H&R REIT Completes $169 Million Property Acquisition In US

Toronto, Ontario, November 2, 2005 - H&R Real Estate Investment Trust (TSX: HR.UN) announced today that it has completed the acquisition of three industrial properties in the suburbs of Chicago, Atlanta and Dallas, for approximately CAD $169 million. Constructed in 1993, the state-of-the-art distribution centres comprise a total rentable area of 2,168,000 square feet.

H&R President and CEO Tom Hofstedter said, "This significant transaction was the major reason behind the REIT's recent public offering which generated gross proceeds of $150 million, and falls in line with our disciplined, long-term strategy of acquiring quality properties leased long term to creditworthy tenants. The properties are all strategically located near major inter-state highways and rail lines in three of the United States' five most active distribution hubs."

ABOUT H&R REIT
H&R REIT is a TSX-listed, open-ended real estate investment trust, which owns a North American portfolio of 34 office, 106 industrial and 88 retail properties comprising 35 million square feet, with a net book value of $3.7 billion. The foundation of H&R's success since 1996 is a disciplined strategy that leads to consistent and profitable growth.

H&R REIT has a distribution reinvestment plan for its unitholders, which allows participants to reinvest their monthly cash distributions in additional H&R units at an effective discount of 3%. Beneficial unitholders who would like to enroll in the plan should contact the nominee (stockbroker, bank, trust company or investment banker) with whom their units are registered.

Additional corporate information regarding H&R REIT is available at www.hr-reit.com. For more information, please call Eric Cohen, Chief Financial Officer, 416-635-7520, or e-mail info@hr-reit.com.