Press release from CNW Group
Northern Property REIT Announces Normal Course Issuer Bid
Monday, July 29, 2013
Northern Property REIT Announces Normal Course Issuer Bid18:21 EDT Monday, July 29, 2013
CALGARY, July 29, 2013 /CNW/ - Northern Property Real Estate Investment Trust (the "REIT") and NorSerCo Inc. ( "NorSerCo", and together with the REIT, "NPR") (NPR.UN - TSX) today announced that the Toronto Stock Exchange ("TSX") has approved their notice of intention to make a normal course issuer bid for their stapled units ("Units") as appropriate opportunities arise from time to time. NPR's normal course issuer bid will be made in accordance with the policies of the TSX. NPR may purchase Units during the period from August 1, 2013 to July 31, 2014, or an earlier date should NPR complete its purchases. NPR will pay the market price at the time of acquisition for any Units in accordance with the rules and policies of the TSX and applicable securities laws. Purchases under the bid will be funded out of NPR's working capital. Although NPR has a present intention to acquire Units, it is not obligated to make any purchases pursuant to the bid. NPR has not acquired any of its own Units within the last 12 months.
NPR currently has 31,991,970 issued and outstanding Units, of which the public float is 30,674,582 Units. NPR is authorized to purchase, in a 12 month period, up to 3,067,458 Units, representing 10% of its public float, through the facilities of the TSX and other Canadian trading platforms. On any trading day, NPR will not purchase more than 12,459 Units, except where such purchases are made in accordance with the block purchase exemptions under the TSX rules.
NPR believes that the current and recent market prices of its Units do not reflect their underlying value. NPR's management is initiating this program as it feels that, at current market prices; an investment in NPR's own high quality portfolio will deliver strong returns for unitholders and represents an effective use of its capital and steadily increasing cash flows. At the same time, NPR plans to continue its property acquisition and capital improvement programs. NPR will purchase the Units for cancellation with the intention of increasing the proportionate interest of all remaining unitholders.
A copy of NPR's notice of its intention to make a normal course issuer bid filed with the TSX can be obtained from the corporate secretary of NPR without charge.
The REIT is an unincorporated open-end real estate investment trust and NorSerCo is a corporation under the Business Corporations Act (Alberta). NPR is primarily a multi-family residential real estate investor, providing a broad spectrum of rental accommodations in Canadian secondary markets with strong economic fundamentals where capitalization rates are somewhat higher and competition somewhat restrained. NPR's residential portfolio is comprised of a multi-family segment: apartments, town homes and single family rental units; and execusuites and hotels, where the rental periods range from a few days to several months. NPR also has a portfolio of commercial buildings focused on government tenancies predominantly located in Canada's far north. Geographically, NPR operates in British Columbia, the Northwest Territories, Alberta, Saskatchewan, Nunavut, Quebec and Newfoundland and Labrador.
Caution about forward looking statements
This news release contains forward‐looking statements relating to NPR's intention with respect to the normal course issuer bid, property acquisition and capital improvement programs. These statements are not guarantees of future events, performance or results and will not necessarily be accurate indications of whether, or the times at which, such events, performance or results will be achieved.
Forward-looking statements are based on information available at the time they are made, underlying estimates and assumptions made by management and management's good faith belief with respect to future events, performance and results, and are subject to inherent risks and uncertainties surrounding future expectations generally which could cause actual results to differ materially from what is currently expected. Such risks and uncertainties include, but are not limited to risks associated with investment in and development of real property, competition, financing and refinancing risks, risks related to economic conditions, changes in taxation rules, reliance on key personnel, environmental matters, tenant risks, and other risk factors more particularly described in the our most recent Annual Information Form available on SEDAR at www.sedar.com.
SOURCE Northern Property Real Estate Investment Trust
For further information:
For further information contact Todd Cook, President and COO or Robert Palmer, CFO, at 403-531-0720.