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Annual Report

An Annual Report, as part of a Delaware Statutory Trust (DST), generally refers to a comprehensive report on a trust’s activities throughout the preceding year. As with annual reports in other corporate structures and sectors, the primary goal of these reports is to provide trust beneficiaries, and potentially other interested parties, with detailed information about the trust’s activities and financial performance.

While the specific contents may vary based on the trust’s deed and any relevant legislation, a typical Delaware Statutory Trust Annual Report might include the following:

  1. An overview of the trust’s operations and significant events over the past year.
  2. A summary of the trust’s financial performance, including revenues, expenses, and net income or loss. This will often include financial statements such as a balance sheet, income statement, and cash flow statement, along with notes providing additional context for these statements.
  3. Disclosures related to the trust’s investment activities, including any property purchases, sales, or improvements, as well as any changes to the trust’s overall investment strategy.
  4. Any significant changes to the trust’s management or administrative structure.
  5. Information related to the trust’s compliance with any legal or regulatory requirements, including those imposed by the state of Delaware and any applicable federal laws or regulations.

In Delaware, as a part of DST regulations, certain requirements for annual reporting might exist, and it’s also common practice for DSTs to distribute annual reports to the trust’s beneficiaries. Annual reports can help ensure transparency, accountability, and good governance within the trust.