H&R REIT AND H&R FINANCE TRUST - MD&A - December 31, 2010  SECTION III  SUMMARY OF QUARTERLY RESULTS Where appropriate, the REIT uses forward exchange contracts to lock in foreign exchange rates. This strategy provides certainty in  the foreign exchange rates on transactions that will occur in the future. The REIT has entered into a forward exchange forward  contract with a Canadian chartered bank, which effectively locks in the REIT’s rate to exchange, U.S.$2 million per month at a rate of  $1.0402. This forward exchange contract expires in April 2012.  The REIT has entered into interest rate swaps on the Bow credit facility and on one U.S. mortgage which effectively locked the  interest rate at 4.65% and 5.25%, respectively. At the end of each reporting period, the interest rate swaps are marked-to-market  resulting in an unrealized gain or loss recorded in net earnings.  $^{(1)}$  Certain items for all periods have been reclassified to conform with the presentation adopted in the current period. Changes to the quarterly financial information are not reflective of seasonality or cyclicality but generally from new property  acquisitions, dispositions and income taxes. Revenues may have significant fluctuations due to recoveries from tenants for changes  to property operating costs depending on when major maintenance projects are incurred. (unaudited) (in thousands of dollars except per unit amounts)  December 31, 2010  September 30, 2010  June 30, 2010  March 31, 2010  Rentals from income properties $160,262  $152,743 $151,344 $151,223 Mortgage interest and other income  265  248 802 1,274 Net property operating income  29,632  26,705 28,122 24,965 Net earnings (loss) from continuing operations  10,208  34,201 144,655 (20,660) Net earnings (loss) per Stapled Unit from continuing operations  (basic) 0.07  0.24 1.00 (0.14) (diluted)  0.07  0.24 0.91 (0.14) Net earnings (loss)  $10,589  $34,354 $144,665 ($17,260) Net earnings (loss) per Stapled Unit  (basic)  0.07  0.24 1.00 (0.12) (diluted) 0.07  0.24 0.91 (0.12) December 31, 2009 (1)  September 30, 2009 (1)  June 30, 2009 (1) March 31, 2009 (1) Rentals from income properties $151,668  $148,206  $148,999  $156,292  Mortgage interest and other income  1,621  1,602  1,504  1,495  Net property operating income  21,606  23,896  28,415  30,540  Net earnings (loss) from continuing operations   31,488  7,641  10,754   20,413  Net earnings (loss) per Stapled Unit from continuing  operations (basic) 0.22 0.05 0.07 0.15 (diluted)  0.20  0.05  0.07  0.14  Net earnings  $29,870  $15,656  $18,901  $22,098  Net earnings per Stapled Unit  (basic) 0.21 0.11 0.13 0.16 (diluted) 0.19 0.10 0.13 0.15 Page 32 of 45 