Overview

* H&R REIT Q2 net loss narrows to C$166.4 mln from loss of C$272.7 mln year ago

* FFO rises to C$87.8 mln, AFFO increases to C$73.4 mln

* Same-property NOI (cash basis) grows 3.4% yr/yr, driven by retail

Outlook

* H&R REIT plans to sell office and retail properties as market conditions allow

* Company aims to grow residential and industrial segments in Toronto and U.S. cities

* Economic conditions impacting property valuations and development plans

* No specific financial guidance provided

Result Drivers

* ASSET SALES - H&R REIT completed or entered agreements to sell $121.6 mln of real estate assets in H1 2025, part of its strategy to simplify the portfolio and enhance long-term value, per CEO Tom Hofstedter

* SAME-PROPERTY NOI - Same-property net operating income increased by 3.4% in H1 2025, attributed to a rise in retail segment income by 8.2%

* VALUATION REDUCTION - Management reduced valuations on downtown Toronto office properties due to softening economic conditions and halted high-rise residential projects

Key Details

Metric Beat/Mis Actual Consensu

s s

Estimate

Q2 Net -C$166.3

Income 7 mln

Q2 C$73.38

Adjusted mln

FFO

Q2 FFO C$87.80

mln

Q2 C$143.83

Operatin mln

g Income

Analyst Coverage

* The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 4 "strong buy" or "buy", 3 "hold" and no "sell" or "strong sell"

* The average consensus recommendation for the diversified reits peer group is "buy"

* Wall Street's median 12-month price target for H&R Real Estate Investment Trust is C$13.00, about 10.1% above its August 12 closing price of C$11.69

* The stock recently traded at 11 times the next 12-month earnings vs. a P/E of 8 three months ago

Press Release:

(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)