CALGARY, Aug. 1, 2014 /CNW/ - Northern Property Real Estate Investment Trust ("NPR") today announced that the Toronto Stock Exchange ("TSX") has approved its notice of intention to renew a normal course issuer bid ("NCIB") for its trust units ("Units") as appropriate opportunities arise from time to time. NPR's NCIB will be made in accordance with the policies of the TSX. NPR may purchase Units during the period from August 6, 2014 to August 5, 2015, or an earlier date should NPR complete its purchases. NPR will pay the market price at the time of acquisition for any Units in accordance with the rules and policies of the TSX and applicable securities laws. Purchases under the NCIB will be funded out of NPR's working capital. Although NPR has a present intention to acquire Units, it is not obligated to make any purchases pursuant to the NCIB. NPR has acquired 232,100 of its own Units within the last 12 months with a weighted average unit price of $27.31.
As at July 31, 2014 NPR has 31,790,580 issued and outstanding Units, of which the public float is 30,955,865 Units. NPR is authorized to purchase, in a 12 month period, up to 3,095,587 Units, representing 10% of its public float, through the facilities of the TSX and other Canadian trading platforms. On any trading day, NPR will not purchase more than 12,474 Units, which is equal to 25% of NPR's average daily trading volume over the last six months, except where such purchases are made in accordance with the block purchase exemptions under the TSX rules.
NPR believes that from time to time market prices of its Units do not reflect their underlying value. NPR will purchase the Units for cancellation with the intention of increasing the proportionate interest of all remaining unitholders.
A copy of NPR's notice of its intention to make a NCIB filed with the TSX can be obtained from the corporate secretary of NPR without charge.
The REIT is an unincorporated open-end real estate investment trust. 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 somewhat higher and competition somewhat restrained. NPR's residential portfolio is comprised of a 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.
Caution about forward looking statements
This news release contains forward‐looking statements relating to NPR's intention with respect to the NCIB and acquisition of Units. These statements are not guarantees of future events, performance or results and will not necessarily be accurate indications of whether, or the times at which, such events, performance or results will be achieved.
Forward-looking statements are based on information available at the time they are made, underlying estimates and assumptions made by management and management's good faith belief with respect to future events, performance and results, and are subject to inherent risks and uncertainties surrounding future expectations generally which could cause actual results to differ materially from what is currently expected. Such risks and uncertainties include, but are not limited to risks associated with investment in and development of real property, competition, financing and refinancing risks, risks related to economic conditions, changes in taxation rules, reliance on key personnel, environmental matters, tenant risks, and other risk factors more particularly described in the our most recent Annual Information Form available on SEDAR at www.sedar.com.
SOURCE: Northern Property Real Estate Investment Trust
For further information:
Robert Palmer, CFO, at 403-531-3545.