TORONTO, Oct. 12, 2021 /CNW/ - H&R REIT ("H&R" or
the "REIT") (TSX: HR.UN) is pleased to announce that it has closed
the transactions previously announced August
3, 2021 involving the 2.0 million sq.ft. Bow office tower
located in Calgary, Alberta, and
the sale of the 1.1 million sq.ft. Bell office campus (the "Bell
Campus") located in Mississauga,
Ontario, for combined gross proceeds of approximately
$1.47 billion.
As part of the transaction, the REIT has issued notices of
redemption for the Bow Centre Street Limited Partnership Series B
and Series C Secured Bonds for a combined redemption amount of
$524 million, inclusive of
pre-payment penalties, to be redeemed on October 18th, 2021. The REIT has also
repaid $25 million of mortgages
secured by the Bell Campus, inclusive of pre-payment penalties,
while another $97 million of
associated mortgage debt was assumed by the buyer.
Net proceeds after the above noted debt repayments, assumptions
and associated transaction costs, are approximately $800 million which will be used to pay down
debt.
H&R intends to redeem all of its outstanding 2.923% Series L
Senior Unsecured Debentures due May 6,
2022 (the "Series L Debentures") in an aggregate principal
amount of $325 million pursuant to
and subject to the terms of its trust indenture dated February 3, 2010, as supplemented by the
tenth supplemental trust indenture dated November 7, 2016 (collectively, the
"Indenture").
The Series L Debentures will be redeemed as at the redemption
date (expected to be in mid-November
2021) upon payment by H&R of a redemption amount equal
to the Canada Yield Price (as defined in the Indenture), together
with accrued and unpaid interest to but excluding the redemption
date, less any applicable withholding taxes.
Notice of the redemption will be delivered to the trustee, BNY
Trust Company of Canada and to the
Canadian Depository for Securities Limited as holder of the Series
L Debentures in accordance with the terms of the Indenture.
Thomas Hofstedter, President
& CEO of H&R REIT said "We are pleased to conclude this
transformational transaction, which along with further strategic
initiatives management expects to announce in the near future, form
the basis for a significant repositioning of H&R REIT."
Monthly Distribution Declared
H&R today declared a distribution for the month of October
scheduled as follows:
|
Distribution/Unit
|
Annualized
|
Record
date
|
Distribution
date
|
October
2021
|
$0.0575
|
$0.690
|
October 22,
2021
|
November 5,
2021
|
Conference Call and Webcast
Management will host a conference call to discuss the financial
results for H&R REIT on Friday, November
12, 2021 at 9.30 a.m. Eastern
Time. Participants can join the call by dialing
1-888-510-2507 or 1-289-514-5065. For those unable to participate
in the conference call at the scheduled time, it will be archived
for replay beginning approximately one hour following completion of
the call. To access the archived conference call by telephone, dial
1-647-362-9199 or 1-800-770-2030 and enter the passcode 3504623
followed by the pound key. The telephone replay will be
available until Friday, November 19,
2021 at midnight.
A live audio webcast will be available through
https://www.hr-reit.com/investor-relations/#investor-events.
Please connect at least 15 minutes prior to the conference call to
ensure adequate time for any software download that may be required
to join the webcast. The webcast will be archived on H&R's
website following the call date.
About H&R REIT
H&R REIT is one of Canada's
largest real estate investment trusts with total assets of
approximately $13.1 billion at
June 30, 2021. H&R REIT has
ownership interests in a North American portfolio of high-quality
office, retail, industrial and residential properties comprising
over 40 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 the net proceeds
of the transactions and the uses thereof, the redemption of the Bow
Centre Street Limited Partnership Series B and Series C Secured
Bonds, the timing for redemption of the Series L Debentures, the
potential for more strategic changes, 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