03:36 PM EDT, 08/14/2024 (MT Newswires) -- H&R Real Estate Investment Trust (HR-UN.TO) shortly before the close of trade on Wednesday reported a drop in second quarter net operating income as it repositions "to be a more simplified growth and income-oriented REIT focused on residential and industrial properties."

It said Q2 net operating income decreased by 5.3% compared to Q2 2023 primarily due to $776.4 million of property sales between January 1, 2023 and June 30, 2024.

But same-property net operating income (cash basis) increased by 1.7% compared to Q2 2023 driven by various factors across H&R's operating segments

Funds From Operations per Unit was $0.31 compared to $0.30 per Unit in Q2 2023. The REIT's payout ratio as a % of FFO was 49.0% compared to 50.5% in Q2 2023.

Unitholders' equity per unit was $19.23 and Net Asset Value per unit was $19.94 at June 30, 2024.

Tom Hofstedter, Executive Chair and Chief Executive Officer, in a statement said since announcement of its strategic repositioning plan three years ago the company has completed the spin-off of the REIT's 27 enclosed shopping centres and sold ownership interests in 56 properties totaling approximately $5.2 billion. "The value and timing of these sales have exceeded our expectations given the challenging economic environment and volatility in the capital and real estate markets," he added.

H&R was last seen up 0.035 at 9.645.

Price: 9.64, Change: +0.03, Percent Change: +0.31