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વર REIT H & R REIT Reports Third Quarter 2021 Results and Announces a Special Distribution Strong Financial & Operating Results , Executing on Strategic Repositioning - Toronto , Ontario , November 15 , 2021 H & R Real Estate Investment Trust ( " H & R " or " the REIT " ) ( TSX : HR.UN ) announces its financial results for the three and nine months ended September 30 , 2021 . TRANSFORMATIONAL STRATEGIC REPOSITIONING PLAN On October 27 , 2021 , H & R announced its transformational strategic repositioning plan to create a simplified , growth- oriented company focusing on multi - residential and industrial properties to surface significant value for unitholders . H & R's target is to be a leading owner , operator and developer of multi - residential and industrial properties , creating value through redevelopment and greenfield development in prime locations within Toronto , Montreal , Vancouver , and high growth U.S. sunbelt and gateway cities . H & R will fund this growth through dispositions , synchronizing asset sales with capital requirement . " I am very pleased to report strong third quarter results , reflecting the quality of H & R's portfolio and strength of our balance sheet , " said Tom Hofstedter , President and CEO . “ Our transformational strategic repositioning plan , announced just a few weeks ago , provides a clear path forward to simplifying H & R's business model creating significant value and growth for unitholders . With our path forward now clearly established , our teams have turned to the implementation phase , where we are committed to efficiently and effectively executing on our plan . " Execution Highlights • • Sale of Bow and Bell Office Campus : previously announced sale of the Bow and Bell office Campus significantly reduced Calgary office exposure , enhanced tenant diversification , and created the liquidity and strengthened balance sheet to enable the next steps . Primaris REIT Spinout : previously announced proposed tax - free spin - off ( the “ Spin - Off " ) of the REIT's Primaris properties including all of H & R's enclosed malls into a new , completely independent , stand - alone , publicly traded REIT ( " Primaris " ) . Exit Retail and Office : previously announced Disposition plan ( the " Strategic Dispositions " ) of H & R's remaining retail properties including its investment in ECHO Realty , and all office properties other than those with significant near - term redevelopment potential . These Strategic Dispositions are expected to generate proceeds of approximately $ 3.4 billion over the next five years . Focus on Multi - Residential and Industrial : synchronize Strategic Disposition proceeds to fund greenfield development and office redevelopment into class A multi - residential and industrial properties . Benefits of the transformational strategic repositioning are expected to include • • • • Greater concentration to higher growth multi - residential and industrial assets , with reduced exposure to retail and office properties . Enhanced major market presence in the Greater Toronto Area , high - growth U.S. sunbelt and gateway cities and immediate reduction of Alberta exposure to 7 % of investment properties post Spin - Off . Increasing exposure to H & R's significant 12,700 class A multi - residential and industrial development pipeline to drive growth . Improved proforma balance sheet enhances financial flexibility to execute on growth while maintaining H & R's current investment grade credit rating . Upon completion of the Spin - Off , the combined annual distributions of H & R REIT and Primaris are anticipated to equal $ 0.72 , up 4.3 % from the current $ 0.69 per H & R unit . H & R is anticipated to distribute $ 0.52 per annum while 1 | Page