HR.UN H and R Real Estate Investment Trust

TORONTO, May 31, 2011 /CNW/ -- /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, May 31, 2011 /CNW/ - H&R Real Estate Investment Trust and H&R Finance Trust (collectively, "H&R") (TSX: HR.UN) announced today that they have closed the previously announced offering of $200 million of H&R stapled units (the "Stapled Units"). H&R had previously agreed to sell the Stapled Units to a syndicate of underwriters co-led by CIBC and RBC Capital Markets, on a bought deal basis. The net proceeds of the offering will be used by H&R to fund future development projects, property acquisitions and for general trust purposes. Purchasers of the Stapled Units will be entitled to participate in the following distribution declared for June, 2011: _____________________________________________________________________ |Distribution/ Stapled Unit|Annualized| Record Date |Distribution Date| |__________________________|__________|_____________|_________________| | $0.07917 | $0.95 |June 16, 2011| June 30, 2011 | |__________________________|__________|_____________|_________________| 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 36 offices, 120 industrial and 131 retail properties comprising over 39 million square feet. 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. 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. 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, "H&R"), strategies to achieve those objectives, H&R'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 acquisition of properties. 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'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's estimates and assumptions that are subject to risk and uncertainties, including those discussed in H&R's materials filed with the Canadian securities regulatory authorities from time to time, which could cause the actual results and performance of H&R 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; 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. 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 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 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, 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. To view this news release in HTML formatting, please use the following URL: http://www.newswire.ca/en/releases/archive/May2011/31/c8770.html p Larry Froom, Chief Financial Officerbr/ Phone: (416) 635-7520br/ Email: a href="mailto:info@hr-reit.com"info@hr-reit.com/a /p

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