H&R Real Estate Investment Trust $8 – Toronto symbol HR.UN

H&R REAL ESTATE INVESTMENT TRUST $8 (Toronto symbol HR.UN; Units outstanding: 147.4 million; Market cap: $1.2 billion; SI Rating: Extra Risk) holds interests in 34 office properties, 124 industrial properties and 122 retail properties comprising over 41 million square feet. Over half of H&R’s properties are in the Greater Toronto Area. The rest are elsewhere in Ontario, Quebec, western Canada and the U.S. H&R now has an industry leading portfolio occupancy rate of 99.5%. Revenue in the three months ended September 30, 2008, was $153.2 million, up 6.1% from $144.7 million a year earlier. Cash flow per unit fell 2.6%, to $0.38 from $0.39, due to reorganization costs and more units outstanding. H&R’s units yield 9.0%. H&R REIT is a buy.

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