H&R Real Estate Investment Trust
TSX:HR.UN

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H&R Real Estate Investment Trust Logo
H&R Real Estate Investment Trust
TSX:HR.UN
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Price: 10.08 CAD 1.51% Market Closed
Market Cap: 2.6B CAD

H&R Real Estate Investment Trust
Investor Relations

H&R Real Estate Investment Trust (H&R REIT) is an integral player in the landscape of Canadian real estate. With roots tracing back to the 1990s, H&R REIT has grown its portfolio to encompass a diverse range of properties that showcase its strategic acumen. At its heart, the company operates as a trust, pulling together capital from numerous investors to acquire, manage, and enhance income-generating real estate assets. Its holdings span office, retail, industrial, and residential spaces, strategically located across North America, with a predominant footprint in Canada. By leasing these properties to businesses and individual tenants, H&R REIT generates rental income, which is the lifeblood of their operations. This consistent income stream, supplemented by strategic asset sales and acquisitions, positions H&R to distribute attractive dividends to its unitholders—an essential feature for real estate investment trusts.

The company's business model extends beyond merely collecting rents. It involves ensuring properties remain attractive to tenants through maintenance and improvements, effectively managing tenant relationships, and adapting to market conditions. Additionally, H&R REIT continually reviews its portfolio to capitalize on market opportunities, sometimes divesting certain properties to reinvest in others that might offer higher yield potential or align better with its strategic vision. This dynamic approach helps H&R REIT remain resilient and competitive, driving growth while navigating the ever-changing real estate landscape. By balancing income generation, prudent asset management, and strategic reinvestment, H&R stands as a robust player in the REIT sector, offering a compelling story of adaptation and financial stewardship.

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HR.UN
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Last Earnings Call
Fiscal Period
Q3 2025
Call Date
Nov 14, 2025
AI Summary
Q3 2025

Asset Sales Plan: H&R REIT is pursuing approximately $2.6 billion in asset sales, aiming to complete negotiations and Board approvals by the end of 2025, with closings expected in early 2026.

Portfolio Transformation: These sales are intended to significantly reduce office and retail exposure, aligning the REIT more closely with its strategy to focus on U.S. residential and industrial assets.

Financial Strength: Despite headwinds, same-property NOI rose 2.1% for the first nine months of 2025, and FFO was stable at $0.90, even after $500 million in property sales since January 2024.

Distribution Safety: Management confidently stated that current distributions are sustainable, with a 50% FFO payout ratio and no plans for distribution cuts.

Balance Sheet Focus: Proceeds from asset sales will prioritize debt reduction, with additional options such as buybacks or special distributions considered for excess funds.

NOI Breakdown: Retail segment saw strong growth, while residential NOI declined in Q3 due to market softness and higher expenses; industrial NOI also fell due to lower occupancy.

Strategic Uncertainty: The final asset mix and management structure will be clarified after sales are completed, but further asset sales beyond the initial $2.6 billion are anticipated.

Key Financials
Value of Real Estate Assets (by segment)
Residential 50%, Industrial 19%, Office 16%, Retail 15%
Geographic Mix (U.S. share)
71%
Same-Property NOI (9 months 2025)
2.1% growth
Funds From Operations (FFO, 9 months 2025)
$0.90
Net Property Sales (Jan 2024 – Sep 2025)
$500 million
Residential Same-Property NOI (Q3 2025)
-3.4%
Residential Same-Property NOI (9 months 2025)
up 1.2%
Office Same-Property NOI (Q3 2025)
up 0.5%
Office Same-Property NOI (9 months 2025)
up 1.5%
Office Occupancy (September 30, 2025)
96.9%
Office Average Lease Term
5.3 years
Retail Same-Property NOI (Q3 2025)
up 5.3%
Retail Same-Property NOI (9 months 2025)
up 7.3%
Industrial Same-Property NOI (Q3 2025)
-7.5%
Industrial Same-Property NOI (9 months 2025)
-1.9%
Industrial Occupancy (Sep 30, 2025)
89.9%
FFO Payout Ratio (9 months 2025)
50%
AFFO Payout Ratio (9 months 2025)
61.3%
Debt to Total Assets (Sep 30, 2025)
47.3%
Debt to EBITDA
9.3x
Unencumbered Property Pool
$4.1 billion
Residential Same-Asset Occupancy (Q3 2025)
94.6%
Sunbelt Same-Asset Occupancy (Q3 2025)
93.8%
Same-Store Blended Lease Trade-Outs (Q3 2025)
-1.6%
Same-Store Renewal Lease Spread (Q3 2025)
4.4%
Variable Interest Rate on Credit Line
3.9%
Other Earnings Calls

Management

Mr. Thomas J. Hofstedter
CEO & Executive Chairman
No Bio Available
Mr. Larry Froom C.A., CPA
Chief Financial Officer
No Bio Available
Ms. Robyn Kestenberg
Executive Vice President of Office & Industrial
No Bio Available
Ms. Emily Watson
Chief Operating Officer of Lantower Residential
No Bio Available
Mr. Matthew Kingston
Executive Vice President of Development & Construction
No Bio Available
Mr. Blair Kundell
Executive Vice President of Operations
No Bio Available
Ms. Cheryl Fried C.A., CPA
Executive Vice President of Finance
No Bio Available
Ms. Brenda Huggins
Senior Vice President of Human Resources of Primaris
No Bio Available
Ms. Colleen Grahn
President of Property Management- Lantower Residential
No Bio Available
Ms. Audrey Craig
Executive Vice President of Accounting - Lantower Residential
No Bio Available

Contacts

Address
ONTARIO
North York
3625 Dufferin St Suite 500
Contacts
+14166357520.0
www.hr-reit.com