H&R Real Estate Investment Trust and H&R Finance Trust reported first-quarter funds from operations of C$135.7 million, down 2.6% from C$139.3 million in the same period in 2017.
On a per-stapled-unit basis, FFO for the quarter declined 3.6% year over year to 44 cents from 46 cents.
The S&P Capital IQ consensus FFO-per-share estimate for the quarter was 45 cents.
The Canadian diversified REIT said the plan to unwind its stapled unit structure is still contingent to closing conditions, including an advance income tax ruling from the Canada Revenue Agency.
The unwinding is part of the trusts' internal reorganization to create a new entity, H&R Finance 2017 Trust, and return H&R to a simplified REIT structure. The reorganization is targeted for August.
In January, H&R secured an additional C$200.0 million unsecured revolving operating facility due January 2023. As of March 31, both trusts had a 44.8% debt-to-total assets ratio, C$44.7 million of cash on hand, C$600.2 million available under their bank credit facilities and roughly C$3.5 billion of unencumbered property pool.