H&R Real Estate ate Staple (HR.UN) AI Stock Analysis

• Market Cap: C$2.61B
• Dividend Yield: 7.05%
• Average Volume (3M): 635.80K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.54
• Revenue Growth: -0.83%
• EPS Growth: -56.21%
• Country: CA
• Employees: 777
• Sector: Real Estate
• Sector Strength: 53
• Industry: REIT - Diversified
• EPS (TTM): -0.95
• Shares Outstanding: 264,557,920
• 10 Day Avg. Volume: 540,189
• 30 Day Avg. Volume: 635,797
• PEG Ratio: >-0.01
• Price to Book (P/B): 0.65
• Price to Sales (P/S): 3.30
• P/FCF Ratio: 18.34
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: C$12.17
• Price Target Upside: 23.43% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 3
• EPS Forecast (FY): 1.17
• Revenue Forecast (FY): C$806.07M

• Rating: 53 Neutral
• Price Target: C$10.50 ▲(6.49% Upside)
• Action: Reiterated Date: 02/18/26
• Date: Action: Reiterated 02/18/26

The score is held back primarily by weakening reported profitability and a thinner equity cushion, despite still-positive operating/free cash flow. Technical signals are subdued, while valuation is supported by a high dividend yield but undermined by losses (negative P/E). Earnings call commentary was balanced: modest NOI/FFO growth and disciplined payouts offset by industrial weakness, leasing headwinds, and leverage/vacancy risks.

Positive Factors

Positive cash generation

H&R continues to produce operating and free cash flow even in accounting loss years, providing durable internal funding for distributions, debt service and selective reinvestment. This recurring cash generation supports financial flexibility over the next several quarters despite weaker FCF trends.

Residential platform and Sunbelt pipeline

A growing Sunbelt development pipeline and stable resident collections underpin future NOI and occupancy recovery. High retention, generally healthy rent-to-income metrics and forecasted supply declines in 2026 support lasting demand and cash flow upside from completed projects over the medium term.

Disciplined capital recycling and payouts

Management’s conservative payout policy plus material asset dispositions used to reduce leverage reflects active balance-sheet stewardship. Maintaining modest payout ratios while monetizing noncore assets improves resilience and preserves capacity to manage maturities and fund prioritized development.

Negative Factors

Deteriorating profitability

Reported earnings have deteriorated materially, with 2025 losses reducing retained earnings and eroding the earnings cushion. Persistent below-the-line markdowns and non-cash adjustments can suppress reported profitability, constraining internal capital buildup and raising execution risk for reinvestment and distributions.

Weakened equity / capital cushion

A reduced equity base increases sensitivity to valuation shocks and downside scenarios, limiting borrowing capacity and making covenant risk and refinancing more acute. With a thinner capital cushion, adverse market moves or further markdowns could more readily pressure liquidity and strategic optionality.

Industrial segment weakness

Sharp industrial NOI and occupancy declines reduce diversification benefits and near-term cash flow stability. If re-leasing occurs at lower rents or takes longer, segment cash returns and valuation could lag, pressuring consolidated FFO and complicating efforts to rebalance the portfolio without costly concessions.

H&R Real Estate ate Staple Business Overview & Revenue Model

Company Description

H&R REIT is one of Canada's largest real estate investment trusts with total assets of approximately $13.3 billion at September 30, 2020. H&R REIT has ownership interests in a North American portfolio of high quality office, retail, industrial and residential properties comprising over 40 million square feet.

How the Company Makes Money

H&R Real Estate generates revenue primarily through rental income from its diverse portfolio of properties, including retail, office, industrial, and residential assets. The company leases space to various tenants, receiving consistent rental payments that contribute to its cash flow. Additionally, H&R may engage in property development, which can create further income through leasing newly developed spaces or selling properties at a profit. The trust also benefits from long-term leases with tenants, providing stability in its revenue streams. Partnerships with property management firms and real estate brokers enhance its market reach and operational efficiency, contributing to its overall earnings.

H&R Real Estate ate Staple Financial Statement Overview

Summary

Overall financials are mixed: cash generation is still positive (cash flow score 63), and leverage has been moderate historically (balance sheet score 56), but reported profitability has deteriorated sharply with larger losses in 2025 (income statement score 38) and equity fell materially, weakening the capital cushion.

Income Statement

Revenue has been volatile (down in 2022 and 2024, then rebounding in 2025), but profitability has deteriorated meaningfully. The company moved from modest profitability in 2023 to losses in 2024 and a much larger loss in 2025, with the net margin dropping sharply into negative territory. Gross margin has stayed relatively solid (~60%+), suggesting property-level economics are holding up, but below-the-line items and/or non-cash revaluations are heavily pressuring reported earnings.

Balance Sheet

Leverage appears moderate for a diversified REIT, with debt-to-equity generally in the ~0.67–0.85 range in recent years (improving from above 1.0 in 2020). However, equity fell materially in 2025 versus 2024, which weakens the capital cushion and increases sensitivity to asset value changes. Overall, the balance sheet looks workable, but the shrinking equity base is a key risk if operating conditions or property valuations remain pressured.

Cash Flow

Cash generation remains a relative strength: operating cash flow and free cash flow are positive across all periods provided, even in loss years. That said, free cash flow declined in 2024 and fell sharply again in 2025, signaling weaker underlying cash momentum. The business is still producing cash despite accounting losses, but the downtrend in free cash flow reduces flexibility for distributions, debt paydown, and reinvestment.

Breakdown	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	815.13M	816.99M	903.63M	834.64M	1.07B
Gross Profit	489.70M	499.34M	603.09M	534.95M	661.58M
EBITDA	-826.55M	-35.07M	627.04M	506.68M	820.29M
Net Income	-791.56M	-119.71M	61.69M	844.82M	597.91M
Balance Sheet
Total Assets	9.11B	10.62B	10.78B	11.41B	10.50B
Cash, Cash Equivalents and Short-Term Investments	52.14M	100.35M	64.11M	76.89M	124.14M
Total Debt	3.50B	3.54B	3.72B	3.95B	3.92B
Total Liabilities	4.97B	5.34B	5.59B	5.93B	5.73B
Stockholders Equity	4.14B	5.28B	5.19B	5.49B	4.77B
Cash Flow
Free Cash Flow	146.44M	234.48M	253.46M	219.47M	405.02M
Operating Cash Flow	188.43M	274.07M	294.63M	255.05M	452.11M
Investing Cash Flow	-59.19M	173.15M	112.86M	225.95M	1.50B
Financing Cash Flow	-177.46M	-410.98M	-420.26M	-528.26M	-1.89B

H&R Real Estate ate Staple Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 9.86
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TSE:HR.UN, the sentiment is Negative. The current price of 9.86 is below the 20-day moving average (MA) of 10.32, below the 50-day MA of 10.52, and below the 200-day MA of 10.83, indicating a bearish trend. The MACD of -0.12 indicates Positive momentum. The RSI at 31.84 is Neutral, neither overbought nor oversold. The STOCH value of 30.29 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for TSE:HR.UN.

H&R Real Estate ate Staple Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
BTB.UN	78 Outperform	C$331.01M	16.24	4.52%	7.37%	0.92%	92.93%
CRR.UN	74 Outperform	C$2.92B	24.31	6.29%	5.82%	6.32%	―
SGR.UN	71 Outperform	C$901.35M	15.17	6.49%	7.95%	1.80%	46.83%
DIR.UN	69 Neutral	C$3.47B	21.64	5.27%	5.56%	7.31%	74.70%
Sector *	65 Neutral	$2.17B	12.19	3.79%	4.94%	3.15%	1.96%
KMP.UN	61 Neutral	C$1.92B	69.28	0.93%	4.42%	6.19%	79.98%
HR.UN	53 Neutral	C$2.61B	-3.39	-17.10%	7.05%	-0.83%	-56.21%

H&R Real Estate ate Staple Corporate Events

H&R REIT Reshapes Portfolio With $5.4 Billion in Asset Sales and Spin-Off

H&R REIT reported its fourth-quarter and full-year 2025 results alongside a major update on its multi-year strategic repositioning. Since mid-2021, the trust has spun off 27 enclosed shopping centres into Primaris REIT, sold ownership interests in 69 properties worth about $3.0 billion, and executed additional sales and contracts that bring total completed and pending 2026 dispositions to roughly $5.4 billion.

These transactions have transformed H&R’s portfolio mix, lifting residential and industrial assets from 34% to 84% of total real estate holdings and boosting U.S. exposure from 45% to 68%, while sharply reducing office and retail exposure. The shift is intended to reposition H&R as a more growth- and income-focused REIT, with implications for investors who gain a cleaner, sector-focused portfolio and reduced concentration in legacy office and retail properties.

The most recent analyst rating on ($TSE:HR.UN) stock is a Hold with a C$11.00 price target. To see the full list of analyst forecasts on H&R Real Estate ate Staple stock, see the TSE:HR.UN Stock Forecast page.

H&R REIT Sells $1.1 Billion in Assets, Reshapes Lantower Residential Operations

H&R REIT has completed a series of sizable retail and office asset sales, generating approximately $1.1 billion in gross proceeds and using roughly $727 million of net January proceeds to pay down corporate debt, while retaining management of the sold Canadian retail and Greater Toronto Area office properties under a new contract and advancing further planned dispositions, including a Houston office tower and additional Canadian retail assets. In parallel, its Lantower Residential platform will externalize property management to Greystar from April 1, 2026 in a move expected to deliver about US$5 million in annual cost savings, expand flexibility to pursue multifamily opportunities in high‑growth Sunbelt markets, and preserve leadership continuity, as the REIT also reports the departure of its EVP of Development & Construction and schedules the release of its 2025 year‑end results.

The most recent analyst rating on ($TSE:HR.UN) stock is a Hold with a C$11.00 price target. To see the full list of analyst forecasts on H&R Real Estate ate Staple stock, see the TSE:HR.UN Stock Forecast page.

H&R REIT Announces January 2026 Monthly Distribution

H&R Real Estate Investment Trust has declared a monthly cash distribution of $0.05 per unit for January 2026, equivalent to an annualized rate of $0.60 per unit, with a record date of January 30, 2026 and a distribution date of February 17, 2026. The announcement underscores the REIT’s continued commitment to regular unitholder payouts, signaling income stability for investors supported by its large, diversified portfolio of income-producing properties across Canada and the United States.

The most recent analyst rating on ($TSE:HR.UN) stock is a Hold with a C$10.00 price target. To see the full list of analyst forecasts on H&R Real Estate ate Staple stock, see the TSE:HR.UN Stock Forecast page.

H&R REIT Sells $1.5 Billion in Retail and Office Properties to Focus on Residential and Industrial Assets

H&R REIT announced the sale of $1.5 billion worth of retail and office properties in Canada and the U.S., aligning with its strategy to simplify its portfolio and focus on residential and industrial assets. The proceeds will be used to strengthen the balance sheet and reduce leverage, with net proceeds of approximately $1.1 billion earmarked for debt repayment. This move will increase the proportion of residential and industrial assets in H&R’s portfolio from 69% to 83%, enhancing long-term value for unitholders. The sales are expected to close by early 2026, subject to customary conditions, and will result in a more streamlined and focused asset base for the company.

The most recent analyst rating on ($TSE:HR.UN) stock is a Buy with a C$11.50 price target. To see the full list of analyst forecasts on H&R Real Estate ate Staple stock, see the TSE:HR.UN Stock Forecast page.