Q2 2024 H&R Real Estate Investment Trust Earnings Call Transcript
Key Points
- H&R Real Estate Investment Trust (HRUFF) reported a 1.7% increase in total same-property net operating income on a cash basis.
- The industrial segment saw a 4.7% increase in same-property NOI, driven by rent increases and higher occupancy rates.
- Retail same-property NOI increased by 7.9%, primarily due to increased occupancy at River Landing Commercial.
- Liquidity at June 30, 2024, was in excess of $900 million with an unencumbered property pool of approximately $4.1 billion.
- Lantower's multifamily platform continues to deliver strong results, with a 58% NOI margin and occupancy increasing to 94.6%.
- Office same-property NOI decreased by 1.8%, largely due to a decrease in occupancy at properties slated for future redevelopment.
- Net asset value per unit decreased from $21.05 as of March 31, 2024, to $19.94 as of June 30, 2024, due to $427.2 million in fair value adjustments.
- Debt to total assets at the REIT's proportionate share was 44.8%, and debt to EBITDA was a high 8.5 times.
- Same-property NOI for the multifamily portfolio in the U.S. decreased by 1.2%, primarily due to high property operating costs and a decrease in average rental rates in the Sunbelt properties.
- The market for office property dispositions remains weak, with little activity and uncertainty around future sales prices.
Good morning, and welcome to H&R Real Estate Investment Trust 2024, second quarter earnings conference call. Before beginning the call, H&R would like to remind listeners certain statements which may include predictions, conclusions, forecast or projections in the remarks that follow may contain forward-looking information, which reflect the current expectations of management regarding future events and performance and speak only as of today's date.
Forward-looking information requires management to make assumptions or rely on certain material factors and is subject to inherent risks and uncertainties, and actual results could differ materially from the statements in the forward-looking information.
In discussing H&R's financial and operating performance and in responding to your questions, we may reference certain financial measures, which do not have a meaning recognized or standardized under IFRS or Canadian Generally Accepted Accounting Principles and are therefore unlikely to be comparable to similar measures presented by other reporting issuers.
Non-GAAP
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