Payouts will rise at H&R

Article Excerpt

H&R REAL ESTATE INVESTMENT TRUST $20.35 (Toronto symbol HR.UN; Units outstanding: 144.5 million; Market cap: $2.9 billion; SI Rating: Extra Risk; Dividend yield: 4.3%; www.hr-reit.com) owns interests in 33 office buildings, 118 industrial properties and 124 retail properties across Canada. H&R has a 99.1% occupancy rate. In the three months ended September 30, 2010, H&R’s revenue was $152.1 million. That’s up 1.0% from $150.7 million a year earlier. Cash flow per unit rose 5.6%, to $0.38 from $0.36. The REIT raised its yearly distribution by 16.7%, to $0.84, with the 2010 third-quarter payment. It will now raise its distribution by $0.03 per quarter, starting with the 2010 fourthquarter payment, until the annual rate reaches $1.05 in the second quarter of 2012. Even with the full increase, H&R will have a low payout ratio and room for more increases. H&R REIT is a buy. buy…