ISS Urges H&R Investors To Reject $6.7B Takeover As Deal Value Falls

ISS Urges H&R Investors To Reject $6.7B Takeover As Deal Value Falls
News| October 28, 2026| Joel Bowey
Canada + Apartment Buildings

The proposed $6.7-billion takeover of H&R REIT is facing another major obstacle, with influential shareholder advisory firm Institutional Shareholder Services (ISS) urging investors to reject the transaction ahead of a November 13 vote.

The recommendation adds to growing opposition to a deal that would break up one of Canada’s largest real estate investment trusts, transferring its U.S. apartment portfolio to GO Residential and selling Canadian industrial properties to Blackstone and Crestpoint.

At the centre of the dispute is how much H&R investors are getting for their holdings — and whether company insiders are receiving a better deal.

In an October 27 report obtained by Connect, ISS calculated that the offer’s value had fallen from $12.01 per unit when announced in August to $10.61 by October 19, as GO Residential’s unit price declined. That puts the offer below the $10.80 to $13.20 range established by an independent valuation.

ISS also questioned arrangements allowing entities controlled by H&R executive chairman Thomas Hofstedter’s family to acquire certain properties without an independent valuation of those assets.

The advisory firm raised concerns about H&R’s efforts to sell the entire business rather than pursue separate property sales, noting that earlier offers had proposed higher prices. A 2025 strategic review had already generated substantial interest in individual properties.

Opposition has already emerged from several investors, including RBC Global Asset Management, Sandpiper Group and Mill Pond Capital.

H&R’s independent trustees have maintained their support for the transaction, arguing it offers the best available outcome following a lengthy search for buyers.

ISS disagrees, concluding that H&R’s underlying properties continue to attract investor interest and that rejecting the deal may carry limited financial downside.

Pictured: Two Gotham Center in Long Island City, N.Y., is among the properties involved in H&R REIT’s proposed $6.7B takeover, which faces growing shareholder opposition.

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