MISSISSAUGA, ON, Feb. 5, 2019 /CNW/ - Morguard Real Estate Investment Trust (TSX: MRT.UN) ("Trust") 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 the Trust may, during the twelve month period commencing February 7, 2019 and ending February 6, 2020, purchase for cancellation up to 3,034,702 units ("Units) in total, being approximately 5% of the outstanding Units. The daily repurchase restriction for the Units is 9,835. Additionally, the Trust may, during the twelve month period commencing February 7, 2019 and ending February 6, 2020, purchase for cancellation up to $11,500,000 principal amount of the 4.50% Convertible Unsecured Subordinated Debentures due December 31, 2021 (TSX:MRT.DB) ("Debentures"), being 10% of the public float of outstanding Debentures. The daily repurchase restriction for the Debentures is $14,175.
The price which the Trust 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 its current normal course issuer bid due to expire February 6, 2019, the Trust was approved to purchase up to 3,034,586 Units and $11,500,000 principal amount of Debentures. 37,100 Units were purchased for cancellation during the last twelve months at an average cost per share of $11.02 through the facilities of the TSX and/or alternative Canadian trading systems and no Debentures were purchased for cancellation during the last twelve months. As of February 1, 2019, there were 60,694,053 Units of the Trust outstanding with an average daily trading volume for the prior six months of 39,342. Additionally, as of February 1, 2019 there were $175,000,000 principal amount Debentures of the Trust outstanding with an average daily trading volume for the prior six months of $56,700.
The Trust 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 the Trust and its future business prospects. As a result, depending upon future price movements and other factors, the Trust 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 Trust. All Units and Debentures purchased by the Trust 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 49 high quality retail, office and industrial income producing properties in Canada consisting of approximately 8.6 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, Andrew Tamlin, Chief Financial Officer, T: 905.281.4800