H&R REIT
H&R REIT is a Canadian open-ended real estate investment trust focused on commercial, residential and other income-producing properties in Canada and the United States.
Last updated August 31, 2026
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Overview
H&R Real Estate Investment Trust, commonly known as H&R REIT, is a Canadian open-ended real estate investment trust headquartered in Toronto, Ontario. It owns, operates and manages a diversified portfolio of income-producing real estate, with exposure to office, retail, industrial and multi-residential properties. The trust is listed on the Toronto Stock Exchange and has developed from a predominantly Canadian office and retail landlord into a more geographically diversified owner with substantial exposure to the United States and a growing residential platform. H&R was established in 1996 by Thomas J. Hofstedter through an initial public offering valued at approximately $173 million. Its original assets consisted largely of office buildings associated with Hofstedter's family business. Over time, the trust expanded through acquisitions, development projects and portfolio reorganizations. One of its most important development commitments was The Bow in Calgary, a major office complex developed as the headquarters of Encana. H&R agreed to develop and own the project in 2007 under a long-term lease arrangement. The development encountered financing pressure during the global financial crisis, including a temporary construction interruption and a substantial reduction in H&R's monthly distribution, but the principal tower was completed. The trust also became a significant participant in Canadian retail real estate. In 2013, H&R pursued the acquisition of Primaris REIT, a major owner of enclosed shopping centres. The original proposed transaction was subsequently restructured through an agreement involving the KingSett-led group. H&R received approximately 25 properties and rights to the Primaris name, while the other group received 18 properties. Primaris later became the core of H&R's Canadian enclosed-mall platform. H&R's portfolio composition changed materially during the 2010s and early 2020s. It sold selected industrial and retail assets, increased its exposure to United States real estate, and directed capital toward residential properties, particularly through its Lantower Residential subsidiary. Multi-residential properties grew from a small share of the portfolio in 2014 to a much more significant component, while the relative contribution of office and retail declined. The trust's United States exposure also increased over the same period. Its results were affected by difficult conditions in parts of the retail and office markets, including the closures of Target Canada and Sears Canada, which affected certain retail properties and tenants. In 2021, H&R undertook a strategic review and broader restructuring. The process included the sale of The Bow office tower and the separation of its enclosed-shopping-centre business into a standalone Primaris REIT. The Primaris spin-off became effective on December 31, 2021, reducing H&R's direct exposure to Canadian enclosed malls and sharpening its focus on residential, office, industrial and selected retail real estate. H&R's post-restructuring portfolio has been described as covering approximately 25.6 million square feet, with roughly 70 percent of value located in the United States and approximately 49 percent focused on multi-residential properties. The portfolio has also included non-core office, retail and refining-related properties. Prominent properties associated with H&R have included The Bow and TransCanada Tower in Calgary, Atrium in Toronto and Hess Tower in Houston. Its residential activities are concentrated primarily in the southern United States and are partly conducted through Lantower Residential. Following the Primaris separation, Primaris became an independent publicly traded REIT rather than an H&R operating division. H&R therefore represents the continuing trust after the separation, with a business model centered on owning and managing a geographically diversified portfolio of income-producing real estate rather than selling consumer products.
History
H&R REIT was founded in 1996 by Thomas J. Hofstedter through a $173 million initial public offering on the Toronto Stock Exchange. The trust began with office buildings owned by Hofstedter's family firm and subsequently developed into one of Canada's large diversified real estate landlords. A major turning point came in 2007, when H&R agreed to develop and own The Bow, a landmark office complex in Calgary intended to serve as Encana's headquarters. Encana signed a 25-year lease and H&R paid approximately $70 million for the land. The project became difficult to finance during the global financial crisis. Construction was briefly suspended in December 2008 because of a reported $400 million financing gap. A planned secondary tower was placed on hold in 2009, while the principal tower proceeded after the project secured the financing required for completion. H&R reduced its monthly distribution by half during the financing period. H&R expanded its retail presence through the 2013 Primaris transaction. Primaris, originally created from shopping-centre assets associated with OMERS, owned dozens of enclosed malls. H&R initially offered to acquire the entire trust, but a competing KingSett-led proposal resulted in a negotiated division of the portfolio. H&R received approximately 25 properties valued at about $3.1 billion and rights to the Primaris name, while the KingSett group received 18 properties valued at approximately $1.8 billion. The restructured deal gave H&R a substantial enclosed-mall platform without producing the larger combination contemplated in its original offer. During the 2010s, H&R adjusted its asset mix and geographic footprint. It sold a 50 percent interest in an industrial portfolio in 2014 and announced in 2017 that it planned to dispose of 91 United States retail and industrial properties. The stated strategic direction included redeploying capital toward United States residential real estate. Over the same period, multi-residential assets became a much larger portion of the portfolio, while retail and office represented smaller relative shares. United States exposure increased, and the trust developed a significant residential presence through Lantower Residential, particularly in the southern United States. H&R's performance was affected by weakness in portions of the retail market, including the closures of Target Canada and Sears Canada. These events contributed to pressure on certain properties and tenant relationships. The trust nevertheless maintained a diversified platform spanning residential, office, industrial and retail real estate. In 2021, H&R conducted a strategic review that resulted in a major portfolio simplification. The Bow was sold, and the Primaris enclosed-mall business was spun off into a separate publicly traded REIT. The separation became effective on December 31, 2021. The transaction left H&R focused more heavily on multi-residential properties, United States assets and selected commercial properties, while Primaris became the standalone owner of the separated enclosed-shopping-centre portfolio. In the period described by the reference material, H&R's portfolio covered approximately 25.6 million square feet and had a total value of approximately $9.2 billion. Around 70 percent of portfolio value was located in the United States, and approximately 49 percent was associated with multi-residential properties. The remainder included industrial assets and a mix of office, retail and refining-related properties. Important properties linked to the trust have included TransCanada Tower in Calgary, Atrium in Toronto and Hess Tower in Houston. Corus Quay was sold in 2023 to George Brown College and Halmont Properties Corp. H&R's continuing identity is therefore that of a diversified listed property trust whose principal strategic themes have been portfolio recycling, residential expansion, cross-border diversification and the separation of its enclosed-mall business.
- 2023
Corus Quay disposition
[1]H&R sold Corus Quay to George Brown College and Halmont Properties Corp.
- 2021
Strategic review and Primaris spin-off
[1]H&R sold The Bow and separated its enclosed-shopping-centre platform into standalone Primaris REIT, effective December 31, 2021.
- 2016
Scotia Plaza stake sold
[1]H&R sold its interest in Scotia Plaza.
- 2014
Industrial portfolio interest sold
[1]H&R sold a 50 percent interest in an industrial-property portfolio.
- 2013
Restructured Primaris transaction
[1]H&R and the KingSett-led group agreed to divide Primaris properties, with H&R receiving approximately 25 malls and the Primaris name.
- 2012
Acquisition of a stake in Scotia Plaza
[1]H&R acquired a one-third interest in Toronto's Scotia Plaza in coordination with Dundee REIT, which acquired the remaining two-thirds.
- 2007
The Bow development agreement
[1]H&R agreed to develop and own The Bow in Calgary for Encana under a 25-year lease.
- 1996
H&R is founded and completes its initial public offering
[1]Thomas J. Hofstedter founded H&R and took the trust public on the Toronto Stock Exchange through an approximately $173 million initial public offering.
Products and positioning
A diversified Canadian real estate investment trust emphasizing recurring rental income, geographic diversification and a growing multi-residential platform, while retaining selected office, industrial and retail assets.
Residential real estate
Multi-residential portfolio
H&R's multi-residential business owns and operates rental housing, with a substantial concentration in the southern United States. The platform grew significantly as the trust redirected capital toward residential assets, partly through Lantower Residential. Multi-residential properties became the largest strategic component of the portfolio described in the reference material.
Commercial real estate · 1996
Office portfolio
The office portfolio includes income-producing office buildings in Canada and the United States. Historically central to H&R's identity, it has been reduced through asset sales and the 2021 strategic review. Notable properties have included TransCanada Tower in Calgary, Atrium in Toronto and Hess Tower in Houston.
Industrial real estate
Industrial portfolio
H&R owns selected industrial properties serving commercial and logistics-related tenants. The trust has also recycled capital from this segment, including the sale of a 50 percent interest in an industrial portfolio in 2014 and a planned disposal program for United States industrial and retail properties announced in 2017.
Retail real estate · 2013
Retail portfolio
H&R historically owned power centres and enclosed shopping centres, including assets brought into its portfolio through the Primaris transaction. Most of the enclosed-mall platform was separated into standalone Primaris REIT at the end of 2021, leaving H&R with a more limited and selective retail exposure.
Brand decisions
2021
Simplify the portfolio through a strategic reviewStrategyBackground
H&R reviewed its portfolio and business structure amid changing conditions in office, retail and residential real estate.
Action taken
The trust sold The Bow and spun off Primaris REIT as an independent entity effective December 31, 2021.
Aftermath
H&R became more concentrated in multi-residential, United States and selected commercial assets, while Primaris continued independently as an enclosed-mall REIT.
2013
Restructure the proposed Primaris acquisitionM&ABackground
H&R sought to acquire Primaris REIT amid competing interest from a KingSett-led group. A full acquisition would have materially expanded H&R's enclosed-mall platform.
Action taken
Rather than complete the initially proposed whole-company acquisition, H&R agreed to divide Primaris's properties with the competing group. H&R received approximately 25 properties and the Primaris name.
Aftermath
H&R gained a major retail platform but did not become the largest Canadian REIT as it might have under the original proposal.
- KingSett Capital-led group — The competing group negotiated a split of Primaris and received the remaining properties.
Recent events
H&R REIT to be acquired in C$6.7 billion transaction[2]
Reported:
H&R Real Estate Investment Trust announced it entered into an agreement with GO Residential Real Estate Investment Trust and 1001700058 Ontario Inc., on behalf of a consortium of co-purchasers including funds affiliated with Blackstone Real Estate, Crestpoint Real Estate Investments Ltd., the Public Sector Pension Investment Board and a company controlled by members of the family of Tom Hofstedter, to acquire all of H&R's assets by court-approved plan of arrangement in a cash and unit transaction valued at approximately C$6.7 billion, including assumption of certain debt.
- Unconfirmed
GO REIT and Purchaser consortium to acquire H&R Real Estate Investment Trust assets for about C$6.7 billion[3]
Reported:
H&R Real Estate Investment Trust entered into an arrangement agreement with GO Residential Real Estate Investment Trust (GOREIT) and 1001700058 Ontario (Purchaser), on behalf of a consortium of co-purchasers, under which GO REIT and the Purchaser agreed to acquire all of H&R's assets by way of a court-approved plan of arrangement in a cash and unit transaction valued at approximately C$6.7 billion, including the assumption of certain debt. H&R unitholders would receive C$4.28 per unit in cash plus 0.5688 GO REIT units per H&R unit, representing C$12.01 per H&R unit. The consortium includes funds affiliated with Blackstone Real Estate, Crestpoint Real Estate Investments, PSP Investments and a company controlled by members of the family of Tom Hofstedter, CEO of H&R.
H&R REIT announces sales of Calgary and Mississauga assets[4]
Reported:
H&R Real Estate Investment Trust announced sales of the Bow building and land, partial future rent from an Ovintiv lease, and a Bell office campus, as well as an effective 45 per cent stake in future rent from Ovintiv. The transactions were expected to close in the third or fourth quarter of 2021.
Sources5 sources
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