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Press release from CNW Group

H&R Closes $125 Million Senior Unsecured Debenture Financing

Tuesday, September 14, 2010

H&R Closes $125 Million Senior Unsecured Debenture Financing10:15 EDT Tuesday, September 14, 2010 << /NOT FOR DISTRIBUTION TO U.S. NEWSWIRE SERVICES OR FOR DISSEMINATION IN THE UNITED STATES. ANY FAILURE TO COMPLY WITH THIS RESTRICTION MAY CONSTITUTE A VIOLATION OF U.S. SECURITIES LAW./ >> TORONTO, Sept. 14 /CNW/ - H&R Real Estate Investment Trust ("H&R REIT") (TSX: HR.UN; HR.DB; HR.DB.B; HR.DB.C; HR.DB.D) announced today that it closed its previously announced offering of $125 million principal amount of 5.00% Series C Senior Debentures due December 1, 2018 (the "Debentures"). H&R REIT had previously agreed to sell the Debentures to a syndicate of underwriters co-led by RBC Capital Markets, TD Securities Inc. and CIBC World Markets, on a bought deal basis. The net proceeds from the offering of the Debentures will be utilized by H&R REIT to repay indebtedness, fund future acquisitions and development of The Bow, and for general trust purposes.Forward-looking StatementsCertain information in this news release contains forward-looking information within the meaning of applicable securities laws (also known as forward-looking statements) including, among others, statements relating to the objectives of H&R REIT, strategies to achieve those objectives, H&R REIT's beliefs, plans, estimates, and intentions, and similar statements concerning anticipated future events, results, circumstances, performance or expectations that are not historical facts including, in particular, H&R REIT's expectation regarding future developments in connection with The Bow and the offering of the Series C Debentures, as well as the amount of actual distributions to unitholders notwithstanding the trustees adoption of a distribution policy (which takes into account the REIT's covenant to its lenders to not distribute cash in excess of 70% of funds from operations). Forward-looking statements generally can be identified by words such as "outlook", "objective", "may", "will", "expect", "intend", "estimate", "anticipate", "believe", "should", "plans", "project", "budget" or "continue" or similar expressions suggesting future outcomes or events. Such forward-looking statements reflect H&R REIT's current beliefs and are based on information currently available to management. These statements are not guarantees of future performance and are based on H&R REIT's estimates and assumptions that are subject to risk and uncertainties, including those discussed in H&R REIT's materials filed with the Canadian securities regulatory authorities from time to time, which could cause the actual results and performance of H&R REIT to differ materially from the forward-looking statements contained in this news release. Those risks and uncertainties include, among other things, risks related to: the completion of the offering of the Series C Debentures; prices and market value of securities of H&R REIT; availability of cash for distributions; development and financing relating to The Bow development; restrictions pursuant to the terms of indebtedness; liquidity; credit risk and tenant concentration; interest rate and other debt related risk; tax risk; ability to access capital markets; dilution; lease rollover risk; construction risks; currency risk; unitholder liability; co-ownership interest in properties; competition for real property investments; environmental matters; reliance on one corporation for management of substantially all of H&R REIT's properties; changes in legislation and indebtedness of H&R REIT. Material factors or assumptions that were applied in drawing a conclusion or making an estimate set out in the forward-looking statements include that the general economy is stable; local real estate conditions are stable; interest rates are relatively stable; and equity and debt markets continue to provide access to capital. H&R REIT cautions that this list of factors is not exhaustive. Although the forward-looking statements contained in this news release are based upon what H&R REIT believes are reasonable assumptions,, there can be no assurance that actual results will be consistent with these forward-looking statements. All forward-looking statements in this news release are qualified by these cautionary statements. These forward-looking statements are made as of today, and H&R REIT, except as required by applicable law, assumes no obligation to update or revise them to reflect new information or the occurrence of future events or circumstances.For further information: Larry Froom, Chief Financial Officer, H&R REIT, (416) 635-7520, or e-mail info@hr-reit.com