MISSISSAUGA, ON, Jan. 21, 2016 /CNW/ - Morguard Real Estate Investment Trust (TSX: MRT.UN) ("Morguard") announced today that the Toronto Stock Exchange has accepted its 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 Morguard may, during the twelve month period commencing January 28, 2016 and ending January 27, 2017, purchase for cancellation up to 3,044,583 units ("Units) in total, being approximately 5% of the outstanding Units. The daily repurchase restriction for the Units is 15,692. Additionally, Morguard may purchase for cancellation up to $9,998,500 principal amount of the 4.85% Convertible Unsecured Subordinated Debentures due October 31, 2017 (TSX:MRT.DB.A) ("Debentures"), being 10% of the public float of outstanding Debentures. The daily repurchase restriction for the Debentures is $11,350.
The price which Morguard will pay for any such Units or 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 January 27, 2016, 1,328,022 Units were purchased for cancellation during the last twelve months at an average cost per share of $15.06 and no Debentures were purchased for cancellation during the last twelve months. As of January 15, 2016 there were 60,891,654 Units of Morguard outstanding with an average daily trading volume for the prior six months of 62,768. Additionally, as of January 15, 2016 there were $149,985,000 principal amount Debentures of Morguard outstanding with an average daily trading volume for the prior six months of $45,400.
Morguard believes that its Units and Debentures, at times, trade in a price range which does not adequately reflect the value of such Units and Debentures in relation to the business of Morguard and its future business prospects. As a result, depending upon future price movements and other factors, Morguard 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 Morguard. All Units and Debentures purchased by Morguard under the normal course issuer bid will be cancelled.
About Morguard Real Estate Investment Trust
The Trust is a closed-end real estate investment trust, which owns a diversified portfolio of 50 high quality retail, office and industrial income producing properties in Canada consisting of approximately 8.8 million square feet of leaseable space.
For more information, please visit Morguard.com.
SOURCE Morguard Real Estate Investment Trust
For further information: Morguard Real Estate Investment Trust: Pamela McLean, Vice President and Chief Financial Officer, T: 905.281.4800