Diversified REIT H&R Real Estate Investment Trust and its unit H&R Finance Trust suspended their distribution reinvestment plan and unit purchase plan, pending further notice.
In a release, the company said it is well capitalized, with a strong balance sheet and significant financial flexibility, but wishes to "assert greater control over when and on what terms H&R raises capital."
"The trustees of H&R REIT and management particularly wish to avoid issuing equity at a price below net asset value per unit, something that can occur from time to time under the DRIP, the company said. "The suspension of the DRIP is intended to preserve value and eliminate dilution."
The unit holders who opted into the reinvestment program will receive full declared cash distributions on their stapled units on the payment date, starting with the March distribution.
If the plan is reinstated in the future, unit holders who remain enrolled in the program at the time of its suspension and at the time of reinstatement will automatically resume participation in the program.
In addition, funds to be withdrawn for acquiring stapled units under the unit-purchase plan will not be used.
