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H&R Real Estate Investment Trust (HR-UN.TO)

Toronto - Toronto Real Time Price. Currency in CAD
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16.25+0.10 (+0.62%)
At close: 03:59PM EST
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  • J
    Any comments for today drop? Buy or sell?
  • M
    Company has an FFO multiple of something like 10. They transition to purely residential and industrial, eventually that should creep up to 22-25... And consider they are seeing yields of 5-6% on their construction costs... Give this company a few years and they could see some outsized gains
  • J
    To those of you who are confused, think of the upcoming special (whateevr it is) this way...
    1. $0.10 - plain and simple

    2. $0.63 - provision of shares worth $0.63 in your account. Number of shares will depend on share price around that time, but it will not reduce stock price.

    3. Consolidation - You must be familiar with this. If a company does 2 for 1 consolidation, it burns half the shares and share price doubles. In this case, it's going to be close to 51.9 for 50 consolidation, i.e. share price will increase by appx. 3.8%

    Whenever ypu face something big/difficult, divide it into smaller problems.

    I am open to feedback...
  • T
    TWF inc
    Already confirmed next variant will be named Optimus Prime.
  • A
    Units are being issued, then consolidated (reverse split) to negate dilution. This should increase share price, in turn helping set up a more favourable spinoff.

    Aimco (AIV) did something similar in Nov 2020.

    Think of it this way, if you bought on Dec 31 and sold the next day at the same price, it wouldn’t make sense that you could claim a 63c loss.
  • M
    I posed this question to Otto earlier, but does anyone have an opinion on whether we could rally enough unit holders (25%) to vote down this Ill-considered spin-off proposal down at the SGM in Dec?

    Has anyone seen cases before of this actually working? And if that’s successful, perhaps considering trying to take out current management at the next AGM? (which would be harder I presume)

    I don’t see much of value in anything current management is doing. They have cut our dividend income in half, haven’t rallied the share price with their big complicated schemes and proposals, are keeping our dividend income low moving forward (half of previous), and are undoing 10-20 years of their own corporate strategy to have a large strong diversified REIT (which we may regret in a few years when current fads change). And this special dividend is a complete no cash joke.

    I for one am a pretty ticked off unit holder. Like 10 out of 10 ticked off.

    Wondering what others think of chances of voting this whole mess down?? Is this 25% threshold possible, doable and/or realistic in others experience?
  • O
    Will the December 31 share distribution then consolidation raise the stock price? Like a buyback (that you pay taxes on) or won’t affect the stock price. In other word do i loose 0,63$ if holding in a registered account?
  • S
    Well it looks like the special dividend is aiming towards keeping the share price still until the split. If price drops, we get more shares. Less if it rises. Believe share price will trend towards an increase by Dec 31 buy not I’m not expecting more then a 10% gain. Well, waited patiently for the news and now soon time to reassess my REITs portfolio for 2022. Good luck and hoping you all had so far a prosperous year.
  • T
    You shouldnt be emotional like M when you buy and own stocks. What are we billionaire hedge fund activists? Our few hundreds of thousands of dollars or millions dont even matter and I would like to remind you that we are not that special.

    Like I said at this price range I expect 30 to 40% gain from $16 until the end of 2022. If you believe otherwise or found better investments by all means go ahead. I did. I bought few tech stocks and I bought few recovery stocks. I am up 30% some stocks and which I bought last month some are down 10%.

    Stocks are long term guys.. At least few years. This is not some casino.

    Thank god I was iin suncor before they increase their dividend by 100%. I did not make the same mistake that I made with RDSB .

  • Z
    well my average is under $9 because I bought it in mid 2020. However, I do not like spin off. The reason I bought is.........
    HR.UN is biggest "diversified" REIT in Canada. If I like retail REIT I rather bought RIO CAN.
    I will not sell it because the average is too good to sell..... I may double my position if HR.UN go under $10
    and PMZ.UN go under $3.50 after the spin off.
  • j
    The distribution is amazing!! 0.73 a share we get December 31! From that 0.10 will be cash the rest in units aka shares! 💪 that’s amazing Christmas gift to us all!
  • S
    anyone know what this "distribution payable in units" means? I can't make sense of it
  • D
    So in the span of 2 weeks, HR is down $1, more than negating any benefit of the “special distribution.” Guess the market has spoken and does not agree with management and their decisions.
  • S
    Too emotions! No emotions better investor. If company good and sale, buy and wait! Add when other sell. Buying MPCT and AX now too!
  • M
    Definately sucks on the special divi being a bate n switch.

    Guess management is bored with the balanced slow growth they got and feel like they're just Really good at residential. The primaris will be worth keeping. The hr reit will force investors to re evaluate what the value should be. Which is arguably higher. But switching from a dividend stock to a growth stock, really requires them to prove some growth. It'll likely take them a year or more to prove their on the right track tbh.
  • M
    Many shareholders - myself included - were in this REIT for the dividend yield and INCOME - which was cut in half during covid and STILL not reimplemented.

    Not to get an extra few percent of share price growth (I’m already up 55%+, and planned to never sell, so who cares?)

    Management wants to use shareholder’s expected raised dividend money (from all these transactions and not reimplementing the cut dividend) to fund its future developments and acquisitions, instead of raising capital, which is fine for them, and maybe increases their share value, but many like me don’t care about this, we want the DIVIDEND INCOME.

    That’s WHY we bought and owned this company!

    Had management simply reimplemented the previously cut dividend, we would have had just as much or probably more share price appreciation, and a stronger more diversified REIT.

    My view is this series of complicated transactions is very short sighted, and self- serving by management, and completely against the interests of many income investors and shareholders.

    I intend to vote against it for these reasons.

    And in 5 years they will probably wish they were a bigger stronger more DIVERSIFIED REIT (when office and retail are back in vogue) and do it all over again. Lol.

    All this hullabaloo by management and running around with big complicated schemes….and accomplishing, nothing.

    Not impressed, and voting against the proposal.

    That’s my two cents, and happy to hear other thoughts, (and don’t care what RetiredCEO thinks lol, other than interested to hear his perspective)

    I think it comes down to one thing: do you want a big strong diversified REIT that can afford to pay double the current dividend and have nice monthly INCOME and modest share price growth, or do you want to do a whole bunch of unnecessary transactions and undo 10-20 years of corporate history to MAYBE get better share price growth, but with DEFINITE lower dividend income and yield.

    This is bad for shareholders who are income investors in my view. Vote accordingly.
  • s
    From my understanding reading the investor presentation, the value of the primaris spin off unit is $5.50 and the post transaction NAV for H&R REIT is $16.98. So essentially, main takeaway is that Jan 1st 2022, you will receive 1 share of the primaris spin off valued at $5.50 for each H&R share you own. Post transaction, the NAV for the remainder of H&R REIT will be give or take its current trading price today. So as long as the market agrees with the spinoff price of $5.50 for the primaris reit most investors will see a nice uptick in their total portfolio value. The dividend will be marginally higher after the transaction if you continue owning H&R and the Primaris REIT spinoff, however the real benefit is that the primaris reit will have some decent market value and if you want you can sell that and park the gains in higher yielding stock. I do agree that they have been more conservative than I would like with the distributions but again from a capital appreciation point of view the $6 dollar discount to NAV was going to be an uphill challenge to overcome even if they remained together over the next 1 or so.
  • S
    Almost $23 NAV!
  • A
    "H&R REIT Price Target Raised to C$20.50/Share From C$19.50 by National Bank"
  • M
    I wonder if a shareholder class lawsuit would actually be warranted in this case?

    On the basis that this management has COMPLETELY changed a long term strategy and corporate structure, cut dividends in half, guided new low dividend yields moving forward (and not restoring the cut), with no regard and to the detriment of a large amount of unit holders who bought this REIT for dividend income and yield.

    And many who may also actually be underwater on their shares as Otto mentioned.

    I see these shareholder lawsuits all the time in the US but less so here in Canada. But maybe it is justified in this case?

    Anyone have any thoughts on whether this could have any merit in this case? Or a good firm in Canada to take this on?

    I for the record had 2,000 shares bought at ave price of $10.7 (so I’m thankfully up), but sold half my position today (just out of sheer disgust with this management and what I see as their misguided strategy and disregard for dividend income shareholders and just overall feeling ripped off).

    Not many people bought HR REIT as a growth stock I suspect - there are many many better opportunities for that.

    This is and was supposed to be a REIT that distributed nice dividend income and yield to shareholders (I thought anyways). That’s definitely why I bought. Anyway - thought welcome…