05:19 PM EDT, 10/15/2024 (MT Newswires) -- Killam Apartment REIT (KMP-UN.TO) after trade Tuesday said its Board of Trustees approved a proposed internal reorganization through a plan of arrangement, which aims to simplify the company's structure by eliminating its Killam Properties unit.

The change will allow Killam Apartment LP to hold its investment in Killam Apartment Subsidiary LP directly, rather than through Killam Properties.

The arrangement is expected to reduce or eliminate corporate taxes on income and capital gains as well as simplify accounting, legal reporting, and tax compliance, the company said, adding that the plan will need approval from unitholders at a special meeting on Nov. 21. The completion of the arrangement will also require necessary clearances from third parties, the court, and regulators, including the Toronto Stock Exchange.

After the arrangement, unitholders will still hold the same number, type, and percentage of units as they did before, and the total number of units outstanding will remain unchanged, the company said.