H&R REIT Confirms Special Committee Process to Consider Strategic Alternatives

TORONTO, July 4, 2025 /CNW/ - H&R Real Estate Investment Trust ("H&R" or "the REIT") (TSX: HR.UN)  has become aware of market speculation that the REIT is currently in discussions with respect to a potential transaction involving a sale of the REIT or of all or substantially all of its assets (the "Potential Transaction"). The REIT confirms that the Board of Trustees previously formed a special committee of independent Trustees (the "Special Committee") in February 2025 to review and consider strategic alternatives after receiving an unsolicited expression of interest. Subsequent to such proposal, the Special Committee has received other proposals for Potential Transactions. The Special Committee has retained National Bank Financial as independent financial advisor and Fasken Martineau Dumoulin LLP as independent legal counsel. CIBC Capital Markets is financial advisor to the REIT and Blake, Cassels & Graydon LLP is acting as legal counsel to the REIT.

The Special Committee continues to discharge its mandate and is currently considering and in discussions in respect of confidential non-binding offers received from a number of interested parties. No decision has been made as to whether the REIT should proceed with a Potential Transaction, nor has any agreement been reached with a counterparty, and there can be no assurance that the Special Committee's process will result in any Potential Transaction or any other alternative transaction. In addition, the timing, structure and terms of any Potential Transaction remain uncertain. The REIT continues to believe in its long-term strategy and its strategic repositioning plan, and will only pursue a Potential Transaction that is in the best interests of the REIT.

Neither the REIT nor the Special Committee will be providing further comment on the status of the Special Committee's process at this time and they only intend to provide further updates as circumstances warrant and in accordance with applicable securities laws.

About H&R REIT

H&R is one of Canada's largest real estate investment trusts with total assets of approximately $10.5 billion as at March 31, 2025. H&R has ownership interests in a Canadian and U.S. portfolio comprised of high-quality residential, industrial, office and retail properties comprising over 25.6 million square feet. H&R's strategy is to create a simplified, growth-oriented business focused on residential and industrial properties in order to create sustainable long-term value for unitholders. H&R plans to sell its office and retail properties as market conditions permit. H&R's target is to be a leading owner, operator and developer of residential and industrial properties, creating value through redevelopment and greenfield development in prime locations within Toronto and high growth U.S. sunbelt and gateway cities. 

Forward-Looking Disclaimer

Certain statements in this news release contain forward-looking information within the meaning of applicable securities laws (also known as forward-looking statements). These forward-looking statements include, but are not limited to, the Special Committee process and the status of the REIT's consideration of a Potential Transaction. Such forward-looking statements reflect H&R's current beliefs and are based on information currently available to management. These statements are not guarantees of future performance and are based on H&R's estimates and assumptions that are subject to risks and uncertainties, including those discussed in H&R's materials filed with the Canadian securities regulatory authorities from time to time, which could cause the actual results and performance of H&R to differ materially from the forward-looking statements contained in this news release. 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. All forward-looking statements in this news release are qualified by these cautionary statements. These forward-looking statements are made as of today and H&R, except as required by applicable 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 is available at www.hr-reit.com and on www.sedarplus.com.

SOURCE H&R Real Estate Investment Trust

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