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H&R Real Estate ate Staple
(TSX:HR.UN)
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Rating:51Neutral
Price Target:
C$10.50
â–²(3.86% Upside)
Action:Reiterated
Date:08/17/26
The score is anchored by mixed financial performance: positive and improving free cash flow and improving leverage are outweighed by a materially weakened income statement with recent deep losses. Technical signals are bearish with weak momentum despite oversold readings. Valuation is supported by the high dividend yield, while the earnings call adds a modest positive tilt due to the transformative transaction and operational progress, tempered by lower FFO and property-level headwinds.
Positive Factors
Scaled Residential Platform
The transaction concentrates H&R's exposure in a larger residential platform spanning eight markets and four states. Greater scale may support operating efficiencies, stronger access to capital, and more focused growth than the prior diversified portfolio.
Negative Factors
Deep Net Losses
The broad flat-to-down revenue trend and sharp swing to deep losses indicate weak earnings quality and elevated volatility. Persistent profitability pressure could constrain reinvestment, reduce distribution resilience, and weaken returns even if cash flow remains positive.
Read all positive and negative factors
Positive Factors
Negative Factors
Scaled Residential Platform
The transaction concentrates H&R's exposure in a larger residential platform spanning eight markets and four states. Greater scale may support operating efficiencies, stronger access to capital, and more focused growth than the prior diversified portfolio.
Read all positive factors
H&R Real Estate ate Staple (HR.UN) vs. iShares MSCI Canada ETF (EWC)
Market Cap
C$2.52B
Dividend Yield6.26%
Average Volume (3M)783.24K
Price to Earnings (P/E)―
Beta (1Y)0.47
Revenue Growth-6.50%
EPS Growth-488.63%
CountryCA
Employees432
SectorReal Estate
Sector Strength53
IndustryREIT - Diversified
Share Statistics
EPS (TTM)-2.17
Shares Outstanding264,636,930
10 Day Avg. Volume693,770
30 Day Avg. Volume783,238
Financial Highlights & Ratios
PEG Ratio>-0.01
Price to Book (P/B)0.65
Price to Sales (P/S)3.30
P/FCF Ratio18.34
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
C$11.00Price Target Upside8.80% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering1
EPS Forecast (FY)0.66
Revenue Forecast (FY)C$773.56M
H&R Real Estate ate Staple Business Overview & Revenue Model
Company Description
H&R Real Estate Investment Trust is an open-ended investment company, which engages in the business of ownership operations and development of commercial and residential properties. It operates through the following segments: Residential, Industri...
How the Company Makes Money
H&R Real Estate Investment Trust primarily makes money by generating rental and related property income from leasing space in its owned properties to tenants. Its core revenue stream is contractual rent (including base rent and, where applicable, ...
H&R Real Estate ate Staple Earnings Call Summary
Earnings Call Date:Aug 12, 2026
(Q2-2026)
| % Change Since: |
Next Earnings Date:Nov 16, 2026
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.Positive Updates
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.
Negative Updates
Material Decline in FFO Per Unit
FFO for Q2 2026 was $0.247 per unit compared to $0.314 per unit in Q2 2025, a decline of approximately 21.3%, driven primarily by lower annual NOI from property dispositions.
Read all updates
Q2-2026 Updates
Positive
Negative
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.
Read all positive updates
Company Guidance
Management’s guidance centered on the announced transaction and operational momentum as the primary path to unitholder value: H&R unitholders will receive $4.28 per unit in cash plus a tax‑deferred unit‑for‑unit rollover to hold a 66.9% stake in the combined residential platform (37 properties, >13.3k units, ~$7.8B enterprise value), making it the #2 public residential REIT in Canada and #7 in the U.S.; Crowell committed up to ~$71M of income support to Goreit over the first two years and will remain a JV partner on River Landing. Management pointed to prior repositioning (>$2.6B disposed) and leverage reduction (from 10x to 7x debt/adjusted EBITDA) and cited current balance‑sheet and operating metrics: debt/total assets 41.8%, debt/adjusted EBITDA 7.1x, unencumbered assets to unsecured debt 3.21x, corporate debt of $550M debentures + $250M unsecured term loan + $225M lines, $250M Series R redeemed (2.906%); Q2 FFO was $0.247/unit (vs $0.314 Y/Y) with a 60.7% FFO payout ratio and an AFFO add‑back ≈6¢/unit. Portfolio trends supporting the outlook included same‑property NOI: residential -0.1% (USD), industrial -0.7%, office -6.5% (ex‑Bouchard), retail -5.9%; industrial occupancy down from 98.9% (12/31/24) to 92.7% (6/30/26); LandTower same‑property NOI -10 bps with Sunbelt occupancy +145 bps Q1→Q2 and +70 bps Y/Y, leasing inquiries +24% Q2 vs Q1, traffic +15%, tour→application conversion +540 bps, net effective asking rents +30 bps Q1→Q2, and two REDT projects completed with 41 and 17 leases underway.H&R Real Estate ate Staple Financial Statement Overview
Summary
Income Statement
28
Negative
Balance Sheet
52
Neutral
Cash Flow
61
Positive
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 759.51M | 815.13M | 816.99M | 903.63M | 834.64M | 1.07B |
| Gross Profit | 460.76M | 489.70M | 499.34M | 603.09M | 534.95M | 661.58M |
| EBITDA | -529.46M | -826.55M | -35.07M | 627.04M | 506.68M | 820.29M |
| Net Income | -570.91M | -791.56M | -119.71M | 61.69M | 844.82M | 597.91M |
Balance Sheet | ||||||
| Total Assets | 8.12B | 9.11B | 10.62B | 10.78B | 11.41B | 10.50B |
| Cash, Cash Equivalents and Short-Term Investments | 70.41M | 52.14M | 100.35M | 64.11M | 76.89M | 124.14M |
| Total Debt | 2.51B | 3.50B | 3.54B | 3.72B | 3.95B | 3.92B |
| Total Liabilities | 3.93B | 4.97B | 5.34B | 5.59B | 5.93B | 5.73B |
| Stockholders Equity | 4.19B | 4.14B | 5.28B | 5.19B | 5.49B | 4.77B |
Cash Flow | ||||||
| Free Cash Flow | 172.49M | 146.44M | 234.48M | 253.46M | 219.47M | 405.02M |
| Operating Cash Flow | 206.86M | 188.43M | 274.07M | 294.63M | 255.05M | 452.11M |
| Investing Cash Flow | 936.09M | -59.19M | 173.15M | 112.86M | 225.95M | 1.50B |
| Financing Cash Flow | -1.14B | -177.46M | -410.98M | -420.26M | -528.26M | -1.89B |
H&R Real Estate ate Staple Technical Analysis
Negative
10.11
Price Trends
10.20
Negative
10.44
Negative
10.31
Negative
Market Momentum
-0.18
Negative
42.57
Neutral
62.66
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TSE:HR.UN, the sentiment is Negative. The current price of 10.11 is above the 20-day moving average (MA) of 9.61, below the 50-day MA of 10.20, and below the 200-day MA of 10.31, indicating a bearish trend. The MACD of -0.18 indicates Negative momentum. The RSI at 42.57 is Neutral, neither overbought nor oversold. The STOCH value of 62.66 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for TSE:HR.UN.
H&R Real Estate ate Staple Peers Comparison
UnderperformOutperform
Sector (65)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
73 Outperform | C$1.06B | 17.18 | 5.97% | 6.80% | 2.01% | 9.35% | |
65 Neutral | $2.17B | 12.19 | 3.79% | 4.94% | 3.15% | 1.96% | |
65 Neutral | C$3.59B | 21.98 | 3.53% | 5.51% | 7.63% | -22.77% | |
62 Neutral | C$3.01B | -51.02 | 6.03% | 5.67% | 3.98% | -1411.59% | |
58 Neutral | C$2.08B | 291.33 | 0.25% | 4.12% | 4.80% | -99.27% | |
55 Neutral | C$321.10M | 12.50 | 5.20% | 8.22% | -0.81% | -32.86% | |
51 Neutral | C$2.52B | -4.41 | -13.51% | 6.26% | -6.50% | -488.63% |
* Real Estate Sector Average
TSE:HR.UN
H&R Real Estate ate Staple
9.58
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-12.35%
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H&R Real Estate ate Staple Corporate Events
Business Operations and StrategyFinancial DisclosuresM&A Transactions
H&R REIT to Be Acquired in $6.7 Billion Deal as Portfolio Repositioning Wraps Up
Positive
Aug 12, 2026
HR Real Estate Investment Trust reported second-quarter 2026 results that highlight the culmination of a multi-year portfolio simplification strategy, leaving the REIT heavily weighted to residential and industrial assets while significantly reduc...
Business Operations and StrategyM&A Transactions
H&R REIT Agrees to $6.7 Billion Sale to GO Residential REIT and Investor Consortium
Positive
Aug 11, 2026
HR Real Estate Investment Trust has agreed to sell all its assets in a $6.7 billion transaction to GO Residential REIT and a consortium including Blackstone, Crestpoint, PSP Investments and a company controlled by the Hofstedter family. HR unithol...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.