MELCOR REIT ANNOUNCES NORMAL COURSE ISSUER BID

NOT FOR DISTRIBUTION IN THE UNITED STATES OR OVER UNITED STATES WIRE SERVICES.
EDMONTON, Alberta, March 30, 2020 (GLOBE NEWSWIRE) — Melcor Real Estate Investment Trust (TSX:MR.UN) (the “REIT”) announced today that the Toronto Stock Exchange has accepted its notice of intention to make a normal course issuer bid through the facilities of the TSX and on alternative Canadian trading systems.
The notice provides that the REIT may, during the twelve-month period commencing April 1, 2020 and ending March 31, 2021, purchase for cancellation up to 655,792 Trust Units in total, being approximately 5% of its issued and outstanding Trust Units. The daily repurchase restriction for the Trust Units is 3,207.The price which the REIT will pay for any such Trust Units will be the market price at the time of acquisition. The actual number of Trust Units which may be purchased and the timing of any such purchases will be subject to compliance with the TSX guidelines.Under the current normal course issuer bid due to expire March 31, 2020, the REIT sought and had approval to purchase 659,339 Trust Units it total, representing approximately 5% of the REIT’s issued and outstanding. As of March 18, 2020, 70,952 Trust Units were purchased for cancellation through the facilities of the TSX during the last twelve months at a weighted average price per common share of $7.21. As of March 18, 2020, there were 13,115,845 Trust Units of the REIT outstanding and the average daily trading volume for the six-month period ending February, 2019 was 12,828.The REIT believes that, at times, its Trust Units trade in a price range which does not adequately reflect the value of such Trust Units in relation to the business of the REIT and its future business prospects. As a result, depending upon future price movements and other factors, the REIT believes that its outstanding Trust Units may represent an attractive investment for itself. Furthermore, the purchases may benefit all persons who continue to hold Trust Units by increasing their equity interest in the REIT. All Trust Units purchased by the REIT under the normal course issuer bid will be cancelled.In connection with commencement of the NCIB the REIT also announced that it has entered into an automatic purchase plan agreement (“APP”) with a broker to allow for the purchase of Trust Units under the NCIB at times when the REIT ordinarily would not be active in the market due to regulatory restrictions or self-imposed trading blackout periods. Before entering into such restricted or blackout period, the REIT may, but is not required to, instruct the designated broker to make purchases under the NCIB in accordance with the terms of the APP. Such purchases will be determined by the broker in its sole discretion based on parameters established by the REIT prior to the restricted or blackout period in accordance with TSX rules, applicable securities laws and the terms of the APP. The terms of the APP have been pre-cleared by the TSX. Outside of these pre-determined restricted or blackout periods, Trust Units will be purchased based on management’s discretion, in compliance with TSX rules and applicable securities laws.About Melcor REIT