Analysis of the Financial Statements of H&R REIT and RioCan

RUNNING HEAD: FINANCIAL MANAGEMENT
Financial analysis

Financial management 1
Contents
Introduction................................................................................................................................2
H & R Real Estate Investment Trust..........................................................................................2
Rio-Can......................................................................................................................................3
Horizontal analysis.....................................................................................................................4
Ratio analysis.............................................................................................................................4
Conclusion and recommendation...............................................................................................5
References..................................................................................................................................6
Appendix 1.................................................................................................................................7
Appendix 2.................................................................................................................................7

Financial management 2
Introduction
The report contains the analysis of the financial statements of H&R REIT and RioCan which
includes ratio and horizontal analysis. It also includes the recommendation and conclusion
part which deals with the findings of the analysis.
H & R Real Estate Investment Trust
Income statement for the year 2016-2017
(In thousands of Canadian dollars) 2016 2017
Property operating income:
Rentals from investment properties
1,196,01
1 1,168,454
Property operating costs -431,271 -427,013
764,740 741,441
Net income from equity accounted investments 48,341 167,407
Other income 20,353 1,040
Finance cost - operations -287,325 -270,358
Finance income 4,715 4,999
Fair value adjustments on financial instruments -33,830 27,049
Trust expenses -29,852 -18,111
Fair value adjustment on real estate assets 133,738 1,796
Loss on sale of real estate assets, net of related costs -8,167 -7729
Gain (loss) on foreign exchange -8,944 -17,903
Transaction costs -13,483 0
Net income before income taxes 590,286 629,631
Income tax recovery (expense) -201,541 38,239
Net income 388,745 667,870
Other comprehensive income (loss): -38,367 -131,272
Total comprehensive income all attributable to unit holders 350,378 536,598
Balance sheet 2016-2017
(In thousands of Canadian dollars) 2016 2017
Assets
Real estate assets:
Investment properties 12,564,144 13,074,123
Properties under development 118,268 83,132
12,682,412 13,157,255
Equity accounted investments 1,051,187 1,125,135