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LITTLE ROCK, AR and TORONTO, March 25, 2019 /CNW/ – BSR Real Estate Investment Trust (“BSR” or the “REIT”) (TSX: HOM.U) announced today that the Toronto Stock Exchange (the “TSX”) has approved the REIT’s intention to make a normal course issuer bid (“NCIB”) for a portion of its trust units (“Units”) as appropriate opportunities arise from time to time. The Board of Trustees of the REIT believes that purchases of Units at prices below the REIT’s view of its intrinsic value are in the best interests of the REIT and a desirable use of the REIT’s capital.
Pursuant to the NCIB notice filed with the TSX, the REIT intends to acquire up to a maximum of 1,312,686 of its Units, or approximately 10% of its public float as of March 25, 2019 for cancellation over the next 12 months. As of March 25, 2019, the REIT had 16,550,000 issued and outstanding Units.
Purchases under the NCIB will be made through the facilities of the TSX or through a Canadian alternative trading system and in accordance with applicable regulatory requirements at a price per Unit representative of the market price at the time of acquisition. The number of Units that can be purchased pursuant to the NCIB is subject to a current daily maximum of 9,311 Units (which is equal to 25% of 37,245, being the average daily trading volume from September 4, 2018 through to February 28, 2019), subject to the REIT’s ability to make one block purchase of Units per calendar week that exceeds such limits. All Units purchased under the NCIB will be cancelled upon their purchase. The REIT intends to fund the purchases out of its available resources.
The REIT may begin to purchase Units on March 28, 2019 and the NCIB will terminate on March 27, 2020 or such earlier time as the REIT completes its purchases pursuant to the NCIB or provides notice of termination.
The REIT has adopted an automatic securities purchase plan in connection with its NCIB that contains strict parameters regarding how its Units may be repurchased during times when it would ordinarily not be permitted to purchase Units due to regulatory restrictions or self-imposed blackout periods. The automatic securities purchase plan is effective immediately.
About BSR Real Estate Investment Trust
BSR Real Estate Investment Trust is an internally managed, unincorporated, open-ended real estate investment trust established pursuant to a declaration of trust under the laws of the Province of Ontario. The REIT owns a portfolio of 50 multifamily garden-style residential properties aggregating 10,451 apartment units located across five bordering states in the Sunbelt region of the United States.
Certain statements contained in this news release constitute forward-looking information within the meaning of applicable securities laws. In some cases, forward-looking information can be identified by such terms such as “may”, “might”, “will”, “could”, “should”, “would”, “occur”, “expect”, “plan”, “anticipate”, “believe”, “intend”, “estimate”, “predict”, “potential”, “continue”, “likely”, “schedule”, or the negative thereof or other similar expressions concerning matters that are not historical facts. Some of the specific forward-looking statements in this news release include, but are not limited to, statements with respect to the number of Units to be acquired under the NCIB, the potential property dispositions and other related matters. The REIT has based these forward-looking statements on factors and assumptions about future events and financial trends that it believes may affect its financial condition, financial performance, business strategy and financial needs. Although the forward-looking statements contained in this news release are based upon assumptions that management of the REIT believe are reasonable based on information currently available to management, there can be no assurance that actual results will be consistent with these forward-looking statements. Forward-looking statements necessarily involve known and unknown risks and uncertainties, many of which are beyond the REIT’s control, including, among other things, the risks identified in materials filed under the REIT’s profile at www.sedar.com from time to time. The forward-looking statements made in this news release relate only to events or information as of the date hereof. Except as required by applicable Canadian law, the REIT undertakes no obligation to update or revise publicly any forward-looking statements, whether as a result of new information, future events or otherwise, after the date on which the statements are made or to reflect the occurrence of unanticipated events.
SOURCE BSR Real Estate Investment Trust
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