MISSISSAUGA, ON, Jan. 23, 2013 /CNW/ - Morguard Real Estate
Investment Trust (TSX: MRT.UN) ("Morguard") 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.
The notice provides that Morguard may, during
the twelve month period commencing January
28, 2013 and ending January 27,
2014, purchase for cancellation on the Toronto Stock
Exchange up to 3,591,277 units ("Units) in total, being
approximately 10% of the public float of outstanding Units.
The daily repurchase restriction for the Units is 13,840.
Additionally, Morguard may purchase for cancellation up to
$10,000,000 principal amount of the
4.85% Convertible Unsecured Debentures due October 31, 2017 (TSX:MRT.DB.A) ("Debentures"),
being 10% of the public float of outstanding Debentures. The
daily repurchase restriction for the Debentures is $107,575.
The price which Morguard 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 the current normal course issuer bid due
to expire January 27, 2013, no Units
or Debentures were purchased for cancellation during the last
twelve months. As of January 18,
2013 there were 64,089,459 Units of Morguard outstanding
with an average daily trading volume for the prior six months of
55,360. Additionally, as of January
18, 2013 there were $150,000,000 principal amount Debentures of
Morguard outstanding with an average daily trading volume for the
prior six months of $430,300.
Morguard believes that its Units and Debentures
have been trading in a price range which does not adequately
reflect the value of such Units and Debentures in relation to the
business of Morguard and its future business prospects. As a
result, depending upon future price movements and other factors,
Morguard 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 Morguard. All Units and
Debentures purchased by Morguard under the normal course issuer bid
will be cancelled.
Morguard Real Estate Investment Trust is a
closed-end real estate investment trust, which owns a diversified
portfolio of 54 high quality retail, office and mixed-used
properties in Canada with an
approximate value of $2.6 billion and
comprising approximately 9.1 million square feet of leaseable
space.
SOURCE Morguard Real Estate Investment Trust