RE:Wow
stickbot wrote: What happened, class action settlment?
the parties to the Class Action against, among others, certain former trustees and a former officer of Partners REIT, have signed minutes of settlement and will seek approval of the settlement by the Ontario Superior Court of Justice and to have the Class Action dismissed. A hearing for court approval of the settlement is scheduled for December 14, 2018.
Special Distribution:
During 2018 the REIT has disposed of substantially all its properties in western Canada. In addition to generating substantial liquidity these dispositions will align its operations to serve a more geographically concentrated portfolio. The sale of the western properties, generated approximately $50 million in net cash proceeds of which $40 million will be returned to unitholders through a special distribution payment of $0.87 per unit. The REIT is pursuing certain initiatives that it expects will result in all the 2018 distributions being a return of capital. However, until those initiatives are completed there can be no assurances that all such initiatives will be successful.
As far as the stock price goes:
The units will commence trading on an ex-distribution basis (i.e., without an attached "Due Bill" entitlement to the special distribution) commencing the opening of trading on November 13, 2018. The Due Bill redemption date will be November 14, 2018.
Distribution cut:
As a consequence of these dispositions and the special distribution to unitholders, the REIT expects to reduce its regular monthly distribution from the annualized rate of $0.25 per unit to $0.18 per unit. It is also terminating the Dividend Re-Investment and Optional Unit Purchase Plan effective the November 2018 distribution.
With a new distribution of $0.18, at a price of $2.30 the yield would be 7.8% which is close to what it has been the last year.
Upcoming special meeting:
The REIT announced that it will call and hold on December 10, 2018, a special meeting of unitholders of record as of October 30, 2018, to vote on an amendment to the REIT’s Declaration of Trust (the constitution of the REIT) to provide the Board with the authority, should the Board determine to do so, to sell all or substantially all of the assets of the REIT, distribute the net proceeds to the unitholders, and wind-up, liquidate, dissolve or terminate the REIT, in each case without any requirement for further unitholder approval.