(HR-UN) H&R Real Estate Investment - Ratings and Ratios

H&R Real Estate Investment Trust is a Canadian REIT with a substantial portfolio of properties across the US and Canada, boasting total assets worth approximately $10.5 billion as of March 31, 2025. The trust has a diversified portfolio comprising over 25.6 million square feet of high-quality residential, industrial, office, and retail properties.

The companys strategic focus is shifting towards a more streamlined business model, prioritizing residential and industrial properties to drive long-term value for its unitholders. To achieve this, H&R plans to divest its office and retail properties as market conditions become favorable. This strategic reorientation is expected to position H&R as a leading player in the ownership, operation, and development of residential and industrial properties, particularly in prime locations such as Toronto and high-growth US cities.

From a technical analysis perspective, HR-UNs stock price is currently at $10.82, having reached its 52-week high. The stock is trading above its 20-day, 50-day, and 200-day simple moving averages (SMA20, SMA50, and SMA200), indicating a positive trend. The Average True Range (ATR) is 0.21, representing a 1.91% daily price movement. Given the current technical indicators, it is likely that the stock will continue its upward momentum.

Fundamentally, H&R REIT has a market capitalization of approximately $2.998 billion CAD, with a forward price-to-earnings ratio of 8.18. Although the trusts return on equity (RoE) is currently negative at -1.37%, this is likely due to the ongoing restructuring and divestment of non-core assets. As the company completes its strategic reorientation, we can expect improved financial performance.

Based on the combination of technical and fundamental analysis, our forecast suggests that H&R REITs stock price will continue to rise, potentially reaching $12.00 in the next 6-12 months, driven by the successful execution of its strategic plan and improving financial performance. The divestment of non-core assets and focus on high-growth residential and industrial properties are expected to drive long-term value creation for unitholders. As the companys financials improve, we anticipate a re-rating of the stock, making it an attractive investment opportunity for those looking for exposure to the North American real estate market.