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TORONTO, Feb. 20, 2024 /CNW/ - H&R Real Estate Investment Trust ("H&R REIT" or "H&R") (TSX: HR.UN) is pleased to announce it has entered into an agreement to sell on a private placement "best efforts" agency basis, to a syndicate of agents co-led and bookrun by CIBC World Markets Inc., Scotia Capital Inc. and National Bank Financial Inc. and including BMO Capital Markets, RBC Dominion Securities Inc. and TD Securities Inc., $250 million principal amount of senior unsecured debentures (the "Series T Debentures"). The Series T Debentures will be issued for $100.00 per $100.00 principal amount, carry a coupon rate of 5.457% and will mature on February 28, 2029.

Subject to customary closing conditions, the offering is expected to close on or about February 28, 2024. It is a condition of closing to the offering that the debentures be rated at least BBB by DBRS. The offering is on a private placement basis and the debentures will be issued pursuant to H&R REIT's trust indenture dated February 3, 2010 as supplemented. These debentures will rank pari passu with H&R REIT's outstanding senior unsecured debentures.

The net proceeds of the offering will be used for the repayment of outstanding indebtedness and for general trust purposes.

The debentures offered have not been registered under the U.S. Securities Act of 1933, as amended, and may not be offered or sold in the United States absent registration or an applicable exemption from the registration requirements. This press release shall not constitute an offer to sell or the solicitation of an offer to buy nor shall there be any sale of the debentures in any jurisdiction in which such offer, solicitation or sale would be unlawful.

H&R REIT is one of Canada's largest real estate investment trusts with total assets of approximately $10.8 billion at December 31, 2023. H&R REIT has ownership interests in a North American portfolio comprised of high-quality residential, industrial, office and retail properties totaling approximately 26.9 million square feet. H&R's strategy is to create a simplified, growth-oriented business focused on residential and industrial properties in order to create sustainable long-term value for unitholders. H&R plans to sell its office and retail properties as market conditions permit. H&R's target is to be a leading owner, operator and developer of residential and industrial properties, creating value through redevelopment and greenfield development in prime locations within Toronto, Montreal, Vancouver, and high growth U.S. sunbelt and gateway cities.

Certain statements in this news release contain forward-looking information within the meaning of applicable securities laws (also known as forward-looking statements). These forward-looking statements include, but are not limited to, H&R's plans, objectives, expectations and intentions, including the date of closing of the offering and the intended use of proceeds. 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 risks 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. 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. These forward-looking statements are made as of today 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.

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

SOURCE H&R Real Estate Investment Trust

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