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TORONTO, April 13, 2022 /CNW/ - H&R Real Estate Investment Trust ("H&R" or the "REIT") (TSX: HR.UN) today announced receipt of final approval from the Toronto Stock Exchange ("TSX") to amend its existing normal course issuer bid ("NCIB") to increase the number of units of H&R ("Units") that may be purchased for cancellation from 14,000,000 to 28,269,228 Units, representing 10% of the public float as of December 8, 2021, and the maximum number of Units H&R is permitted to purchase under applicable TSX rules and policies. The amendment of the NCIB will take effect on April 19, 2022. As at December 8, 2021, H&R had 288,431,251 outstanding Units.
Since the commencement of the current NCIB through the closing of trading on April 8, 2022, H&R has repurchased an aggregate of 10,774,500 Units at a weighted average purchase price of $12.98.
"Management and the board remain fully committed to H&R's Strategic Repositioning Plan and are actively evaluating opportunities to increase unitholder value and address the significant discount at which our Units trade to the REIT's net asset value per Unit," said Tom Hofstedter, Chief Executive Officer. "We plan to continue to buy back Units if the significant discount persists, as we work to improve the profile of an investment in H&R's Units."
The NCIB will continue until the earlier of December 15, 2022 and the date on which H&R has purchased the maximum number of Units permitted pursuant to the amended notice of intention filed with the TSX. Purchases of Units under the NCIB will be made in accordance with TSX rules and policies through the facilities of the TSX, and through Canadian alternative trading systems. The Units so purchased will be cancelled. The price paid for any repurchased Units will be the market price of such Units at the time of acquisition. The average daily trading volume of the Units for the six months from June 1, 2021 to November 30, 2021 was 692,519 and accordingly daily purchases will be limited to 173,129 Units other than block purchase exemptions.
H&R has established an automatic securities purchase plan ("ASPP") in connection with its NCIB. The ASPP, announced on January 14, 2022, is intended to enable the purchase of Units at any time, including periods when H&R would not ordinarily be active in the market due to regulatory restrictions and customary self-imposed blackout periods. Pursuant to the ASPP, prior to entering into a blackout period, H&R may, but is not required to, instruct the designated broker to repurchase Units under the NCIB according to a prearranged set of criteria in accordance with the terms of the ASPP, TSX rules, and applicable securities laws. Outside of the pre-determined blackout periods, Units may be purchased under the NCIB based on the discretion of H&R's management, in compliance with TSX rules and applicable securities laws.
Anticipated Fair Value Increases and Earnings Release
H&R also announced today that, based on relatively recent changes in market values of its industrial and residential real estate properties and based on external appraisal reports, the REIT anticipates significant fair value increases in its industrial and residential real estate portfolios for the three months ended March 31, 2022.
H&R will release its financial results for the three months ended March 31, 2022 on Thursday, May 12, 2022. Management will host a conference call to discuss the financial results for H&R on Friday, May 13, 2022 at 9:30 a.m. Eastern Time.
Conference Call and Webcast
Participants can join the call by dialing 1-888-510-2507 or 1-289-514-5065. For those unable to participate in the conference call at the scheduled time, it will be archived for replay beginning approximately one hour following completion of the call. To access the archived conference call by telephone, dial 1-647-362-9199 or 1-800-770-2030 and enter the passcode 3504623 followed by the pound key. The telephone replay will be available until Friday, May 20, 2022 at midnight.
A live audio webcast will be available through https://www.hr-reit.com/investor-relations/#investor-events. Please connect at least 15 minutes prior to the conference call to ensure adequate time for any software download that may be required to join the webcast. The webcast will be archived on H&R's website following the call date.
Monthly Distribution Declared
H&R today declared a distribution for the month of April scheduled as follows:
Distribution per Unit
April 29, 2022
May 16, 2022
About H&R REIT
H&R REIT is one of Canada's largest real estate investment trusts with total assets of approximately $10.5 billion as at December 31, 2021. H&R REIT has ownership interests in a North American portfolio comprised of high-quality office, industrial, residential and retail properties comprising over 29.5 million square feet. H&R is currently undergoing a five-year, strategic repositioning to transform into a simplified, growth-oriented company focusing on residential and industrial properties to surface significant value for unitholders.
Certain information in this news release contains forward-looking information within the meaning of applicable securities laws (also known as forward-looking statements) including, among others, statements made or implied relating to H&R's objectives, beliefs, plans, estimates, projections and intentions and similar statements concerning anticipated future events, results, circumstances, performance or expectations that are not historical facts, including H&R's intention to repurchase Units pursuant to the NCIB, H&R's Strategic Repositioning Plan and opportunities to increase unitholder value, anticipated increases in fair values of the REIT's assets, the timing of release of financial results, the payment of distributions and other statements contained in this release that are not historical facts. Forward-looking statements generally can be identified by words such as "outlook", "objective", "may", "will", "expect", "intend", "estimate", "anticipate", "believe", "should", "plans", "project", "budget" or "continue" or similar expressions suggesting future outcomes or events. Such forward-looking statements reflect H&R's current beliefs and are based on information currently available to management.
Forward-looking statements are provided for the purpose of presenting information about management's current expectations and plans relating to the future and readers are cautioned that such statements may not be appropriate for other purposes. These statements are not guarantees of future performance and are based on H&R's estimates and assumptions that are subject to risks, uncertainties and other factors including those risks and uncertainties in H&R's materials filed with the Canadian securities regulatory authorities from time to time, which could cause the actual results, performance or achievements of H&R to differ materially from the forward-looking statements contained in this news release. Material factors or assumptions that were applied in drawing a conclusion or making an estimate set out in the forward looking statements include that the economy is gradually recovering as a result of the COVID-19 pandemic, the extent and duration of which is unknown; debt markets continue to provide access to capital at a reasonable cost, notwithstanding the ongoing economic downturn; and the assumptions made in connection with the anticipated benefits of H&R's strategic repositioning plan. Additional risks and uncertainties include, among other things, risks related to: disease outbreaks and COVID-19; real property ownership; current economic environment; credit risk and tenant concentration; lease rollovers; interest rates and debt; development; residential rental; capital expenditures; currency; liquidity; cyber security; financing credit; environmental and climate change matters; general uninsured losses; co-ownership interest in properties; joint arrangements and investments; dependence on key personnel; potential acquisition, investment and disposition opportunities and joint venture arrangements; potential undisclosed liabilities associated with acquisitions; competition for real property investments; and potential conflicts of interest; Unit price risk; availability of cash for distributions; credit ratings; ability to access capital markets; dilution; unitholder liability; redemption right risk; risks relating to debentures and the inability of H&R to purchase senior debentures on a change of control; tax risk, and additional tax risk applicable to unitholders. H&R cautions that these lists of factors, risks and uncertainties are not exhaustive. Although the forward-looking statements contained in this news release are based upon what H&R believes are reasonable assumptions, there can be no assurance that actual results will be consistent with these forward-looking statements.
Readers are also urged to examine H&R's materials filed with the Canadian securities regulatory authorities from time to time as they may contain discussions on risks and uncertainties which could cause the actual results and performance of H&R to differ materially from the forward-looking statements contained in this news release. All forward-looking statements in this news release are qualified by these cautionary statements. These forward-looking statements are made as of today and H&R, except as required by applicable Canadian law, assumes no obligation to update or revise them to reflect new information or the occurrence of future events or circumstances.
SOURCE H&R Real Estate Investment Trust
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