Granite Real Estate Investment Trust and Granite REIT Inc. Announce Effective Date of Proposed Unwind of Stapled Unit Structure
Granite Real Estate Investment Trust (Granite REIT) and Granite REIT Inc. (Granite GP) have announced that their proposed plan to simplify Granite's capital structure is expected to be completed on October 1, 2024. This arrangement will replace the current stapled unit structure with a conventional REIT trust unit structure. The process involves uncoupling the two components of each Stapled Unit, exchanging Granite GP common shares for fractional Granite REIT units, and consolidating Granite REIT units.
Following this change, unitholders will hold the same number of Granite REIT units as their current Stapled Units, and Granite GP will become a wholly-owned subsidiary of Granite REIT. The Granite REIT units will continue to trade on the Toronto Stock Exchange and New York Stock Exchange under the existing ticker symbols (GRT.UN and GRP.U), with standalone trading expected to begin around October 3, 2024.
Granite Real Estate Investment Trust (Granite REIT) e Granite REIT Inc. (Granite GP) hanno annunciato che il loro piano proposto per semplificare la struttura del capitale di Granite dovrebbe essere completato il 1 ottobre 2024. Questo accordo sostituirà l'attuale struttura delle unità consolidate con una struttura convenzionale delle unità di un REIT. Il processo prevede di separare i due componenti di ogni Unità Consolidata, scambiare le azioni ordinarie di Granite GP con unità frazionarie di Granite REIT e consolidare le unità di Granite REIT.
In seguito a questo cambiamento, gli unitholder deterranno lo stesso numero di unità di Granite REIT delle loro attuali Unità Consolidate e Granite GP diventerà una sussidiaria interamente controllata di Granite REIT. Le unità di Granite REIT continueranno a essere scambiate sulla Toronto Stock Exchange e sulla New York Stock Exchange con i simboli azionari esistenti (GRT.UN e GRP.U), con il trading autonomo previsto per iniziare intorno al 3 ottobre 2024.
Granite Real Estate Investment Trust (Granite REIT) y Granite REIT Inc. (Granite GP) han anunciado que su plan propuesto para simplificar la estructura de capital de Granite se espera que se complete el 1 de octubre de 2024. Este arreglo reemplazará la actual estructura de unidades agrupadas con una estructura convencional de unidades de REIT. El proceso implica desacoplar los dos componentes de cada Unidad Agrupada, intercambiando acciones comunes de Granite GP por unidades fraccionarias de Granite REIT y consolidando unidades de Granite REIT.
Tras este cambio, los tenedores de unidades poseerán el mismo número de unidades de Granite REIT que sus actuales Unidades Agrupadas, y Granite GP se convertirá en una subsidiaria de propiedad total de Granite REIT. Las unidades de Granite REIT seguirán cotizando en la Bolsa de Toronto y en la Bolsa de Nueva York bajo los símbolos de ticker existentes (GRT.UN y GRP.U), y se espera que el comercio independiente comience alrededor del 3 de octubre de 2024.
그라나이트 부동산 투자 신탁(Granite REIT) 및 그라나이트 REIT Inc.(Granite GP)는 그라나이트의 자본 구조를 단순화하기 위한 제안된 계획이 2024년 10월 1일에 완료될 것으로 예상된다고 발표했습니다. 이 조치는 현재의 스테이플 유닛 구조를 기존 REIT 신탁 단위 구조로 대체하게 됩니다. 이 과정은 각 스테이플 유닛의 두 구성 요소를 분리하고, Granite GP의 보통주를 Granite REIT의 분수 단위로 교환하며, Granite REIT 단위를 통합하는 것을 포함합니다.
이 변경이 이루어진 후, 유닛 보유자는 현재 스테이플 유닛과 동일한 수의 Granite REIT 단위를 보유하게 되고, Granite GP는 Granite REIT의 완전 자회사로 전환됩니다. Granite REIT 단위는 기존 거래 기호(GRT.UN 및 GRP.U)로 토론토 증권 거래소와 뉴욕 증권 거래소에서 계속 거래될 것이며, 독립 거래는 2024년 10월 3일 경에 시작될 것으로 예상됩니다.
Granite Real Estate Investment Trust (Granite REIT) et Granite REIT Inc. (Granite GP) ont annoncé que leur plan proposé pour simplifier la structure du capital de Granite devrait être achevé le 1er octobre 2024. Cet arrangement remplacera l'actuelle structure des unités regroupées par une structure conventionnelle d'unités de REIT. Le processus consiste à découpler les deux composants de chaque unité regroupée, à échanger des actions ordinaires de Granite GP contre des unités fractionnaires de Granite REIT, et à consolider les unités de Granite REIT.
Suite à ce changement, les détenteurs d'unités détiendront le même nombre d'unités de Granite REIT que leurs unités regroupées actuelles, et Granite GP deviendra une filiale à part entière de Granite REIT. Les unités de Granite REIT continueront à être négociées à la Bourse de Toronto et à la Bourse de New York sous les symboles boursiers existants (GRT.UN et GRP.U), avec un début de négociation autonome attendu autour du 3 octobre 2024.
Die Granite Real Estate Investment Trust (Granite REIT) und Granite REIT Inc. (Granite GP) haben angekündigt, dass ihr vorgeschlagener Plan zur Vereinfachung der Kapitalstruktur von Granite voraussichtlich am 1. Oktober 2024 abgeschlossen sein wird. Diese Regelung wird die derzeitige Struktur der gebündelten Einheiten durch eine konventionelle REIT-Trust-Einheitenstruktur ersetzen. Der Prozess umfasst die Entkopplung der beiden Komponenten jeder gebündelten Einheit, den Austausch der Stammaktien von Granite GP gegen Bruchteile von Granite REIT-Einheiten und die Konsolidierung der Granite REIT-Einheiten.
Nach dieser Änderung wird die Zahl der Granite REIT-Einheiten, die die Einheitseigner halten, der Anzahl ihrer derzeitigen gebündelten Einheiten entsprechen, und Granite GP wird eine hundertprozentige Tochtergesellschaft von Granite REIT. Die Granite REIT-Einheiten werden weiterhin an der Toronto Stock Exchange und der New York Stock Exchange unter den bestehenden Tickersymbolen (GRT.UN und GRP.U) gehandelt, wobei der eigenständige Handel voraussichtlich um den 3. Oktober 2024 beginnen wird.
- Simplification of capital structure, potentially improving investor understanding and attractiveness
- Maintenance of current trading symbols, ensuring continuity for investors
- No change in the number of units held by investors post-arrangement
- None.
Insights
The proposed unwind of Granite's stapled unit structure marks a significant shift in the REIT's capital structure. This move towards a conventional REIT trust unit structure is likely aimed at simplifying operations and potentially improving tax efficiency. While the change doesn't directly impact the number of units investors hold, it could have implications for corporate governance and financial reporting.
The transition, set for October 1, 2024, allows ample time for market adjustment. Investors should note that trading under the new structure is expected to commence around October 3, 2024. This structural change might attract new institutional investors who prefer more straightforward REIT structures, potentially
However, the immediate financial impact on Granite appears neutral. Investors should monitor for any changes in distribution policies or tax implications that may arise from this restructuring, although none are explicitly mentioned in the announcement.
The court-approved plan of arrangement for Granite's restructuring demonstrates strong legal compliance and shareholder protection. This process typically requires extensive regulatory scrutiny and shareholder approval, indicating that the change has been thoroughly vetted.
The automatic exchange of Granite GP common shares for fractional Granite REIT units is a critical legal maneuver. It ensures continuity of ownership rights while streamlining the corporate structure. Investors should be aware that this change might alter their voting rights or the nature of their ownership claim, although the economic interest remains unchanged.
From a legal perspective, the transition to a wholly-owned subsidiary structure for Granite GP could simplify corporate governance and potentially reduce administrative costs. However, investors should review any updated trust agreements or corporate bylaws to fully understand the implications of this new structure on their rights and the REIT's operations.
Granite's decision to unwind its stapled unit structure aligns with a broader trend in the REIT sector towards simplified, more transparent structures. This move could potentially enhance Granite's appeal to a wider investor base, particularly those who prefer traditional REIT structures.
The market's reaction to this change will be important to monitor. While the immediate impact may be neutral, long-term effects could include improved liquidity and potentially a re-rating of the stock. Investors should watch for any changes in trading volumes or price movements around the October 3, 2024 transition date.
Additionally, this restructuring might position Granite more favorably in REIT indices and ETFs that prefer simpler structures. This could lead to increased institutional investment and potentially support the stock price. However, any benefits are likely to materialize gradually rather than immediately upon implementation.
Currently, Granite unitholders hold stapled units (“Stapled Units”), each of which consists of one Granite REIT unit and one common share of Granite GP. Upon completion of the Arrangement (i) the two components of each Stapled Unit will be uncoupled, (ii) the common shares of Granite GP currently held by Granite unitholders will be automatically exchanged for fractional Granite REIT units and (iii) the Granite REIT units will be consolidated back to the number of Stapled Units outstanding before the exchange occurred.
As of the Effective Date, each Granite unitholder will hold a number of Granite REIT units equal to the number of Stapled Units they hold currently, and Granite GP will become a wholly-owned subsidiary of Granite REIT. The Granite REIT units will trade on the Toronto Stock Exchange and on the New York Stock Exchange under the current ticker symbols for the Stapled Units (being “GRT.UN” and “GRP.U”, respectively), and are expected to begin trading on a standalone basis and not as Stapled Units on or about October 3, 2024.
ABOUT GRANITE
Granite is a Canadian-based REIT engaged in the acquisition, development, ownership and management of logistics, warehouse and industrial properties in
OTHER INFORMATION
Copies of financial data and other publicly filed documents about Granite are available through the internet on the Canadian Securities Administrators’ System for Electronic Data Analysis and Retrieval+ (SEDAR+) which can be accessed at www.sedarplus.ca and on the United States Securities and Exchange Commission’s Electronic Data Gathering, Analysis and Retrieval System (EDGAR) which can be accessed at www.sec.gov.
For further information, please see our website at www.granitereit.com or contact Teresa Neto, Chief Financial Officer, at 647-925-7560 or Andrea Sanelli, Associate Director, Legal & Investor Services, at 647-925-7504.
FORWARD-LOOKING STATEMENTS
This press release may contain statements that, to the extent they are not recitations of historical fact, constitute “forward-looking statements” or “forward-looking information” within the meaning of applicable securities legislation, including the United States Securities Act of 1933, as amended, the United States Securities Exchange Act of 1934, as amended, and applicable Canadian securities legislation. Forward-looking statements and forward-looking information may include, among others, statements regarding the Arrangement, Granite’s intention to complete the Arrangement, and Granite’s ability to obtain the required approvals or satisfy or waive conditions to complete the Arrangement, or the expectations or assumptions underlying any of the foregoing. Words such as “outlook”, “may”, “would”, “could”, “should”, “will”, “likely”, “expect”, “anticipate”, “believe”, “intend”, “plan”, “forecast”, “project”, “estimate”, “seek” and similar expressions are used to identify forward-looking statements and forward-looking information. Forward-looking statements and forward-looking information should not be read as guarantees of future events, performance or results and will not necessarily be accurate indications of whether or the times at or by which such future performance will be achieved. Undue reliance should not be placed on such statements. Granite cautions that the timing or completion of the Arrangement and the Effective Date cannot be predicted with certainty, there can be no assurance at this time that all required or desirable approvals and consents to effect the Arrangement will be obtained by the Effective Date. Forward-looking statements and forward-looking information are based on information available at the time and/or management’s good faith assumptions and analyses made in light of Granite’s perception of historical trends, current conditions and expected future developments, as well as other factors Granite believes are appropriate in the circumstances. Forward-looking statements and forward-looking information are subject to known and unknown risks, uncertainties and other unpredictable factors, many of which are beyond Granite’s control, that could cause actual events or results to differ materially from such forward-looking statements and forward-looking information. Important factors that could cause such differences include, but are not limited to, the risk of Granite being unable to obtain required approvals or to satisfy or waive conditions to complete the Arrangement by the Effective Date and risks disclosed in the Granite’s Management Information Circular/Proxy Statement dated April 10, 2024. Forward-looking statements and forward-looking information speak only as of the date the statements and information were made and unless otherwise required by applicable securities laws, Granite expressly disclaims any intention and undertakes no obligation to update or revise any forward-looking statements or forward-looking information contained in this press release to reflect subsequent information, events or circumstances or otherwise.
View source version on businesswire.com: https://www.businesswire.com/news/home/20240919255308/en/
Teresa Neto
Chief Financial Officer
647-925-7560
Andrea Sanelli
Associate Director, Legal & Investor Services
647-925-7504.
Source: Granite
FAQ
When will Granite Real Estate Investment Trust (GRPU) complete its capital structure simplification?
How will the Arrangement affect Granite REIT (GRPU) unitholders?
Will Granite REIT's (GRPU) ticker symbols change after the Arrangement?
What will happen to Granite REIT Inc. after the Arrangement with Granite REIT (GRPU)?
