On August 31, 2022, H&R REIT completed the sale of four properties, totaling $167.8 million, aligning with the IFRS values reported as of June 30, 2022. The portfolio, comprising two office spaces and two retail locations, spanned 733,310 square feet and was sold at a weighted average capitalization rate of 6.9%. Despite the transaction, H&R retained management duties and will continue to collect management fees under the existing tenant leases.

The office properties sold were located at 100 Wynford Dr., Toronto, occupied by Bell Canada, and 2767 2nd Ave., Calgary, leased to AltaLink L.P. The retail spaces in Calgary and Kingston, both tenanted by Rona Inc., were also included in the deal.

Notably, H&R retained an option to repurchase the Wynford Drive property for approximately $159.6 million by 2036 or earlier under specific conditions. This arrangement means the property will remain on H&R's balance sheet as an asset, with the sale proceeds recognized as deferred revenue and amortized over the lease term.

Thomas Hofstedter, Executive Chairman & CEO, emphasized the sales as key to H&R's strategy of portfolio simplification and value enhancement for unitholders. Additionally, H&R entered into agreements to sell two U.S.-based automotive-tenanted retail properties for about $22.27 million (U.S. $17.0 million), achieving a 5.8% cap rate and bringing their 2022 property sales to $406.0 million.