Granite Real Estate Investment Trust Announces Normal Course Issuer Bid

Strategic Insights -

Granite Real Estate Investment Trust (GRT.UN/TSX) (GRP.U/NYSE), a leading real estate investment trust, has announced its intention to purchase up to 6,060,162 of its units through a normal course issuer bid. This move is aimed at utilizing Granite's liquidity to purchase units at prices below its intrinsic value, as deemed by its Board of Trustees. The bid, which commenced on May 26, 2025, will continue until May 25, 2026, or when the purchased units reach a total of 6,060,162.

Key Takeaways:

  • Granite REIT will purchase up to 6,060,162 units, representing approximately 10% of its public float, over the next 12 months.
  • The bid will commence on May 26, 2025, and conclude on May 25, 2026, or when the purchased units reach 6,060,162.
  • Daily purchases will be limited to 27,099 units, subject to certain exceptions prescribed by the Toronto Stock Exchange (TSX).
  • Granite REIT intends to enter into an automatic securities purchase plan with a broker to facilitate repurchases under the bid during scheduled blackout periods.
  • The Board of Trustees believes that the potential purchases at prices below Granite REIT's intrinsic value are in the best interests of the company.
  • All units purchased under the NCIB will be cancelled.

Statistics:

  • Up to 6,060,162 units will be purchased under the normal course issuer bid.
  • Daily purchases will be limited to 27,099 units (25% of the average daily trading volume).
  • The bid will continue for 12 months, concluding on May 25, 2026.
  • As of May 20, 2025, Granite REIT had 60,901,220 units issued and outstanding, with a public float of 60,601,628 units.
  • The weighted average purchase price for the units purchased under the previous NCIB was $66.8627.

Sources:

  • Granite Real Estate Investment Trust news release dated May 20, 2025.
  • Toronto Stock Exchange (TSX) rules and regulations regarding normal course issuer bids.
  • Canadian Securities Administrators' National Instrument 62-104 Take-Over Bids and Issuer Bids.