Canada's H&R Real Estate Investment Trust Oversold During Trade

H&R Real Estate Investment Trust, H&R REIT, was oversold during trading on Tuesday, Forbes reported.

When a stock is oversold, that means the Relative Strength Index, RSI, reads below 30. The RSI is indicated on a scale of zero to 100 and measures the level of fear in a given stock, according to Forbes. At the last trade, the Canadian trust was being sold for $22.45 per share after bypassing the oversold margin at $27.5 per share. It's a sign of declining performance and within its 52 weeks on the trade, H&R REIT's high point was at $26.29 per share on Aug. 21.

H&R REIT has a portfolio of 41 office properties, 116 single-tenant industrial properties, 139 retail, and 3 development projects underway, according to their webpage. The overall value of the developments stand at $10 billion and span to 43 million square feet.

Several upcoming developments they own include The Bow, located in Calgary, Alberta. It comes with 1.9 million square footage, the height will surpass the height of the Telus Tower and TransCanada Tower.

The building will sit at the core of downtown Calgary and is estimated to cost $1.1 billion. The Bow will foster EnCana Corporation, an unconventional natural gas producer and one of the country's largest public companies valuing at $42 billion. EnCana will lease the office tower and 700 parking bays for 25 years, according to H&R REIT.

Their TransCanada Tower stands at 38 storeys high with 936,000 square footage, and cost $260 million. The current tenant is TransCanda PipeLines. H&R REIT generally leases the properties to tenants for long-term contracts with annual rent escalations.

Earlier this month, the trust announced that certain properties including those of another consortium, Primaris, will be acquired by KingSett Capital, a leading private equity real estate business. 

"We have created a stronger transaction for both H&R and Primaris unit holders," Tom Hofstedter, CEO of H&R said in an announcement. "With this transaction, H&R will become Canada's largest and leading diversified real estate investment trust."