CALGARY, June 28, 2013 /CNW/ - Boardwalk Real Estate Investment Trust ("BEI.UN" - TSX)
Boardwalk Real Estate Investment Trust ("Boardwalk", "The Trust") is
pleased to announce that it has received final acceptance from the
Toronto Stock Exchange for a Normal Course Issuer Bid ("The Bid")
commencing on July 3, 2013, and terminating on July 2, 2014 or such
earlier time as the Bid is complete.
As of June 28, 2013, Boardwalk had 47,878,274 issued and outstanding
Trust Units. Boardwalk's public float of trust units is 38,947,120.
The Bid allows Boardwalk to purchase up to 10% of its "public float" or
3,894,712 trust units, through the facilities of The Toronto Stock
The Trust believes that the current market prices of its Trust Units do
not reflect their underlying value. Boardwalk's Management is
initiating this program as it feels that there is a significant
disparity between the prices being paid for multi-family assets in
private markets and the implied value of its portfolio based on the
current price of its Trust Units. At current market prices, Boardwalk
believes that an investment in its own portfolio represents an
effective use of its capital. To that end, Boardwalk has begun the
process of marketing select non-core assets now that the clarifying
amendments to the Income Tax Act (Canada) relating to the tax treatment of income generated from property
sales by publicly traded trusts, more commonly known as the "SIFT
Legislation", has been enacted by the Parliament of Canada.
Equity from the sale of these non-core assets will assist with the
purchasing of Trust Units at current market prices for cancellation.
The Purchase and cancellation of Trust Units increases the
proportionate interest of all remaining Unitholders. However, the Trust
still believes that continued focus on service and product quality
remains key to delivering the best returns to its Unitholders.
Between mid-2007 and the beginning of 2012, the Trust exercised a
similar strategy of high-grading its portfolio through the sale of
1,578 Apartment Units, comprised of non-core assets, for total gross
proceeds of $171.9 million. The Trust re-deployed this equity into the
purchase and cancellation of Trust Units under similar Normal Course
Issuer Bids. During this same time period, the Trust re-purchased and
cancelled 4,542,747 Trust Units, representing a total investment of
$170.5 million, or an average cost of $37.53 per Trust Unit through its
previous Normal Course Issuer Bids.
The Trust has not purchased any of its trust units within the past 12
The Trust's daily purchase limit pursuant to the Bid will be 22,289,
which represents 25% of the average daily trading volume for the six
calendar months prior to the commencement of the Bid of 89,160 Trust
Units. Purchases of Trust Units pursuant to this Bid will be completed
through the facilities of the TSX and any automated trading system in
About Boardwalk REIT
Boardwalk REIT is Canada's friendliest landlord and currently owns and
operates more than 225 properties with 35,277 residential units (as at
March 31, 2013) totaling approximately 30 million net rentable square
feet. Boardwalk's principal objectives are to provide its Residents
with the best quality communities and superior Customer Service, while
providing Unitholders with sustainable monthly cash distributions, and
increase the value of its Trust Units through selective acquisitions,
dispositions, and effective management of its residential multi-family
properties. Boardwalk REIT is vertically integrated and is Canada's
leading owner/operator of Multi-Family Communities with 1,600
Associates bringing Customers home to properties located in Alberta,
Saskatchewan, Ontario, Quebec, and British Columbia.
Boardwalk REIT's Trust units are listed on the Toronto Stock Exchange,
trading under the symbol BEI.UN. Additional information about Boardwalk
REIT can be found on the Trust's website at www.BoardwalkREIT.com.
SOURCE: Boardwalk Real Estate Investment Trust
For further information:
Director of Mortgage and Finance