DREAM OFFICE REAL ESTATE INVESTMENT TRUST (D.UN-TSX) announced today that the Toronto Stock Exchange (“TSX”) accepted a notice filed by Dream Office REIT (the “Trust”) to renew its prior normal course issuer bid for a one year period. Under the bid, the Trust will have the ability to purchase for cancellation up to a maximum of 2,538,524 of its REIT Units, Series A (the “REIT A Units”) (representing 10% of the Trust’s public float of 25,385,245 REIT A Units as of August 4, 2023) through the facilities of the TSX. The bid will commence on August 21, 2023 and will remain in effect until the earlier of August 20, 2024 or the date on which the Trust has purchased the maximum number of REIT A Units permitted under the bid. Daily repurchases will be limited to 40,440 REIT A Units, representing 25% of the average daily trading volume of the REIT A Units on the TSX during the last six calendar months (being 161,762 REIT A Units per day), other than purchases pursuant to applicable block purchase exceptions. As of August 4, 2023, the number of issued and outstanding REIT A Units was 32,623,208.
In connection with the renewal of its normal course issuer bid, the Trust has established an automatic securities purchase plan (the “Plan”) with its designated broker to facilitate the purchase of REIT A Units under the normal course issuer bid at times when the Trust would ordinarily not be permitted to purchase its REIT A Units due to regulatory restrictions or self-imposed blackout periods. Purchases will be made by the Trust’s broker based upon the parameters prescribed by the TSX and the terms of the parties’ written agreement. Outside of such restricted or blackout periods, the REIT A Units may also be purchased in accordance with Management’s discretion. The Plan has been pre-cleared by the TSX and will terminate on August 20, 2024.
The Trust has renewed its normal course issuer bid because it believes that REIT A Units may become available during the period of the bid at prices that would make the purchase of such REIT A Units for cancellation in the best interests of the Trust and its unitholders.
The Trust sought and received approval from the TSX on August 17, 2022 to purchase up to 3,292,287 REIT A Units for the period from August 19, 2022 to August 18, 2023. Under this bid the Trust purchased for cancellation 2,404,000 REIT A Units through the facilities of the TSX at a weighted average price per Unit of $16.10 for a total cost of approximately $38.7 million. Please note that the amount of REIT A Units repurchased under the bid was in line with both management and board strategy with respect to use of capital for REIT A Unit repurchases. Furthermore, the amount of REIT A Units that can be repurchased in the market under the TSX rules on a daily basis are subject to various trading restrictions which impact the amount that can be repurchased on a daily basis.
About Dream Office REIT
Dream Office REIT is an unincorporated, open-ended real estate investment trust. Dream Office REIT is a premier office landlord in downtown Toronto with over 3.5 million square feet owned and managed. We have carefully curated an investment portfolio of high-quality assets in irreplaceable locations in one of the finest office markets in the world. For more information, please visit our website at www.dreamofficereit.ca.
Forward-Looking Information
This press release may contain forward-looking information within the meaning of applicable securities legislation, including with respect to future purchases of REIT A Units by the Trust. Forward-looking information is based on a number of assumptions and is subject to a number of risks and uncertainties, many of which are beyond the Trust’s control, which could cause actual results to differ materially from those that are disclosed in or implied by such forward-looking information. These risks and uncertainties include, but are not limited to, general and local economic and business conditions, including in respect of real estate; mortgage and interest rates and regulations; inflation; risks related to a potential recession economic slowdown in certain of the jurisdictions in which we operate and the effect inflation and any such recession economic slowdown may have on market conditions and lease rates; the uncertainties around the availability, timing and amount of future equity and debt financings; development risks including construction costs, the project timings and the availability of labour; NOI from development properties on completion; the impact of the COVID-19 pandemic on the Trust; the effect of government restrictions on leasing and building traffic; employment levels; the uncertainties around the timing and amount of future financings; leasing risks, including those associated with the ability to lease vacant space; rental rates on future leasing; and interest and currency rate fluctuations. Our objectives and forward-looking statements are based on certain assumptions, which include but are not limited to, that the general economy remains stable; our interest costs will be relatively low and stable; that we will have the ability to refinance our debts as they mature; inflation and interest rates will not materially increase beyond current market expectations; conditions within the real estate market remain consistent; the timing and extent of current and prospective tenants’ return to the office; our future projects and plans will proceed as anticipated; that government restrictions due to COVID-19 on the ability of us and our tenants to operate their businesses at our properties will not be re-imposed in any material respects; competition for acquisitions remains consistent with the current climate; and that the capital markets continue to provide ready access to equity and/or debt to fund our future projects and plans. All forward-looking information in this press release speaks as of August 17, 2023. The Trust does not undertake to update any such forward-looking information whether as a result of new information, future events or otherwise, except as required by law. Additional information about these assumptions and risks and uncertainties is disclosed in filings with securities regulators filed on SEDAR+ (www.sedarplus.ca). These filings are also available at the Trust’s website at www.dreamofficereit.ca.
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