Mr. Larry Froom reports

H&R REIT ANNOUNCES CLOSING OF LANTOWER RESIDENTIAL REAL ESTATE DEVELOPMENT TRUST (NO. 1) OFFERING

H & R Real Estate Investment Trust's previously announced initial public offering (IPO) of Lantower Residential Real Estate Development Trust (No. 1) (REDT) was successfully completed, raising the maximum amount of $52-million (U.S.).

The REDT was formed to partner with H&R's subsidiary Lantower Residential on two residential development projects in Florida (the "Projects") expected to contain an aggregate of 601 units comprised as follows:

(i) a project to develop multifamily residential rental buildings comprising 271 residential rental units sitting on 8.4 acres of land in Largo, Florida (Tampa); and

(ii) a project to develop multifamily residential rental buildings comprising an aggregate of 330 residential rental units on 17.2 acres of land in Kissimmee, Florida (Orlando).

Development of the Projects is expected to commence shortly, with total budgeted costs for the Projects of approximately US$210 million. Construction is expected to be completed and lease-up is expected to commence in Q1 2026 for the Largo, Florida project and Q2 2026 for the Kissimmee, Florida project

Immediately following closing of the Offering, the REDT indirectly acquired an approximate 70.9% interest in the Projects, with H&R retaining an approximate 29.1% ownership interest in the Projects through Lantower Residential. The REDT and the Project are managed by affiliates of H&R.

H&R retains an option to acquire the Projects. The transaction is expected to lower cash flow requirements and leverage impact for the two development projects on H&R.

CIBC World Markets Inc. was the sole agent for the IPO.

This press release does not constitute an offer to sell or the solicitation of an offer to buy securities of the Trust in the United States, nor shall there be any sale of the securities of the Trust in any jurisdiction in which such offer, solicitation or sale would be unlawful. The securities described herein have not been and will not be registered under the United States Securities Act of 1933, as amended (the "1933 Act"), and may not be offered or sold within the United States unless registered under the U.S. Securities Act and applicable state securities laws or pursuant to exemptions from the registration requirements of the U.S. Securities Act and applicable state securities laws.

About H&R REIT

H&R REIT is one of Canada's largest real estate investment trusts with total assets of approximately $10.8 billion as at December 31, 2023. H&R REIT has ownership interests in a North American portfolio comprised of high-quality residential, industrial, office and retail properties comprising over 26.9 million square feet. H&R's strategy is to create a simplified, growth-oriented business focused on residential and industrial properties in order to create sustainable long term value for unitholders. H&R plans to sell its office and retail properties as market conditions permit. H&R's target is to be a leading owner, operator and developer of residential and industrial properties, creating value through redevelopment and greenfield development in prime locations within Toronto, Montreal, Vancouver, and high growth U.S. sunbelt and gateway cities.

About Lantower Residential LP

Lantower Residential, a subsidiary of H&R REIT, is a vertically integrated multifamily real estate company based in Dallas, Texas, focused on acquiring, developing, financing, and managing multifamily communities in the U.S. Lantower Residential focuses on driving growth and maximizing value through its disciplined investment strategy and portfolio management. Lantower Residential consists of 24 residential properties in select markets in the United States comprising 8,166 residential rental units, at H&R REIT's ownership interest. In addition to hosting all capacities internally (property management, operations, accounting, human resources, marketing, asset management, etc.), Lantower Residential has an in-house development team that has over 5,000 residential rental units in the pipeline at various stages of development and construction.

We seek Safe Harbor.