Business
H&R Reports Solid Q2 Results and with Cenovus's Occupancy of the Bow Announces Distribution Increases of 12.5%
TORONTO, Aug. 14, 2012 /CNW/ - H&R Real Estate Investment Trust ("H&R REIT") and H&...
About this update from H&r Real Estate Investment Trust
[{"type":"text","content":"\n\n\n\n\n\nTORONTO, Aug. 14, 2012 /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.C; HR.DB.D; HR.DB.E) announced their financial results for the\n second quarter ended June 30, 2012.\n\n\nOperating Highlights\nH&R REIT's operating strategy is to stabilize annual earnings and\n minimize market risk by leasing and financing its properties on a\n long-term basis. As a result, the average remaining term to maturity as\n at June 30, 2012 was 11.6 years for leases and 8.0 years for\n outstanding mortgages.  Occupancy at June 30, 2012 was 98%, down\n slightly from the 98.9% at June 30, 2011.  Leases representing only\n 1.6% of total rentable area will expire during the remainder of 2012. \n As at June 30, 2012, the ratio of H&R's debt to fair market value was\n 54.1% compared to 53.6% as at December 31, 2011.  H&R's debt excluding\n convertible debentures to fair market value ratio was 50.3% compared to\n 47.0% as at December 31, 2011.\n\n\nCapital Transaction Highlights\nDuring the second quarter 2012:\n\n\nH&R REIT acquired a one-third interest in the iconic Scotia Plaza\n Complex (\"Scotia Plaza\") in downtown Toronto for a total purchase price\n of approximately $422.2 million.  This state-of-the-art LEED Gold\n office building was purchased at a capitalization rate of 5.2%, with\n the Bank of Nova Scotia as the anchor tenant leasing approximately 61%\n of Scotia Plaza for an average lease term of 13.5 years.  H&R REIT\n partially funded this acquisition by issuing $216.7 million of first\n mortgage bonds at an interest rate of 3.21% for a 7-year term; and\n\n\nH&R REIT issued two series of first mortgage bonds secured by the Bow\n development in Calgary, Alberta comprised of: a) $250.0 million, 9-year\n term (maturing June 14, 2021), semi-annual interest only bonds with an\n interest rate of 3.69% and b) $250.0 million, 10-year term (maturing\n June 14, 2022), semi-annual 30 year amortizing bonds with an interest\n rate of 3.69%.  H&R REIT used a portion of the proceeds for the\n acquisition of Scotia Plaza and used the remaining proceeds to repay\n bank indebtedness and fund the redemption of certain debentures.\n\n\n\n\n\nDevelopment Highlights\nH&R REIT is currently dev...