Northern Property Real Estate Investment Trust Announces January 2014 Distribution, Provides Update on Stapled Securities Structure and NorSerCo Dissolution
16 Jan, 2014, 12:15 ET
CALGARY, Jan. 16, 2014 /CNW/ - Northern Property Real Estate Investment Trust ("NPREIT") (TSX: NPR.UN) announced its January 2014 monthly distribution in the amount of $0.1317 per stapled security, payable on February 14, 2014 to holders of stapled securities of record at January 31, 2014.
As at the date hereof, there are 31,882,182 trust units of NPREIT ("Trust Units") and common shares of NorSerCo Inc. ("NorSerCo", and together with NPREIT, "NPR") issued and outstanding and all of which trade as stapled securities (the "Stapled Securities") under the single trading symbol NPR.UN and 67,796 Class B exchangeable limited partnership units and NorSerCo special shares issued and outstanding.
Stapled Unit Structure and NorSerCo Dissolution
On July 13, 2012, the shareholders of NorSerCo approved: (i) the sale of all or substantially all of the property of NorSerco to NPREIT and/or NPR Limited Partnership (the "Asset Transfer"); (ii) the separation (the "Unstapling") of the Stapled Securities; and (iii) the voluntary liquidation and dissolution of NorSerCo (the "Wind-Up").
Further to the news release dated December 13, 2013, NPR still intends to complete the Asset Transfer, Unstapling and Wind-Up in late January of 2014. NPREIT will continue to qualify as a real estate investment trust for tax purposes following the dissolution of NorSerCo.
Once complete the NorSerCo common shares will be de-listed (the NorSerCo common shares have historically only traded as part of a Stapled Security) from the Toronto Stock Exchange (the "TSX") and the Unstapling is expected to occur after the close of markets on January 31, 2014. Trust Units will be listed on the TSX in substitution for the Stapled Securities and are expected to trade under the trading symbol NPR.UN.
Holders of Stapled Securities do NOT need to take any action, and will receive their normal monthly distribution on their Stapled Securities in February 2014, and thereafter will receive monthly distributions on their Trust Units. NPR currently does not expect that monthly distributions for Trust Units after the Wind-up will be materially affected by the Asset Transfer, Unstapling and Wind-up.
Registered holders of Stapled Securities may, but are not required to, exchange their Stapled Security certificate for a Trust Unit certificate at their convenience once the Asset Transfer, Unstapling and Wind-Up have been completed by contacting NPR's registrar and transfer agent, Computershare Trust Company of Canada, at 1-800-564-6253.
NPR is primarily a multi-family residential real estate investor, providing a broad spectrum of rental accommodations in Canadian secondary markets with strong economic fundamentals where capitalization rates are generally higher and competition somewhat restrained. NPR's residential portfolio is comprised of: multi-family segment apartments, town homes and single family rental units; and execusuites and hotels, where the rental periods range from a few days to several months. NPR also has a portfolio of commercial buildings focused on government tenancies predominantly located in Canada's far north. Geographically, NPR operates in British Columbia, the Northwest Territories, Alberta, Saskatchewan, Nunavut, Quebec and Newfoundland and Labrador. As at September 30, 2013, NPR has 10,142 residential units and 1,064,944 square feet of commercial space
CAUTIONARY STATEMENT REGARDING FORWARD-LOOKING STATEMENTS.
This news release contains forward-looking statements relating to the timing of the proposed Asset Transfer, Unstapling and Wind-up, the substitutional listing of the Trust Units on the TSX under the trading symbol NPR.UN and the amount of future monthly distributions to holders of Trust Units. These statements are not guarantees of future performance and involve risks and uncertainties that are difficult to control or predict. Therefore, actual outcomes and results may differ materially from those expressed in these forward-looking statements. Readers, therefore, should not place undue reliance on any such forward-looking statements. Further, a forward-looking statement speaks only as of the date on which such statement is made.
SOURCE: Northern Property Real Estate Investment Trust
For further information:
Mr. Robert J. Palmer, Chief Financial Officer at (403) 531-3545
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