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H&R REIT discloses sale of 6 US industrial properties in Q4'17

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H&R REIT discloses sale of 6 US industrial properties in Q4'17

H&R Real Estate Investment Trust closed on the sale of six U.S. industrial properties for US$106.1 million, at its share, during the fourth quarter of 2017.

The diversified REIT said it used the roughly US$79.4 million in net proceeds from these sales to finance Lantower Residential acquisitions.

In 2017, Lantower Residential picked up six properties totaling 2,229 units in Florida and Texas for US$386.8 million and sold a 428-unit property for US$28.0 million. As of 2017-end, Lantower Residential had a U.S. portfolio of 17 properties, plus two properties under development.

On the leasing front, H&R said basic rent for its Sears stores totaled C$2.3 million at its share and came to less than 0.4% of the REIT's annualized gross revenue. With the closure of the Sears stores, the company said its management plans to replace the department store chain with tenants that will generate higher rent and traffic to the properties and potentially boost net operating income.

"While disruptive in the short term, management is confident that the replacement of Sears will enhance the profile of these properties and create value for unitholders," the company said in reporting its earnings.