Strategic Reorganization and Q3/17 Results After completing a portfolio review, H&R REIT announced its plans to sell all of its remaining U.S. retail properties (79, valued at US$750M) and U.S. industrial properties (12, valued at US$145M). After the restructuring, H&R will focus on maintaining its high-quality office portfolio, its Canadian retail assets, and growing its U.S. multi-residential portfolio. The proceeds from the sales are expected to be used to fund future acquisitions.
Given the recent weakness in (aka bludgeoning of) the retail space, particularly in the U.S., the market should be receptive to this news. Who doesn't want the REIT they own to focus its portfolio on only the highest quality sectors and assets?
Q3/17 results look in-line with FFO of $0.46.
Link to H&R Press Releases