Corporate Reorganization

Effective July 3, 2012, InnVest Real Estate Investment Trust announced that their internal reorganization to unwind the stapled unit structure has been successfully completed. InnVest pursued the Reorganization in response to announced changes to the federal income tax rules applicable to issuers of stapled securities, which were expected to apply to InnVest as of July 20, 2012. The Reorganization has resulted in, among other things, the transfer of substantially all of IOT’s assets and liabilities to the REIT and the unwinding of the stapled structure of InnVest so that IOT became a wholly-owned subsidiary of the REIT. Prior to the Reorganization, the trust units of the REIT (the "InnVest Units") and the non-voting trust units of IOT (the "IOT Units") traded together on the Toronto Stock Exchange (the “TSX”) as stapled units (the "Stapled Units") under the symbol INN.UN. As a result of the Reorganization, effective as of July 3, 2012, the InnVest Units will continue to trade on the TSX under the symbol INN.UN and the IOT Units have been cancelled and are no longer listed on the TSX. Each unitholder holds the same number of InnVest Units immediately following the Reorganization as the number of Stapled Units held by it immediately prior to the Reorganization. In addition, InnVest's convertible debentures are now convertible into InnVest Units only, rather than an equal number of InnVest Units and IOT Units. The conversion rate and conversion price of each series of debentures otherwise remain the same.