TSX SYMBOL: BEI May 7, 2004
BOARDWALK REAL ESTATE INVESTMENT TRUST TO CONTINUE NORMAL COURSE ISSUER BID
Calgary, Alberta – May 7, 2004
- Boardwalk Equities Inc. ("BEI" - TSE)
Boardwalk Real Estate Investment Trust (“Boardwalk”) is
pleased to announce that it will continue the normal
course issuer bid (the “Bid”) of its predecessor issuer
on the Toronto Stock Exchange, Boardwalk Equities Inc.
(“BEI”), commenced on August 25, 2003.
Boardwalk currently has 48,753,274 issued and outstanding
trust units. Under the Bid, Boardwalk is permitted to
purchase 2,770,228 trust units, based on a public float
of BEI of 27,702,284 common shares when the Bid commenced
on August 25, 2003, through the facilities of the Toronto
Stock Exchange. The Bid will terminate as scheduled on
August 24, 2004 or such earlier time
as the Bid is complete.
Boardwalk’s predecessor as a listed company on the TSX,
Boardwalk Equities Inc. (the “Corporation”), did not
purchase any of its common shares pursuant to the
outstanding Bid.
Boardwalk believes that the current and recent market
prices of its securities do not reflect their underlying
value. Boardwalk’s management is continuing this program
as it feels that, at current market prices, an investment
in Boardwalk’s own high quality portfolio will deliver
strong returns for unitholders and represents an effective
use of its capital and steadily increasing cash flows.
At the same time, Boardwalk plans to continue its property
acquisition and capital improvement programs. Boardwalk
will purchase the trust units for cancellation with the
intention of increasing the proportionate interest of
all remaining unitholders.
Concurrent with the Bid, Messrs. Sam and Van Kolias, the
controlling unitholders of Boardwalk, through Boardwalk
Properties Company Limited, intend to sell 500,000 trust
units of Boardwalk from their combined holdings to fund
repayment of indebtedness, tax liabilities, and to fund
their charitable causes. In connection with such sale of
trust units, Messrs. Sam and Van Kolias will take
appropriate steps to ensure that none of the trust units
sold by Boardwalk Properties Company Limited are offered
for sale or purchased as part of the Bid and will
instruct the brokerage firm appointed to execute the sale
of their 500,000 trust units through the facilities of the
Toronto Stock Exchange not to offer for sale any of those
trust units through the Bid.
Corporate Profile
Boardwalk REIT is an open-ended real estate investment
trust formed to acquire all of the assets and undertakings
of Boardwalk Equities Incorporated. Boardwalk REIT’s
principal objectives are to provide its unitholders
with monthly cash distributions, partially on a Canadian
income tax-deferred basis, and to increase the value of
its units through the effective management of its
residential multi-family revenue producing properties
and the acquisition of additional properties.
Boardwalk REIT currently owns and operates in excess
of 250 properties with over 31,400 units totaling
approximately 26 million net rentable square feet,
and is Canada’s largest owner/operator of multi-family
rental communities. The Company’s portfolio is
concentrated in the provinces of
Alberta, Saskatchewan, Ontario and Quebec.
For further information please contact:
Boardwalk Real Estate Investment Trust
Sam Kolias,
President and CEO,
(403) 531-9255;
Roberto Geremia,
Senior Vice President, Finance
and Chief Financial Officer,
(403) 531-9255;
or
Paul Moon,
Director of Corporate Communications,
(403) 531-9255.
