Analyst action from National Bank Diversified: H&R REIT (HR.UN-T, “sector perform”) to $10.50 from $10. Average: $11.13.
Mr. Kornack: “Within the diversified group, H&R remains our top focus idea, driven by earnings growth exposure to multi-family assets in U.S. markets and industrial development lease-up around the GTA combined with a better balance sheet and limited office maturities. Recent transaction activity was a plus as the REIT disposed of an office property at an attractive cap rate relative to our expectations. While we think H&R should trade at a narrower discount, it may take more time than originally expected to close this gap as the bulk of additional asset sales are on hold until market participants better understand the return environment.”