EarningsQ2 2026 Earnings Report
HRUFF Q2 2026 EPS Results
Actual EPS$0.10
Consensus EPS―
Beat/Miss―
One Year Ago EPS-$0.46
HRUFF Q2 2026 Revenue Results
Actual Revenue$121.89M
Expected Revenue―
Beat/Miss―
YoY Revenue Growth-16.78%
Earnings Announcement Details
QuarterQ2 2026
Date08/12/2026
TimeDuring Market Hours
Conference CallWednesday, August 12, 2026
HRUFF Upcoming Earnings
H&R Real Estate ate Staple's next earnings date is estimated for November 16, 2026, based on past reporting schedules.
Q2 2026 Earnings Call Audio
No earnings call audio is available for this earnings event.
Q2 2026 Earnings Slide Deck
Q2 2026 Earnings Call Summary
Earnings Call Sentiment|Positive
The call conveyed a predominantly positive strategic message: a large, transformative transaction that provides immediate cash to unitholders, a substantial rollover into a scaled residential platform (Goreit), and evidence of operational improvement across the Lantower portfolio (occupancy, leasing activity, early Sunbelt rent stabilization). These positives are tempered by a meaningful YoY decline in FFO per unit (~21%), weaker same-property NOI in office and retail, and near-term occupancy/NOI pressures (notably industrial occupancy compression). Balance sheet metrics improved versus historical leverage levels but still show material leverage (debt/adjusted EBITDA ~7.1x) and some short-term funding reliance for a debenture redemption. Overall, strategic and operational positives appear to outweigh the near-term financial headwinds, with the transaction framed as a long-term value-enhancing outcome for unitholders.Company Guidance
Transformative Transaction and Consideration to Unitholders
H&R announced a comprehensive transaction delivering $4.28 per unit in immediate cash, a tax-deferred unit-for-unit rollover for eligible Canadian unitholders, and a 66.9% ownership stake in the combined residential platform (Goreit). The combined platform will have 37 properties, ~13,300 residential units across 8 markets and 4 states, and an estimated $7.8 billion enterprise value; H&R unitholders become the 2nd largest publicly traded residential REIT in Canada by EV and 7th largest in the U.S.
Strategic Repositioning Progress Since 2021
Since 2021 H&R has sold over $2.6 billion of nonstrategic assets and reduced leverage from ~10x to ~7x debt to adjusted EBITDA, positioning the REIT for the announced portfolio separation and value extraction.
Balance Sheet and Liquidity Metrics
At 06/30/2026: debt to total assets (proportionate) 41.8%; debt to adjusted EBITDA 7.1x; unencumbered assets to unsecured debt coverage ratio 3.21x. Corporate debt mix included $550M debentures, $250M unsecured term loan and $225M in lines of credit.
FFO Payout Discipline
Q2 2026 FFO payout ratio was 60.7%, indicating continued distribution coverage discipline despite lower FFO per unit.
Asset Dispositions and Held-for-Sale Positioning
Approximately $773 million of assets were classified as held for sale at June 30, 2026, with $124 million sold since quarter end, reflecting continued execution of the repositioning strategy (Q1 dispositions of $1.5 billion noted).
Development Completions and Leasing Wins
Two Slate properties in Mississauga reached substantial completion in June 2026 and were transferred to investment properties; both are fully leased at market rents to a single tenant for ~11 years. Florida REDT project completed construction in July (TCOs received) with leasing underway (Lantower Bayside 41 leases, Lantower Sunrise 17 leases).
Operational Improvements at Lantower Residential Platform
Sunbelt occupancy improved: +145 bps vs Q1 and +70 bps vs Q2 2025. Leasing inquiries +24% Q2 vs Q1; traffic +15% Q2 vs Q1; tour-to-application conversion improved +540 bps sequentially. Net effective asking rents in the Sunbelt rose +30 bps Q1→Q2 (vs ~-100 bps same period in 2025). Bad debt at historical low.
FFO Offset Drivers
Although FFO per unit decreased, the decline was partially offset by reduced finance costs due to using disposition proceeds to repay corporate debt and increased finance income from a construction loan to the REDT JV.
HRUFF Earnings History
The table shows recent earnings report dates and whether the forecast was beat or missed. See the change in forecast and EPS from the previous year.
Beat
Missed