WINNIPEG, MB, Dec. 15,
2022 /CNW/ - Artis Real Estate Investment Trust
("Artis" or the "REIT") (TSX: AX.UN) announced today that it has
received approval from the Toronto Stock Exchange ("TSX") to renew
its normal course issuer bid (the "Bid") for a further year and
that it has renewed the first tranche of its revolving term credit
facilities.
Under the terms of the Bid, Artis may purchase up to 10% of the
public float of trust units ("Units") and preferred units
("Preferred Units"). A maximum of 25% of the average daily trading
volume may be purchased by Artis on any one day under its normal
course issuer bid, except where purchases are made in accordance
with "block purchases" exemptions under applicable TSX
policies. Purchases pursuant to the Bid will be made through
the facilities of the TSX and/or alternative Canadian trading
systems. Artis will pay the market price at the time of
acquisition for any Unit or Preferred Unit purchased through the
facilities of the TSX and/or alternative Canadian trading systems
and all Units and Preferred Units acquired by the REIT under this
Bid will be cancelled. The period of the normal course issuer bid
will extend from December 19, 2022,
to December 18, 2023, or an earlier
date, should Artis complete its purchases. Additional
information pertaining to Units and each series of Preferred Units
is as follows:
Symbol
|
Public Float
|
10% of
Public
Float
|
Average
Daily
Trading
Volume
|
25% of
Average
Daily
Trading
Volume(1)
|
AX.UN
|
78,609,420
|
7,860,942
|
288,091
|
72,022
|
AX.PR.E
|
3,610,010
|
361,001
|
1,341
|
1,000
|
AX.PR.I
|
4,805,340
|
480,534
|
2,074
|
1,000
|
(1) In cases where 25%
of the average daily trading volume is less than 1,000, the daily
purchase limit becomes 1,000.
|
Artis is pursuing the normal course issuer bid because it
believes that, from time to time, the market price of its Units and
Preferred Units may not fully reflect the underlying value of its
business and its future business prospects. The REIT believes that,
in such circumstances, the outstanding Units and Preferred Units
represent an attractive investment for Artis.
Pursuant to the REIT's current normal course issuer bid that
expires on December 16, 2022, Artis
previously sought and received approval from the TSX to
purchase:
- Up to 8,788,176 Units. During the past 12 completed calendar
months, Artis acquired 8,788,176 Units through the normal course
issuer bid, which were purchased through the facilities of the TSX
and/or alternative Canadian trading systems, at a weighted-average
price of $12.3970.
- Up to 330,040 Series A Preferred Units ("Series A Units").
During the past 12 completed calendar months, Artis acquired 49,200
Series A Units through the normal course issuer bid, which were
purchased through the facilities of the TSX and/or alternative
Canadian trading systems, at a weighted-average price of
$24.8057. On September 30, 2022, Artis redeemed all 3,248,300
outstanding Series A Units.
- Up to 370,773 Series E Preferred Units ("Series E Units").
During the past 12 completed calendar months, Artis acquired 90,800
Series E Units through the normal course issuer bid, which were
purchased through the facilities of the TSX and/or alternative
Canadian trading systems, at a weighted-average price of
$23.5851.
- Up to 486,554 Series I Preferred Units ("Series I Units").
During the past 12 completed calendar months, Artis acquired 57,200
Series I Units through the normal course issuer bid, which were
purchased through the facilities of the TSX and/or alternative
Canadian trading systems, at a weighted-average price of
$24.5748.
As at December 6, 2022, there were
115,787,822 Units, 3,612,810 Series E Units, and 4,908,640 Series I
Units issued and outstanding.
On or about December 19, 2022,
Artis will implement an automatic purchase plan agreement ("APP")
with a broker to allow for the purchase of its Units and Preferred
Units under the Bid at times when Artis ordinarily would not be
active in the market due to self-imposed trading blackout periods.
Before entering into a blackout period, Artis may, but will not be
required to, instruct the designated broker to make purchases under
the Bid in accordance with the terms of the APP. Such purchases
will be determined by the broker in its sole discretion based on
parameters established by Artis prior to the blackout period in
accordance with TSX rules, applicable securities laws and the terms
of the APP. The terms of the APP will be pre-cleared by the TSX
before execution. Outside of these pre-determined blackout periods,
Units and Preferred Units will be purchased based on management's
discretion, in compliance with TSX rules and applicable securities
laws.
On December 1, 2022, the REIT's
revolving term credit facilities agreement was amended to extend
the maturity date of the first tranche of the facilities in the
amount of $400 million from
December 14, 2022 to December 14, 2024, pursuant to the same terms and
conditions as the previous agreement.
Artis is a diversified Canadian real estate investment trust
with a portfolio of industrial, office and retail properties in
Canada and the United States. Artis' vision is to build a
best-in-class asset management and investment platform focused on
growing net asset value per unit and distributions for investors
through value investing in real estate.
SOURCE Artis Real Estate Investment Trust