TORONTO, Dec. 19 /CNW/ - H&R Real Estate Investment Trust (TSX: HR.UN) ("H&R" or "the REIT") announced today an increase to its cash distributions to its unitholders commencing in January 2008 and modifications to its landmark development project in Calgary called The Bow.
Distribution Increase
H&R's Board of Trustees has approved a 5.1% or approximately $0.07 per unit increase in cash distributions to its unitholders to $1.44 on an annual basis. The first two monthly cash distributions of $0.12 per unit will be scheduled as follows.
<<
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Record date Distribution date
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January 2008 January 22 January 31
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February 2008 February 19 February 29
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Development of The Bow Project
H&R is pleased to provide the following update on The Bow project:
- The REIT has received the initial building permits for the project,
excavation of the North block is almost complete and the pouring of
the foundation footings has commenced.
- An increase in the projected budgeted costs has been mostly offset by
a further agreement with EnCana Corporation to increase H&R's rental
income. Based on its current assumptions, the REIT does not expect
the economics of the project to materially change for the REIT as a
result of the foregoing and consequently H&R has waived its rights to
unwind the transaction.
>>
H&R President and CEO Tom Hofstedter said, "H&R's current portfolio continues to be virtually fully leased, generally on a long-term basis with contractual rent escalations and the average mortgage term to maturity is in excess of 10 years. We are therefore pleased to increase distributions to unitholders by 5% commencing in 2008. Meanwhile, the fundamental drivers of The Bow project remain sound: the tenant is highly creditworthy with investment-grade ratings; the triple-net, 25-year lease will represent Canada's largest single-tenant lease and as several of the major components of the building's development have been awarded we have improved confidence in the current budgeted cost of the project. We expect to initiate discussions for debt and equity participation in the new year."
About H&R REIT
H&R REIT is a TSX-listed, open-ended real estate investment trust, which owns a North American portfolio of 35 office, 125 industrial and 142 retail properties comprising 43 million square feet, with a net book value of $4.5 billion. The foundation of H&R's success since inception in 1996 has been a disciplined strategy that leads to consistent and profitable growth. Additional information regarding H&R REIT is available at www.hr-reit.com and on www.sedar.com.
This news release contains forward-looking statements with the meaning of applicable securities laws, including statements relating to the Trust's objectives, and strategies to achieve those objectives, and similar statements concerning anticipated future events, results, circumstances, performance or expectations that are not historical facts. Such forward-looking statements reflect the Trust's current beliefs and are based on information currently available to management. These statements are not guarantees of future performance and are based on the Trust's estimates and assumptions that are subject to risk and uncertainties, including those discussed in the Trust's materials filed with the Canadian securities regulatory authorities from time to time, which could cause the actual results and performance of the Trust to differ materially from the forward-looking statements contained in this news release. Those risks and uncertainties include, among other things, risks related to: price of the units; real property ownership; availability of cash flow; competition for real property investments; government regulation; interest rates and financing; environmental matters; redemption of the units; unitholder liability; co-ownership interest in properties; reliance on one corporation for management of a significant number of the Trust's properties; dependence on key personnel; potential conflicts of interest; changes in legislation; investment eligibility; construction risks; currency risk; tax treatment of income trusts; dilution; ability to access capital markets; cash distributions; indebtedness of the Trust; and statutory remedies. Material factors or assumptions that were applied in drawing a conclusion or making an estimate set out in the forward-looking statements include that the general economy remains stable; interest rates are relatively stable; acquisition capitalization rates are stable; competition for acquisitions of high quality office, industrial and retail properties remains strong; and equity and debt markets continue to provide access to capital. The Trust cautions that this list of factors is not exhaustive. Although the forward-looking statements contained in this news release are based upon what the Trust believes are reasonable assumptions, there can be no assurance that actual results will be consistent with these forward-looking statements. All forward-looking statements in this news release are qualified by these cautionary statements. The forward-looking
%SEDAR: 00002857E
For further information: Larry Froom, Chief Financial Officer, H&R REIT, (416) 635-7520, or e-mail info@hr-reit.com
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