Business
H&R Announces 10% Growth in FFO Per Unit for Q3 2013
TORONTO , Nov. 14, 2013 /CNW/ - H&R Real Estate Investment Trust ("H&R REIT" or th...
About this update from H&r Real Estate Investment Trust
[{"type":"text","content":"\n\n\nTORONTO, Nov. 14, 2013 /CNW/ - H&R Real Estate Investment Trust (\"H&R\n REIT\" or the \"REIT\") and H&R Finance Trust (collectively, \"H&R\") (TSX:\n HR.UN; HR.DB.D; HR.DB.E and HR.DB.H) today announced their financial\n results for the quarter ended September 30, 2013.\n\n\nCapital Transaction Highlights\n\n\n\nIn September 2013, the REIT completed its agreement with H&R Property\n Management Ltd. (\"HRPM\") to internalize the REIT's property management\n function effective July 1, 2013. On closing, a wholly-owned subsidiary\n of the REIT, H&R REIT Management Services LP (\"HRRMSLP\"), acquired\n HRPM's REIT-related property management business in return for 9.5\n million limited partnership units of HRRMSLP, which are exchangeable on\n a one-for-one basis for Stapled Units. The purchase price associated\n with the internalization did not utilize existing cash resources of the\n REIT, and HRPM has agreed to hold the exchangeable units (or Stapled\n Units upon exchange) for five years, subject to limited exceptions.  As\n a result of the internalization, the REIT saved $5.3 million in\n management and incentive fees which would otherwise have been payable\n to HRPM and incurred an additional $1.0 million in property operating\n costs for the three months ended September 30, 2013.\n\n\n\n\nIn August 2013, the REIT acquired a one-third interest in ECHO Realty LP\n (\"ECHO\"), which focuses on developing and owning a core portfolio of\n grocery anchored shopping centres in the United States.  ECHO's retail\n portfolio is primarily tenanted by Giant Eagle, Inc., the leading\n grocer in the western Pennsylvania and eastern Ohio regions.  ECHO's\n portfolio consists of 171 investment properties, excluding properties\n under development and vacant land, totaling approximately 7.3 million\n square feet and is expected to generate, once its existing development\n projects are completed, in excess of U.S. $84.0 million in net\n operating income annually, with an average remaining lease term of 12.9\n years.  The ECHO portfolio value amounts to approximately U.S. $1.2\n billion at a weighted average capitalization rate of 7.3%. The REIT\n acquired ECHO limited partnership units issued from treasury for a\n total purchase price of approximately U.S. $296.4 million before\n closing costs.&#x...