/NOT FOR DISTRIBUTION TO UNITED STATES NEWSWIRE SERVICES OR FOR
DISSEMINATION IN THE UNITED
STATES/
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
