# H & R Real Estate Holdings



## AMABILE (Apr 3, 2009)

With to-day's news, should I buy
HR.UN or PMZ.UN or pass on both ?


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## Ponderling (Mar 1, 2013)

I own HR.UN. Have from prior to Covid rearing its head. Mid 2020 I rolled the dice and poured a bunch of new money in at around $10 a share. That was funds well spent, it turned out. 

Since vaccines came along the stock has very largely recovered. This lock down may be a set back, but who is to say that HR will spring back if variants end up keep on coming.


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## KaeJS (Sep 28, 2010)

I will be selling my PMZ stock and keeping my HR.


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## Seahawk (Jan 6, 2017)

I understand HR unit holders will receive .25 shares of PMZ for each share of HR. So far my account (Scotia iTrade) has not shown the PMZ shares deposited.

Has anyone else received the PMZ shares in their account yet?


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## Mechanic (Oct 29, 2013)

KaeJS said:


> I will be selling my PMZ stock and keeping my HR.


When did you buy PMZ ? It only started trading 2 days ago from what I see. I understand that my HR shares will be exchanged for PMZ.


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## KaeJS (Sep 28, 2010)

I didn't buy them.

But I will be receiving some as I am a holder of HR.
But as soon as I receive my Primaris, I will sell all my Primaris and put the proceeds back into HR.


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## KaeJS (Sep 28, 2010)

Seahawk said:


> I understand HR unit holders will receive .25 shares of PMZ for each share of HR. So far my account (Scotia iTrade) has not shown the PMZ shares deposited.
> 
> Has anyone else received the PMZ shares in their account yet?


I heard next week through a not so credible source.

I still do not have mine, either. I'm using WealthTrade.


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## Mechanic (Oct 29, 2013)

I'm a little confused with the whole PMZ and HR deal. HR was trading around $16 at the time of this arrangement and apparently we will receive 1 unit of PMZ for every 4 units of HR. That would make me expect the PMZ units would be around $64, yet they are currently trading around $13.60. Maybe I should buy some PMZ ?


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## KaeJS (Sep 28, 2010)

No. The share prices are correct for both HR and PMZ.

The reason is because HR just spun off assets and reduced debt. They gave PMZ some assets and they also gave PMZ some debt, too.

So PMZ can not be $64, as they acquired debt.
HR fell in value to reflect the new value of PMZ.

Think of it like this...

HR fell roughly $3 (from 16 to 13).

You get 1 share of PMZ for every 4 shares of HR.

The drop in price of HR ($3) multiplied by 4 gives you $12 (roughly the share price of PMZ.) Obviously, there are other factors at play, but the math is not wrong.

Also, if anything, each company gets a small boost as they can probably better navigate each market segment now that their financials are more in order.


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## Mechanic (Oct 29, 2013)

KaeJS said:


> No. The share prices are correct for both HR and PMZ.
> 
> The reason is because HR just spun off assets and reduced debt. They gave PMZ some assets and they also gave PMZ some debt, too.
> 
> ...


OK, so we get to keep the HR shares as well ? that makes sense now.


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## KaeJS (Sep 28, 2010)

Yep!

You will keep all of your HR shares and receive an additional 1 PMZ for every 4 HR you owned at the time of the spin off.

So, since wealth was transferred from HR to PMZ, I will be selling my PMZ shares and using the proceeds to put back into HR, as I just don't like the PMZ market segment as much and now that HR has less debt, I think they are well poised for the future.

I could be wrong, but that is what I am doing.


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## Seahawk (Jan 6, 2017)

KaeJS said:


> I heard next week through a not so credible source.
> 
> I still do not have mine, either. I'm using WealthTrade.


Thanks KaeJS. Hopefully next week then.


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## Ponderling (Mar 1, 2013)

Thanks for the post KaeJS. I sniffed about and read the merger /whatever prospectus. I am not keen to own indoor shopping malls either, so will wait a day or two, then sell the PMZ that landed in my lap and buy more HR


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## kcowan2000 (Mar 24, 2020)

Don't forget the CGs that the sale of PMZ will generate!


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## Ponderling (Mar 1, 2013)

Happily for me this all happened inside a RRSP.


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## Mechanic (Oct 29, 2013)

I notice my income screen now shows a dividend from PMZ of about 6%. Increased in value a little too.


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