MISSISSAUGA, ON, Feb. 5, 2018 /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
and/or alternative Canadian trading systems.
The notice provides that Morguard may, during the twelve month
period commencing February 7, 2018
and ending February 6, 2019, purchase
for cancellation up to 3,034,586 units ("Units) in total, being
approximately 5% of the outstanding Units. The daily
repurchase restriction for the Units is 7,431. Additionally,
Morguard may 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 $12,825.
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 its current normal course issuer bid due to expire
February 6, 2018, Morguard was
approved to purchase up to 3,030,072 Units and $11,500,000 principal amount of Debentures.
50,300 Units were purchased for cancellation during the last twelve
months at an average cost per share of $15.20 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, 2018, there were
60,691,729 Units of Morguard outstanding with an average daily
trading volume for the prior six months of 29,725.
Additionally, as of February 1, 2018
there were $175,000,000 principal
amount Debentures of Morguard outstanding with an average daily
trading volume for the prior six months of $51,300.
Morguard 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 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.
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 8.7 million
square feet of leaseable space.
For more information, please visit Morguard.com.
SOURCE Morguard Real Estate Investment Trust