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Gold/Mining/Energy : Canadian REITS, Trusts & Dividend Stocks -- Ignore unavailable to you. Want to Upgrade?

To: Scott Mc who wrote (3472)	6/15/2002 11:41:38 PM
From: Scott Mc	Respond to of 11633

STaRS Income Fund to make 75-cent June distribution Sounds pretty good? unfortunately its 7.5 cents not 75. Scott Shares issued 15,000,000 Jun 13 2002 close $ 10.00 Thursday June 13 2002 News Release Ms. Nancy Tham reports STARS ANNOUNCES JUNE 2002 DISTRIBUTION AND INVESTMENT UPDATE STaRS Income Fund will make a distribution of 75 cents per trust unit, payable on July 15, 2002, to unitholders of record on June 28, 2002. This equates to an annual yield of 9 per cent based upon a price of $10.00 per unit. As at June 12, 2002, the net asset value was $9.85 per unit.

To: Scott Mc who wrote (3472)	6/16/2002 5:54:47 AM
From: Peter W. Panchyshyn	Read Replies (1) \| Respond to of 11633

Purchases under the normal course issuer bid would serve to enhance returns to unitholders as a result of the reduction in the number of units outstanding. --------- Please check the 2 news releases for EIT.UN below. Now EIT did a rights offering in the first quarter. More recent has it doing a normal course issuer bid as well. (just because it has done a rights offerring does not mean that it can't also do an issuer bid and enjoy the benefits from that as well) Now what does this mean? Well for one with the rights offering unitholders got more units at a discounted price (paying the exact same distributions $0.07 before and after) and the price of the units later rose nicely. There was an instant premium to conversion. This chart of the rights trading graphs.telenium.ca shows good double digit to triple digit gain possible for those trading the rights. Now with all these is paying the extra management fee worth it? """YES"""". And that is because the 1% to 2% in extra fees ""costs"" charged before hand to the trust pales in comparison to what the individual trust unitholder gets and that is (1) 25% more units earning the same monthly distribution (2) an instant premium realized on those units at conversion (3) the chance for a unitholder to buy much more rights and trade them on the open market for the period realizing from this double to triple digit gains. ALL IN ALL UNITHOLDERS GETTING THEIR MONEYS WORTH FROM MANAGEMENT. Now for those somewhat challenged. Lets take a specific numerical example. EIT unitholder has before the rights offering 10,000 units paying $0.07 monthly earning him $700 per month. In a year assumuing a extra 2% management fee on his $70000 investment (10000 units X $7 per unit) that fee would amount to $1400. That is however charged to the trust prior to the distributions paid out to unitholders. So the unitholder doesn't see it. Now lets look at what happens after the rights offering. Well our unitholder here he has decided to convert the rights given him by the trust to units. He has also traded some additional rights on the open market when they were trading for the month or so they were available. What does he end up with afterwards? Well he has now 12500 units paying him each month $875. (extra $175 a month 875-700) He bought 10000 additional rights at $0.10 selling them at $0.20 (extra $1000). His original 10000 units are back up to where they were before the rights offering. The conversion premium has netted him a 14% or so gain on his additional 2500 units. (extra $2175) Now lets add these extra up over the next year $175 X 12 + $1000 + $2175 = $5275. Compare this to the cost from the extra management fees of $1400 + $348 = $1748. He is ahead by 5275 - 1748 = $3527. The $348 are the fees for the additional 2500 units. Add to this that joe unitholder here doesn't have to worry about which trust to buy or sell and when to do so. ------------- Normal Course Issuer Bid 5/30/02 <http://www.stockhouse.com/news/images/shim.gif> ENERVEST DIVERSIFIED INCOME TRUST ("EIT.UN-T") - Normal Course Issuer Bid The Exchange has accepted a Notice of Intention from EnerVest Diversified Income Trust to make a Normal Course Issuer Bid to purchase the following: up to 4,050,651 of its Trust Units, being 10% of the Trust Units issued and outstanding as of May 2, 2002. Purchases will be made on the open market through the facilities of the Toronto Stock Exchange. Purchases pursuant to the bid may begin May 8, 2002. The bid expires no later than May 7, 2003. Enervest Diversified Income Trust Quick Quote: T.EIT.UN 6.97 (-0.01) Financial Results For The Quarter Ended March 31, 2002 6/3/02 <http://www.stockhouse.com/news/images/shim.gif> ENERVEST DIVERSIFIED INCOME TRUST ("EIT.UN-T") - Financial Results For The Quarter Ended March 31, 2002 EnerVest Diversified Income Trust ( "EnerVest" ) is pleased to present the financial results for the quarter ended March 31, 2002. MARCH 31, 2002 HIGHLIGHTS - Total return, including the effects of the rights offering, for the quarter ended March 31, 2002 was 9.5%. - Revenue in the first quarter of 2002 increased 70% over the same period of 2001. - General and administrative costs per unit dropped 48% in the first quarter of 2002 as compared to the same period in 2001. - Gross proceeds from the Rights Offering, which closed in February 2002, totalled approximately $71.0 million, bringing EnerVest's net asset value at March 31 to $274.1 million, a 38.5% increase over December 31, 2001. - Holders of approximately 94% of the Rights were exercised under the basic subscription privilege for 6,784,489 Units, and an additional 4,855,947 Units were exercised under the additional subscription privilege. MANAGEMENT'S DISCUSSION AND ANALYSIS FINANCIAL PERFORMANCE For the quarter ended March 31, 2002 the total return (capital appreciation plus distributions) to unitholders was a very respectable 5.7%. However, including the effects of the rights offering, the total return for the quarter was 9.5%. The total return for the first quarter in 2001 was 13.4%. Revenue in the first quarter ended March 31, 2002 increased 70% over the comparative period in 2001 to $6.1 million. This increase was primarily due to the larger investment portfolio. General and administrative costs per unit decreased approximately 48% in the first quarter ended March 31, 2002, to $0.009 per unit, as compared to $0.017 for the same period in 2001. These cost savings are primarily the result of the Manager's concentrated effort to reduce general and administrative costs, combined with economies of scale resulting from the increased number of units outstanding. Management fees remained at 1.5% annually of the net asset value of EnerVest. At the March 14, 2002 Special Meeting of Unitholders the Management Agreement was amended to reduce the annual management fees from 1.5% to 1.0% of the net asset value of EnerVest in excess of $250,000,000. This lowering of the management fees will further increase the amount available for distributions to Unitholders. The $120,000 decrease in interest expense in 2002 is primarily due to lower interest rates on EnerVest's $15 million credit facility. On April 19, 2002 EnerVest established a margin account with a major brokerage firm and retired its bank loan. The margin account interest rate is 0.75% less than the interest rate EnerVest had on the bank loan. Net investment income was $0.14 per unit in the first quarter of 2002 ($0.21 per unit in 2001). This decrease is primarily due to lower oil and gas royalty trust distributions as compared to the first quarter in 2001, the lack of leverage to the same ratio as assets, as during the first quarter in 2001 and the time in prudently investing the proceeds of the Rights Offering, which closed February 26, 2002. As at March 31, 2002 the net asset value of EnerVest was $274.1 million ($6.76 per unit), after distributions of $7.7 million ($0.23 per weighted average number of units) were paid to Unitholders during the three month period, as compared to the December 31, 2001 net asset value of $197.8 million ($6.85 per unit). RIGHTS OFFERING The Rights Offering that closed on February 26, 2002 raised capital of $71.0