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Press release from Marketwire

H&R Real Estate Investment Trust Announces $175MM Senior Unsecured Debenture Financing

Thursday, June 13, 2013

H&R Real Estate Investment Trust Announces $175MM Senior Unsecured Debenture Financing

14:00 EDT Thursday, June 13, 2013

TORONTO, ONTARIO--(Marketwired - June 13, 2013) -

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.

H&R Real Estate Investment Trust ("H&R REIT") (TSX:HR.UN)(TSX:HR.DB.C)(TSX:HR.DB.D)(TSX:HR.DB.E)(TSX:HR.DB.H) is pleased to announce it has entered into an agreement to sell on a bought deal basis, to a syndicate of underwriters co-led by RBC Capital Markets and CIBC $175 million principal amount of senior unsecured debentures (the "Series G Debentures"). The Series G Debentures will bear interest at a rate of 3.344% and will mature on June 20, 2018.

The net proceeds from the offering of the Series G Debentures will be utilized by H&R REIT to fund future property acquisitions and development, to repay outstanding indebtedness and for general trust purposes.

DBRS Limited has provided H&R REIT with a provisional credit rating of BBB with a stable trend relating to the Series G Debentures. Closing is expected to occur on or about June 20, 2013.

The offering of the Series G Debentures is being made under H&R REIT's existing short form base shelf prospectus dated April 3, 2013. The terms of the offering of the Series G Debentures will be described in a prospectus supplement to be filed with Canadian securities regulators.

About H&R REIT

H&R REIT is an open-ended real estate investment trust, which owns a North American portfolio of 40 office, 112 industrial and 163 retail properties comprising over 53 million square feet and 3 development projects, with a fair value of approximately $13 billion. The foundation of H&R's success since inception in 1996 has been a disciplined strategy that leads to consistent and profitable growth. H&R REIT leases its properties to long-term creditworthy tenants and strives to match those leases with primarily long-term, fixed-rate financing.

Forward-looking Statements

Certain 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. 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: prices and market value of securities of H&R REIT; availability of cash for distributions; 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 H&R REIT's properties; and 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.

Additional information regarding H&R REIT and H&R Finance Trust is available at www.hr-reit.com and on www.sedar.com.

FOR FURTHER INFORMATION PLEASE CONTACT:

Contact Information:
H&R Real Estate Investment Trust
Larry Froom
Chief Financial Officer
416-635-7520
info@hr-reit.com
www.hr-reit.com

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