True North Apartment REIT Renews Normal Course Issuer Bid
/NOT FOR DISTRIBUTION IN THE U.S. OR OVER U.S. NEWSWIRES/
TORONTO, July 11, 2014 /CNW/ - True North Apartment Real Estate Investment Trust (the "REIT") (TSX: TN.UN) announced today that the Toronto Stock Exchange (the "TSX") has accepted notice of its intention to renew its normal course issuer bid (the "Issuer Bid") for a further 12 months. Under the Issuer Bid, the REIT will have the ability to purchase for cancellation up to a maximum of 1,773,177 of its trust units ("Units") (representing 10% of the REIT's public float of 17,731,776 Units) through the facilities of the TSX. The Issuer Bid will commence on July 15, 2014 and remain in effect until the earlier of July 14, 2015 or the date on which the REIT has purchased the maximum number of Units permitted under the Issuer Bid. The REIT's average daily trading volume for the most recently completed six calendar months was 33,180 Units. In accordance with the rules of the TSX, 25% of that average daily trading volume (8,295 Units) is the REIT's daily limit for purchases under the Issuer Bid made through the facilities of the TSX. As of July 10, 2014, the number of issued and outstanding Units was 18,758,861.
Given the REIT believes that the current market prices of the Units do not reflect their underlying value, the REIT intends to make the Issuer Bid because it believes that Units may become available during the period of the Issuer Bid at prices that would make the purchase of such Units for cancellation in the best interests of the REIT and its Unitholders.
Over the last 12 months under its previous normal course issuer bid, the REIT purchased 255,972 Units at a weighted average price of $8.37 per Unit.
From time to time, when the REIT does not possess material non-public information about itself or its securities, it may, in accordance with the requirements of applicable securities laws and the TSX, enter into a pre-defined plan with its broker to allow for the purchase of Units at times when it ordinarily would not be active in the market due to internal trading blackout periods. Any such plan would be subject to the approval of the TSX.
Certain statements contained in this press release constitute forward-looking information within the meaning of Canadian securities laws. Forward-looking statements are provided for the purposes of assisting the reader in understanding the REIT's financial position and results of operations as at and for the periods ended on certain dates and to present information about management's current expectations and plans relating to the future and readers are cautioned that such statements may not be appropriate for other purposes. Forward-looking information may relate to the REIT's future outlook and anticipated events, including the number of Units that may be purchased under the Issuer Bid, and may include statements regarding the financial position, business strategy, budgets, litigation, projected costs, capital expenditures, financial results, taxes and plans and objectives of or involving the REIT. Particularly, statements regarding future results, performance, achievements, prospects or opportunities for the REIT or the real estate industry are forward-looking statements. In some cases, forward-looking information can be identified by terms such as "may", "might", "will", "could", "should", "would", "occur", "expect", "plan", "anticipate", "believe", "intend", "seek", "aim", "estimate", "target", "project", "predict", "forecast", "potential", "continue", "likely", "schedule", or the negative thereof or other similar expressions concerning matters that are not historical facts.
Forward-looking statements necessarily involve known and unknown risks and uncertainties, that may be general or specific and which give rise to the possibility that expectations, forecasts, predictions, projections or conclusions will not prove to be accurate; that assumptions may not be correct; and that objectives, strategic goals and priorities will not be achieved. A variety of factors, many of which are beyond the REIT's control, affect the operations, performance and results of the REIT and its business, and could cause actual results to differ materially from current expectations of estimated or anticipated events or results. These factors include, but are not limited to, the risks discussed in the REIT's materials filed with Canadian securities regulatory authorities from time to time on www.sedar.com. The reader is cautioned to consider these and other factors, uncertainties and potential events carefully and not to put undue reliance on forward-looking statements as there can be no assurance that actual results will be consistent with such forward-looking statements.
Information contained in forward-looking statements is based upon certain material assumptions that were applied in drawing a conclusion or making a forecast or projection, including management's perceptions of historical trends, current conditions and expected future developments, as well as other considerations that are believed to be appropriate in the circumstances, including the following: the Canadian economy will remain stable over the next 12 months; inflation will remain relatively low; interest rates will remain stable; conditions within the real estate market, including competition for acquisitions, will be consistent with the current climate; the Canadian capital markets will continue to provide the REIT with access to equity and/or debt at reasonable rates when required; Starlight Investments Ltd. will continue its involvement as asset manager of the REIT in accordance with its current asset management agreement; and the risks identified or referenced above, collectively, will not have a material impact on the REIT. While management considers these assumptions to be reasonable based on currently available information, they may prove to be incorrect.
The forward-looking statements made in this press release are dated, and relate only to events or information, as of the date of this press release. Except as specifically required by law, the REIT undertakes no obligation to update or revise publicly any forward-looking statements, whether as a result of new information, future events or otherwise, after the date on which the statements are made or to reflect the occurrence of unanticipated events.
About the REIT
The REIT is an unincorporated, open-ended real estate investment trust established under the laws of the Province of Ontario.
The REIT focuses on a long-term strategy to generate stable cash
distributions on a tax-efficient basis for Unitholders. The REIT
intends to actively look for opportunities to expand its asset base and
increase its distributable cash flow through acquisitions of additional
multi-suite residential rental properties across Canada, the United
States and other jurisdictions where opportunities may arise.
Additional information concerning the REIT is available at
SOURCE True North Apartment Real Estate Investment TrustFor further information:
President and Chief Executive Officer
Chief Financial Officer and Secretary