H&r Real Estate Investment Trust · TSX:HR.UN
H&r Real Estate Investment Trust — Q4 2025 Earnings Presentation
39 slides from H&r Real Estate Investment Trust's earnings presentation, Feb 13, 2026
Slide 1: Repositioned for Growth
REPOSITIONED FOR GROWTH INVESTOR PRESENTATION February 2026 1
Slide 2: Caution Regarding Forward-Looking Statements
CAUTION FORWARD-LOOKING STATEMENTS Certain statements made in this presentation will contain forward‐looking information within the meaning of applicable securities laws (also known as forward‐looking statements) including, among others, statements made or implied relating to H&R Real Estate Investm
Slide 3: Table of Contents
Transformational Strategic TABLE OF Repositioning Plan 4 CONTENTS Independent Board of Trustees and Senior Leadership Team 11 Portfolio Overview 14 Strong and Flexible Balance Sheet 20 Investment Proposition 23 Developments 25 Environmental • Social • Governance 36 3
Slide 4: Transformational Strategic Repositioning Plan
TRANSFORMATIONAL STRATEGIC REPOSITIONING PLAN 4
Slide 5: Significant Progress Since June 30, 2021
SIGNIFICANT PROGRESS SINCE JUNE 30, 2021 1 SIMPLIFIED BUSINESS. STRENGTHENED BALANCE SHEET. MOVING H&R TOWARDS HIGHER GROWTH OVER $2.6 BILLION OF PRIMARIS REIT $2.6 BILLION OF GROWTH IN NON-STRATEGIC SPINOUT WITH H&R DEBT3 REPAID, RESIDENTIAL AND STRONG OPERATIONAL OFFICE & RETAIL CONTRIBUTING 27 ST
Slide 6: Repositioning Underway
REPOSITIONING UNDERWAY WITH ASSET ALLOCATION SHIFTING TOWARDS HIGHER GROWTH ASSET CLASSES REAL ESTATE ASSETS (Fair Value) 1 June 30, 20212 December 31, 20253 Retail 4% Office Residential 12% Retail 29% 25% Industrial Industrial 9% 25% Residential 59% Office 37% 1. At the REIT’s proportionate share,
Slide 7: $1.5B in Dispositions Accelerates Debt Reduction
$1.5B IN DISPOSITIONS ACCELERATES DEBT REDUCTION RESIDENTIAL & INDUSTRIAL ASSETS TO INCREASE FROM 69% to 84% 1 NET OPERATING DISPOSITIONS DEBT REDUCTION INCOME IMPACT 3 Months Ended Year Ended December 31, 2025 December 31, 2025 November 2025 NET OPERATING Binding agreements announced to sell ~$727.
Slide 8: Same-Property Net Operating Income (Cash Basis) Period Over Period Growth
SAME -PROPERTY NET OPERATING INCOME (CASH BASIS) 1 PERIOD OVER PERIOD GROWTH SIGNIFICANT PROGRESS SINCE THE ANNOUCEMENT OF H&R’S STRATEGIC PLAN IN OCTOBER 2021 14.9% 10.3% 1.3% 1.6% -5.2% 2021 2022 2023 2024 2025 1. This is a non-GAAP measure. Refer to the “Non-GAAP Measures” section of this present
Slide 9: Streamlining the Portfolio
STREAMLINING THE PORTFOLIO AND ALIGNING FOR BETTER RESULTS AND HIGHER GROWTH SAME-PROPERTY NET OPERATING INCOME (CASH BASIS)¹ year ended December 31, 2025 Drivers • +1.6% overall growth in 2025 Same-Property net operating income (cash basis)1 • 93.1% occupancy RESIDENTIAL Strengthening of U.S. dolla
Slide 10: Enhanced Balance Sheet Supporting Growth
ENHANCED BALANCE SHEET SUPPORTING GROWTH CREATE FLEXIBILITY AND MAINTAIN INVESTMENT–GRADE CREDIT RATING Key Metrics June 30, 2021 December 31, 2025 Positive Impact Reduce Leverage – Debt to Total Assets at the REIT’s proportionate share1,2 50.0% 49.8% Debt to Adjusted EBITDA at the REIT’s proportion
Slide 11: Independent Board of Trustees and Senior Leadership Team
INDEPENDENT BOARD OF TRUSTEES AND SENIOR LEADERSHIP TEAM 11
Slide 12: Board Renewal and Refreshment
BOARD RENEWAL AND REFRESHMENT STRONG AND SKILLFUL BOARD WITH UNITHOLDER ALIGNMENT Committees Trustee Board Member & Experience Independent Since Compensation, Audit Investment ESG & Nominating Leonard Abramsky • President of The Dunloe Group Inc. • Current trustee of First Capital REIT and Dream Res
Slide 13: Experienced and Tenured Executive Team
H&R REIT AND LANTOWER RESIDENTIAL EXPERIENCED AND TENURED EXECUTIVE TEAM TOM HOFSTEDTER LARRY FROOM ROBYN KESTENBERG CHERYL FRIED BLAIR KUNDELL Executive Chairman & CEO CFO EVP, Office & Industrial EVP, Finance EVP, Operations H&R REIT H&R REIT H&R REIT H&R REIT H&R REIT EMILY WATSON COLLEEN GRAHN H
Slide 14: Portfolio Overview
PORTFOLIO OVERVIEW 14
Slide 15: Portfolio Overview
PORTFOLIO OVERVIEW WELL LOCATED PROPERTIES IN STRONG MARKETS LEASED TO INVESTMENT-GRADE TENANTS WITH LONG WEIGHTED AVERAGE LEASE TERMS $7.4B1 Fair Value of Real Estate Assets Retail $0.3B Office $0.9B Industrial $1.8B Residential $4.4B 205 SPEIRS GIFFEN AVE. JACKSON PARK RIVER LANDING CALEDON, ON LO
Slide 16: Residential
26 LANTOWER RESIDENTIAL Number of Properties PRIME INCOME-PRODUCING RESIDENTIAL PROPERTIES WITH ATTRACTIVE GROWTH CHARACTERISTICS $3.8B Fair Value1 RESIDENTIAL FAIR VALUE1 S A M E - P R O P E R T Y N O I ( C A S H B A S I S ) 1,2 4.73% Weighted Average by Geography by Geography Cap Rate New York 4.9
Slide 17: Residential
LANTOWER RESIDENTIAL PRIME INCOME-PRODUCING RESIDENTIAL PROPERTIES WITH ATTRACTIVE GROWTH CHARACTERISTICS December 31, 2025 December 31, 2024 Weighted average Weighted average Number of monthly rent per Number of monthly rent per Number of residential occupied unit Number of residential occupied uni
Slide 18: Industrial
66 HIGH-QUALITY DISTRIBUTION FACILITIES Number of Properties LOCATED IN KEY INDUSTRIAL MARKETS 8.3M Square feet 57% % of Industrial Number of REIT Owned Avg Lease Portfolio Square Feet Tenant Rentals Locations sq.ft. (in 000s) TTM (Years) located in the GTA 1 Canadian Tire Corporation 20.6% 2 2,104
Slide 19: Office
15 HIGH-QUALITY OFFICE PORTFOLIO 1 Number of Properties 4.4M Square feet OFFICE FAIR V A L U E 1,2 • High-quality office properties located in Properties by Geographic Region strong major centres $1.4B Fair Value2 • Long weighted average lease terms Other Gateway U.S. 28% Canada • 83.4% of revenue f
Slide 20: Strong and Flexible Balance Sheet
STRONG AND FLEXIBLE BALANCE SHEET 20
Slide 21: Maintain a Strong and Flexible Balance Sheet with an Investment-Grade Credit Rating
MAINTAIN A STRONG AND FLEXIBLE BALANCE SHEET BBB by DBRS WITH AN INVESTMENT-GRADE CREDIT RATING $3.9B Unencumbered Assets Mortgages Debt to Total Assets 9.3x 16% Debt to Adjusted at the REIT’s Proportionate Share1,2 EBITDA at the REIT’s Senior proportionate share1,2,3 Unsecured Debentures 10% $316.8
Slide 22: Debt Maturity Schedule
DEBT MATURITY SCHEDULE $1,200 Unsecured $1,000 Debt2 58% $800 In millions $ $600 $400 Secured Debt1 $200 42% $0 3 2026 2027 2028 2029 2030 Mortgages Unsecured Debentures Unsecured Term Loans Lines of Credit 1. Secured debt includes mortgages payable and secured operating lines of credit. 2. Unsecure
Slide 23: Investment Proposition
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Slide 24: Management Committed to Surfacing Value for Unitholders
MANAGEMENT COMMITTED TO SURFACING VALUE FOR UNITHOLDERS ACCELERATING SAME-PROPERTY NET OPERATING INCOME (CASH BASIS)¹ GROWTH $16.09 INCREASING EXPOSURE TO HIGH GROWTH RESIDENTIAL $10.23 VALUE CREATION THROUGH REZONING STRONG BOARD AND Unit Price² NAV per Unit¹ MANAGEMENT ALIGNMENT 1. This is a non-G
Slide 25: Developments
DEVELOPMENTS 25
Slide 26: Recently Completed Developments
RECENTLY COMPLETED DEVELOPMENTS INDUSTRIAL 6900 Maritz Dr. 1965 Meadowvale Blvd. 1925 Meadowvale Blvd. MISSISSAUGA, ON MISSISSAUGA, ON MISSISSAUGA, ON COMPLETED: Q2 2025 COMPLETED: Q1 2024 COMPLETED: Q1 2024 122,320 square feet of industrial space 187,290 square feet of industrial space 149,542 squa
Slide 27: Current Canadian Developments
CURRENT CANADIAN DEVELOPMENTS (in thousands of Canadian Dollars) Total Dev. Costs Incurred Costs Remaining Expected Yield on Expected Property Geography Ownership Acres Square Feet Budget to Date to Complete Budgeted Cost Completion Date 560 & 600 Mississauga, ON 50% 13.3 237,307 $65,452 $57,170 $8,
Slide 28: Development Pipeline – U.S. Sun Belt States
LANTOWER RESIDENTIAL DEVELOPMENT PIPELINE – U.S. SUN BELT STATES 1 SITE NAME MARKET STATUS START DATE # OF ACRES # OF SUITES West Love2 Dallas, TX Lease-up Q2 2022 5.4 413 Midtown2 Dallas, TX Lease-up Q2 2022 4.2 350 Bayside3 Tampa, FL Under Const. Q2 2024 2.4 79 Sunrise Phase I3 Orlando, FL Under C
Slide 29: Lantower Residential Progress Updates
Location LANTOWER RESIDENTIAL 2223 Hawes Ave. Dallas, TX RECENTLY COMPLETED DEVELOPMENTS Lantower West Love H&R Ownership Interest PROGRESS UPDATES 100% Property was practically completed and transferred to investment properties Stage in Q3 2024 Lease-up Fair value increase of U.S. $23.2 million rec
Slide 30: Project Photos
PROJECT PHOTOS LANTOWER WEST LOVE RESIDENTIAL 30
Slide 31: Lantower Midtown Progress Updates
LANTOWER RESIDENTIAL Location 10650 N. Central Expy. Dallas, TX RECENTLY COMPLETED DEVELOPMENTS Lantower Midtown H&R Ownership Interest PROGRESS UPDATES 100% Property was practically completed and transferred to investment Stage properties in Q4 2024 Lease-up Fair value increase of U.S. $16.0 millio
Slide 32: Project Photos
PROJECT PHOTOS LANTOWER MIDTOWN RESIDENTIAL 32
Slide 33: Lantower Sunrise Progress Updates
Location LANTOWER RESIDENTIAL 4865 Big Pine Loop Kissimmee, FL CURRENT DEVELOPMENTS Lantower Sunrise 1 H&R Ownership Interest 29.1% PROGRESS UPDATES Stage Roof tile installation is 100% complete. Under Construction Exterior paint completed for both buildings. Unit railing now 80% # of Suites complet
Slide 34: Lantower Bayside Progress Updates
Location LANTOWER RESIDENTIAL 16485 Hwy. 19 N. Largo, FL CURRENT DEVELOPMENTS H&R Ownership Lantower Bayside 1 Interest 29.1% PROGRESS UPDATES Stage Exterior paint and unit railing now 100% complete. Under Construction Approximately 95% of units have trim, flooring, tile, cabinets, and # of Suites c
Slide 35: Elio Progress Updates
Location LANTOWER RESIDENTIAL 4th St. & Cabrillo Park Dr. Santa Ana, CA CURRENT DEVELOPMENTS H&R Ownership Elio 1 Interest 50% PROGRESS UPDATES Stage Construction commenced in September 2025 Under Construction The matt foundation and level 1 of the parking structure are completed # of Suites with th
Slide 36: Environmental • Social • Governance
ENVIRONMENTAL • SOCIAL • GOVERNANCE 36
Slide 37: Our Approach to Sustainability
OUR APPROACH TO SUSTAINABILITY STRATEGIC PLANNING DEVELOPMENT & REZONING In line with our strategic planning Sustainability goals are established for our assets processes, H&R REIT’s Executive team that are selected for renovation or identifies and assesses material redevelopment. Green building cer
Slide 38: Sustainability Highlights
SUSTAINABILITY HIGHLIGHTS 1 +2.6% H&R REIT’s like-for-like energy use increased by CLIMATE AND DIVERSITY AND GOVERNANCE 2.6% in 2024 compared to 2023. RESOURCE INCLUSION PRACTICES EFFICIENCY • 40% of the Board of • Tenure for all new Trustees • Utility consumption and Trustees are female is limited
Slide 39: HR.UN - TSX
HR.UN - TSX Ticker For further information contact: Tom Hofstedter, Chief Executive Officer 1-416-635-7520 Larry Froom, Chief Financial Officer 1-416-635-7520 info@hr-reit.com Additional information regarding H&R REIT is available at www.hr-reit.com and on www.sedar.com. 39 39
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