TORONTO, April 17, 2020 /CNW/ - H&R Real Estate
Investment Trust ("H&R" or "the REIT") (TSX: HR.UN) announces
the following recent developments:
- A new $425 million unsecured
credit facility from a syndicate of four Canadian banks
- A new 8.5-year $100 million
mortgage secured (subject to customary closing conditions) by a
previously unencumbered property
- Collection of 83% of total rents payable April 1st
Following the significant economic and social disruption that
has come with the COVID-19 pandemic, individuals and businesses
alike are facing unprecedented challenges. We are doing
everything possible to protect and support everyone our
organization touches, as we pull together as a community.
With ample liquidity and a diverse cross-section of asset class and
geographic exposures the REIT has been working closely with its
tenants, lenders and other stakeholders to navigate through these
unprecedented times.
Liquidity Bolstered
Notably, both the new credit facility and mortgage were arranged
following the onset of the COVID-19 economic disruption,
underscoring H&R's strong access to capital. The
$425 million credit facility has been
provided by Canadian Imperial Bank of Commerce, The Bank of
Nova Scotia, The Toronto-Dominion
Bank and Bank of Montreal and for
a one-year term. The $100
million mortgage has been provided by a life insurance
company.
Following the arrangement of the new mortgage, H&R has 89
unencumbered properties valued at approximately $3.8 billion as at December 31, 2019. In addition, reflecting
H&R's 23-year history and conservative long-term financing
strategy on individual properties, H&R has numerous properties
with very low loan to value ratios. As at December 31, 2019, H&R had 40 properties
valued at approximately $1.5 billion
which are encumbered with mortgages totalling $221.8 million. In this pool of assets, the
average loan to value is 14.8%, the minimum loan to value is 0.7%
and the maximum loan to value is 29.2%. The weighted average
remaining term to maturity of this pool of mortgages is 2.4
years.
April Rent Collection Statistics
Tenant receipts to date for April rent charges amount to:
- 99.5% from office tenancies (43.8% of total rent*)
- 56.0% from retail tenancies (33.2% of total rent)
- 94.5% from multi-residential tenancies (16.7% of total
rent)
- 91.9% from industrial tenancies (6.3% of total rent)
* includes Government tenancies whose rent is only due at the
end of April.
The above April payment collections include the following
notable sub-segment April
1st payments:
- 40.5% of rent from Primaris enclosed malls
- 83.9% of rent from ECHO Realty grocery anchored retail
properties
- 90.3% of rent from other H&R retail properties
- 96.6% of rent from Jackson Park
in Long Island City
Management has been evaluating rent deferral requests on a case
by case basis. The REIT expects a significant portion of the
balance of April rent owing will be collected over time.
Operating Cost & Capital Expenditure Initiatives
Like many businesses, H&R has reviewed expenses and reduced
certain costs, including for example the suspension of certain
third-party service contracts relating to properties that have
closed for the time being. The REIT has also postponed
certain development projects that had not yet commenced
construction, reducing near term capital commitments.
Monthly Distribution Declared
H&R today declared a distribution for the month of April
scheduled as follows:
|
Distribution per
Unit
|
Annualized/Unit
|
Record
Date
|
Distribution
Date
|
April 2020
|
$0.115
|
$1.380
|
April 27,
2020
|
May 4,
2020
|
About H&R REIT
H&R REIT is one of Canada's
largest real estate investment trusts with total assets of
approximately $14.5 billion at
December 31, 2019. 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 with respect to
the collection of April rent owing and the payment of
distributions. 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
www.hr-reit.com and on www.sedar.com.
SOURCE H&R Real Estate Investment Trust