Since inception, H&R REIT has provided unitholders with an average return of 13% per annum by executing a disciplined strategy of investing in accretive acquisitions and new developments of real estate assets.

H&R has two primary objectives:
1) to maximize Net Asset Value value through ongoing active management of H&R's assets, acquisition of additional properties and the development and construction of projects which are pre-leased to creditworthy tenants; and
2) to provide unitholders with stable and growing cash distributions, generated by the revenue it derives from a diversified portfolio of income producing real estate assets.

H&R's strategy to accomplish these two objectives is to accumulate a diversified portfolio of high quality investment properties in Canada and the United States leased by creditworthy tenants.  H&R's strategy to mitigate risk includes diversification both by asset class and geographic location.  H&R invests in four real estate asset classes which management views as comprising six separate operating segments. H&R invests in office, retail, industrial and residential properties and acquires properties both in Canada and the United States.  H&R's retail asset class is further viewed by management as being comprised of three different operating segments: (i) enclosed shopping centres and multi-tenant retail plazas throughout Canada managed by Primaris Management Inc.; (ii) other retail properties throughout Canada and the United States managed by H&R REIT Management Services LP and Lantower Management Services LP, both subsidiaries of H&R, ("H&R Retail"), and (iii) H&R's 33.6% interest in Echo Realty LP, a privately held real estate and development company which focuses on developing and owning a core portfolio of grocery anchored shopping centres in the United States.  H&R's residential segment operates as Lantower Residential, a wholly-owned subsidiary of H&R, and focuses on acquiring and developing multi-family properties in the United States.  H&R therefore has six operating segments and management assesses the results of these operations separately.