08:01:22 EDT Fri 29 Mar 2024
Enter Symbol
or Name
USA
CA



Morguard N.A. to buy back up to 2.55 million units

2018-12-14 09:23 ET - News Release

An anonymous trustee reports

MORGUARD NORTH AMERICAN RESIDENTIAL REIT ANNOUNCES NORMAL COURSE ISSUER BID

The Toronto Stock Exchange has accepted Morguard North American Residential Real Estate Investment Trust's notice of intention to make a normal course issuer bid through the facilities of the TSX and/or alternative Canadian trading systems.

The notice provides that the REIT may, during the 12-month period commencing Dec. 21, 2018, and ending Dec. 20, 2019, purchase for cancellation up to 2,556,288 units in total, being approximately 10 per cent of the public float of outstanding units. The daily repurchase restriction for the units is 6,157. Additionally, the REIT may purchase for cancellation up to $8.05-million principal amount of the 4.50 per cent convertible unsecured subordinated debentures due March 31, 2023, being 10 per cent of the public float of outstanding debentures. The daily repurchase restriction for the debentures is $11,525.

The price which the REIT will pay for any such units and debentures will be the market price at the time of acquisition. The actual number of units and debentures, which may be purchased, and the timing of any such purchases will be subject to compliance with the TSX guidelines.

Under the current normal course issuer bid due to expire Dec. 20, 2018, the REIT was approved to purchase up to 2,552,924 units through the facilities of the TSX and/or alternative Canadian trading systems. No units were purchased for cancellation during the last 12 months. As of Dec. 7, 2018, there were 33,720,110 units of the REIT outstanding with an average daily trading volume for the prior six months of 24,630. Additionally, as of Dec. 7, 2018, there was $85.5-million principal amount debentures of the REIT outstanding with an average daily trading volume for the prior six months of $46,100.

The REIT believes that, from time to time, its units and debentures trade in a price range which does not adequately reflect the value of such units and debentures in relation to the business of the REIT and its future business prospects. As a result, depending upon future price movements and other factors, the REIT believes that its outstanding units and debentures may represent an attractive investment for itself. Furthermore, the purchases may benefit all persons who continue to hold units by increasing their equity interest in the REIT. All units and debentures purchased by the REIT under the normal course issuer bid will be cancelled.

About Morguard North American Residential REIT

The REIT is an unincorporated, open-ended real estate investment trust which owns, through a limited partnership, interests in a portfolio of 16 Canadian residential apartment communities, located in Alberta and Ontario, and 30 United States residential apartment communities located in Colorado, Texas, Louisiana, Illinois, Georgia, Florida, North Carolina, Virginia and Maryland, consisting of approximately 13,000 residential suites.

© 2024 Canjex Publishing Ltd. All rights reserved.