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TORONTO,
April 11, 2014 /CNW/ - H&R Real
Estate Investment Trust ("H&R REIT" or the "REIT") and H&R
Finance Trust (collectively, "H&R") (TSX: HR.UN; HR.DB.D;
HR.DB.E and HR.DB.H) 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, as previously announced H&R REIT will have the
ability to purchase for cancellation up to a maximum of 25,000,000
Stapled Units on the open market, representing approximately 9.4%
of the public float (determined in accordance with the applicable
rules of the TSX) of 265,850,265 Stapled Units. As at
April 3, 2014, H&R had
270,649,483 outstanding Stapled Units.
The NCIB will commence on April 15, 2014 and remain in effect until the
earlier of April 14, 2015, the date
on which H&R REIT has purchased the maximum number of Stapled
Units permitted under the NCIB. Purchases of Stapled 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 Stapled Units so purchased will be cancelled.
The price paid for any repurchased units will be the market price
of such Stapled Units at the time of acquisition. Daily purchases
will be limited to 109,845 Stapled Units other than block purchase
exemptions.
H&R believes that its outstanding Stapled
Units represent an attractive investment, and the ongoing purchase
of its outstanding Stapled Units may benefit all persons who
continue to hold Stapled Units by increasing their equity interest
in H&R.
H&R intends to establish an automatic
purchase plan under which its broker may purchase Stapled Units
according to a prearranged set of criteria. The plan will enable
the purchase of Stapled 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 normal course issuer bid 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 directors, 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 Stapled Units to H&R during
the course of the issuer bid.
About H&R REIT and H&R Finance
Trust
H&R REIT is an open-ended real estate
investment trust, which owns a North American portfolio of 41
office, 168 retail and 112 industrial properties comprising over 53
million square feet and 2 development projects, with a fair value
of approximately $13 billion.
In addition, H&R REIT owns a 33.7% interest in ECHO Realty LP
which owns 173 properties, excluding properties under development
and vacant land, totalling 7.3 million square feet. The
foundation of H&R REIT's success since inception in 1996 has
been a disciplined strategy that leads to consistent and profitable
growth. H&R REIT leases its properties for long terms to
creditworthy tenants and strives to match those leases with
primarily long-term, fixed-rate financing.
H&R Finance Trust is an unincorporated
investment trust, which primarily invests in notes issued by a U.S.
corporation which is a subsidiary of H&R REIT. The
current note receivable balance is U.S. $219.8 million. In 2008, H&R REIT
completed an internal reorganization which resulted in each issued
and outstanding H&R REIT unit trading together with a unit of
H&R Finance Trust as a "Stapled Unit" on the Toronto Stock
Exchange.
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 normal course issuer bid and the receipt of regulatory
approvals, H&R's intention to repurchase Stapled Units in the
open market 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. 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.
SOURCE H&R Real Estate Investment Trust