Hi,
H&R's share price is definitely struggling to rebound and as you pointed out, is still trading at depressed valuations as compared to pre-covid prices. That being said, it generates revenue from shopping malls and office properties - which are two of the most vulnerable industries right now.
In April, the company collected 85% of rents ,and that dropped to 80% in May. They have not yet announced how they are tracking for June. Regardless, the future of retail and office properties is uncertain.
We have already seen some big retailers go bankrupt, and more may be on the way. Likewise, several large companies have announced their intentions to make work @ home permanent. Facebook, Shopify and Open Text have all made public statements to this effect. Several other companies will no doubt follow suit. To what extent remains to be seen, but the industry will be under pressure for the foreseeable future.
The company already slashed the dividend by about 50% in light of these uncertainties and it may yet be a while before the fallout is truly known. All this being said, the company is certainly cheap and if the company can navigate the crisis without any major occupancy and non-payment issues, then it is possible the stock price can jump in a big way.
This is a company where investors will want stay on top of company news. In particular, pay close attention to what is happening in June. Are they seeing a meaningful rebound in rent collection? Is it still trending downward?
H&R is the perfect average-into-a-position candidate. Investors are best taking it slow and buying smaller positions over time. This way, investors can lock in current prices and if things take longer, or the company suffers a setback, they aren't sitting on a full position. In this scenario, investors limit their upside as they can conceively average up a few times, but it also protects against the downside.
In an environment littered with uncertainty, it is in my opinion, the best course of action.
Mat