H&R Real Estate Investment Trust

H&R Real Estate Investment Trust

April 10, 2006 16:12 ET

H&R Real Estate Investment Trust Announces $125 Million Offering of Trust Units

TORONTO, ONTARIO--(CCNMatthews - April 10, 2006) -


H&R Real Estate Investment Trust ("H&R") (TSX:HR.UN) has announced that it has entered into an agreement to sell, to a syndicate of underwriters led by CIBC World Markets Inc., 5,985,000 trust units at $20.90 per unit to raise gross proceeds of approximately $125 million. The underwriters will have the option after closing to purchase up to an additional 897,750 units from treasury at the same price and commission, exercisable after closing, in whole or in part, at any time up until 30 days after closing, at the sole discretion of the underwriters for the purpose of covering the underwriters' over-allotment position and for market stabilization purposes. Closing is expected to occur on or about April 28, 2006, subject to regulatory approval. The proceeds of the offering will be used to fund the acquisition of additional properties. Any proceeds not initially used for such purposes will be used to reduce H&R's indebtedness.

About H&R

H&R REIT is a TSX-listed, open-end real estate investment trust, which holds interests in a principally Canadian portfolio of 34 office, 113 industrial and 89 retail properties and 2 development projects, with a book value of $3.9 billion. The foundation of H&R's success is a disciplined strategy that leads to consistent and profitable growth.

H&R REIT has a distribution reinvestment plan for its unitholders, which allows participants to reinvest their monthly cash distributions in additional H&R units at an effective discount of 3%. Beneficial unitholders who would like to enroll in the plan should contact the nominee (stockbroker, bank, trust company or investment banker) with whom their units are registered.

Additional information regarding H&R REIT is available at www.hr-reit.com.

The securities being offered have not been, nor will be, registered under the United States Securities Act of 1933, as amended, and may not be offered or sold in the United States absent registration or applicable exemption from the registration requirement of such Act. This release does not constitute an offer for sale of securities in the U.S. and any public offering of securities in the U.S. will be made by means of a prospectus.

This news release contains forward-looking statements with the meaning of applicable securities laws, including statements relating to the closing and use of proceeds of the offering, and similar statements concerning anticipated future events, results, circumstances, performance or expectations that are not historical facts. 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 risk 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. 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 H&R'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 H&R; 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. H&R cautions that this list of factors is 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. All forward-looking statements in this news release are qualified by these cautionary statements. The forward-looking statements are made only as of the date of this news release 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.

Contact Information

  • H&R Real Estate Investment Trust
    Thomas J. Hofstedter
    President and Chief Executive Officer
    Toll-Free: (416) 635-7520 x555
    (416) 398-0040 (FAX)