H&R Real Estate Investment Trust

H&R Real Estate Investment Trust

April 23, 2007 16:22 ET

H&R Real Estate Investment Trust Announces $202 Million Offering of Trust Units

TORONTO, ONTARIO--(CCNMatthews - April 23, 2007) -


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. and RBC Capital Markets, 8.0 million trust units at $25.30 per unit to raise gross proceeds of approximately $202 million. H&R has granted the underwriters an over-allotment option, exercisable in whole or in part up to 30 days after closing, to purchase an additional 1.2 million trust units at the same offering price. Should the over-allotment option be fully exercised, the total gross proceeds of the financing will be approximately $233 million. Closing is expected to occur on or about May 9, 2007, subject to regulatory approval. The proceeds of the offering will be used to fund the acquisition of additional properties and future development commitments. 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-ended real estate investment trust, which owns a North American portfolio of 35 office, 115 industrial and 143 retail properties comprising 41 million square feet, with a net book value of $4.5 billion. The foundation of H&R REIT's success since 1996 is a disciplined strategy that leads to consistent and profitable growth.

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 within 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)
    Email: info@hr-reit.com
    Website: www.hr-reit.com