Page 1

Toronto , Ontario , February 11 , 2021 - H & R Real Estate Investment Trust ( " H & R " or " the REIT " ) ( TSX : HR.UN ) announces its financial results for the year ended December 31 , 2020 . BUSINESS UPDATE HR REIT H & R REIT Reports Fourth Quarter and 2020 Annual Results H & R is pleased to report financial and operating results from 2020 that demonstrate the resilient nature of the REIT's portfolio , and also reflect the prudent actions taken by management in response to the extraordinary events that followed the arrival of the COVID - 19 pandemic . Management believes this resilience is a function of the REIT's long - term strategic focus on high - quality properties , high credit quality tenants , and strong balance sheet , and required the concerted efforts of the team at H & R working collaboratively with stakeholders to protect its tenants , employees and investors . Highlights from 2020 include : FFO per Unit of $ 1.67 in 2020 compared to $ 1.76 in 2019 Expansion of liquidity to $ 1.1 billion of undrawn credit facilities to fortify the REITs financial position A significant 10 - year lease extension with Hess Corporation at Hess Tower Substantial completion of the REIT's U.S. $ 496 million River Landing trophy mixed - use development in Miami Agreement to sell the REIT's 172,000 sq.ft. Culver City office property for U.S. $ 165 million , which closed in January 2021 Achieving the REIT'S 25 % gender diversity target for its board of trustees Recognition by the Globe & Mail's Women Lead Here initiative for gender diversity in senior management President & CEO Tom Hofstedter commented : " Notwithstanding the extraordinary events and challenges faced in 2020 , I am proud of how our team and our business performed . Bad debt expenses were less than 4 % of revenues , our balance sheet is as strong as it has ever been , and H & R is well positioned to take advantage of the opportunities that seem likely to emerge in 2021 , as the economy and society begin to return to a post - pandemic new normal . " FINANCIAL HIGHLIGHTS Rentals from investment properties ( millions ) Property operating income ( millions ) Fair value adjustment on real estate assets ( millions ) Net income ( loss ) ( millions ) Funds from operations ( “ FFO " ) ( millions ) ( ¹ ) FFO per Unit ( basic ) ( ¹ ) Adjusted Funds from Operations ( “ AFFO ” ) ( millions ) ( 1 ) AFFO per Unit ( basic ) ( 1 ) 1 | Page Distributions per Unit Payout ratio per Unit ( as a % of AFFO ) ( 1 ) Net Asset Value ( “ NAV " ) per Unit as at December 31 ( ¹ ) 3 months ended December 31 2020 2019 $ 277.5 $ 282.2 $ 183.6 $ 184.8 $ 70.0 ( $ 43.7 ) $ 111.6 $ 163.4 $ 127.4 $ 133.7 $ 0.42 $ 0.44 $ 67.3 $ 89.4 $ 0.22 $ 0.30 $ 0.17 $ 0.35 77.1 % 116.6 % $ 21.93 $ 25.79 Year ended December 31 2020 $ 1,098.7 $ 663.7 ( $ 1,196.0 ) ( $ 624.6 ) $ 503.1 $ 1.67 $ 383.8 $ 1.27 $ 0.92 72.3 % $ 21.93 2019 $ 1,149.5 $ 711.0 ( $ 103.9 ) $ 340.3 $ 529.1 $ 1.76 $ 401.6 $ 1.33 $ 1.38 103.6 % $ 25.79 ( 1 ) These are non - GAAP measures . See " Non - GAAP Financial Measures " in this press release . H & R's management discussion and analysis ( " MD & A " ) for the year ended December 31 , 2020 includes a reconciliation of net income ( loss ) to FFO and AFFO as well as the calculation of NAV per Unit . Readers are encouraged to review the reconciliations and calculation in H & R's MD & A .