Cominar stops automatic reinvestments for investors because of low market price

QUEBEC CITY, Que. – The Cominar real estate trust says its investors will continue to get regular cash distributions each month but will no longer have the option to get the payments in the form of equity units because their value has fallen so low.

Cominar units (TSX:CUF.UN) were at $14.11 at the Toronto Stock Exchange just before noon Wednesday as Cominar announced the change. The price is down from a 52-week high of $20.11 in February 2015.

The Quebec-based REIT says its distribution reinvestment plan, or DRIP, may be restored if conditions improve.

Michel Dallaire, Cominar’s president and CEO, said the market value of its equity doesn’t reflect the real value of the trust.

Cominar is the largest commercial property owner in Quebec and one of the largest REITs in Canada, with other properties in Atlantic Canada, Ontario and Western Canada.

The company said it had repurchased 2.3 million of its units on the open market between Aug. 28 and Jan. 19 under a normal course issuer bid that will remain in force.

“The suspension of the distribution reinvestment plan until further notice in no way affects our monthly cash distribution, which remains sound and stable,” Dallaire said in a statement.