The K2 Principal Fund L.P. Raises Concern Over Secrecy at H&R REIT

• Following media scrutiny, H&R's Board disclosed for the first time that it has been keeping offers undisclosed and running a strategic review since February
• The Board has not disclosed any details of this process to unitholders
• K2 calls on the Board to stop spending fees on external advisors who are not accountable to unitholders and to disclose viable offers to unitholders for their consideration

TORONTO, July 8, 2025 /CNW/ - The K2 Principal Fund L.P. ("K2"), a significant and long-standing unitholder of H&R REIT ("H&R" or the "REIT"), is deeply concerned by the lack of transparency displayed by H&R and its Board.

Following media pressure, the Board disclosed for the first time last week that it received an offer for the REIT several months ago, and several other offers since. The Board also disclosed that it has been secretly soliciting bids and spending trust money on scores of advisors for approximately five months. Unitholders have been kept in the dark and continue to lack basic information about the nature of the bids received to date, and when the bids will be disclosed to unitholders.

Five months is more than enough time to surface value. Instead of running a transparent process, the Board has decided to keep unitholders completely in the dark about potential paths forward. As a direct result of the Board's failure to be transparent with unitholders, unit value is fluctuating wildly, and holders do not have the information they need to make rational investment decisions for themselves or their beneficiaries.

K2 reminds the H&R trustees that they are fiduciaries, not owners; the units belong to the unitholders, and it is the unitholders' right to evaluate the attractiveness of proposals that affect the fate of their capital.

K2 calls on the Board to immediately disclose the material terms of the viable bids, and to put the best options to unitholders for their approval. Given the REIT's complex structure, buyers capable of pursuing such a transaction can be hard to come by and K2 would view it as a failure if the Board were to fumble this unique opportunity. K2 will continue to take all necessary steps to obtain transparency and urges fellow unitholders to do the same.

ABOUT THE K2 PRINCIPAL FUND L.P.

Founded in December of 2000, The K2 Principal Fund L.P. has a broadly diversified Canadian and U.S. portfolio and is the flagship fund of K2 & Associates Investment Management Inc. We are active managers and seek out best in class companies that drive optimal return on capital. We use a range of hedging techniques to mitigate downside risk including the extensive use of options where possible. For more information about K2, visit www.k2.ca.

FORWARD LOOKING STATEMENTS

This press release contains forward-looking information within the meaning of applicable securities laws. In general, forward-looking information refers to disclosure about future conditions, courses of action, and events. These statements are based on current expectations of K2 and currently available information.

Forward-looking statements are not guarantees of future performance, involve certain risks and uncertainties that are difficult to predict, and are based upon assumptions as to future events that may not prove to be accurate. K2 undertakes no obligation to update publicly or revise any forward-looking statements, whether as a result of new information, future events, or otherwise, except as required by applicable securities legislation.

PUBLIC BROADCAST EXEMPTION

This communication is provided in accordance with applicable law.  K2 is relying on the exemption under sections 9.2(4) of National Instrument 51-102 – Continuous Disclosure Obligations to make this public broadcast.

SOURCE K2 Principal Fund L.P.

For further information please contact Shawn Kimel, Chief Investment Officer and Chairman, K2 & Associates Investment Management Inc., Phone: [phone], Email: [email protected]