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TORONTO, Feb. 28, 2018 /CNW/ - H&R Real Estate
Investment Trust ("H&R REIT" or "H&R") and H&R Finance
Trust (collectively, the "Trusts") (TSX: HR.UN; and HR.DB.D) today
announced the suspension of the Trusts' distribution reinvestment
plan (the "DRIP") and unit purchase plan (the "Purchase Plan")
until further notice. Commencing with the March 2018 distribution, unitholders who elected
to participate in the DRIP will receive the full declared cash
distributions on their Stapled Units on the distribution payment
date. If H&R elects to reinstate the DRIP in the future,
unitholders that were enrolled in the DRIP at the time of its
suspension and remain enrolled at the time of its reinstatement
will automatically resume participation in the DRIP. Unitholders
who elected to participate in the Purchase Plan will not have funds
withdrawn for purchases of Stapled Units previously scheduled to be
made following the date of this announcement.
H&R is well capitalized and has a strong balance sheet with
significant financial flexibility. Accordingly, the trustees of
H&R REIT and management wish to assert greater control over
when and on what terms H&R raises capital to fund its business.
The trustees of H&R REIT and management particularly wish to
avoid issuing equity at a price below net asset value per unit,
something that can occur from time to time under the DRIP. The
suspension of the DRIP is intended to preserve value and eliminate
dilution.
About H&R REIT
H&R REIT is Canada's
largest diversified real estate investment trust with total assets
of approximately $14.6 billion at
December 31, 2017. H&R REIT is a
fully internalized real estate investment trust and has ownership
interests in a North American portfolio of high quality office,
retail, industrial and residential properties comprising over 45
million square feet.
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. $223.9 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 reinstatement of
the DRIP or Purchase Plan in the future. 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. 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
http://www.hr-reit.com and on www.sedar.com.
SOURCE H&R Real Estate Investment Trust