HR REIT: Real Estate Investment Trusts on Toronto Stock Exchange

Cash Distribution Per Unit (approximately 87% of Distributable Income Per Unit)
Year	Distribution	Download Tax Information
1997	$0.6800
1998	$1.0300
1999	$1.1040
2000	$1.1090
2001	$1.1640
2002	$1.1990
2003	$1.2240
2004	$1.2440
2005	$1.3044
2006	$1.3344
2007	$1.3704
Payout Period	Monthly

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**The monthly cash distribution, commencing January 2008, is $0.12 per unit which represents $1.4400 per unit on an annualized basis, and is subject to change.

Unitholder Distribution Reinvestment Plan and

Unit Purchase Plan

Since January 1, 2000, H&R REIT has offered registered holders of its units resident in Canada the opportunity to participate in its Unitholder Distribution Reinvestment Plan (the "DRIP") and Unit Purchase Plan.

The DRIP allows participants to have their monthly cash distributions reinvested in additional units of H&R REIT at the weighted average price of the units on the TSX for the five trading days (the "Average Market Price") immediately preceding the cash distribution date. In addition, participants will be entitled to receive an additional distribution equal to 3% of each cash distribution reinvested pursuant to the DRIP which will be reinvested in additional units.

The Unit Purchase Plan allows participants to purchase additional units on a monthly basis at the Average Market Price subject to a minimum purchase of $250 per month (up to a maximum of $13,500 per year) for each participant.

For more information on the DRIP and/or the Unit Purchase Plan, please contact us by email through the "Contact Us" web page or contact the plan agent: CIBC Mellon Trust Company, P.O. Box 7010, Adelaide Street Postal Station, Toronto, Ontario M5C 2W9, Tel: 416-643-5500 (or for callers outside of the 416 area code: 1-800-387-0825), Fax: 416-643-5501, Email: inquiries@cibcmellon.com.