H&R Reports Solid Q2 2013 Results and Successfully Completes the Integration of Primaris

Financial Highlights
The following table includes non-Generally Accepted Accounting Principles ("GAAP") information that should not be construed as an alternative to comprehensive income (loss) or cash provided by operations and may not be comparable to similar measures presented by other issuers as there is no standardized meaning of FFO under GAAP.  Management believes that these are meaningful measures of operating performance.  Readers are encouraged to refer to H&R's combined management discussion and analysis ("MD&A") for further discussion of non-GAAP information presented.

Included in FFO are the following items which can be a source of significant variances between different periods:

Excluding the above items, FFO would have been $118.4 million for the three months ended June 30, 2013 (Q2 2012 - $78.5 million) and $0.45 per basic Stapled Unit (Q2 2012 - $0.42 per basic Stapled Unit).  For the six months ended June 30, 2013, FFO would have been $205.2 million (six months ended June 30, 2012 - $149.7 million) and $0.88 per Stapled Unit (six months ended June 30, 2012 - $0.81 per Stapled Unit).

Subsequent to June 30, 2013, H&R REIT:

• purchased a 200,145 square foot retail shopping centre in Fort McMurray, Alberta for $168.5 million.

• announced its agreement with the Property Manager to internalize H&R REIT's property management function effective July 1, 2013.  Upon closing of the transaction, a subsidiary of H&R REIT will acquire the Property Manager's H&R-related property management business in return for 9.5 million limited partnership units of that subsidiary, such units to be exchangeable on a one-for-one basis for Stapled Units.

• entered into an agreement to sell a 50% non-managing interest in Place d'Orleans Mall, a 759,462 square foot retail shopping centre in Orleans, Ontario for gross proceeds of $110.6 million.

• acquired a one-third interest in ECHO Realty LP for U.S. $294 million.  ECHO Realty LP's portfolio consists of 176 properties totalling approximately 7.4 million square feet with an average remaining lease term of 12.9 years.  Giant Eagle Inc. is a tenant in 161 of the properties and contributes approximately 79% of ECHO's annual revenue.

Monthly Distribution Declared
H&R's declared distribution for the month of September is scheduled as follows:

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, 112 industrial and 165 retail properties comprising over 53 million square feet and 2 development projects, with a fair value of approximately $13 billion. In addition, H&R REIT has a one-third interest in ECHO Realty LP which owns 176 properties totalling 7.4 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 for long terms 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.  As at June 30, 2013, the note receivable balance is U.S. $216.6 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, among others, statements relating to the objectives of H&R REIT and H&R Finance Trust, 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, H&R REIT's expectation in connection with the financial impact of The Bow and the amount of distributions to unitholders.  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 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, H&R REIT's expectation with respect to the Bow and Primaris' Q3 and Q4 2013 results, risks related to: prices and market value of securities of H&R availability of cash for distributions; 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 H&R 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.

SOURCE H