H&R REIT Announces Closings of Retail and Office Transactions and Other Leadership Updates
TORONTO, Jan. 29, 2026 /CNW/ - H&R Real Estate Investment Trust ("H&R" or "the REIT") (TSX: HR.UN) today made the following announcements:
Closings of Retail and Office Transactions
The REIT has closed the following transactions which were previously announced on November 25, 2025:
- One Canadian retail property was sold on November 27, 2025;
- H&R's non-managing 33.1% ownership interest in Echo Realty, L.P.'s U.S. retail portfolio was sold on January 6, 2026. The purchaser assumed liabilities of $421.5 million at the REIT's ownership interest;
- 23 Canadian retail properties were sold on January 27, 2026; and
- 145 Wellington and 88 McNabb, two Greater Toronto Area ("GTA") office properties were sold on January 27, 2026.
Aggregate gross proceeds from the sales above amounted to approximately $1.1 billion. The net proceeds of approximately $727 million received in January 2026 were used to repay corporate debt.
H&R has also entered into a management contract to manage the 23 Canadian retail and two office properties noted above.
The REIT expects to close the transactions to sell Hess Tower, a Houston office property, in February 2026 and the remaining 3 Canadian retail properties in March 2026.
Lantower Residential Update
Effective April 1, 2026, Lantower Residential will externalize its property management operations and has entered into a master management agreement with Greystar. This strategic action is intended to enhance operating efficiency, improve cost structure, and increase strategic flexibility across the residential platform.
The transition to a third-party management model is expected to yield cost savings of approximately U.S. $5 million annually. In addition, this structure allows Lantower Residential to evaluate and pursue multifamily investment opportunities in additional high-growth Sunbelt markets without incurring incremental start up or platform expansion costs, thereby improving capital allocation efficiency and scalability.
Greystar is expected to retain the majority of Lantower's onsite property management employees and key home office associates, supporting operational continuity at the property level. Emily Watson will continue as Chief Operating Officer of Lantower Residential, and Hunter Webb will continue to lead the development platform, ensuring continuity of leadership, strategy, and execution. Lantower Residential is expected to retain approximately 20 employees in asset management, development and accounting functions for Lantower Residential's properties.
The REIT believes this evolution of Lantower Residential's operating model strengthens margin durability, enhances portfolio flexibility, and positions the platform for long-term value creation while maintaining high standards of service for residents.
Management Update
Matt Kingston, the REIT's Executive Vice President of Development & Construction, has left the REIT effective January 15, 2026 to pursue other opportunities.
"During Matt's 8-year tenure with H&R and Primaris, he was instrumental in the creation and growth of the REIT's development group in Toronto, where he oversaw H&R's rezoning strategy for much of our downtown office portfolio," said Tom Hofstedter, Executive Chair and Chief Executive Officer. "The entire H&R REIT team thanks Matt for his service and wishes him best of luck in his future endeavors."
Earnings Release
H&R also previously announced that it will release its financial results for the three months and year ended December 31, 2025 on Thursday, February 12, 2026. Management will host a conference call to discuss the financial results for H&R REIT on Friday, February 13, 2026 at 9.30 a.m. Eastern Time.
Conference Call
Participants can join the call by dialing 1‐800‐717‐1738 or 1‐289‐514‐5100. For those unable to participate in the conference call at the scheduled time, a replay will be available approximately one hour following completion of the call. To access the archived conference call by telephone, dial 1‐289‐819‐1325 or 1‐888‐660‐6264 and enter the passcode 62704 followed by the "#" key. The telephone replay will be available until Friday, February 20, 2026 at midnight.
Webcast
A live audio webcast will be available through https://www.hr-reit.com/investor-relations/#investor-events. Please connect at least 15 minutes prior to the conference call to ensure adequate time for any software download that may be required to join the webcast. The webcast will be archived on H&R's website following the call date.
ABOUT H&R REIT
H&R REIT is one of Canada's largest real estate investment trusts. H&R REIT has ownership interests in a Canadian and U.S. portfolio primarily comprised of high-quality residential (operating as Lantower Residential), industrial and office properties comprising approximately 21.3 million square feet.
FORWARD-LOOKING DISCLAIMER
Certain information in this news release contains forward‐looking information within the meaning of applicable securities laws (also known as forward‐looking statements) including, among others, statements relating to H&R's objectives, beliefs, plans, estimates, targets, projections and intentions and similar statements concerning anticipated future events, results, circumstances, performance or expectations that are not historical facts, including with respect to H&R's future plans and targets, the sale of assets under contract or held for sale and the timing of closing thereof, the satisfaction of closing conditions for the sale of assets, the use of proceeds of the REIT from announced sales, expected annual management fee income to the REIT from managing the Canadian retail and office properties, the expected cost savings from the externalization of Lantower Residential's property management functions and the benefits thereof. . Forward‐looking statements generally can be identified by words such as "outlook", "objective", "may", "will", "expect", "intend", "estimate", "anticipate", "believe", "should", "plans", "project", "budget" or "continue" or similar expressions suggesting future outcomes or events. Such forward‐looking statements reflect H&R's current beliefs and are based on information currently available to management.
Forward‐looking statements are provided for the purpose of presenting information about management's current expectations and plans relating to the future and readers are cautioned that such statements may not be appropriate for other purposes. These statements are not guarantees of future performance and are based on H&R's estimates and assumptions that are subject to risks, uncertainties and other factors including those risks and uncertainties discussed in H&R's materials filed with the Canadian securities regulatory authorities from time to time, which could cause the actual results, performance or achievements of H&R to differ materially from the forward‐looking statements contained in this news release. Material factors or assumptions that were applied in drawing a conclusion or making an estimate set out in the forward‐looking statements include assumptions relating to the general economy, including the continuing effects of inflation; debt markets continue to provide access to capital at a reasonable cost; and assumptions concerning currency exchange and interest rates. Additional risks and uncertainties include, among other things, risks related to: real property ownership; the current economic environment; tariffs and other international trade disputes; property valuations; credit risk and tenant concentration; lease rollover risk; interest rate and other debt-related risks; inflation risk; development risks; residential rental risk; capital expenditure risk; currency risk; liquidity risk; cyber security risk and breach of privacy or information security systems; artificial intelligence and related technologies; expanded social media vehicles; financing credit risk; ESG and climate change risk; public health crises; co-ownership interest in properties; business continuity; general uninsured losses; joint arrangement and investment risks; talent management and succession planning; potential acquisition, investment and disposition opportunities and joint venture arrangements; potential undisclosed liabilities associated with acquisitions; competition for real property investments; potential conflicts of interest; litigation and regulatory risk; Unit prices; availability of cash for distributions; credit ratings; ability to access capital; dilution; unitholder liability; redemption right; investment eligibility; debentures; statutory remedies; unitholder activism; tax risk; and additional tax risks applicable to the REIT and to unitholders. H&R cautions that these lists of factors, risks and uncertainties are not exhaustive. Although the forward‐looking statements contained in this news release are based upon what H&R believes are reasonable assumptions, there can be no assurance that actual results will be consistent with these forward‐looking statements.
Readers are also urged to examine H&R's materials filed with the Canadian securities regulatory authorities from time to time as they may contain discussions on risks and uncertainties which could cause the actual results and performance of H&R to differ materially from the forward‐looking statements contained in this news release. All forward‐looking statements contained in this news release are qualified by these cautionary statements. These forward‐looking statements are made as of January 29, 2026 and the REIT, except as required by applicable Canadian law, assumes no obligation to update or revise them to reflect new information or the occurrence of future events or circumstances.
Additional information regarding H&R REIT is available at www.hr-reit.com and on www.sedarplus.com.
SOURCE H&R Real Estate Investment Trust
For further information: Larry Froom, Chief Financial Officer, 416-635-7520, e-mail [email protected]
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