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OTTAWA, ON, Dec. 16, 2024 /CNW/ - InterRent Real Estate Investment Trust (TSX: IIP.UN) ("InterRent" or the "REIT") announced today its December distribution; the suspension of its distribution reinvestment plan ("DRIP"); and its intention to be increasingly active under its previously announced normal course issuer bid ("NCIB").
The REIT's distribution declared for the month of December 2024 is approximately $0.0331 per Trust unit, equal to $0.3969 per Trust unit on an annualized basis. Payment will be made on or about January 15, 2025, to unitholders of record on December 31, 2024.
The suspension of the DRIP and intention to increase activity under the NCIB reflects management's view that the REIT's units are currently undervalued and represent a prudent allocation of capital based on current market conditions. The REIT believes this action is in the best interest of its unitholders and reflects management's confidence in the REIT's ability to improve long-term unitholder value.
Suspension of DRIP
Effective immediately, the REIT has suspended the DRIP until further notice due to the prevailing market unit price and the resulting unfavourable unitholder dilution. As a result and until further notice, Unitholders will receive distributions in cash following the December 16, 2024 distribution. The REIT will continue to evaluate the DRIP and consider reinstating it when appropriate, including when market conditions improve. Unitholders enrolled in the DRIP at the time of suspension and who remain enrolled at the time of its reinstatement will automatically resume participation in the DRIP at that time.
Intention to Be Increasingly Active on NCIB Program
The REIT and its Board of Trustees believe that its units trade in a price range which does not adequately reflect the value of such units in relation to the business of the REIT and its future business prospects. The purchase of units at certain market prices below its net asset value presents an attractive use of the REIT's funds while benefiting unitholders by increasing their proportionate equity interest in the REIT.
Decisions regarding the timing of purchases under the NCIB will be determined at management's discretion based on market conditions, unit price and other factors that enhance long-term Unitholder value. The NCIB commenced on May 23, 2024 and ends on May 22, 2025.
Terms of the NCIB
- The REIT previously announced its intention to undertake an NCIB to repurchase up to 13,763,906 Units between May 23, 2024 and May 22, 2025, which represented approximately 10% of the public float of units issued and outstanding as at May 10, 2024.
- Repurchases of Units pursuant to the NCIB will be made by means of open market transactions through the facilities of the TSX and/or alternative Canadian trading systems, if eligible, at the market price of the Units at the time of repurchase or as otherwise permitted under the rules of the TSX and applicable securities laws.
- For open market transactions, the REIT will be subject to a daily repurchase limit of 90,157 Units except where purchases are made in accordance with "block purchases" exemptions under applicable TSX policies.
- The REIT also previously announced that it has entered into an automatic unit purchase plan ("AUPP") with a designated broker which is intended to allow for the purchase of Units under the NCIB at times when the REIT would ordinarily not be permitted to purchase units due to regulatory restrictions and customary self-imposed blackouts. Purchases under the AUPP will be determined by the designated broker at its sole discretion based on purchasing parameters set by InterRent in accordance with the rules of the TSX, applicable securities laws and the terms of the AUPP.
- InterRent will pay the market price at the time of acquisition for any Unit purchased through the facilities of the TSX and all Units acquired by the REIT under NCIB will be cancelled.
ABOUT INTERRENT
InterRent REIT is a growth-oriented real estate investment trust engaged in increasing Unitholder value and creating a growing and sustainable distribution through the acquisition and ownership of multi-residential properties.
InterRent's strategy is to expand its portfolio primarily within markets that have exhibited stable market vacancies, sufficient suites available to attain the critical mass necessary to implement an efficient portfolio management structure, and offer opportunities for accretive acquisitions.
InterRent's primary objectives are to use the proven industry experience of the Trustees, Management and Operational Team to: (i) to grow both funds from operations per Unit and net asset value per Unit through investments in a diversified portfolio of multi-residential properties; (ii) to provide Unitholders with sustainable and growing cash distributions, payable monthly; and (iii) to maintain a conservative payout ratio and balance sheet.
Cautionary Statements
This news release contains "forward-looking statements" within the meaning applicable to Canadian securities legislation. Generally, these forward-looking statements can be identified by the use of forward-looking terminology such as "plans", "anticipated", "expects" or "does not expect", "is expected", "budget", "scheduled", "estimates", "forecasts", "intends", "anticipates" or "does not anticipate", or "believes", or variations of such words and phrases or state that certain actions, events or results "may", "could", "would", "might" or "will be taken", "occur" or "be achieved". InterRent is subject to significant risks and uncertainties which may cause the actual results, performance or achievements to be materially different from any future results, performance or achievements expressed or implied by the forward looking statements contained in this release. A full description of these risk factors can be found in InterRent's most recently publicly filed information located at www.sedarplus.ca. InterRent cannot assure investors that actual results will be consistent with these forward looking statements and InterRent assumes no obligation to update or revise the forward looking statements contained in this release to reflect actual events or new circumstances.
The Toronto Stock Exchange has not reviewed and does not accept responsibility for the adequacy or accuracy of this release.
SOURCE InterRent Real Estate Investment Trust
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