Market Herald logo

Subscribe

Be the first with the news that moves the market
  • H&R Real Estate Investment Trust (TSX:HR.UN) has secured a new C$425 million credit facility from a syndicate of four Canadian banks
  • A new $100 million mortgage has also been secured from a life insurance company
  • As of December 31, 2019, H&R had 89 unencumbered properties valued at approximately $3.8 billion
  • In addition, the company announced its April dividends of 11.5 cents per share
  • H&R Real Estate Investment Trust (HR.UN) is up 6.46 per cent to $9.40 per share, with a market cap of $2.69 billion

H&R Real Estate Investment Trust (TSX:HR.UN) has secured a new C$425 million credit facility from a syndicate of four Canadian banks.

The company is one of Canada’s largest real estate investment trusts, with combined assets totalling roughly $14.5 billion. Its portfolio consists of office, retail, industrial, and residential properties across North America, comprising over 41 million square feet.

The unsecured credit facility was provided by the Canadian Imperial Bank of Commerce, the Bank of Nova Scotia, the Toronto-Dominion Bank, and the Bank of Montreal. It will have a term of one year.

Similarly, the 8.5-year mortgage, which has been secured against a previously unencumbered property, was provided by an unnamed life insurance company.

Interestingly, H&R struck both of these agreements following the onset of the COVID-19 outbreak. This is a clear indication of the company’s strong ability to access additional capital.

As of December 31, 2019, H&R had 89 unencumbered properties valued at approximately $3.8 billion.

In addition, the company has received 83 per cent of all rents payable on April 1. The majority of these payments came from office tenancies. However, some of these are government leases, which only require payment at the end of April.

Like many businesses around the world, H&R has been reviewing its expenses, and has subsequently reduced costs. This includes suspending third-party services at closed properties, and deferring development projects that have not yet commenced.

Today’s announcement noted that the COVID-19 pandemic has brought significant economic and social disruption.

“We are doing everything possible to protect and support everyone our organization touches, as we pull together as a community.

“With ample liquidity and a diverse cross-section of asset class and geographic exposures, the REIT has been working closely with its tenants, lenders and other stakeholders to navigate through these unprecedented times,” the company said.

Finally, H&R announced its dividend distribution for April of 11.5 cents per share, payable on May 4, 2020.

H&R Real Estate Investment Trust (HR.UN) is up 6.46 per cent to $9.40 per share at 2:16pm EST.

More From The Market Herald
Colliers - CEO, Jay Hennick.

" Colliers (TSX:CIGI) announces investment in leading U.S. real estate investment firm

Leading diversified professional services and investment management company, Colliers (CIGI) has announced an investment in Rockwood Capital LLC.
Colliers - CEO, Jay Hennick.

" Colliers (TSX:CIGI) to acquire majority stake in Versus Capital

Colliers (CIGI) will acquire a 75-per-cent stake in alternative investment manager Versus Capital.

" Slate Grocery REIT (TSX:SGR.UN) agrees to acquire US$425 million grocery-anchored real estate portfolio

Slate Grocery REIT (SGR.UN) has agreed to acquire 14 properties comprising 2.5 million square feet.

" AIP Realty Trust (TSXV:AIP.U) announces US$25M marketed offering

AIP Realty Trust (AIP.U) has announced a marketed offering of trust units for gross proceeds of up to US$25 million.