MISSISSAUGA, ON, Jan. 22, 2015 /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 platforms.
The notice provides that Morguard may, during the twelve month
period commencing January 28, 2015
and ending January 27, 2016, purchase
for cancellation up to 3,247,282 units ("Units) in total, being
approximately 10% of the public float of outstanding Units.
The daily repurchase restriction for the Units is 6,953.
Additionally, Morguard may purchase for cancellation up to
$9,998,500 principal amount of the
4.85% Convertible Unsecured Subordinated 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 $6,327.
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, 2015, 100,000 Units were
purchased for cancellation during the last twelve months at an
average cost per share of $16.70 and
no Debentures were purchased for cancellation during the last
twelve months. As of January 15,
2015 there were 62,167,654 Units of Morguard outstanding
with an average daily trading volume for the prior six months of
27,814. Additionally, as of January
15, 2015 there were $149,985,000 principal amount Debentures of
Morguard outstanding with an average daily trading volume for the
prior six months of $25,310.
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.
Morguard REIT is a closed-end real estate investment trust,
which owns a diversified portfolio of 53 high quality retail,
office and industrial income producing properties in Canada with an approximate value of
$3.0 billion and comprising
approximately 9.2 million square feet of leaseable space.
SOURCE Morguard Real Estate Investment Trust