WINNIPEG, MB, March 31,
2023 /CNW/ - Artis Real Estate Investment Trust (TSX:
AX.UN) ("Artis" or the "REIT") announced today that it does not
intend to exercise its right to redeem all or any part of the
currently outstanding Preferred Units, Series I ("Series I
Units") (AX.PR.I) on April 30,
2023.
As a result, and subject to certain conditions set forth in the
certificate of preferred units terms relating to the Series I Units
effective January 31, 2018 (the
"Certificate of Series I Unit Terms"), the holders of Series
I Units have the right to elect to reclassify all or any of their
Series I Units into Preferred Units, Series J ("Series J
Units") of Artis on the basis of one Series J Unit for each
Series I Unit on May 1, 2023 (being
the first business day after April 30,
2023).
With respect to any Series I Units that remain outstanding after
May 1, 2023, holders thereof will be
entitled to receive distributions, if, as and when declared by the
Board of Trustees of Artis, in an annual amount per Series I Unit
determined by multiplying the annual fixed distribution rate for
such subsequent fixed rate period by $25.00, and shall be payable quarterly on the
last business day of each of January, April, July and October in
each year during such subsequent fixed rate period. For the
initial subsequent fixed rate period commencing on May 1, 2023, the annual fixed distribution rate
is 6.993% per annum.
With respect to any Series J Units that may be issued on
May 1, 2023, holders thereof will be
entitled to receive distributions, if, as and when declared by the
Board of Trustees of Artis, in an amount per Series J Unit
determined by multiplying the floating quarterly distribution rate
(calculated on the basis of the actual number of days elapsed in
such quarterly floating rate period, divided by 365) by
$25.00, which shall be payable
quarterly on the last business day of such quarterly floating rate
period. For the initial quarterly floating rate period commencing
May 1, 2023, the floating quarterly
distribution rate is 8.337% per annum.
Holders of Series I Units are not required to elect to
reclassify all or any part of their Series I Units into Series J
Units.
As provided in the Certificate of Series I Unit Terms: (i) if
Artis determines that there would remain outstanding on
May 1, 2023 less than 500,000 Series
I Units, all remaining Series I Units shall be reclassified
automatically into Series J Units on a one-for-one basis, effective
May 1, 2023; or (ii) if Artis
determines that less than 500,000 Series J Units would be issued
based upon the elections of holders, then holders of Series I Units
shall not be entitled to reclassify their Series I Units into
Series J Units.
As at the date hereof, there are an aggregate of 4,871,140
Series I Units issued and outstanding.
The Series I Units are issued in "book entry only" form and must
be purchased or transferred through a participant in the CDS
depository service (each, a "CDS Participant"). All
rights of holders of Series I Units must be exercised through CDS
or the CDS Participant through which the Series I Units are
held. The deadline for the registered holder of Series I
Units to provide notice of exercise of the right to reclassify
Series I Units into Series J Units is 5:00
p.m. (Toronto time) on
April 17, 2023. Any notices received
after this deadline will not be valid. As such, holders of Series I
Units who wish to exercise their right to reclassify their Series I
Units into Series J Units should contact their broker or
intermediary for more information and it is recommended that this
be done well in advance of the deadline in order to provide the
broker or other intermediary with time to complete the necessary
steps.
If Artis does not receive an election notice in due form from a
holder of Series I Units during the time fixed therefor, then the
Series I Units shall be deemed not to have been reclassified (other
than pursuant to an automatic reclassification). Holders of
Series I Units and Series J Units will have the opportunity to
reclassify their units again on May 1,
2028 (being the first business day after April 30, 2028), and every five years after
April 30, 2028 as long as such units
remain outstanding.
The Toronto Stock Exchange ("TSX") has conditionally approved
the listing of the Series J Units effective upon
reclassification. Listing of the Series J Units is subject to
Artis fulfilling all the listing requirements of the TSX.
*********
Artis is a diversified Canadian real estate investment trust
with a portfolio of industrial, office and retail properties in
Canada and the United States. Artis' vision is to build a
best-in-class asset management and investment platform focused on
growing net asset value per unit and distributions for investors
through value investing in real estate.
SOURCE Artis Real Estate Investment Trust