H&R Real Estate Investment Trust $23.88 – Toronto symbol HR.UN

H&R REAL ESTATE INVESTMENT TRUST $23.88 (Toronto symbol HR.UN; SI Rating: Extra risk) holds interests in 35 office properties, 114 single-tenant industrial properties and 144 retail properties. Over half are in the Greater Toronto Area. The rest are elsewhere in Ontario, in Quebec, western Canada and the U.S. The company now has an industry-leading portfolio occupancy rate of 99.7%. H&R recently acquired a portfolio of 12 refrigerated distribution facilities in six provinces for $215 million. The cold storage properties are leased for an average term of 19.3 years to a major Icelandic client. Revenue in the three months ended June 30, 2007 was $152.3 million, up 12.1% from $135.8 million a year earlier. Cash flow per unit was unchanged at $0.47. H&R’s units now pay $0.1142 per month for a yield of 5.7%. H&R REIT is a buy.

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