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Stephen Pincus quoted in "Trust sector focuses on governance", Globe and Mail

March-28-2005

Lawyer Stephen Pincus
Area REITs and Income Securities

Details

Excerpt from "Trust sector focuses on governance", by Alexander MacKenzie for the Globe and Mail.  Stephen Pincus quoted:

According to Mr. Pincus, the income trust structure inherently imposes discipline on management due to a requirement that trusts distribute to unit holders the bulk of cash generated by the businesses.  "Regular distributions force management to stay focused on their core business," he says. "As well, since income trusts typically do not retain significant amounts of their cash flow, management must generally return to the capital markets to finance a major acquisitions.  This allows investors to 'vote with their wallets' on such transactions."