American Hotel Income Properties announces normal course issuer bid

American Hotel Income Properties (AHOTF) REIT announced that the Toronto Stock Exchange has accepted its notice of intention to make a normal course issuer bid. The notice provides that AHIP may, during the twelve-month period commencing December 30, 2024 and ending December 29, 2025, purchase up to 7,521,189 units of AHIP trading under the symbols HOT.UN and HOT.U, representing 10% of the “public float” as of December 19, 2024. Daily purchases of Units under the NCIB will be limited to 17,803 Units, subject to the exception for block purchases. As at the date hereof, there are 79,233,573 Units issued and outstanding and 75,211,895 Units in the “public float”. AHIP believes that its Units are currently trading, or due to market volatility, may trade, in a price range that does not adequately reflect their underlying value based on AHIP’s assets, business prospects and financial position. Accordingly, depending upon future price movements and other factors, AHIP may purchase outstanding Units from time to time, provided that the repurchase of Units at such market prices continue to be an appropriate use of AHIP’s resources and will benefit remaining unitholders by increasing their proportionate equity interest in AHIP. Purchases subject to the NCIB will be carried out pursuant to open market transactions through the facilities of the TSX, other designated exchanges and/or alternative Canadian trading systems by CIBC World Markets Inc. on behalf of AHIP in accordance with applicable regulatory requirements. All Units purchased by AHIP under the NCIB will be returned to treasury and cancelled. AHIP has not purchased any of its Units within the last 12 months. AHIP also announced that in connection with the NCIB, it has entered into an Automatic Securities Purchase Plan with a designated broker. The ASPP is intended to allow for the purchase of Units under the NCIB when AHIP would ordinarily not be permitted to purchase Units due to regulatory restrictions and customary self-imposed blackout periods. Pursuant to the ASPP, AHIP has provided instructions to the designated broker to make purchases under the NCIB in accordance with the terms of the ASPP, which may not be varied or suspended during blackout periods. Such purchases will be determined by the designated broker at its sole discretion based on purchasing parameters set by AHIP in accordance with the rules of the TSX, applicable securities laws and the terms of the ASPP. Units will be purchased under the ASPP through the facilities of the TSX, other designated exchanges and/or alternative Canadian trading systems. The ASPP has been pre-cleared by the TSX and will be implemented on December 30, 2024, and if not terminated sooner based on the terms of the ASPP, will end on December 29, 2025.