HRUFF - H&R REIT: How To Buy Apartments At A Double-Digit Discount

2025-02-14 05:43:33 ET

Summary

• H&R REIT is one of Canada's cheapest REITs by price-to-FFO and price-to-NAV basis, but management and turnaround plans are questionable.
• Founded in 1996, H&R was a diversified REIT but faced challenges as investors preferred specialized REITs and internal issues arose.
• The 2021 turnaround plan aimed to exit retail and office segments, focusing on residential and industrial properties, but results have been mixed.
• Despite some progress, H&R still holds 30% of its assets in retail and office real estate, raising concerns about the speed of the turnaround plan.

H&R REIT ( HR.UN:CA ) is one of Canada's cheapest REITs on a number of different metrics, including price-to-FFO and price-to-NAV. But with questionable management and a turnaround plan that's taking much longer than many investors expect, this analyst isn't sure that's enough.

Introduction

H&R REIT is one of Canada's oldest real estate investment trusts. It was started in 1996 by Tom Hofstedter, who remains in charge today. Hofstedter has been the REIT's one and only CEO, a title he has held for nearly 30 years....

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