Ms. Cheryl Fried reports

H&R REIT ADDRESSES RECENT MEDIA REPORTS

H & R Real Estate Investment Trust has acknowledged recent media reports regarding discussions with affiliates of Blackstone Inc. In response to a request from the Canadian Investment Regulatory Organization concerning the recent trading activity in the REIT's units and recent media reports, the REIT confirms that it has had preliminary, non-exclusive discussions with Blackstone regarding a potential sale of certain assets of the REIT. The REIT has not entered into any arrangements with Blackstone, and there are no assurances that the REIT will be proceeding with any sale or other transaction.

The REIT intends to provide further updates only as circumstances warrant and in accordance with applicable securities laws.

About H & R Real Estate Investment Trust

H & R is one of Canada's largest real estate investment trusts. H & R has ownership interests in a Canadian and U.S. portfolio primarily composed of high-quality residential (operating as Lantower Residential), industrial and office properties totalling approximately 20.3 million square feet.