Update from April 17th from their website
H&R REIT Provides COVID-19 Update and Declares April Distribution
Toronto, Ontario, April 17, 2020 - H&R Real Estate Investment Trust (“H&R" or “the REIT”) (TSX: HR.UN) announces the following recent developments:
A new $425 million unsecured credit facility from a syndicate of four Canadian banks A new 8.5-year $100 million mortgage secured (subject to customary closing conditions) by a previously unencumbered property Collection of 83% of total rents payable April 1st
Following the significant economic and social disruption that has come with the COVID-19 pandemic, individuals and businesses alike are facing unprecedented challenges. 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.
Liquidity Bolstered
Notably, both the new credit facility and mortgage were arranged following the onset of the COVID-19 economic disruption, underscoring H&R’s strong access to capital. The $425 million credit facility has been provided by Canadian Imperial Bank of Commerce, The Bank of Nova Scotia, The Toronto-Dominion Bank and Bank of Montreal and for a one-year term. The $100 million mortgage has been provided by a life insurance company.
Following the arrangement of the new mortgage, H&R has 89 unencumbered properties valued at approximately $3.8 billion as at December 31, 2019. In addition, reflecting H&R’s 23-year history and conservative long-term financing strategy on individual properties, H&R has numerous properties with very low loan to value ratios. As at December 31, 2019, H&R had 40 properties valued at approximately $1.5 billion which are encumbered with mortgages totalling $221.8 million. In this pool of assets, the average loan to value is 14.8%, the minimum loan to value is 0.7% and the maximum loan to value is 29.2%. The weighted average remaining term to maturity of this pool of mortgages is 2.4 years.
April Rent Collection Statistics
Tenant receipts to date for April rent charges amount to: 99.5% from office tenancies (43.8% of total rent*) 56.0% from retail tenancies (33.2% of total rent) 94.5% from multi-residential tenancies (16.7% of total rent) 91.9% from industrial tenancies (6.3% of total rent)
* includes Government tenancies whose rent is only due at the end of April.
The above April payment collections include the following notable sub-segment April 1st payments: 40.5% of rent from Primaris enclosed malls 83.9% of rent from ECHO Realty grocery anchored retail properties 90.3% of rent from other H&R retail properties 96.6% of rent from Jackson Park in Long Island City
Management has been evaluating rent deferral requests on a case by case basis. The REIT expects a significant portion of the balance of April rent owing will be collected over time.
Operating Cost & Capital Expenditure Initiatives Like many businesses, H&R has reviewed expenses and reduced certain costs, including for example the suspension of certain third-party service contracts relating to properties that have closed for the time being. The REIT has also postponed certain development projects that had not yet commenced construction, reducing near term capital commitments.
Monthly Distribution Declared
H&R today declared a distribution for the month of April scheduled as follows:
Distribution per Unit Annualized/Unit Record Date Distribution Date April 2020 $0.115 $1.380 April 27, 2020 May 4, 2020
About H&R REIT
H&R REIT is one of Canada’s largest real estate investment trusts with total assets of approximately $14.5 billion at December 31, 2019. H&R REIT has ownership interests in a North American portfolio of highquality office, retail, industrial and residential properties comprising over 41 million square feet.