Business
H&R Reports Solid Q2 2013 Results and Successfully Completes the Integration of Primaris
TORONTO , Aug. 14, 2013 /CNW/ - H&R Real Estate Investment Trust ("H&R REIT") an...
About this update from H&r Real Estate Investment Trust
[{"type":"text","content":"\n\n\nTORONTO, Aug. 14, 2013 /CNW/ - H&R Real Estate Investment Trust (\"H&R\n REIT\") and H&R Finance Trust (collectively, \"H&R\") (TSX: HR.UN;\n HR.DB.D; HR.DB.E and HR.DB.H) today announced their financial results\n for the quarter ended June 30, 2013.\n\n\nCapital Transaction Highlights\nDuring the second quarter of 2013, H&R REIT acquired 100% of Primaris\n Retail Real Estate Investment Trust (\"Primaris\") which consisted of 26\n properties valued at $3.1 billion.  The acquisition was funded through\n the issuance of 62.5 million Stapled Units with a value of $1.4 billion\n and the assumption of Primaris' outstanding mortgages, convertible\n debentures and bank indebtedness totalling $1.6 billion.  In addition,\n holders of 2.1 million exchangeable units of certain subsidiaries of\n Primaris received the same number of Class B units of subsidiaries of\n H&R REIT, each of which is exchangeable for 1.166 Stapled Units.  The\n increased market capitalization relating to the acquisition of Primaris\n has substantially enhanced liquidity for unitholders.  Through this\n transaction, H&R REIT has achieved broader diversification by\n geographic region and tenant base into the enclosed shopping centre\n asset class at a time when U.S. and international retailers are\n expanding into Canada.  H&R is pleased with its successful integration\n of the Primaris portfolio and platform all in accordance with H&R's\n proforma budgets.  The property operating income of $41.0 million\n attributable to the Primaris portfolio for Q2 2013 was in line with H&R\n REIT management's expectation at the time of the Primaris acquisition\n and it is expected that such property operating income will increase\n for Q3 and Q4 2013.\n\n\nOperating Highlights\nH&R REIT's average remaining term to maturity as at June 30, 2013 was\n 10.3 years for leases and 7.3 years for outstanding mortgages. \n Occupancy at June 30, 2013 was 98.7%, up slightly from 98.0% at June\n 30, 2012.  Leases representing only 4.9% of total rentable area will\n expire during the balance of 2013 and 2014.  As at June 30, 2013, the\n ratio of H&R's debt to fair market value of assets was 48.5% compared\n to 50.3% as at December 31, 2012.\n\n\nDevelopment Highlights \nEffective December 31, 20...