MISSISSAUGA, ON, Jan. 22, 2014 /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, 2014 and ending January 27, 2015, purchase for cancellation on the Toronto Stock Exchange up to 3,395,119 units ("Units) in total, being approximately 10% of the public float of outstanding Units. The daily repurchase restriction for the Units is 7,198. 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 $6,952.
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, 2014, 1,913,116 Units were purchased for cancellation during the last twelve months at an average cost per share of $16.34 and no Debentures were purchased for cancellation during the last twelve months. As of January 17, 2014 there were 62,221,836 Units of Morguard outstanding with an average daily trading volume for the prior six months of 28,790. Additionally, as of January 17, 2014 there were $150,000,000 principal amount Debentures of Morguard outstanding with an average daily trading volume for the prior six months of $27,806.
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 Real Estate Investment Trust is a closed-end real estate investment trust, which owns a diversified portfolio of 55 high quality retail, office and mixed-used properties in Canada with an approximate value of $2.9 billion and comprising approximately 9.6 million square feet of leaseable space.
SOURCE Morguard Real Estate Investment Trust