TORONTO, May 16, 2018 /CNW/ - Granite Real Estate
Investment Trust and Granite REIT Inc. (TSX: GRT.UN / NYSE:
GRP.U) ("Granite REIT" and "Granite GP", and,
collectively "Granite") today announced the acceptance by
the Toronto Stock Exchange (the "TSX") of Granite GP's
Notice of Intention to Make a Normal Course Issuer Bid
("NCIB"). Pursuant to the NCIB, Granite GP proposes to
purchase through the facilities of the TSX and any alternative
trading system in Canada, from
time to time over the next 12 months, if considered advisable, up
to an aggregate of 3,939,255 of Granite`s issued and outstanding
stapled units (the "Stapled Units") (each Stapled Unit
consisting of one trust unit of Granite REIT and one common share
of Granite GP), being approximately 10% of Granite's public float
of Stapled Units as of April 30,
2018. Pursuant to a previous notice of intention to conduct
a NCIB, under which Granite sought and received approval from the
TSX to purchase up to 4,118,757 Stapled Units for the period of
May 16, 2017 to May 15, 2018, Granite has purchased, as of
April 30, 2018, 1,474,493 Stapled
Units on the open market at a weighted average purchase price of
$49.49 per Stapled Unit. As of
April 30, 2018, Granite had
45,733,941 Stapled Units issued and outstanding and a public float
of 39,392,552 Stapled Units.
The NCIB will commence on May 18,
2018 and will conclude on the earlier of the date on which
purchases under the bid have been completed and May 17, 2019. Pursuant to the policies of the
TSX, daily purchases made by Granite GP through the TSX may not
exceed 16,546 Stapled Units, being 25% of the average daily trading
volume of the Stapled Units on the TSX for the six-month
period ended April 30, 2018, subject
to certain exceptions prescribed by the TSX, including the "block
purchase exemption".
Granite GP intends to enter into an automatic securities
purchase plan with a broker in order to facilitate repurchases of
the Stapled Units under the NCIB during Granite's scheduled
blackout periods. Under the automatic securities purchase plan,
Granite GP's broker may repurchase Stapled Units under the NCIB in
accordance with any advance instructions that Granite GP may elect
to deliver, including without limitation repurchases made at times
when Granite GP would ordinarily not be permitted to repurchase
Stapled Units due to regulatory restrictions or self-imposed
blackout periods. Purchases will be made by Granite GP's broker
based upon the parameters under the NCIB and the terms of the
parties' written agreement.
The Board of Trustees of Granite REIT and the Board of Directors
of Granite GP believe that the proposed purchases at prices below
Granite's view of intrinsic value are in the best interests of
Granite and are a desirable use of Granite's funds. All Stapled
Units that are purchased under the NCIB will be cancelled.
ABOUT GRANITE
Granite is a Canadian-based REIT engaged in the acquisition,
development, ownership and management of predominantly industrial,
warehouse and logistics properties in North America and Europe. Granite owns over 85 rental income
properties representing approximately 30 million square feet of
leasable area. Through the thoughtful deployment of its balance
sheet and selective dispositions, Granite is continuing to build a
high quality, globally diversified industrial real estate
business.
OTHER INFORMATION
Copies of financial data and other publicly filed documents are
available through the internet on Canadian Securities
Administrators' Systems for Electronic Document Analysis and
Retrieval (SEDAR) which can be accessed at www.sedar.com and
on the United States Securities and Exchange Commission's
Electronic Data Gathering, Analysis and Retrieval System (EDGAR)
which can be accessed at www.sec.gov. For further information,
please see our website at www.granitereit.com or contact
Michael Forsayeth, Chief Executive
Officer, at 647-925-7600 or Ilias
Konstantopoulos, Chief Financial Officer, at
647-925-7540.
FORWARD LOOKING STATEMENTS
This press release may contain statements that, to the extent
they are not recitations of historical fact, constitute
''forward-looking statements'' or "forward-looking information"
within the meaning of applicable securities legislation, including
the United States Securities Act of 1933, as amended, the United
States Securities Exchange Act of 1934, as amended, and applicable
Canadian securities legislation. Forward-looking statements and
forward-looking information may include, among others, statements
regarding Granite's future distributions, Stapled Unit repurchases,
plans, goals, strategies, intentions, beliefs, estimates, costs,
objectives, economic performance, expectations, or foresight or the
assumptions underlying any of the foregoing. Words such as ''may'',
''would'', ''could'', ''will'', ''likely'', ''expect'',
''anticipate'', ''believe'', ''intend'', ''plan'', ''forecast'',
''project'', ''estimate'', "seek" and similar expressions are used
to identify forward-looking statements and forward-looking
information. Forward-looking statements and forward-looking
information should not be read as guarantees of future Stapled Unit
repurchases, events, performance or results and will not
necessarily be accurate indications of whether or the times at or
by which such future Stapled Unit repurchases, events or
performance will be achieved. Undue reliance should not be placed
on such statements. Forward-looking statements and forward-looking
information are based on information available at the time and/or
management's good faith assumptions and analyses made in light of
its perception of historical trends, current conditions and
expected future developments, as well as other factors management
believes are appropriate in the circumstances, and are subject to
known and unknown risks, uncertainties and other unpredictable
factors, many of which are beyond Granite's control, that could
cause actual events or results to differ materially from such
forward-looking statements and forward-looking information.
Important factors that could cause such differences include, but
are not limited to the risks set forth in the annual information
form of Granite REIT and Granite GP dated March 1, 2018 (the "Annual Information
Form"). The ''Risk Factors'' section of the Annual Information
Form also contains information about the material factors or
assumptions underlying such forward-looking statements and
forward-looking information. Forward-looking statements and
forward-looking information speak only as of the date the
statements and information were made and unless otherwise required
by applicable securities laws, Granite expressly disclaims any
intention and undertakes no obligation to update or revise any
forward-looking statements or forward-looking information contained
in this press release to reflect subsequent information, events or
circumstances or otherwise.
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SOURCE Granite Real Estate Investment Trust