QUÉBEC CITY, Jan. 20, 2016 /CNW
Telbec/ - Cominar Real Estate Investment Trust ("Cominar" or
the "REIT") (TSX: CUF.UN) announced today that in light of
the current market price of its units and to maximize the benefits
of unit purchases made under its normal course issuer bid (the
"NCIB"), it is suspending its distribution reinvestment plan
("DRIP") until further notice.
As of January 29, 2016,
unitholders of record that are enrolled in the DRIP will receive
the regular monthly cash distribution of 12.25 cents per unit, payable on February 15, 2016, $1.47 on an annualized basis.
The Cominar DRIP had permitted enrolled unitholders to receive
their monthly cash distributions in Cominar units and to receive a
bonus distribution of Cominar units equal to 3% of the
distributions reinvested.
On August 28, 2015, Cominar
announced that it had received approval of the Toronto Stock
Exchange to proceed with an NCIB, under which Cominar may purchase
up to 4 million of its units. As of January
19, 2016, Cominar has purchased 2.3 million units under its
NCIB. At current unit market values, Cominar believes that the
repurchase of its units is in the best interests of the REIT and
its unitholders.
"We believe that the market value of our units does not reflect
the intrinsic value of the REIT, and that continuing purchases
under the normal course issuer bid, and suspending the distribution
reinvestment plan, which currently offsets the benefits generated
by purchases made under the normal course issuer bid, is in the
best interests of the REIT and its unitholders" said Michel Dallaire, President and Chief Executive
Officer of Cominar. "The suspension of the distribution
reinvestment plan until further notice in no way affects our
monthly cash distribution which remains sound and stable" added Mr.
Dallaire.
If Cominar elects to reinstate the DRIP in the future,
unitholders that were enrolled in the DRIP at suspension and remain
enrolled at reinstatement will automatically resume participation
in the DRIP.
PROFILE AS AT JANUARY 20,
2016
Cominar is the third largest diversified real
estate investment trust in Canada
and currently remains the largest commercial property owner in the
Province of Québec. The REIT owns a real estate portfolio of 564
properties in three different market segments, that is, office
properties, retail properties and industrial and mixed-use
properties. Cominar's portfolio totals 45.3 million square feet
spread out across Québec, Ontario,
the Atlantic Provinces and Western
Canada. Cominar's objectives are to pay growing cash
distributions to unitholders and to maximize unitholder value
through proactive management and the expansion of its
portfolio.
SOURCE COMINAR REAL ESTATE INVESTMENT TRUST