Highlights

• H&R REIT unitholders vote on 13 November on a C$6.7 billion Takeover led by GO Residential REIT.

• The last monthly distribution of C$0.05 per unit went ex-dividend on 31 July and was paid on 14 August.

• Mill Pond Capital holds 2.2 million units and says it will vote against the proposed arrangement.

• Nine distributions with ex-dates in the trailing year total C$0.45, a 4.70% Yield on the C$9.57 close.

A single meeting on 13 November will decide the future of H&R REIT (TSX:HR.UN). Unitholders are being asked to approve a C$6.7 billion transaction that would break up the diversified landlord, while one dissenting investor is campaigning for a no vote. In the meantime, the monthly distribution that income investors relied on has stopped.

Units have traded below the C$12.01 headline value through the autumn, and part of that gap stems from the consideration being partly paid in GO units, whose price has fallen since August.

How the deal is built

Under the arrangement announced in August, GO Residential REIT would take a 27-property U.S. residential portfolio, Blackstone would acquire the Canadian industrial properties, and an entity controlled by the Hofstedter family would take the commercial and non-core holdings. Legacy H&R unitholders would own about 67% of the combined GO vehicle.

Consideration is a mix of cash and GO units. The headline value of C$12.01 per unit was struck using GO's unit price on 10 August, so the figure moves with GO's market price. H&R's independent trustees have unanimously recommended a vote in favour, and lead Trustee Stephen Gross has described the deal as the best available path for unitholders. GO Residential holds its own special meeting on the same day, because its unitholders must also approve the transaction.

The opposition case

Mill Pond Capital, which owns 2.2 million units, argues that the deal does not deliver Fair Value to public holders and estimated the consideration at about C$10.09 per unit in early October. It has also objected that roughly 44 million units held by the Hofstedter family, about 16% of the total, would be cancelled on different terms.

Mill Pond has urged trustees, if the vote fails, to end the arrangement, restore monthly distributions, sell the industrial portfolio and refresh the board. Units closed at C$9.23 on 6 October, against C$10.89 before the deal was announced. Mill Pond has also pointed to a reported net asset value of C$16.23 per unit and noted that prices for the Assets going to the Hofstedter vehicle have not been disclosed.

Distributions on hold

H&R paid C$0.05 per unit every month through the summer. The last distribution in the record went ex on 31 July 2026, with payment on 14 August, and no later ex-date has been set, which means no August distribution either. Before the pause, the C$0.05 monthly rate equalled C$0.60 a year. Nine payments fall inside the window from 12 November 2025 to 11 November 2026, totalling C$0.45.

On the C$9.57 close of 9 October 2026, the most recent close available here, that equals a trailing yield of 4.70%. No indicated yield is shown, because the monthly payout is paused while the transaction is pending.

What the vote decides

Approval would set the trust on course to be dismantled and its holders moved into GO units and cash. Rejection would leave H&R independent, with the distribution question returning to the trustees. The outcome therefore determines not only who owns the properties but also whether holders see monthly income resume. A completed deal would see the trust dissolved and its units removed from trading.