Mr. Tom Hofstedter reports

H&R REIT PROVIDES UPDATE ON PROPERTY SALES FURTHER ADVANCING ITS STRATEGIC REPOSITIONING PLAN

H & R Real Estate Investment Trust has closed the previously announced sale of 25 Dockside Dr., located directly on the waterfront in downtown Toronto, for $232.5-million.

During Q1 2024, H&R sold its 50% ownership interest in four non-core industrial properties for gross proceeds of approximately $17.2 million and sold two U.S. automotive-tenanted properties for U.S. $7.7 million. H&R has also entered into agreements to sell its 50% interest in one Canadian industrial property and one U.S. industrial property. Gross proceeds from the Canadian industrial property sale is expected to be $60.7 million, at H&R's ownership interest, and closing is expected to occur in Q3 2024. Gross proceeds from the U.S. industrial sale is expected to be U.S. $6.3 million and closing is expected to occur in Q2 2024.

H&R is also pleased to announce that it has entered into an agreement to sell its 50% ownership interest in 3777/3791 Kingsway, Burnaby, BC (the "Kingsway Property") for $82.5 million to Crestpoint Real Estate Investments Ltd. ("Crestpoint"), the current co-owner of the Property. The Kingsway Property comprises 671,555 square feet of office space. The sale is expected to close in May 2024 and is subject to customary closing conditions.

The Kingsway Property was valued at approximately $81.4 million as at December 31, 2023.

2024 net operating income from the Kingsway Property (at H&R's ownership interest) was only expected to be approximately $3.7M.

The Kingsway Property is encumbered by a $25.1 million mortgage (at H&R's ownership interest). Crestpoint will be assuming this as part of the transaction.

Gross proceeds from properties sold or under agreement to be sold in 2024 total approximately $411.7 million. Proceeds will be used to repay debt and for general corporate purposes.

"Given the considerable headwinds in the public and private real estate markets, we are very pleased to have completed the sale of 25 Dockside Drive and agreed to sell our interest in the 3777/3791 Kingsway," said Tom Hofstedter, Executive Chairman and CEO. "These office sales further our strategic repositioning plan and moves H&R REIT closer to achieving our portfolio simplification strategy goals. We continue to execute our plan with discipline by transacting when we can surface fair value for our unitholders."

Proforma Real Estate Assets

H&R's proforma December 31, 2023 Real Estate Assets at the REIT's proportionate share1, adjusted for the sale of 25 Dockside Drive, the sales made in Q1 2024 and the currently pending sales of the properties under agreements to be sold is as follows:

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.

We seek Safe Harbor.