Choice Properties REIT Announces New Normal Course Issuer Bid to Repurchase Units
Choice Properties Real Estate Investment Trust (“Choice Properties” or the “Trust”), a leading Canadian REIT known for its portfolio anchored by necessity-based retail properties, today announced a significant step in its capital allocation strategy. The Trust has received acceptance from the Toronto Stock Exchange (TSX) for a notice outlining its intention to initiate a new Normal Course Issuer Bid (NCIB), commonly known as a share buyback program.
This program signals Choice Properties’ belief that its trust units (Units) may, at certain times, represent an attractive investment, providing an appropriate and effective use of the Trust’s corporate funds. This mechanism allows the Trust to repurchase its own Units from the public market, which can enhance value for remaining unitholders by reducing the total number of outstanding Units.
Key Details of the New NCIB Program
The notice filed with the TSX establishes the parameters and limits for the planned repurchase program.
The NCIB will commence on November 21, 2025, and will remain active for a 12-month period, terminating on November 20, 2026.
Maximum Purchase Limit: During this period, Choice Properties is authorized to purchase up to 27,436,700 Units. This number represents approximately 10% of the public float of the Trust’s Units. As of November 7, 2025, Choice Properties reported having a total of 328,024,272 outstanding Units.
Daily Purchase Restriction: In adherence to TSX rules designed to prevent undue influence on the market, the Trust’s daily purchases will be strictly limited. Based on the average daily trading volume (ADTV) of 423,047 Units over the preceding six months, the maximum number of Units that can be purchased on any single day is restricted to 105,761 Units. This restriction does not apply to “block purchases,” which are subject to specific exceptions under TSX rules.
Mechanism and Methods of Acquisition
The Units will be purchased primarily through open market transactions conducted over the facilities of the TSX or through alternative trading systems. Choice Properties has outlined several flexible methods for executing the buyback program, allowing it to adapt to prevailing market conditions:
- Open Market Transactions: The standard method of purchasing Units at the prevailing market price.
- Forward Purchase or Swap Contracts: The Trust may enter into financial arrangements that relate to Units. These contracts can be settled either physically (delivery of Units), through cash settlement, or a combination of both. The final forward price for these contracts will be determined based on market price, the Trust’s dividend yield, and current market interest rates.
- Private Agreements/Unit Repurchase Programs: Choice Properties may also acquire Units through private agreements or specialized unit repurchase programs. This method, however, requires the Trust to first obtain an issuer bid exemption order from applicable regulatory authorities. Should such an exemption be granted, purchases made through these private channels may occur at a discount to the prevailing public market price, as specified in the relevant exemption order.
Strategic Rationale and Use of Repurchased Units
The decision-making process regarding the timing and volume of future Unit purchases will be dynamic, heavily reliant on a continuous assessment of market conditions, Unit price levels, and other relevant corporate factors. The Trust reserves the right to suspend or discontinue the NCIB at any point, providing crucial financial flexibility.
The primary strategic driver behind the NCIB is the belief that the current market price of the Units may, from time to time, be undervalued. In this scenario, repurchasing Units becomes an attractive and appropriate use of corporate funds, generating potential long-term value for existing unitholders.
Usage of Repurchased Units: Any Units acquired through the NCIB program will be utilized in one of two ways:
- Cancellation: The Units will be cancelled, effectively reducing the number of total outstanding Units and increasing the proportionate ownership interest of the remaining unitholders.
- Incentive Plans: The Units may be used in connection with the Trust’s equity-settled incentive plans, helping to manage the compensation structure for key personnel.
Furthermore, Choice Properties may employ the NCIB as a mechanism to offset the dilutive effect of options that have been exercised under its incentive plans. By repurchasing a number of Units equal to those issued via option exercises, the Trust can maintain a more stable overall Unit count.
Status of Previous NCIB
The announcement also provided a brief update on the Trust’s previous NCIB, which was approved to purchase up to 27,566,130 Units during the period of November 21, 2024, to November 20, 2025.
As of November 7, 2025, Choice Properties had purchased a total of 282,657 Units under that preceding program. These purchases were executed on the TSX and alternative trading systems at a weighted average price of $13.67 per Unit. This data provides context for the scale and pricing of the Trust’s recent repurchase activity.
Pre-Defined Trading Plans
To ensure regulatory compliance and facilitate continuous participation in the buyback program, Choice Properties may implement a pre-defined plan with its broker. Such a plan allows for the purchase of Units even during internal trading blackout periods—times when the Trust’s management and insiders would ordinarily be restricted from actively trading its securities due to the potential possession of material non-public information.
Any pre-defined plan entered into will strictly adhere to all requirements of applicable Canadian securities laws, ensuring that all purchases made during these periods are conducted in a fair and transparent manner, free from the influence of insider informa
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