Canadian Apartment Properties Real Estate Investment Trust T.CAR.UN

RE:RE:Normal Course Issuer Bid

[AlwaysLong683]

Equity raises are usually done either when management thinks the REIT is fully valued or if hte company is in desperate need of money.

1) It would be odd indeed if CAR obtained an NCIB with unit prices in the low 50s, didn't buy back any units, and did an equity raise instead at a price under 60.00.

2) As noted from the PR exerpt in my previous post, CAR has 457M in liquidity on hand, so they are not in desperate need of money, and the size of this liquidity position is likely another reason why they wanted the NCIB as they have cash to buy back shares if they wish.

3) Another excerpt from the CAR PR dated March 21 provides answers to the automated purchase plan and blackout period questions:

"........Under the normal course issuer bid, other than purchases made under block purchase exemptions, CAPREIT may purchase up to 91,823 Units on the TSX during any trading day, which represents approximately 25% of 367,292 Units, which represents the average daily trading volume on the TSX for the most recently completed six calendar months prior to the TSX's acceptance of the notice of the normal course issuer bid.  Any Units purchased under the normal course issuer bid will be cancelled. 

 

Although CAPREIT intends to purchase Units under its normal course issuer bid, there can be no assurances that any such purchases will be completed. Any purchases made under the normal course issuer bid will be made by CAPREIT subject to favourable market conditions at the prevailing market price at the time of acquisition and through the facilities of the TSX and/or alternative Canadian trading systems. CAPREIT intends to enter into an automatic purchase plan to be effective March 24, 2022 during the term of the normal course issuer bid. The automatic purchase plan will allow for purchases by CAPREIT of Units during certain pre-determined blackout periods."