Morguard Real Estate Investment
Trust (TSX: MRT.UN) ("Trust") 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
The notice provides that the
Trust may, during the twelve month period commencing February 7, 2019 and
ending February 6, 2020, purchase for cancellation up to 3,034,702 units
("Units) in total, being approximately 5% of the outstanding Units.
The daily repurchase restriction for the Units is 9,835. Additionally,
the Trust may, during the twelve month period commencing February 7, 2019 and
ending February 6, 2020, 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 $14,175.
The price which the Trust 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, 2019, the Trust was approved to purchase
up to 3,034,586 Units and $11,500,000 principal amount of Debentures.
37,100 Units were purchased for cancellation during the last twelve months at
an average cost per share of $11.02 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, 2019, there
were 60,694,053 Units of the Trust outstanding with an average daily trading
volume for the prior six months of 39,342. Additionally, as of February
1, 2019 there were $175,000,000 principal amount Debentures of the Trust
outstanding with an average daily trading volume for the prior six months of
The Trust 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 the Trust and its future business prospects. As a result,
depending upon future price movements and other factors, the Trust 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 the
Trust. All Units and Debentures purchased by the Trust under the normal
course issuer bid will be cancelled.
About Morguard Real Estate
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 8.6 million square feet of leaseable space.