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Choice Properties Real Estate Investment Trust Announces Normal Course Issuer Bid

September 18, 2018

TORONTO, Sept. 18, 2018 /CNW/ - (TSX: CHP.UN) – Choice Properties Real Estate Investment Trust (Choice Properties) announced today that the Toronto Stock Exchange (TSX) has accepted a notice filed by Choice Properties of its intention to make a normal course issuer bid (NCIB).

The TSX notice provides that Choice Properties may, during the 12-month period commencing September 20, 2018 and terminating September 19, 2019, purchase up to 13,880,839 of Choice Properties' trust units (trust units), representing approximately 5% of the total issued and outstanding trust units, by way of an NCIB on the TSX or through alternative Canadian trading systems or by such other means as may be permitted by the TSX or under applicable law. As of September 13, 2018 Choice Properties had 277,616,782 trust units outstanding. Based on the average daily trading volume of 643,426 during the last six months, daily purchases will be limited to 160,856 trust units, other than block purchase exceptions.

Purchases of trust units will be made in open market transactions on the TSX or through alternative Canadian trading systems. In addition, Choice Properties may enter into forward purchase or swap contracts in connection with trust units which may be settled by physical settlement, cash settlement or a combination thereof. The forward price will be based on market price, dividend yield and market interest rates. Choice Properties may also purchase trust units through private agreements or share repurchase programs if it receives an issuer bid exemption order permitting it to make such purchases. Any purchases of trust units made by way of private agreements or under unit repurchase programs may be at a discount to the prevailing market price as provided in the relevant issuer bid exemption order.

Decisions regarding the timing of future purchases of trust units will be based on market conditions, share price and other factors. Choice Properties may elect to suspend or discontinue its NCIB at any time. Trust units purchased under the NCIB will be cancelled or used in connection with the restricted unit or deferred unit plans. Choice Properties believes that the market price of trust units could be such that their purchase may be an attractive and appropriate use of trust funds. Choice Properties may also use its NCIB to acquire the number of trust units that are issued pursuant to the exercise of options in order to offset the dilutive effect of options that have been exercised. 

From time to time, when Choice Properties does not possess material non-public information about itself or its securities, it may enter into a pre-defined plan with its broker to allow for the purchase of trust units at times when Choice Properties ordinarily would not be active in the market due to its own internal trading blackout periods and insider trading rules. Any such plans entered into with Choice Properties' broker will be adopted in accordance with the requirements of applicable Canadian securities laws.

About Choice Properties Real Estate Investment Trust

Choice Properties, Canada's preeminent diversified real estate investment trust, is the owner and manager a high-quality real estate portfolio comprising 757 properties totaling 67.0 million square feet of gross leasable area.  The Choice Properties portfolio consists of retail properties predominantly leased to necessity-based clients, as well as industrial, office and residential assets concentrated in attractive markets.  Choice Properties also has a significant property development program. Choice Properties' strategic alliance with its principal tenant, Loblaw Companies Limited, the country's leading retailer, is a key competitive advantage providing long-term growth opportunities.  For more information, visit Choice Properties' website at www.choicereit.ca and Choice Properties' issuer profile at www.sedar.com.

SOURCE Choice Properties Real Estate Investment Trust