H&R Real Estate Investment Trust (HR) investor relations material

Executive summary

• Over $2.6B in non-strategic office and retail sales since June 2021, including $1.5B in Q1 2026, accelerating a shift to higher-growth residential and industrial assets.

• Residential and industrial assets now comprise 85% of the portfolio as of March 31, 2026, up from 34% in June 2021.

• Net proceeds from asset sales used to repay $1.0B in debt in Q1 2026, including $375M in unsecured term loans and reductions in operating lines of credit.

• Externalized Lantower Residential property management to Greystar, targeting $5M USD in annual cost savings.

• Declared monthly distribution of $0.05 per unit for May 2026, annualized at $0.60.

Financial highlights

• $1.5B in retail and office properties sold in Q1 2026; $1.0B of corporate debt repaid.

• Total assets decreased to $8.07B as of March 31, 2026, from $9.11B at December 31, 2025.

• FFO for Q1 2026 was $76.3M ($0.272 per unit), AFFO was $65.5M ($0.234 per unit); payout ratio of 55.1% (FFO) and 64.1% (AFFO).

• Net loss for Q1 2026 was $34.9M, compared to $52.0M in Q1 2025.

• NAV per unit at $15.96 as of March 31, 2026.

Outlook and guidance

• Ongoing focus on residential and industrial growth, with further reductions in finance costs expected in Q2 2026 by approximately $3M.

• Targeting debt to adjusted EBITDA below 9.0x and payout ratio as a % of FFO between 50-60%.

• Anticipates enhanced operating efficiency and flexibility from Lantower Residential’s externalized management.

• Continued development pipeline in U.S. Sun Belt states and Canadian industrial markets.