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Canadian securities regulators are demanding better disclosures about accounting and distributions from real estate investments, following a review of the sector that includes REITs and real estate operator companies.

“Given strong investor interest in this sector and the inherent pressure on issuers to pay distributions, the sustainability of distributions and the accompanying disclosures are important to investors,” the Canadian Securities Administrators, an umbrella organization for Canada’s provincial securities watchdogs, said Thursday.

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“The findings of our review indicate that the quality and completeness of disclosure pertaining to non-GAAP financial measures and distributions in the real estate industry need improvement.”

The CSA review, which included 47 REITs and real estate operating companies, identified “a lack of transparency” when various adjustments are made to financials using non-GAAP (generally accepted accounting principles) measures.