TORONTO–(BUSINESS WIRE)–Choice Properties Real Estate Investment Trust (“Choice Properties” or the “Trust”) (TSX: CHP.UN) today announced that the Toronto Stock Exchange (“TSX”) has accepted a notice filed by Choice Properties regarding its intention to make a normal course issuer bid (“NCIB”).
The TSX notice provides that Choice Properties may, during the 12-month period beginning on November 21, 2022 and ending on November 20, 2023, purchase up to 27,566,522 Choice Properties Trust Units (“Units “), representing approximately 10% of the public float of the Units, by way of an issuer bid through the facilities of the TSX or through alternative trading systems or by any other means permitted by law applicable. As of November 9, 2022, Choice Properties had 327,758,449 units outstanding. Based on the average daily trading volume of 354,532 over the past six months, daily purchases will be limited to 88,633 Units, excluding bulk purchase exceptions.
Purchases of Units will be made in open market transactions through the facilities of the TSX or through alternative trading systems. In addition, Choice Properties may enter into forward purchase or swap agreements with respect to the Units which may be settled by physical settlement, cash settlement or a combination of both. The forward price will be based on the market price, dividend yield and market interest rates. Choice Properties may also purchase Units pursuant to private agreements or unit repurchase programs if it receives an issuer bid exemption order permitting it to make such purchases. Any purchase of Units made through private arrangements or under Unit Repurchase Programs may be subject to a discount to the prevailing market price as provided in the Public Bid Exemption Order. relevant redemption.
Decisions regarding the timing of future unit purchases will be based on market conditions, unit price and other factors. Choice Properties may choose to suspend or discontinue its RPO at any time. Units purchased under the issuer bid will be canceled or used under the Trust’s equity-settled incentive plans. Choice Properties believes that the market price of the Units may be such that their purchase may constitute an attractive and appropriate use of Company funds. Choice Properties may also use its issuer bid to acquire the number of Units that are issued upon the exercise of options in order to offset the dilutive effect of the options that have been exercised. Pursuant to its previous public offering, under which Choice Properties received approval from the TSX to purchase up to 27,558,665 units for the period from November 19, 2021 to November 18, 2022. As of November 9, 2022, Choice Properties purchased 230,682 units on the open market. purchases on the TSX and other trading systems at a weighted average price of $14.39.
From time to time, when Choice Properties does not have material non-public information about itself or its securities, it may enter into a predefined plan with its broker to permit the purchase of Units at times when Choice Properties would not normally be active in the market due to its own internal trading blackout periods and insider trading rules. Any such plans entered into with Choice Properties’ broker will be adopted in accordance with the requirements of applicable Canadian securities laws.
About Choice Properties Real Estate Investment Trust
Choice Properties is a leading real estate investment trust that creates lasting value by owning, operating and developing high quality commercial and residential properties.
We believe value comes from creating spaces that enhance the way our tenants and communities come together to live, work and connect. We strive to understand the needs of our tenants and manage our properties to the highest standards. We aspire to develop healthy and resilient communities through our commitment to social, economic and environmental sustainability. In everything we do, we are guided by a set of shared values based on care, ownership, respect and excellence. For more information, see the Choice Properties website at www.choicereit.ca and the Choice Properties issuer profile at www.sedar.com.