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TORONTO, Dec. 14, 2018 /CNW/ - H&R Real Estate
Investment Trust ("H&R") (TSX: HR.UN) today announced
receipt of final acceptance from the Toronto Stock Exchange
("TSX") of H&R's notice of intention to make a normal
course issuer bid ("NCIB"). Under the NCIB, H&R will
have the ability to purchase for cancellation up to a maximum of
15,000,000 Units on the open market, representing approximately
5.35% of the public float as of December 1,
2018. As at December 1,
2018, H&R had 285,653,922 outstanding Units.
The NCIB will commence on December 17,
2018 and remain in effect until the earlier of December 16, 2019 and the date on which H&R
has purchased the maximum number of Units permitted under the NCIB.
Purchases of Units under the NCIB will be made in accordance with
TSX by-laws, rules and policies through the facilities of the TSX,
and through 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. Daily
purchases will be limited to 149,577 Units other than block
purchase exemptions.
H&R believes that its outstanding Units represent an
attractive investment, and the ongoing purchase of its outstanding
Units may benefit all persons who continue to hold Units by
increasing their equity interest in H&R.
H&R may establish an automatic purchase plan under which its
broker may purchase Units according to a prearranged set of
criteria. The plan would enable the purchase of Units at any time,
including when H&R would not ordinarily be active in the market
because of internal trading blackout periods, insider trading rules
or otherwise. The plan will terminate on the earliest of: the date
on which the purchase limits specified in the plan have been
attained, the date on which the NCIB terminates or the date on
which the plan is terminated by a party in accordance with its
terms. To H&R's knowledge, after reasonable inquiry, none of
the trustees, officers or other insiders of H&R or any
associate of any such persons, or any associate or affiliate of
H&R currently intends to sell Units to H&R during the
course of the issuer bid.
Under its previous normal course issuer bid approved by the TSX
on August 10, 2017 and amended on
March 14, 2018 to increase the number
of Stapled Units that could by repurchased for cancellation to
15,000,000 Stapled Units, H&R completed the purchase for
cancellation through the facilities of the TSX of 7,364,840
Stapled Units at a weighted average price of $20.67 per Stapled Unit. H&R's previous
normal course issuer bid expired on August
14, 2018.
About H&R REIT
H&R REIT is one of Canada's
largest fully internalized real estate investment trusts with total
assets of approximately $14.2 billion
at September 30, 2018. H&R REIT
has ownership interests in a North American portfolio of high
quality office, retail, industrial and residential properties
comprising over 41 million square feet.
Forward-looking Statements
Certain statements in this news release contain forward-looking
information within the meaning of applicable securities laws (also
known as forward-looking statements). These forward-looking
statements include, but are not limited to H&R's plans,
objectives, expectations and intentions, including H&R's
expectations regarding future developments in connection with the
NCIB and the receipt of regulatory approvals, H&R's intention
to repurchase Stapled Units in the open market, H&R's beliefs
regarding the benefits of persons who hold Stapled Units and other
statements contained in this release that are not historical facts.
Such forward-looking statements reflect H&R's current beliefs
and are based on information currently available to management.
These statements are not guarantees of future performance and are
based on H&R's estimates and assumptions that are subject to
risks and uncertainties, including those discussed in H&R's
materials filed with the Canadian securities regulatory authorities
from time to time, which could cause the actual results and
performance of H&R to differ materially from the
forward-looking statements contained in this news release. Those
risks and uncertainties include, among other things, risks related
to: real property ownership, credit risk and tenant concentration;
lease rollover risk, interest and other debt-related risk;
construction risks; currency risk; liquidity risk, financing credit
risk, cyber security risk, environmental risk; co-ownership
interest in properties, joint arrangement risks; unit price risk;
availability of cash for distributions; ability to access capital
markets; dilution; unitholder liability; redemption right risk;
risks relating to debentures, tax risk and tax consequences to U.S.
holders. 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 general economy is
stable; local real estate conditions are stable; interest rates are
relatively stable; and equity and debt markets continue to provide
access to capital. H&R cautions that this list of factors is
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.
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
law, assumes no obligation to update or revise them to reflect new
information or the occurrence of future events or
circumstances.
Additional information regarding H&R REIT is available at
www.hr-reit.com and on www.sedar.com.
SOURCE H&R Real Estate Investment Trust