Since inception, H&R REIT has provided unitholders with an average return of 14% per annum  by executing a disciplined strategy of investing in accretive acquisitions and new developments of commercial real estate assets. The REIT has two primary objectives: (i) to provide unitholders with stable and growing cash distributions, generated by the revenue it derives from investments in income producing real estate assets; and (ii) to maximize unit value through ongoing active management of the REIT's assets, acquisition of additonal properties and the development and construction of projects which are pre-leased to creditworthy tenants. This has allowed H&R’s quality portfolio to maintain an overall occupancy rate in excess of 98% and dependable cash flow throughout economic and market cycles. We also manage H&R’s balance sheet in a conservative and disciplined manner.

Our property portfolio is dominated by creditworthy tenants contracted to long-term leases, most often with contractual rental increases throughout the lease period. We strive to match the maturity terms of property mortgages with the terms of their leases when appropriate. We also capitalize on our extensive commercial real estate expertise, including the development of a two million square foot, 58-storey, landmark office complex called “The Bow” in Calgary’s downtown financial district, leased to Encana Corporation for 25 years. We acquire existing fully-leased properties, which do not require significant capital expenditure and we invest in the development of new properties by providing mezzanine financing to selected projects and retaining options to purchase the properties upon completion.

With the acquisition of Primaris Retail Real Estate Investment Trust ("Primaris") on April 4, 2013, the REIT now has two operating segments. The properties owned and operated by the REIT prior to the acquisition of Primaris are defined as one segment (“the H&R portfolio”), which consists of office, retail, industrial and residential properties throughout Canada and the United States which focuses on creditworthy tenants with long-term leases. Subsequent acquisitions of similar properties will be included in this segment. Primaris is considered by the REIT to be a second segment (the “Primaris portfolio”) which operates enclosed shopping centres and multi-tenant retail plazas throughout Canada with shorter-term leases than the H&R portfolio. Subsequent acquisitions of enclosed shopping centres and multi-tenant plazas in Canada will be included in this segment.