The following is a summary of the H&R Real Estate Investment Trust (HRUFF) Q1 2024 Earnings Call Transcript:
Financial Performance:
H&R reported property sales totalling $411.7 million, on top of a previous $2.5 billion in property sales.
Net operating income increased by 1.4%, driven by a 3.2% increase in the residential division and a 5.1% increase in the industrial sector.
Funds from operations in Q1 2024 was $0.297 per unit, compared to $0.31 per unit in Q1 of 2023.
The company's debt to total assets was 44.5% as of the end of Q1, 2024 and distributed $0.15 per unit for the quarter resulting in an FFO payout ratio of 50.5% and an AFFO payout ratio of 61%.
Business Progress:
H&R plans to continue realizing value through the sale of its office properties. Six of these properties have the potential for redevelopment into residential properties.
New industrial developments in Mississauga have tenants in place and rent-free fixed period ends in Q2 and Q3 2024.
The company is converting a 105,000 square feet office property, for which it received a lease termination payment, into a new 122,000 square foot industrial building.
The firm is set to accelerate investments in real estate development with completion of key multifamily projects targeted for 2026.
More details: H&R REAL ESTATE INVESTMENT TRUST IR
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