluding capital gains & interest) 6.15
Taxable (interest) 0.93
Total payable 10.70

In accordance with section 12-415 of Schedule 1 of the Taxation Administration Act 1953 (Cth) the distribution includes a “fund payment” of 6.15 cents per unit with respect to the income year ending 30 June 2013. FET is a registered Management Investment Scheme.

 

For the Year Ended 30-6-2012 Cents per Unit
Tax Deferred 4.19
Taxable (excluding capital gains & interest) 4.93
Taxable (interest) 1.18
Total payable 10.30

In accordance with section 12-415 of Schedule 1 of the Taxation Administration Act 1953 (Cth) the distribution includes a “fund payment” of 4.93 cents per unit with respect to the income year ending 30 June 2012. FET is a registered Management Investment Scheme.

 

Distribution Reinvestment Plan

The Distribution Reinvestment Plan (DRP) is currently active.

The DRP can be a convenient way for investors to increase their holding in the Trust by reinvesting all or some of the distributions in additional Trust units. By participating in the DRP investors will not incur any brokerage, commission or stamp duty.

The DRP is not available to unitholders outside Australia and New Zealand.

Participation in the DRP is entirely optional. Investors may elect to:

  • Participate fully in the DRP and all of your distribution will be reinvested into new Trust units;
  • Participate partially in the DRP and the distribution on a specified number of the units will be reinvested in new Trust units. The distribution on the remaining units will be paid as a cash distribution; or
  • Not participate in the DRP and continue to receive cash distributions.

Please click here to view the Distribution Reinvestment Plan, and click here to download a copy of the DRP form.

A summary of the unit prices for units issued in the past under the DRP is as follows:

Period Ended Date Issued VWAP Price Discount DRP Price
30 June 2018 20 July 2018 $2.72 1.5% $2.67
31 March 2018 20 April 2018 $2.7497 1.5% $2.70
31 December 2017 22 January 2018 $2.8239 1.5% $2.78
30 September 2017 20 October 2018 $2.7647 1.5% $2.72
30 June 2017 20 July 2017 $2.6462 1.5% $2.60
31 March 2017 20 April 2017 $2.8306 1.5% $2.78
31 December 2016 20 January 2017 $2.5625 1.5% $2.52
30 September 2016 20 October 2016 $2.6593 1.5% $2.62
30 June 2016 20 July 2016 $2.6596 1.5% $2.61
31 March 2016 20 April 2016 $2.3435 1.5% $2.30
31 December 2015 20 January 2016 $2.2116 1.5% $2.17
30 September 2015 20 October 2016 $2.0088 1.5% $1.97
30 June 2015 20 July 2015 $2.1079 1.5% $2.07
31 March 2015 20 April 2015 $2.1789 1.5% $2.14
31 December 2014 20 January 2015 $1.9564 1.5% $1.92
30 September 2014 20 October 2015 $1.8600 1.5% $1.83
30 June 2004 2 July 2004 $1.2648 2.5% $1.2332
31 December 2003 27 February 2004 $1.3512 2.5% $1.3174

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