TORONTO--(BUSINESS WIRE)--Slate Retail REIT (TSX: SRT.U) (TSX: SRT.UN) (the "REIT"), an owner and operator of U.S. grocery-anchored real estate, announced today that the REIT has received approval from the Toronto Stock Exchange (the “TSX”) to renew its existing normal course issuer bid effective at the open of markets on May 26, 2020 to repurchase for cancellation up to 3,673,524 class U units (the “Class U Units”), or 10% of the public float of 36,735,248 Class U Units as of May 12, 2020.
As of May 12, 2020, 40,498,335 Class U Units were outstanding. The REIT may purchase Class U Units for cancellation over the 12-month period commencing May 26, 2020 and ending on May 25, 2021. Any purchases under the normal course issuer bid will be made through the facilities of the TSX and/or through other permitted means, including through one or more alternative Canadian trading systems, and in accordance with applicable regulatory requirements at the prevailing market price on the TSX or the alternative market at the time of purchase or such other price as may be permitted by the TSX at the time of acquisition. Subject to certain prescribed exemptions and any block purchase made in accordance with the rules of the TSX, the number of Class U Units that can be purchased pursuant to the bid is subject to a daily maximum of 20,027 Class U Units, or approximately 25% of the average daily trading volume during the period from November 1, 2019 to April 30, 2020 (being 80,111 Class U Units per day). The actual number of Class U Units which may be purchased (if any), and the timing of any such purchases, will be determined by the REIT. Any Class U Units purchased under the normal course issuer bid will be cancelled following purchase. The REIT intends to fund the purchases of Class U Units under its normal course issuer bid out of the general funds of the REIT.
Under its prior normal course issuer bid that commenced on May 26, 2019 and expires on May 25, 2020, the REIT previously sought and received approval from the TSX to purchase up to 3,852,857 Class U Units. As of today’s date, the REIT has purchased for cancellation 1,901,069 Class U Units through open market purchases on the TSX at a weighted average price of U.S.$9.90 per Class U Unit.
Management believes that the purchase by the REIT of a portion of its outstanding Class U Units may increase unitholder value and that such purchases constitute a desirable use of the REIT’s available resources. The REIT will continue to assess its capital allocation alternatives together with the Board of Trustees on a regular basis.
About Slate Retail REIT (TSX: SRT.U / SRT.UN)
Slate Retail REIT is a real estate investment trust focused on U.S. grocery-anchored real estate. The REIT owns and operates approximately U.S.$1.2 billion of assets located across the top 50 U.S. metro markets that are visited regularly by consumers for their everyday needs. The REIT’s diversified portfolio and quality tenant covenants provide a strong basis to continue to grow unitholder distributions and the flexibility to capitalize on opportunities that drive value appreciation. Visit slateretailreit.com to learn more about the REIT.
About Slate Asset Management
Slate Asset Management is a leading real estate focused alternative investment platform with over $6.5 billion in assets under management. Slate is a value-oriented manager and a significant sponsor of all of its private and publicly traded investment vehicles, which are tailored to the unique goals and objectives of its investors. The firm's careful and selective investment approach creates long-term value with an emphasis on capital preservation and outsized returns. Slate is supported by exceptional people, flexible capital and a demonstrated ability to originate and execute on a wide range of compelling investment opportunities. Visit slateam.com to learn more.
Certain information herein constitutes “forward-looking information” as defined under Canadian securities laws which reflect management’s expectations regarding objectives, plans, goals, strategies, future growth, results of operations, performance, business prospects and opportunities of the REIT. The words “plans”, “expects”, “does not expect”, “scheduled”, “estimates”, “intends”, “anticipates”, “does not anticipate”, “projects”, “believes”, or variations of such words and phrases or statements to the effect that certain actions, events or results “may”, “will”, “could”, “would”, “might”, “occur”, “be achieved”, or “continue” and similar expressions identify forward-looking statements. Such forward-looking statements are qualified in their entirety by the inherent risks and uncertainties surrounding future expectations.
Forward-looking statements are necessarily based on a number of estimates and assumptions that, while considered reasonable by management as of the date hereof, are inherently subject to significant business, economic and competitive uncertainties and contingencies. When relying on forward-looking statements to make decisions, the REIT cautions readers not to place undue reliance on these statements, as forward-looking statements involve significant risks and uncertainties and should not be read as guarantees of future performance or results, and will not necessarily be accurate indications of whether or not the times at or by which such performance or results will be achieved. A number of factors could cause actual results to differ, possibly materially, from the results discussed in the forward-looking statements. Additional information about risks and uncertainties is contained in the filings of the REIT with securities regulators.