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 862,071 of its REIT Units, Series A (the “REIT A Units”) (representing 10% of the Trust’s public float of 8,620,718 REIT A Units as of August 12, 2024) through the facilities of the TSX. The bid will commence on August 21, 2024 and will remain in effect until the earlier of August 20, 2025 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 15,752 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 63,011 REIT A Units per day), other than purchases pursuant to applicable block purchase exceptions. As of August 12, 2024, the number of issued and outstanding REIT A Units was 16,335,563.
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, 2025.
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.
During the period from August 21, 2023 to August 18, 2024, under its prior normal course issuer bid which terminates on August 20, 2024, Dream Office REIT did not purchase for cancellation any REIT A Units.
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 economic slowdown in certain of the jurisdictions in which we operate and the effect inflation and any such economic slowdown may have on market conditions and lease rates; risks associated with unexpected or ongoing geopolitical events, including disputes between nations, war, terrorism or other acts of violence; the uncertainties around the availability, timing and amount of future equity and debt financings; development risks including construction costs, 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; the ability of the Trust and its tenants to access government programs; the financial condition of tenants and borrowers; employment levels; the uncertainties around the timing and amount of future financings; leasing risks, including those associated with the ability to lease vacant space and properties under development; 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 public health crises on the ability of us and our tenants to operate their businesses at our properties will not be 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 19, 2024. 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.com). These filings are also available at the Trust’s website at www.dreamofficereit.ca.
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