H&R REAL ESTATE INVESTMENT TRUST  H&R FINANCE TRUST  Combined Statements of Unitholders' Equity and Comprehensive Income (In thousands of dollars)  Years ended December 31, 2010 and 2009 See accompanying notes to combined financial statements. COMPREHENSIVE INCOME  2010  2009  N et earnings  172,348 $ 86,525 $ Unrealized loss on translation of self-sustaining foreign operations (7,502) (16,605) Transfer of realized loss on cash flow hedges to net earnings  372 4,444 Future income tax es (note 23) 503 984 Other comprehensiv e loss (6,627) (11,177) C omprehensiv e income  165,721 $ 75,348 $ Equity Accumulated component of other Value Accumulated Accumulated Contributed warrants and comprehensive UNITHOLDERS' EQUITY of units net earnings distributions surplus debentures loss (note 12) Total U nitholders' equity , December 31, 2008 2,188,052 $  744,777 $ (1,268,723) $  $ - 6,767 $ (19,205) $ 1,651,668 $  Proceeds from issuance of units  23,441 - - - - - 23,441 Issue costs (866) - - - - - (866) Issuance of w arrants, net of costs  - - - - 8,533 - 8,533 Equity component from issuance of conv ertible  debentures, net of costs (notes 8(b) and 8(c)) - - - - 43,326 - 43,326 N et earnings  - 86,525 - - - - 86,525 Distributions to unitholders (note 11(b)) - - (102,605) - - - (102,605) Redemption of units (note 10) (28,873) - - 28,873 - - - Redemption of w arrants (note 8(f)) - (148,308) - (28,873) (8,533) - (185,714) U nit-based compensation (note 11(a)) 535 - - - - - 535 Other comprehensiv e loss - - - - - (11,177) (11,177) U nitholders' equity , December 31, 2009 2,182,289 682,994 (1,371,328) - 50,093 (30,382) 1,513,666 Proceeds from issuance of units  29,099 - - - - - 29,099 Equity component from issuance of convertible  debentures, net of costs (note 8(d)) - - - - 6,572 - 6,572 Net earnings - 172,348 - - - - 172,348 Distributions to unitholders (note 11(b)) - - (113,696) - - - (113,696) Redemption of convertible debentures (note 8(b)) 4,973 - - - (908) - 4,065 Unit-based compensation (note 11(a)) - - - 1,225 - - 1,225 Other comprehensive income - - - - - (6,627) (6,627) Unitholders' equity, December 31, 2010 2,216,361 $  855,342 $ (1,485,024) $  1,225 $ 55,757 $ (37,009) $ 1,606,652 $  4 