Merger Details

Effective June 1, 2004, Residential Equities REIT (RES REIT) merged with Canadian Apartment Properties REIT (CAP REIT). The surviving company was Canadian Apartment Properties REIT. Basis: 1.216 units of CAP REIT for each unit of RES REIT held. RES REIT unitholders had 4 options regarding taxation of this merger. If a tax-deferred roll-over with no cash being issued was chosen, then the ACB Tracking calculation will be appropriate, otherwise see the Investor Relations page on CAP REIT website.