HR.UN H and R Real Estate Investment Trust

NOT FOR DISTRIBUTION TO U.S. NEWSWIRE SERVICES OR FOR DISSEMINATION IN THE
UNITED STATES


H&R Real Estate Investment Trust (the "REIT") and H&R Finance Trust ("Finance
Trust", and collectively with the REIT, "H&R") (TSX:HR.UN) have announced that
H&R has entered into an agreement to sell, to a syndicate of underwriters co-led
by CIBC and RBC Capital Markets, on a bought deal basis, approximately $125.1
million of H&R stapled units at a price of $23.60 per stapled unit. Closing is
expected to occur on or about November 29, 2012, subject to receipt of the
Toronto Stock Exchange and other necessary regulatory approvals. The
underwriters will have an option to purchase up to an additional 1,060,000
stapled units at the same price, which option is exercisable up to 48 hours
prior to closing.


The REIT's portion of the net proceeds will be used for future acquisitions and
the repayment of bank indebtedness and mortgage debt, including mortgages
totaling $69.7 million due February 1, 2013 which currently bear interest at
8.16% per annum. Upon repayment of these mortgages, the REIT will have an
unencumbered pool of 26 income producing properties valued at approximately
$468.9 million. Finance Trust's portion of the net proceeds of the offering will
be used to subscribe for additional notes to be issued by H&R REIT (U.S.)
Holdings Inc.


The offering is being made under H&R's existing short form base shelf prospectus
dated March 31, 2011. The terms of the offering will be described in a
prospectus supplement to be filed with the applicable Canadian securities
regulators.


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 41 office, 116 industrial and 135 retail properties
comprising over 43 million square feet and 3 development projects, with a fair
value of approximately $10.0 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.


H&R Finance Trust is an unincorporated investment trust, which primarily invests
in notes issued by a U.S. corporation which is a subsidiary of H&R REIT. The
current note receivable is U.S. $156.5 million. 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 statements in this news release contain forward-looking information
within the meaning of applicable securities laws (also known as forward-looking
statements), including, in particular, H&R's expectation regarding the closing
of the offering and timing thereof, the use of proceeds of the offering and the
description of the unencumbered pool of mortgages. 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
risks 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 the REIT's properties and 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.


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.


FOR FURTHER INFORMATION PLEASE CONTACT: 
H&R Real Estate Investment Trust
Larry Froom
Chief Financial Officer
(416) 635-7520
info@hr-reit.com

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