H&R closes property sales, EVP Kingston resigns

Executive Summary

• H&R REIT closed the sale of multiple retail and office properties, including a Canadian retail property, a 33.1% interest in Echo Realty LP’s U.S. retail portfolio, 23 Canadian retail properties, and two Greater Toronto Area office properties.
• The transactions generated approximately $1.1 billion in gross proceeds, with net proceeds of $727 million received in January 2026, which were used to repay corporate debt.
• H&R REIT announced that it will enter into a management contract to manage the 23 Canadian retail and two office properties sold, while Lantower Residential is externalizing its property management operations to Greystar to achieve cost savings.

Key Details

• Asset Sales & Proceeds:
  • Gross Proceeds: Approximately $1.1 billion.
  • Net Proceeds: Approximately $727 million (received in January 2026).
  • Use of Proceeds: Repayment of corporate debt.
  • Specific Transactions Closed:
    • One Canadian retail property sold on Nov. 27, 2025.
    • H&R’s non-managing 33.1% ownership interest in Echo Realty LP’s U.S. retail portfolio sold on Jan. 6, 2026; purchaser assumed liabilities of $421.5 million.
    • Twenty-three Canadian retail properties sold on Jan. 27, 2026.
    • Two Greater Toronto Area office properties (145 Wellington and 88 McNabb) sold on Jan. 27, 2026.
• Future Closings:
  • Hess Tower (Houston office property) expected to close in February 2026.
  • Remaining three Canadian retail properties expected to close in March 2026.
• Management Contract: H&R has entered into a management contract to manage the 23 Canadian retail and two office properties noted above.
• Lantower Residential Operational Update:
  • Effective April 1, 2026, Lantower Residential will externalize property management operations via a master management agreement with Greystar.
  • Expected annual cost savings of approximately $5 million (U.S.).
  • Greystar will retain the majority of Lantower's onsite property management employees and key home office associates.
  • Emily Watson continues as COO of Lantower Residential; Hunter Webb continues to lead the development platform.
  • Lantower Residential will retain approximately 20 employees in asset management, development, and accounting functions.
• Leadership Change:
  • Matt Kingston, Executive Vice-President of Development and Construction, left the REIT effective Jan. 15, 2026.
• Earnings Release Schedule:
  • Financial results for the three months and year ended Dec. 31, 2025, will be released on Thursday, Feb. 12, 2026.
  • Management conference call to discuss results on Friday, Feb. 13, 2026, at 9:30 a.m. Eastern Time.

Notable Quotes

• "During Matt's eight-year tenure with H&R and Primaris, he was instrumental in the creation and growth of the REIT's development group in Toronto, where he oversaw H&R's rezoning strategy for much of our downtown office portfolio," said Tom Hofstedter, executive chair and chief executive officer.