H&R Real Estate Investment Trust reported second-quarter funds from operations of C$142.4 million, or 46 Canadian cents per share, a decrease of 9.2% in the aggregate from C$156.9 million, or 52 cents per share, in the 2016 second quarter.
The company attributes the decrease to a one-time lease settlement payment from Target in 2016 and the company's net property dispositions.
The S&P Capital IQ per-share consensus FFO estimate for the second quarter is 46 cents.
Subsequent to quarter-end, the company paid an initial investment of approximately US$4.9 million to buy a 33.3% nonmanaging interest in a roughly 5-acre plot of land in Austin, Texas, with plans to build 391 multifamily units. Construction of the project is expected to start in mid-2018.
Additionally, the company received final acceptance from the Toronto Stock Exchange for its plan to purchase for cancellation up to 5 million stapled units on the open market through a normal course issuer bid, equivalent to approximately 1.76% of the company's public float, which stands at 289,686,775 outstanding stapled units as of Aug. 1.