Boardwalk REIT announces normal course issuer bid
CALGARY, AB, November 18, 2021 / CNW / – Boardwalk Real Estate Investment Trust (TSX: BEI.UN)
Boardwalk Real Estate Investment Trust (“Boardwalk”, the “REIT” or the “Trust”) announced today that it has received approval from the Toronto Stock Exchange (the “TSX”) to launch a public offering of normal course buyback (the “NCIB”).
The tender offer allows the REIT to purchase up to 3,780,000 units of the Trust (the “Units”) (representing approximately 10% of the public free float of 37,803,508 issued and outstanding units as of November 12, 2021) over a period of twelve months from 22 November 2021. The NCIB will expire no later than November 21, 2022.
Pursuant to the tender offer, Units may be redeemed in open market trading on the TSX and / or other Canadian trading systems, or by any other means authorized by the TSX and applicable securities laws. In accordance with the TSX rules governing normal course issuer bids, the total number of Units that the REIT is authorized to purchase is subject to a daily purchase limit of 32,046 Units, which represents 25%. the average daily volume of transactions in the Units on the TSX. calculated for the six calendar months ending October 31, 2021, provided, however, that the REIT is able to make one block purchase per calendar week that exceeds the daily redemption restriction. All units purchased by the REIT under the issuer bid will be canceled.
Purchases of Units will be made by Boardwalk in accordance with the requirements of the TSX. In connection with the tender offer, the REIT intends to enter into an automatic purchase plan with TD Securities Inc. to allow the purchase of its Units during periods when the REIT would not normally be authorized. to make purchases due to regulatory restrictions or a self-imposed blackout period. periods. Purchases will be made at the discretion of the Trust and within parameters prescribed by the TSX.
Boardwalk believes its shares continue to trade below their underlying value, given improving housing fundamentals and a positive market outlook. Recent sales of Boardwalk’s non-core assets and other transactions in its core markets have provided the REIT with the opportunity to allocate capital through a normal course issuer bid. Management of the REIT believes that the proceeds from its sales of non-core assets can be used to purchase and cancel its units on an accretive basis. Boardwalk is committed to increasing value for stakeholders and continually evaluates its potential for capital allocation.
This press release contains certain forward-looking statements. The use of any of the words “expect”, “anticipate”, “may”, “will”, “should”, “believe”, “intention” and similar expressions are intended to identify statements prospective. Forward-looking statements contained in this press release include our expectations regarding the conclusion of an automatic purchase plan, the amount of NCIB purchases to be made over the next 12 months, the expectation of improving housing fundamentals and positive market outlook.
With respect to the forward-looking statements contained in this press release, we have made several assumptions, including that the Units will from time to time trade below their value, that the REIT will purchase Units in accordance with the public offering and those described in detail in our management report and the annual information form for the period ended December 31, 2020. Readers and investors are cautioned that the assumptions used in the preparation of such forward-looking information and statements, although considered reasonable at the time of preparation, may prove to be imprecise and, as such, should not be relied upon. unduly to this forward-looking information. statements. Our actual results, performance or achievements could differ materially from those expressed or implied by these forward-looking statements. We cannot guarantee that any of the anticipated events will or will occur, or if any of them occur, what benefit we will derive from them.
By their nature, forward-looking statements are subject to numerous risks and uncertainties, some of which are beyond our control, including the market price of the Units being too high to ensure that the purchases benefit the REIT and its Unitholders, the impact of general economic conditions, industry conditions, commodity price volatility, stock market volatility and non-execution of purchases under the public tender offer. The foregoing and other risks are described in more detail in the REIT’s MD&A and in the Annual Information Form for the period ended. December 31, 2021, each of which is available at www.sedar.com.
In addition, any forward-looking statements are made only as of the date of this press release, and the REIT does not undertake to update or revise any forward-looking statements or statements to reflect events or circumstances after the release. date on which such statement is made or to reflect the occurrence of unforeseen events, except as required by applicable securities laws. New factors emerge from time to time and it is not possible for the REIT to predict all of these factors or to assess in advance the impact of each of these factors on the REIT’s business or the extent to which one factor, or a combination of factors, can cause actual results to differ materially from those contained in forward-looking statements.
The forward-looking statements contained in this document are expressly qualified by this cautionary statement.
Boardwalk REIT strives to be from Canada the friendliest multi-family community provider and is a leading owner / operator of multi-family rental communities. Providing homes in over 200 communities, with over 33,000 residential units totaling over 28 million net rentable square feet, Boardwalk has a long-term track record of building better communities where love still livestm. Our distinctive three-tiered brands: Boardwalk Living, Boardwalk Communities and Boardwalk Lifestyle, cater to a large and diverse population and have evolved to capture the lifecycle of all resident members. Boardwalk’s disciplined approach to capital allocation, acquisition, development, targeted repositioning and management of apartment communities enables the Trust to deliver its community brand through Canada create exceptional experiences for resident members. Differentiated by its cutting-edge performance culture, Boardwalk is committed to providing exceptional service, product quality and experience to our resident members who reward us with high retention and market-leading operating results, which in turn, lead to free cash flow and higher returns on investment, stable monthly distributions and value creation for all of our stakeholders.
Units of Boardwalk REIT Trust are listed on the Toronto Stock Exchange and trade under the symbol BEI.UN. Additional information about Boardwalk REIT is available on the Trust’s website at www.bwalk.com/investors.
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Boardwalk SOURCE Real Estate Investment Trust
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