Chief Executive Officer Acquires 1,606,000 million Trust Units to Increase Ownership to 9.9%
and Insiders Acquire an Additional 374,925 Trust Units to Collectively Increase Ownership to 11.4%
/NOT FOR DISTRIBUTION IN THE
"This news release constitutes a "designated news release" for the purposes of the REIT's prospectus supplement dated
"The implementation of these additional initiatives will further advance the REIT's previously announced unitholder value plan and demonstrates management's commitment to improving the strength of the REIT's near and long-term financial position," explained
The REIT and its board of trustees ("Board of Trustees") have authorized a NCIB for its Units, subject to the approval by the TSX. The REIT believes that its Units trade in a price range which does not adequately reflect the value of such Units in relation to the business of the REIT and its future business prospects. As a result, depending upon future price movements and other factors, the REIT considers its outstanding Units may represent an attractive investment for itself. Therefore, from time to time, the purchase of Units at certain market prices below its net asset value presents an attractive use of the REIT's funds that should afford additional value and liquidity for the issued and outstanding Units while benefitting Unitholders by increasing their proportionate equity interest in the REIT. Decisions regarding the timing of purchases under the NCIB will be determined by management of the REIT based on market conditions, Unit price and other factors. Management may elect to not purchase any Units under the NCIB or may elect to suspend or discontinue the NCIB at any time.
Under the terms of the NCIB, subject to TSX approval, the REIT will have the ability to purchase for cancellation up to a maximum of 8,239,557 of its Units (representing 10% of the REIT's public float of 82,395,573 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 equal to the market price at the time of acquisition. The NCIB will commence on
In connection with the NCIB, the REIT will enter into an automatic securities purchase plan ("ASPP") with
Outside of pre-determined blackout periods, Units may be purchased under the NCIB based on management's discretion, in compliance with TSX rules and applicable securities laws. All purchases made under the ASPP will be included in computing the number of Units purchased under the NCIB.
Effective immediately, the REIT has suspended the DRIP until further notice. As a result, Unitholders will receive distributions in cash effective with the distribution currently scheduled to be paid on
To demonstrate their confidence in the REIT's business plan which includes its capital strengthening and Unitholder value strategy,
The REIT intends to release its financial results for the three months ended
The REIT is an unincorporated, open-ended real estate investment trust established under the laws of the Province of
For more information regarding the REIT, please visit www.sedar.com or the REIT's website at www.truenorthreit.com.
Certain statements contained in this press release constitute forward-looking information within the meaning of Canadian securities laws. Forward-looking statements are provided for the purposes of assisting the reader in understanding the REIT's financial performance, financial position and cash flows as at and for the periods ended on certain dates and to present information about management's current expectations and plans relating to the future. Readers are cautioned that such statements may not be appropriate for other purposes. Forward-looking information may relate to future results, performance, achievements, events, prospects or opportunities for the REIT or the real estate industry and may include statements regarding the financial position, business strategy, budgets, projected costs, capital expenditures, financial results, taxes, plans and objectives of or involving the REIT. In some cases, forward-looking information can be identified by such terms as "may", "might", "will", "could", "should", "would", "expect", "plan", "anticipate", "believe", "intend", "seek", "aim", "estimate", "target", "goal", "project", "predict", "forecast", "potential", "continue", "likely", or the negative thereof or other similar expressions suggesting future outcomes or events.
Forward-looking statements necessarily involve known and unknown risks and uncertainties, which may be general or specific and which give rise to the possibility that expectations, forecasts, predictions, projections or conclusions will not prove to be accurate, assumptions may not be correct and objectives, strategic goals and priorities may not be achieved. A variety of factors, many of which are beyond the REIT's control, affect the operations, performance and results of the REIT and its business, and could cause actual results, including those relating to the suspension (and potential future reinstatement) of the DRIP and the establishment of the NCIB (including the potential impact thereof on Unitholders, as well as the REIT and its ability to advance its objectives, explore strategic opportunities and deliver long-term value to its Unitholders), to differ materially from current expectations of estimated or anticipated events or results. These factors include, but are not limited to, risks related to the Units and risks related to the REIT's annual information form for the year ended
Forward-looking statements that involve a number of risks and uncertainties, including statements regarding the outlook for the REIT's business and results of operations, the ability of the REIT to manage inflation and rising interest rates, and the changes to the REIT's business and operations following the coronavirus pandemic (SARS- CoV-2) ("COVID-19"). Forward-looking statements involve known and unknown risks and uncertainties, which may be general or specific and which give rise to the possibility that expectations, forecasts, predictions, projections or conclusions will not prove to be accurate, assumptions may not be correct and objectives, strategic goals and priorities may not be achieved. A variety of factors, many of which are beyond the REIT's control, affect the operations, performance and results of the REIT and its business, and could cause actual results to differ materially from current expectations of estimated or anticipated events or results. These factors include, but are not limited to: risks relating to the suspension of the DRIP and the establishment of the NCIB (including the potential impact thereof on Unitholders, as well as the REIT and its ability to advance its objectives, explore strategic opportunities and deliver long-term value to its Unitholders); risks and uncertainties related to the Units; risks related to the REIT and its business; fluctuating mortgage and interest rates and general economic conditions, including increased levels of inflation; credit, market, operational and liquidity risks generally; occupancy levels and defaults, including the failure to fulfill contractual obligations by tenants; lease renewals and rental increases; the ability to re-lease and find new tenants for vacant space; the timing and ability of the REIT to sell certain properties; the after effects of the COVID-19 pandemic on the business, operations and financial condition of the REIT and its tenants, as well as on consumer behavior and the economy in general, including the ability to enforce leases, perform capital expenditure work, increase rents, raise capital through the issuance of Units or other securities of the REIT and obtain mortgage financing on the REIT's properties. The foregoing is not an exhaustive list of factors that may affect the REIT's forward-looking statements. Other risks and uncertainties not presently known to the REIT could also cause actual results or events to differ materially from those expressed in its forward-looking statements. The reader is cautioned to consider these and other factors, uncertainties and potential events carefully and not to put undue reliance on forward-looking statements as there can be no assurance actual results will be consistent with such forward-looking statements.
Information contained in forward-looking statements is based upon certain material assumptions applied in drawing a conclusion or making a forecast or projection, including management's perception of historical trends, current conditions and expected future developments, as well as other considerations believed to be appropriate in the circumstances. There can be no assurance regarding: (a) the suspension of the DRIP; (b) the establishment of the NCIB; (c) the after effects of COVID-19 on the REIT's business, operations and performance, including the performance of its Units; (d) the REIT's ability to mitigate any impacts related to fluctuating mortgage and interest rates and inflation; (e) the factors, risks and uncertainties expressed above in regards to the post pandemic environment on the commercial real estate industry and property occupancy levels; (f) credit, market, operational, and liquidity risks generally; (g) the availability of investment opportunities for growth in
The forward-looking statements made in this news release are dated and relate only to events or information as of the date of this news release. Except as specifically 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
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