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TORONTO, March 14, 2018 /CNW/ - H&R Real Estate
Investment Trust ("H&R REIT" or the "REIT") and H&R Finance
Trust (collectively, "H&R") (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 Stapled Units that may be repurchased for
cancellation from 5,000,000 to 15,000,000 Stapled Units,
representing approximately 5.28% of the public float as of
August 1, 2017. As
at August 1, 2017, H&R had 289,686,775 outstanding Stapled
Units.
The NCIB will continue until the earlier of August 14, 2018 and the date on which H&R
REIT has purchased the maximum number of Stapled Units permitted
pursuant to the amended notice of intention filed with the TSX.
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 113,640 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 may establish an automatic purchase plan under which its
broker may purchase Stapled Units according to a prearranged set of
criteria. The plan would 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.
To date, H&R has completed the purchase for cancellation of
4,365,140 Stapled Units at a weighted average price of $20.87 per Stapled Unit since the commencement of
its current NCIB.
About H&R REIT and H&R Finance Trust
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 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: prices and market value of securities of H&R; availability
of cash for distributions; restrictions pursuant to the terms of
indebtedness; liquidity; credit risk and tenant concentration;
interest rate and other debt related risk; tax risk; ability to
access capital markets; dilution; lease rollover risk; construction
risks; currency risk; unitholder liability; co-ownership interest
in properties; competition for real property investments;
environmental matters and changes in legislation and indebtedness
of H&R. 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 other than in Alberta;
local real estate conditions are stable other than in Alberta; interest rates are relatively stable;
and equity and debt markets are volatile and access to equity and
debt markets is erratic. 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