Is H&R REIT / HR.UN Halal?

H&R Real Estate Investment Trust (TSX: HR.UN) is one of Canada's largest REITs — about 20.5 million square feet of residential (Lantower Residential), industrial, and office properties in Canada and the US. The rental business clears gate one, but ~133.5% debt-to-market-cap is about four times the ~33% ceiling — a FAIL.

The two-gate Shariah screen

Every screener on this site runs the same two gates: first, the business must be halal (no conventional insurance, banking, alcohol, gambling, and the like); second, the financial ratios must clear (debt under roughly 33% of market cap, non-compliant income under roughly 5%).

Gate one: the business — PASS

H&R REIT owns and leases high-quality residential, industrial, and office properties. Renting real estate is a permissible business activity under AAOIFI-style screens, and no haram revenue segment is disclosed. Gate one: PASS.

Gate two: the ratios — FAIL

Debt-to-market-cap: ~133.5% (ceiling ~33%) — FAIL. Total debt of about CA$3.36 billion at June 30, 2026 — CA$2.51 billion on the REIT's financial statements plus CA$848 million of its proportionate share of equity-accounted investments, comprising mortgages payable, debentures payable, unsecured term loans, and lines of credit — against a market cap of roughly CA$2.51 billion at the CA$11.12 price on September 28, 2026, gives a debt-to-market-cap ratio of about 133.5% — about four times the ~33% ceiling.

Non-compliant income: not separately disclosed — FAIL stands regardless. Quarterly highlights report rental-driven revenue; interest income is not broken out. The FAIL is driven entirely by the debt ratio. Gate two: FAIL.

What other screeners say

No verified current third-party rating was found for H&R REIT on Zoya, Musaffa, or ShariaPortfolio as of September 2026. The FAIL screener here rests on this site's own screening methodology, not on a third-party endorsement.

The bottom line

This screener gives H&R Real Estate Investment Trust (TSX: HR.UN) a FAIL. Q2 2026 (ended June 30, 2026) showed continued deleveraging — total debt down to CA$3.36 billion from CA$4.66 billion at year-end 2025, and debt-to-adjusted-EBITDA improved to 7.1x from 9.3x — but the AAOIFI debt-to-market-cap screen still fails decisively. One near-term development matters more than the ratio: a consortium (GO REIT plus a fund affiliated with Blackstone Real Estate, Crestpoint, and members of the Hofstedter family) agreed to acquire all of H&R's assets via a court-approved plan of arrangement, with unitholders receiving a mix of cash and GO REIT units; special-meeting materials were expected around October 8, 2026. Snapshot dated September 28, 2026.

The purification angle: H&R pays a distribution, so if you hold the units and need to purify, the purification calculator is here — though the acquisition may change what you hold.

Frequently asked questions

Is H&R REIT stock halal?

This screener gives H&R Real Estate Investment Trust (TSX: HR.UN) a FAIL. Owning and leasing residential, industrial, and office properties clears the business-activity screen, but the debt math fails decisively: total debt of about CA$3.36 billion at June 30, 2026 against a market cap of about CA$2.51 billion is roughly 133.5% — about four times the ~33% AAOIFI ceiling. Interest income is not broken out in its quarterly highlights, so the FAIL rests entirely on the debt ratio.

What are H&R REIT's debt and market-cap figures?

H&R REIT reported total debt of about CA$3.36 billion at June 30, 2026 (CA$2.51 billion on its financial statements plus CA$848 million of its proportionate share of equity-accounted investments, including mortgages, debentures, term loans, and lines of credit). Against a market cap of roughly CA$2.51 billion at the CA$11.12 price on September 28, 2026, the debt-to-market-cap ratio is about 133.5% — far over the ~33% AAOIFI ceiling, measured consistently with the other screeners on this site.

Does H&R REIT earn interest income?

H&R REIT does not break out interest income in its quarterly highlights; its revenue comes overwhelmingly from rent. This screener's FAIL rests on the debt ratio, which fails decisively, so the income screen does not change the verdict.

Do any third-party screeners agree with this screener?

What could change H&R REIT's halal screener?

The debt ratio sits at ~133.5% — about four times the ~33% ceiling — so the units would need dramatic deleveraging or a far higher unit price. One near-term development matters more: a GO REIT and Blackstone-led consortium agreed to acquire all of H&R's assets via a plan of arrangement, with unitholders receiving cash plus GO REIT units; special-meeting materials were expected around October 8, 2026. This screener is a snapshot dated September 28, 2026.