Primaris Real Estate Investment Trust Announces Renewal of Normal Course Issuer Bid
Toronto, Ontario – Primaris Real Estate Investment Trust (Primaris or the Trust) (TSX: PMZ.UN) is pleased to announce that it has received acceptance from the Toronto Stock Exchange (TSX) for the renewal of its normal course issuer bid (NCIB).
About the Normal Course Issuer Bid
Under the NCIB, Primaris will have the ability to purchase for cancellation up to a maximum of 7,567,092 of its Series A units (Units) on the open market. This represents approximately 10% of the “public float” (calculated in accordance with the TSX’s guidelines), which is currently 75,670,923 Units.
Rationale Behind the NCIB
Primaris’ Board of Trustees believes that buying back Units under the NCIB is an attractive use of available funds. The Trust aims to enhance Unitholder value by reducing the number of outstanding Units, thereby increasing the proportionate interest of each remaining Unitholder in Primaris’ assets.
NCIB Details
The NCIB will commence on February 2, 2023, and will terminate on February 1, 2024, or earlier if Primaris decides to terminate the bid prior to that date. The Trust will make purchases under the NCIB through the facilities of the TSX or alternative Canadian trading systems in accordance with their respective rules. The price that Primaris will pay for any Units purchased under the NCIB will be the market price at the time of acquisition.
Impact on Individual Investors
As a result of Primaris’ NCIB, individual investors may see a potential increase in the price of their Units due to the reduction in the number of outstanding Units. However, it is important to note that the NCIB is not a guarantee of a specific price increase.
Impact on the Market and Economy
Primaris’ NCIB could potentially lead to increased demand for its Units on the open market, which could result in increased liquidity and potentially higher trading volumes. This could benefit the broader real estate investment trust (REIT) sector, as increased liquidity and trading volumes can make it easier for investors to enter and exit positions in REITs. Furthermore, the Trust’s decision to repurchase Units could be seen as a sign of confidence in the Trust’s future prospects, which could positively impact investor sentiment towards the REIT sector as a whole.
Conclusion
Primaris Real Estate Investment Trust’s renewal of its normal course issuer bid represents an attractive use of available funds and a potential value-enhancing opportunity for Unitholders. The reduction in the number of outstanding Units could lead to increased liquidity and potentially higher trading volumes in the REIT sector, benefiting both Primaris and its investors. However, it is important for investors to remember that the NCIB is not a guarantee of a specific price increase.
- Primaris Real Estate Investment Trust has received acceptance from the Toronto Stock Exchange to renew its normal course issuer bid.
- Under the NCIB, Primaris can purchase up to 7,567,092 Units on the open market, representing approximately 10% of the public float.
- The NCIB commences on February 2, 2023, and terminates on February 1, 2024, or earlier.
- The Trust will make purchases under the NCIB in accordance with the TSX’s rules.
- The NCIB could potentially lead to increased demand for Primaris’ Units, increased liquidity, and higher trading volumes in the REIT sector.
