Are You a Qualified Investor?

First Reliance REIT units are available to individuals and institutional investors who meet certain eligibility requirements, and who make the applicable minimum initial investment. The availability and investment amount may be restricted, or subject to a maximum, depending on whether the purchaser meets certain financial requirements to qualify for an available prospectus exemption. Depending on your province of residence, units of First Reliance REIT are available under certain prospectus exemptions. Qualifications and available exemptions may vary depending on the province of residence. Below is some general, non-exhaustive information on some common prospectus exemptions. If you are unsure as to whether you qualify, please feel free to contact us to discuss.

Qualifying for purchase under the “Accredited investor exemption”:

Some of the common criteria for the determination as to whether an individual is an accredited investor are as follows: (any one of the following)

• An individual who, either alone or with a spouse, beneficially owns, directly or indirectly, financial assets having an aggregate realizable value that, before taxes but net of any related liabilities, exceeds $1,000,000.
• An individual who beneficially owns financial assets having an aggregate realizable value that, before taxes but net of any related liabilities, exceeds $5,000,000.
• An individual, whose net income before taxes exceeded $200,000 in each of the 2 most recent calendar years or whose net income before taxes combined with that of a spouse exceeded $300,000 in each of the 2 most recent calendar years and who, in either case, reasonably expects to exceed that net income level in the current calendar year.
• An individual who, either alone or with a spouse, has net assets of at least $5,000,000.

Investors who qualify under the “Accredited Investor Exemption” may purchase units in any amount. The minimum initial purchase amount is $1,000.

Qualifying for purchase under the “Minimum amount exemption”:

If a non-individual investor is not an accredited investor and is not relying on another exemption, the non-individual investor may also qualify under the “Minimum Amount Exemption” by investing a minimum of $150,000.

Qualifying for purchase under the “Offering memorandum exemption”:

Some of the common criteria for the determination as to whether an individual is an “eligible investor” under the offering memorandum exemption are as follows: (any one of the following)

• Net assets, alone or with a spouse, in the case of an individual, exceed $400,000.
• Net income before taxes exceeded $75,000 in each of the 2 most recent calendar years and who reasonably expects to exceed that income level in the current calendar year, or
• Net income before taxes, alone or with a spouse, in the case of an individual, exceeded $125,000 in each of the 2 most recent calendar years and who reasonably expects to exceed that income level in the current calendar year.

Investors who qualify under the “Offering memorandum exemption” may purchase units subject to certain limits.

In some provinces investors may qualify under additional exemptions. Again, guidelines may vary by province. This information is general and non-exhaustive in nature.

*If you are unsure as to whether you qualify, please feel free to contact us to discuss.