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H&R REIT Reports an Increase of 4% in FFO Per Unit for the Second Quarter ended June 30, 2015
TORONTO , Aug. 6, 2015 /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\nTORONTO, Aug. 6, 2015 /CNW/ - H&R Real Estate Investment Trust (\"H&R REIT\" or the \"REIT\") and H&R Finance Trust (collectively, \"H&R\") (TSX: HR.UN; HR.DB.D; HR.DB.E and HR.DB.H) today announced its financial results for the three and six months ended June 30, 2015.\n\nSummary of Significant 2015 Activity\n\nDuring the 18 months ended June 30, 2015, the REIT has sold properties for approximately $1.3 billion while acquiring approximately $0.4 billion of assets. Through these dispositions the REIT has formed strategic relationships with its new co-owners and has significantly strengthened its balance sheet by reducing its debt to total asset ratio from 49.2% at January 1, 2014 to 45.8% at June 30, 2015.  Despite the dilutive impact of these sales, H&R grew FFO per unit by 4.3% in Q2 2015 as compared to Q2 2014, primarily due to the strengthening of the U.S. dollar.  These results are a testament to the quality of the REIT's portfolio and the REIT's strategy of diversification both by asset class and geographic location.\n\nNew Industrial Platform\n\nFollowing the sale to an affiliate of the Public Sector Pension Investment Board (\"PSP\") and affiliates of Crestpoint Real Estate Investments Ltd. (\"Crestpoint\") (collectively, \"CrestPSP\") of a 50% interest in 84 Canadian industrial properties on December 22, 2014, the REIT sold a 49.5% interest in 16 U.S. properties to CrestPSP for a selling price of approximately U.S. $150.5 million on March 24, 2015.  CrestPSP assumed mortgages of approximately U.S. $56.2 million and received a mark-to-market adjustment on the assumed mortgages of approximately U.S. $3.5 million.  The REIT provided CrestPSP with a vendor take-back mortgage of approximately U.S. $10.1 million.  Equity accounting has been applied to this joint venture arrangement for the U.S. properties.  In addition, on March 24, 2015, the REIT sold a 50% interest in one Canadian industrial property to CrestPSP for approximately $51.5 million and provided CrestPSP with a vendor take-back mortgage of approximately $23.2 million.  The REIT plans to build on this strategic alliance with PSP and Crestpoint by expanding on this new industrial platform.       \n\nU.S. Residential \n\nDuring the six months ended June 30, 2015, the REIT a...