$406 Million
in Year-to-Date Dispositions Completed
TORONTO, Aug. 31,
2022 /CNW/ - H&R REIT ("H&R" or the "REIT")
(TSX: HR.UN) is pleased to announce that it has completed the sale
of four properties for combined gross proceeds of $167.8 million which approximates the IFRS values
reported at June 30, 2022 for the
properties. The weighted average capitalization rate for the sale
approximates 6.9%. The REIT will continue to manage the properties
and earn the management fees payable by the tenants under their
respective leases.
|
Properties
Sold
|
Property
Type
|
Tenant
|
Square Feet
|
1
|
100 Wynford Dr.,
Toronto, ON
|
Office
|
Bell Canada
|
444,898
|
2
|
2767 2nd
Ave., Calgary, AB
|
Office
|
AltaLink
L.P.
|
69,793
|
3
|
2665 32nd
St., Calgary, AB
|
Retail
|
Rona Inc.
|
89,438
|
4
|
2342 Princess St.,
Kingston, ON
|
Retail
|
Rona Inc.
|
129,181
|
The REIT has the option to repurchase 100 Wynford for
approximately $159.6 million in 2036
or earlier under certain circumstances. Due to the repurchase
option in favour of the REIT, the transaction will not meet the
criteria of a transfer of control under IFRS-15, Revenue from
Contracts with Customers. The 100 Wynford property will
continue to be recorded as an asset on the balance sheet, with
proceeds received from the sale recorded as deferred revenue and
amortized over the term of the lease.
Thomas Hofstedter, Executive
Chairman & CEO of H&R REIT, said "The retail and office
dispositions that closed today are moving H&R REIT closer to
achieving our portfolio simplification strategy
goals. Additionally, the option to repurchase 100 Wynford Drive
will allow us to capture any development upside created through our
continuing rezoning efforts. We are very confident in our plan,
which we believe is driving growth and creating value for our
unitholders."
Property sales for 2022 currently total $406.0 million. H&R has also entered into a
binding agreement for the sale of two of its automotive‐tenanted
retail properties in the United
States for a total of approximately U.S. $17.0 million at a weighted average
capitalization rate of 5.8%.
About H&R REIT
H&R REIT is one of Canada's
largest real estate investment trusts with total assets of
approximately $11.7 billion as at
June 30, 2022. H&R REIT has
ownership interests in a North American portfolio comprised of
high‐quality residential, industrial, office and retail properties
comprising over 29.3 million square feet. H&R is currently
undergoing a strategic repositioning to transform into a
simplified, growth-oriented company focusing on residential and
industrial properties to surface significant value for
unitholders.
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 the
continued receipt of management fees from the properties, the
accounting treatment for the sale of 100 Wynford, the ability to
capture any development upside created through the REIT's rezoning
efforts, the driving of growth and creation of value for
unitholders of the REIT's plan and the sale of additional
properties. 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