H&R Real Estate Investment Trust

Description

H&R REIT is a real estate investment trust (REIT) that owns properties in Canada and the United States.

The diversified portfolio consists of properties located in Ontario and Alberta, Canada, and the United States. Most of its US assets include office buildings, shopping centers and retail facilities.

It is an unincorporated open-ended trust.

The company claims to generate most of the revenue from the rental income from the properties located in Canada.

The trust claims to maximize net asset value (NAV) by accumulating high-quality investment properties leased by creditworthy tenants. In addition, the RIET firm focuses on mitigating the risk by diversification of assets based on their class and geographic location.

The Canadian REIT acquires properties and projects for development and construction purpose.

H&R’s properties are divided into four real estate asset classes:

• Office
• Industrial
• Retail
• Residential

Office Segment

The trust has 28 office properties across Canada and five office properties in the United States, spread in a 10.6 million square feet area. As of March 31, 2021, the average lease term to maturity of properties is 12.2 years, the company claims. The office tenants include credit-worthy entities with investment-grade ratings, and the REIT reportedly generates 85.5 per cent of revenue from this segment from such tenants.

Retail Segment

The segment consists of nearly 30 per cent of total properties owned by the trust. It comprises 67 properties across Canada, including shopping centers, multi-tenant retail plazas and single-tenant retail properties. The company owns 16 single-tenant retail properties in the United States. H&R REIT owns a 33.6 per cent interest in a privately held real estate and development company, ECHO. The real estate company owns a portfolio of grocery-anchored store shopping centers in the United States. The retail segment has 67 properties in Canada and 260 properties in the United States. The properties cover an area of 13.4 million square feet in two geographic locations. The average lease term to maturity is 6.9 years, the company claims.

Industrial Segment

The segment consists of 83 industrial properties across Canada and three properties in the United States, accounting for approximately 10 per cent of the total portfolio.

Residential Segment

The segment operates as Lantowner Residential and accounts for 21 per cent of the total operations. The portfolio consists of 24 residential properties in the US.

The firm regularly posts financial reports, stock information and analyst coverage on the official website.