The following is a summary of the H&R Real Estate Investment Trust (HRUFF) Q2 2024 Earnings Call Transcript:

Financial Performance:

• H&R Real Estate Investment Trust reported a same property net operating income (NOI) increase on a cash basis of 1.7%.

• Funds From Operations (FFO) per unit for Q2 2024 was $0.306, compared to $0.297 per unit in Q2 2023.

• Net asset value per unit as of June 30, 2024, was $19.94, a decrease from $21.05 as of March 31, 2024, due primarily to $427.2 million of fair value adjustments.

• The REIT's debt-to-total assets ratio stood at 44.8%, and its debt-to-EBITDA ratio was a healthy 8.5 times.

• Liquidity as of June 30, 2024, exceeded $900 million, with an unencumbered property pool valued at approximately $4.1 billion.

Business Progress:

• H&R has actively managed its property portfolio by completing new constructions, achieving rent increases, and renewing leases.

• The REIT has sold $800 million of property in 2023 and the first six months of 2024, aligning with its strategic plans despite broader real estate market headwinds.

• Lantower Residential continues to experience strong demand, supporting the REIT's expansion and repositioning strategy, particularly in the Sunbelt markets.

Opportunities:

• H&R's strategic real estate sales in line with its long-term planning despite market challenges, showcase an opportunity to optimize its portfolio.

• The continuous growth and demand in multifamily units, particularly in Sunbelt markets, present opportunities for portfolio expansion and increased rent profitability.

Risks:

• The decrease in the net asset value per unit reflects volatility in property valuations, which could impact investor confidence and financial stability.

• Fluctuations in the real estate market and economic downturn may pose risks to achieving stable NOI and rent increases.

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