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TORONTO, March 24, 2020 /CNW/ - NorthWest Healthcare Properties Real Estate Investment Trust (TSX:NWH.UN) (the "REIT") announced today that the Toronto Stock Exchange (the "TSX") has approved the REIT's intention to make a normal course issuer bid ("NCIB") for a portion of its trust units ("Units") as appropriate opportunities arise from time to time.
Pursuant to the NCIB notice filed with the TSX, the REIT intends to acquire up to a maximum of 15,078,071 of its Units, or approximately 10% of its public float as of March 23, 2020, for cancellation over the next 12 months. As of March 23, 2020, the REIT had 160,334,625 issued and outstanding Units.
Purchases under the NCIB will be made through the facilities of the TSX or through a Canadian alternative trading system and in accordance with applicable regulatory requirements at a price per Unit representative of the market price at the time of acquisition. In accordance with temporary relief announced by the TSX on March 23, 2020, the number of Units that can be purchased pursuant to the NCIB is subject to a current daily maximum of 195,007 Units (which is equal to 50% of 390,014, being the average daily trading volume from September 1, 2019 through to February 29, 2020). Following the expiry of such temporary relief on June 30, 2020 (or such later date as may be announced by the TSX), the number of Units that can be purchased pursuant to the NCIB will be subject to a daily maximum of 97,503 Units (which is equal to 25% of 390,014, being the average daily trading volume from September 1, 2019 through to February 29, 2020). The daily maximum shall be subject to the REIT's ability to make one block purchase of Units per calendar week that exceeds such limits. All Units purchased under the NCIB will be cancelled upon their purchase. The REIT intends to fund the purchases out of its available resources.
The REIT may begin to purchase Units on March 26, 2020 and the NCIB will terminate on March 25, 2021, or such earlier time as the REIT completes its purchases pursuant to the NCIB or provides notice of termination. The REIT believes that the repurchase by the REIT of a portion of outstanding Units is an appropriate use of resources and is in the best interests of the REIT.
The REIT is adopting an automatic securities purchase plan in connection with its NCIB that contains strict parameters regarding how its Units may be repurchased during times when it would ordinarily not be permitted to purchase Units due to regulatory restrictions or self-imposed blackout periods. The automatic securities purchase plan will be effective as of March 26, 2020.
The REIT also announced today that it has suspended its Distribution Reinvestment Plan ("DRIP") until further notice. Commencing with the April, 2020 distribution (payable on or about May 15, 2020), unitholders enrolled in the DRIP will receive distribution payments in cash. If the REIT elects to reinstate the DRIP in the future, unitholders that were enrolled in the DRIP at the time of its suspension and remain enrolled at the time of its reinstatement will automatically resume participation in the DRIP.
About NorthWest Healthcare Properties Real Estate Investment Trust
NorthWest Healthcare Properties Real Estate Investment Trust (TSX: NWH.UN) is an unincorporated, open-ended real estate investment trust established under the laws of the Province of Ontario. As at December 31 2019, the REIT provides investors with access to a portfolio of high quality international healthcare real estate infrastructure comprised of interests in a diversified portfolio of 175 income-producing properties and 14.5 million square feet of gross leasable area located throughout major markets in Canada, Brazil, Europe, Australia and New Zealand. The REIT's portfolio of medical office buildings, clinics, and hospitals is characterized by long term indexed leases and stable occupancies. With a fully integrated and aligned senior management team, the REIT leverages over 200 professionals in nine offices in five countries to serve as a long term real estate partner to leading healthcare operators.
Forward Looking Information
Certain statements contained in this news release constitute forward-looking information within the meaning of applicable securities laws. In some cases, forward-looking information can be identified by such terms such as "may", "might", "will", "could", "should", "would", "occur", "expect", "plan", "anticipate", "believe", "intend", "estimate", "predict", "potential", "continue", "likely", "schedule", or the negative thereof or other similar expressions concerning matters that are not historical facts. Some of the specific forward-looking statements in this news release include, but are not limited to, statements with respect to the number of Units to be acquired under the NCIB and other related matters.
The REIT has based these forward-looking statements on factors and assumptions about future events and financial trends that it believes may affect its financial condition, financial performance, business strategy and financial needs.
Although the forward-looking statements contained in this news release are based upon assumptions that management of the REIT believe are reasonable based on information currently available to management, there can be no assurance that actual results will be consistent with these forward-looking statements. Forward-looking statements necessarily involve known and unknown risks and uncertainties, many of which are beyond the REIT's control, including, among other things, the risks identified in materials filed under the REIT's profile at www.sedar.com from time to time. The forward-looking statements made in this news release relate only to events or information as of the date hereof. Except as required by applicable Canadian law, the REIT undertakes no obligation to update or revise publicly any forward-looking statements, whether as a result of new information, future events or otherwise, after the date on which the statements are made or to reflect the occurrence of unanticipated events.
SOURCE NorthWest Healthcare Properties Real Estate Investment Trust
For further information: Paul Dalla Lana, CEO, NorthWest Healthcare Properties REIT, (416) 366-8300 x1001