GO Residential Real Estate Investment Trust (GO.U) M&A announcement summary

Deal rationale and strategic fit

• Combines two leading residential portfolios, creating a pure-play platform with scale, geographic diversification, and enhanced asset quality across high-growth U.S. Sunbelt markets and New York City, marking the final step in a multi-year repositioning.

• Creates a premier residential REIT with 37 properties and over 13,300 suites across eight U.S. markets, including trophy NYC assets and high-growth Sunbelt communities.

• Establishes a luxury-focused platform with premium assets and among the highest average rental rates in North America.

• H&R unitholders receive immediate value and majority ownership in a larger, more competitive entity, with ongoing governance representation and participation in future upside.

• Both boards unanimously recommend the deal after a rigorous, independent review process, with broad stakeholder support.

Financial terms and conditions

• H&R unitholders receive $4.28 in cash plus 0.5688 GO REIT units per H&R unit, structured as a tax-deferred rollover for eligible Canadian residents, totaling $12.01 per unit upfront (14.5% premium to unaffected price).

• Post-close, H&R unitholders will own approximately 67% of the combined platform on a fully diluted basis; GO and OpCo unitholders will own about 33%.

• GO will acquire H&R's U.S. portfolio for $6.7 billion enterprise value, assume about $1.1 billion in property debt (USD) and CAD 550 million in unsecured bonds, and pay about US$30 million in cash.

• The deal includes the sale of industrial and non-core assets to a consortium for cash.

• Termination fees: H&R pays $102 million if accepting a superior proposal; GO pays $27 million; reverse fee of $136 million if Purchaser fails to fund.

Synergies and expected cost savings

• Approximately $15 million in annualized synergies are expected within 12–18 months post-closing, primarily from operational savings, procurement efficiencies, and property-level margin enhancement.

• Lantower's NOI margins are expected to rise from mid-50s to low/mid-60s, aligning with sector peers.

• Synergies to be realized without changes to operational teams.

• Transaction is accretive to FFO and AFFO per unit and reduces pro forma leverage by more than 2x at close.