The Globe and Mail reports in its Thursday, Nov. 27, edition that National Bank Financial analyst Matt Kornack is sticking with his "outperform" recommendation for H & R REIT. The Globe's David Leeder writes in the Eye On Equities column that Mr. Kornack tweaked his unit target ahead by 25 cents to $10.75. Analysts on average target the units at $12.25. Although Mr. Kornack acknowledges the earnings dilution expected from H & R's $1.5-billion asset sales, he views this action as "a step in the right direction for simplifying the business." H & R has reached agreements with several buyers to sell retail and office properties in Canada and the United States. The assets being sold include H & R's 33.1-per-cent interest in Echo Realty's U.S. retail portfolio, 27 retail properties across Canada, the Hess Tower office property in Houston, an office property in downtown Toronto and another in the Greater Toronto Area. The divestitures follow a recent announcement that a strategic review found no buyer for H & R. Mr. Kornack notes that the property sales do not significantly affect his net asset value for the REIT, which is positive as the real potential lies in the industrial and apartment portfolio.