Choice Properties Real Estate Investment Trust (CPREIT) has unveiled its intention to initiate a program known as a normal course issuer bid (NCIB) in an announcement made to the Toronto Stock Exchange (TSX). The notice submitted by CPREIT has been accepted by the TSX, granting them the authority to buy back up to 27,563,002 trust units over a period of one year. This quantity represents approximately 10% of the public float of the Units.
The NCIB will be in effect from November 21, 2023, to November 20, 2024, and CPREIT can choose to make these purchases through the TSX facilities, alternative trading systems, or any other lawful means as permitted by applicable regulations.
As of November 8, 2023, CPREIT currently has 327,859,972 outstanding Units. To ensure compliance with trading regulations, CPREIT will be limited to daily purchases of no more than 81,203 Units, with the exception of block purchases. This limitation is based on the average daily trading volume of 324,814 Units over the past six months.
Through this NCIB, CPREIT demonstrates its confidence in the value of its trust units while offering potential benefits to its investors. Repurchasing its own trust units allows CPREIT to enhance shareholder value, improve capital efficiency, and take advantage of investment opportunities.
Q: What is a normal course issuer bid (NCIB)?
An NCIB is a program that enables publicly traded companies like CPREIT to buy back their own outstanding shares or trust units.
Q: How long will the NCIB be in effect?
CPREIT’s NCIB will be active for a 12-month period from November 21, 2023, to November 20, 2024.
Q: How many trust units can CPREIT repurchase?
CPREIT has been authorized to repurchase up to 27,563,002 trust units during the NCIB, which represents approximately 10% of the public float of the Units.
Q: Are there any limitations on daily purchases?
Yes, CPREIT will be limited to daily purchases not exceeding 81,203 Units, excluding block purchase exceptions.