H&R REIT AND H&R FINANCE TRUST - MD&A - December 31, 2010  Total same-asset property operating income, excluding straight-lining of contractual rent, has decreased by $1.2 million and $0.5  million for the three months and for the year ended December 31, 2010, respectively, as compared to the respective 2009 periods. The net change in same-asset property operating income excluding straight-lining of contractual rent resulted from a decrease in  Canada of $0.4 million and an increase of $7.2 million, respectively, which was offset by a corresponding decrease of $0.8 million  and $7.7 million, respectively, in the United States, as shown below: Three months ended December 31  Year ended December 31  Canada (in thousands of dollars) 2010  2009 Change 2010  2009 Change Same-asset current rentals  $131,534  $126,618 $4,916 $509,245  $492,544 $16,701 Same-asset property operating costs  51,977  46,641 5,336 186,874  177,352 9,522 Same-asset property operating income excluding  straight-lining of contractual rent  79,557  79,977  (420)  322,371  315,192  7,179  United States (in thousands of dollars)  Same-asset current rentals  21,969  22,994 (1,025) 90,720  99,755 (9,035) Same-asset property operating costs  3,450  3,662 (212) 14,938  16,306 (1,368) Same-asset property operating income excluding  straight-lining of contractual rent 18,519  19,332  (813)  75,782  83,449  (7,667)  Total same-asset property operating income * $98,076 $99,309 ($1,233) $398,153  $398,641 ($488) *  Same-asset property operating income excludes the properties where the tenants have terminated their leases due to U.S. bankruptcies.  Canadian same-asset property operating income decreased by $0.4 million from the three months ended December 31, 2010  compared to the three months ended December 31, 2009.  The increase in the Canadian same-asset property operating income of $7.2 million for the year ended December 31, 2010 as  compared to the 2009 period is primarily due to increased recoverable amounts from tenants for major repair expenditures of $8.8  million, increases in rent of $4.0 million and lease terminations and prior year recoveries of $2.3 million, offset by increased major  repair and non-recoverable property operating costs of $5.6 million and higher management fees of $2.5 million as a result of  management fees being waived by the Property Manager during 2009.  The decrease in the U.S. same-asset property operating income of $0.8 million for Q4 2010 as compared to Q4 2009 and of $7.7  million for the year ended December 31, 2010 as compared to the year ended December 31, 2009 is due primarily to the weakening  of the U.S. dollar. The average exchange rate for the three months ended December 31, 2010 was $1.00 Canadian for each $1.00  U.S. (Q4 2009 - $1.05). For the year ended December 31, 2010, the average exchange rate was $1.03 (December 31, 2009 -  $1.14). Had the U.S. same-asset property operating income been reported in U.S. dollars, there would have been minimal changes  between the respective 2010 and 2009 periods.  Interest income decreased when comparing the three and twelve months ended December 31, 2010 as opposed to the respective  2009 periods. The decrease is primarily due to the collection of a $16.5 million mortgage receivable in December 2009 and the  collection of a $58 million mortgage receivable in April 2010.  Interest Income Three months ended December 31  Year ended December 31  (in thousands of dollars)  2010  2009 Change 2010  2009 Change Interest income  $265  $1,621 ($1,356) $2,589  $6,222 ($3,633) Page 12 of 45 