H&R Closes $175 Million Senior Unsecured Debenture Financing

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TORONTO, April 5, 2012 /CNW/ - H&R Real Estate Investment Trust ("H&R REIT") (TSX: HR.UN; HR.DB; HR.DB.B; HR.DB.C; HR.DB.D; HR.DB.E) announced today that it closed its previously announced offering of $175 million principal amount of 4.45% Series F Senior Debentures due March 2, 2020 (the "Debentures"). H&R REIT had previously agreed to sell the Debentures to a syndicate of underwriters co-led by RBC Capital Markets and CIBC, on a bought deal basis. The net proceeds from the offering of the Debentures will be utilized by H&R REIT to repay outstanding indebtedness incurred under existing credit facilities thereby enabling H&R REIT to have greater financial capacity to pursue future acquisitions and developments, and otherwise for general trust purposes.

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).  Such forward-looking statements reflect H&R REIT'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 REIT's estimates and assumptions that are subject to risks and uncertainties, including those discussed in H&R REIT's materials filed with the Canadian securities regulatory authorities from time to time, which could cause the actual results and performance of H&R REIT to differ materially from the forward-looking statements contained in this news release. Those risks and uncertainties include, among other things, risks related to: the business of H&R REIT (real property ownership; credit risk and tenant concentration; financing credit risk; interest rate and other debt-related risks; construction; liquidity; development of the Bow; lease rollovers; currency; environmental matters; co-ownership interest in properties; influence of the property manager over H&R REIT; failure to complete acquisitions; competition for real property investments; dependence on key personnel; and potential conflicts of interest) and securities of H&R REIT (prices of H&R REIT securities; availability of cash for distributions; credit ratings; ability to access capital markets; tax; dilution; Unitholder liability; the right to redeem units; uncoupling of stapled units; investment eligibility of stapled units; debentures issued by H&R REIT; and statutory remedies available to unitholders). 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 REIT 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 REIT 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 REIT, 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.

Larry Froom,
Chief Financial Officer, H&R REIT
[phone], or e-mail [email protected]