H&R REIT Board Re-Elected in Strong Mandate from Unitholders

TORONTO, ON – April 30, 2026 – H&R Real Estate Investment Trust (TSX: HR.UN) has secured a resounding endorsement from its unitholders, who voted decisively to re-elect all trustee nominees and approve the company's executive compensation plan at its annual meeting held earlier today. The results signal strong investor confidence in the board's ability to navigate a complex and evolving real estate landscape.

In a clear sign of support for the current leadership, all seven incumbent trustees were returned to their positions with substantial majorities. This vote of confidence provides the board with a stable and renewed mandate to continue executing its long-term strategy, which focuses on high-quality residential and industrial properties across North America.

A Resounding Vote of Confidence

The voting results from the 2026 annual meeting demonstrate broad alignment between H&R's management and its investor base. Each of the re-elected trustees received significant support, with votes in favour ranging from 92.44% to a high of 98.97%. Mark M. Cowie, a trustee since 2021 and a member of the Investment Committee with over four decades of commercial real estate experience, received the highest level of approval at 98.97%.

Other board members, including Lindsay Brand (98.54%), S. Stephen Gross (98.53%), Juli Morrow (98.93%), and Marvin Rubner (98.85%), also secured near-unanimous approval from unitholders. The strong backing for these individuals underscores a collective belief in their governance and strategic oversight.

Furthermore, the non-binding advisory vote on executive compensation, commonly known as 'say on pay,' passed with an overwhelming 93.94% of votes in favour. This level of approval suggests that unitholders are largely comfortable with the REIT's approach to executive remuneration, which aims to align leadership incentives with long-term unitholder value creation. Such high approval rates on compensation are often seen as a proxy for overall satisfaction with a company's performance and governance.

Navigating a Shifting Real Estate Market

This firm mandate arrives at a pivotal moment for the North American real estate sector. The market in 2026 is characterized by stabilization rather than the rapid acceleration seen in previous years. With economic growth moderating and inflation remaining a persistent concern, H&R's leadership faces a landscape that demands careful strategic navigation.

H&R REIT's portfolio, valued at approximately $9.2 billion, is heavily weighted towards sectors demonstrating resilience. Following a significant strategic repositioning in 2021 that saw it spin off its enclosed mall assets into Primaris REIT, H&R has concentrated its efforts on multi-residential properties (operating as Lantower Residential) and industrial assets. These two sectors now comprise 49% and 18% of its portfolio value, respectively, with a significant 70% of its total portfolio value located in the United States.

This strategic focus appears well-aligned with current market dynamics. The industrial sector, while cooling from its recent red-hot peak, is benefiting from a 'flight-to-quality' as tenants consolidate into more efficient, modern facilities. With new construction tapering off, H&R's high-quality industrial assets are well-positioned. Similarly, the multi-residential market continues to see steady demand, particularly in key U.S. sunbelt markets where Lantower operates. While rent growth is moderating, the underlying need for housing provides a stable foundation.

The office sector, which remains a part of H&R's portfolio, presents a more complex challenge. However, the market is showing signs of life, driven by return-to-office mandates and a pronounced flight-to-quality. Demand for Class AAA office space is increasing, which could benefit H&R's premium office holdings as tenants seek out superior locations and amenities.

Interpreting the Margins of Dissent

While the overall results were overwhelmingly positive, a closer look at the voting margins offers a more nuanced picture of unitholder sentiment. The founder, Executive Chairman, and CEO, Thomas J. Hofstedter, was re-elected with 94.01% of votes in favour, while 5.99% of votes were withheld. This is a strong result, yet it reflects a slightly higher level of dissent compared to most of his fellow board members.

Similarly, trustee Brenna Haysom, who serves on the Compensation, Environmental, Social & Governance (ESG), and Nominating Committee, received the lowest approval at 92.44%, with 7.56% of votes withheld. While still a decisive victory, this figure suggests a small but notable segment of unitholders may have specific concerns.

Such dissent, even at low levels, can sometimes be attributed to recommendations from influential proxy advisory firms, which scrutinize everything from executive pay structures and board independence to ESG performance. Haysom's role on the compensation and ESG committees places her at the center of key governance issues that are increasingly under the microscope for institutional investors. For Hofstedter, who has led the REIT since its founding in 1996, the votes could reflect a sentiment among some investors regarding long-tenured leadership or specific strategic decisions.

However, the high approval for the 'say on pay' resolution indicates that any concerns related to compensation were not widespread. The minor dissent is more likely a reflection of the robust corporate governance dialogue that characterizes modern capital markets rather than a signal of significant dissatisfaction.

With the annual meeting concluded, the re-elected board has a clear runway to continue its work. The strong unitholder support validates the strategic pivot toward residential and industrial properties and empowers the leadership team to pursue growth in these core areas. The focus for H&R REIT now shifts to executing this strategy and delivering value in a real estate market that, while stabilizing, continues to present both distinct challenges and significant opportunities for well-positioned operators.