5  Supplemental cash flow information (note 17)  See accompanying notes to combined financial statements.  H&R REAL ESTATE INVESTMENT TRUST  H&R FINANCE TRUST  Combined Statements of Cash Flows (In thousands of dollars)  Years ended December 31, 2010 and 2009  2010  2009  Cash provided by (used in): Operations: Net earnings  172,348 $ 86,525 $ Items not affecting cash: Rent amortization (notes 13 and 24) 3,912 3,931 Depreciation and amortization (notes 15 and 24) 125,175 130,409 Gain on sale of income properties (note 24) (3,576) (10,649) Gain on extinguishment of debt (note 3) (17,296) - Impairment loss on income properties (note 3) 14,862 14,764 Future income tax recovery (note 23) (123,303) (9,613) Unrealized (gain) loss on derivative instruments (notes 7, 9(b) and 19(c)) 5,521 (3,463) Loss on repayment of debentures (note 8(f)) 38,834 - Effective interest rate accretion (notes 14 and 24) 11,453 5,844 Unrealized loss on foreign exchange 6,779 20,487 Unit-based compensation (note 11(a)) 1,225 535 Net earnings attributable to non-controlling interest (note 10) 6,421 3,670 Change in other non-cash operating items (note 17) 822 (3,499) 243,177 238,941 Financing: Bank indebtedness 75,485 (99,374) Mortgages payable: New mortgages payable 35,831 82,134 Principal repayments (107,273) (143,553) Proceeds from issuance of debentures payable (notes 8(d) and 8(e)) 445,924 510,352 Redemption of warrants (note 8(f)) - (185,714) Repayment of debentures payable (note 8(f)) (227,752) - Proceeds from issuance of units, net 14,829 13,781 Distributions to unitholders (note 11(b)) (99,426) (93,811) Distributions to non-controlling interest (note 10) (4,282) (3,915) 133,336 79,900 Investments: Properties under development (463,362) (313,511) Income properties: Net proceeds on disposition of income properties 22,183 96,258 Acquisitions (note 3) (80,422) - Capital expenditures (15,371) (10,090) Mortgages and amounts receivable 60,789 15,821 Restricted cash (note 5) 895 (15,497) (475,288) (227,019) Increase (decrease) in cash and cash equivalents (98,775) 91,822 Cash and cash equivalents, beginning of year (notes 6 and 24) 109,505 17,683 Cash and cash equivalents, end of year (notes 6 and 24) 10,730 $ 109,505 $ 