HR.UN H and R Real Estate Investment Trust

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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) today closed its
previously announced offering of 6.75% Series B convertible unsecured
subordinated debentures due December 31, 2014 (the "Debentures"). H&R REIT had
previously agreed to sell $150 million of the Debentures, to a syndicate of
underwriters co-led by CIBC, RBC Dominion Securities Inc. and TD Securities Inc.
on a bought deal basis. The net proceeds of the offering will be used to fund
H&R REIT's the Bow development project in Calgary, and in the interim for
general trust purposes.


H&R REIT President & CEO Tom Hofstedter said, "With the closing of this
debenture issue, we have now secured all of the funds required for completion of
our trophy office development, the Bow in downtown Calgary, and we have the
financial capacity to pursue additional investment opportunities as they arise."


In addition, DBRS has updated its ratings for H&R REIT and has confirmed H&R
REIT's issuer rating of BBB with a Stable Trend.


About H&R REIT and H&R Finance Trust

H&R REIT is an open-ended real estate investment trust, which owns a North
American portfolio of 34 office, 122 industrial and 120 retail properties
comprising 41 million square feet, with a net book value of $4.5 billion. The
foundation of H&R REIT's success since inception in 1996 has been a disciplined
strategy that leads to consistent and profitable growth. H&R REIT leases its
properties long term to creditworthy tenants and strives to match those leases
with primarily long-term, fixed-rate financing. As a result, leases representing
6.7% of total rentable area will expire between the end of the first quarter
2009 and 2011, during which 13.7% of H&R REIT's total mortgage principal will
become payable.


H&R Finance Trust is an unincorporated investment trust, which primarily invests
in notes issued by an H&R REIT subsidiary. In 2008, H&R REIT completed an
internal reorganization which resulted in each issued and outstanding H&R REIT
unit trading together with a unit of H&R Finance Trust as a "stapled unit" on
the Toronto Stock Exchange.


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


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 and H&R Finance Trust (together, the "Trusts"), strategies to achieve
those objectives, the Trusts' 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. 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 the Trusts' current beliefs and are based on information
currently available to management. These statements are not guarantees of future
performance and are based on the Trusts' estimates and assumptions that are
subject to risk and uncertainties, including those discussed in the Trusts'
materials filed with the Canadian securities regulatory authorities from time to
time, which could cause the actual results and performance of the Trusts 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 the Trusts; 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; mezzanine financing credit risk; competition for real property
investments; environmental matters; reliance on one corporation for management
of substantially all H&R REIT's properties; changes in legislation and
indebtedness of the Trusts. 

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. The Trusts caution that this list of factors is not
exhaustive. Although the forward-looking statements contained in this news
release are based upon what the Trusts believe 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 the Trusts, except as required by applicable law,
assume no obligation to update or revise them to reflect new information or the
occurrence of future events or circumstances.

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