Allied Moves Forward with Normal Course Issuer Bid Strategy

Allied Properties Real Estate Investment Trust Press Release

Allied Properties Real Estate Investment Trust (“Allied”) (TSX:AP.UN) has recently taken a significant step by receiving approval from the Toronto Stock Exchange for a normal course issuer bid (NCIB). This strategic move allows Allied to purchase up to 12,615,599 of its 127,955,983 issued and outstanding units, which equates to approximately 10% of its public float. This action reflects Allied's commitment to manage its capital effectively and enhance shareholder value.

Understanding the Normal Course Issuer Bid

Starting from February 26, 2025, Allied intends to launch the NCIB, which will remain active until February 25, 2026, or until all intended purchases are completed. The acquisitions will occur directly on the TSX and possibly through other trading systems within Canada, adhering to market conditions at the time of repurchase. According to TSX regulations, daily purchases will not exceed 132,318 units, which is 25% of the average daily trading volume over the past six months. This ensures that the purchasing process does not disrupt market stability.

Purpose Behind the NCIB

The primary goal of the NCIB is to acquire units to fulfill commitments to employees under its restricted unit plan, in addition to other employee-related programs. This endeavor not only aids in improving employee satisfaction but also enables Allied to strategically reduce the number of issued units over time, depending on market factors and conditions. Furthermore, repurchased units may be cancelled or allocated to employee incentive programs, reinforcing the company’s dedication to its workforce.

Previous Issuer Bid Initiatives

Allied previously initiated a normal course issuer bid on February 26, 2024, with the approval to purchase up to 12,629,698 units. During that period, Allied successfully repurchased 120,338 units at a weighted average price of $17.00 per unit. This history of active management of its unit structure demonstrates Allied's proactive approach to capital allocation and shareholder engagement.

Market Conditions and Buying Strategy

In fluctuating market environments, Allied may implement predefined plans with its broker to strategically time repurchases. Doing so during internal trading blackout periods or when company executives are restricted from trading can provide a stable approach to acquiring units without the pressures of market speculation. Adhering to Canadian securities laws ensures that these transactions are completed transparently and legally.

Allied’s Vision and Commitment

As one of Canada's leading owners and operators of unique urban workspaces, Allied is dedicated to creating environments that support knowledge-based organizations. Their mission focuses on providing sustainable workspaces that foster creativity, connectivity, and wellness. Ultimately, Allied seeks to contribute positively to urban development and culture.

Contact Information

For more information about Allied and its initiatives, the following executives are available for inquiries:

Cecilia C. Williams
President & Chief Executive Officer
(416) 977-9002
mailto:cwilliams@alliedreit.com

Nanthini Mahalingam
Senior Vice President & Chief Financial Officer
(416) 977-9002
mailto:nmahalingam@alliedreit.com

Frequently Asked Questions

What is a normal course issuer bid (NCIB)?

An NCIB is a program that allows a company to repurchase its own shares from the market, enhancing shareholder value and managing capital effectively.

Why is Allied initiating an NCIB now?

Allied is responding to market conditions and aiming to fulfill its commitments to employees while also looking to potentially cancel some units to manage its share structure.

How many units will Allied purchase under this NCIB?

Allied plans to repurchase up to 12,615,599 units through this NCIB.

What will happen to repurchased units?

Units repurchased may either be cancelled or used in participant programs under Allied’s restricted unit plan.

Who can I contact for more information?

For further details, you can reach out to Cecilia C. Williams or Nanthini Mahalingam at the provided contact numbers.

About The Author

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