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વર REIT H & R REIT Reports Second Quarter 2021 Results Toronto , Ontario , August 12 , 2021 - H & R Real Estate Investment Trust ( “ H & R ” or “ the REIT ” ) ( TSX : HR.UN ) announces its financial results for the three and six months ended June 30 , 2021 . " I am very pleased to report H & R's second quarter financial results , reflecting the quality of our portfolio and strength of our balance sheet " said Tom Hofstedter , President and CEO . " Our announcement earlier this week of the $ 1.5 billion sale of the Bow Office Tower in Calgary and the Bell Office Campus in Mississauga will notably improve our tenant concentration profile , reduce our exposure to the Calgary office market , and most importantly , will enhance our financial flexibility allowing us to advance our strategic initiatives . " FINANCIAL HIGHLIGHTS Total assets ( millions ) Debt to total assets per the REIT's Financial Statements ( 1 ) Debt to total assets at the REIT's proportionate share ( 1 ) ( 2 ) Unitholders ' equity ( millions ) Units outstanding ( in thousands of Units ) Unitholders ' equity per Unit Net Asset Value ( " NAV " per unit ) ( 2 ) Unit price June 30 December 31 2021 2020 $ 13,135 $ 13,355 46.3 % 47.7 % 50.0 % 51.1 % $ 6,170 $ 6,071 288,340 286,863 $ 21.40 $ 21.16 $ 22.29 $ 21.93 $ 16.00 $ 13.29 3 months ended June 30 6 months ended June 30 2021 2020 2021 2020 Rentals from investment properties ( millions ) $ 264.3 $ 269.9 $ 530.8 $ 549.6 Property operating income ( millions ) $ 175.9 $ 163.6 $ 309.6 $ 304.3 Fair value adjustment on real estate assets ( millions ) $ 7.5 ( $ 57.7 ) $ 72.2 ( $ 1,358.9 ) Net income ( loss ) ( millions ) $ 94.9 $ 35.8 $ 254.4 ( $ 984.1 ) Funds from operations ( " FFO " ) ( millions ) ( 2 ) $ 115.7 $ 115.0 $ 235.4 $ 251.2 FFO per Unit ( basic ) ( 2 ) $ 0.38 $ 0.38 $ 0.78 $ 0.83 Adjusted Funds from Operations ( " AFFO ” ) ( millions ) ( 2 ) $ 90.3 $ 89.0 $ 187.4 $ 209.1 AFFO per Unit ( basic ) ( 2 ) $ 0.30 $ 0.30 $ 0.62 $ 0.69 Distributions per Unit $ 0.17 $ 0.23 $ 0.35 $ 0.58 Payout ratio per Unit ( as a % of FFO ) ( 2 ) 44.9 % 60.4 % 44.2 % 69.0 % ( 1 ) ( 2 ) Debt includes mortgages payable , debentures payable , unsecured term loans and lines of credit . 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 three and six months ended June 30 , 2021 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 . 1 | Page