SECTION II  SELECTED ANNUAL INFORMATION  The following table summarizes certain financial information of the Trusts for the years indicated below: H&R REIT AND H&R FINANCE TRUST - MD&A - December 31, 2010  (in thousands of dollars except per unit amounts)  Year Ended  December 31  2010  Year Ended  December 31  2009 (1)  Year Ended  December 31  2008 (1) Rentals from income properties  $615,572  $605,165 $591,954 Interest income  2,589  6,222 3,294 Net property operating income 109,424  104,458 107,263 Net earnings from continuing operations  168,404  70,297 19,250 Net earnings per Stapled Unit from continuing operations  (basic)  1.16  0.50 0.15 (diluted) (2) 1.16  0.46 0.14 Net earnings 172,348  86,525 97,706 Net earnings per Stapled Unit (basic) 1.19  0.61 0.73 (diluted) (2) 1.19  0.56 0.72 Total assets  5,531,534  5,351,123 5,442,074 Mortgages payable (3)  2,706,707  2,818,476 3,157,470 Debentures payable  822,340  565,758 104,820 Cash distributions per Stapled Unit  $0.79  $0.72 $1.44 Notes:  (1) Certain items have been reclassified to conform with the presentation adopted in the current year.  (2) The calculation to determine “net earnings per unit from continuing operations (diluted)” and "net earnings per unit (diluted)" gives effect to the issue of Stapled  Units pursuant to outstanding options and warrants where dilutive and non-controlling interest conversion to Stapled Units.  (3) Including discontinued operations.  Over the last few years, total assets of the Trusts have remained relatively constant. Rentals from income properties and net  property operating income have steadily increased despite property dispositions of approximately $240 million over the past 2 years. This is due primarily to acquisitions and completed property developments and acquisitions.  Page 8 of 45 