• Maintained portfolio occupancy rate at nearly 100% for the thirteenth consecutive year  Net earnings increased by reversal of SIFT-related net future income tax liability of $123 million • FFO and AFFO reduced by one-time $39-million charge for early $200-million repayment of 11.5% debentures  • Invested $474 million in properties under development, including construction of  The Bow office  complex in Calgary  • Invested $80 million in property acquisitions, including 16 properties in the United States, with an  initial levered return expected to be approximately 10.8% • Raised $477 million by issuing debentures ($455 million) and selling non-strategic assets ($22  million)  2010 Highlights  2010  2009  Average term to maturity of leases (years)  10.2  10.5  Average term to maturity of mortgages payable (years)  8.0  8.3  Portfolio occupancy rate  98.9%  99.0%  Rental income (millions)  $616  $605  Net earnings (millions)  $172  $87  Net earnings per Stapled Unit (basic)  $1.19  $0.61  Cash provided by operations (millions)  $243  $239  Funds from operations (millions) $^{(1)}$ $192 $215 FFO per Stapled Unit (basic)  $1.28  $1.45  Normalized funds from operations (millions) $^{(1)(2)}$ $220 $236 NFFO per Stapled Unit (basic)  $1.47  $1.59  Adjusted funds from operations (millions) $^{(1)}$ $179 $223 AFFO per Stapled Unit (basic)  $1.19  $1.51  Cash distributions paid (millions)  $104  $98  Distributions per Stapled Unit  $0.79  $0.72  Payout ratio per Stapled Unit (distributions/NFFO)  54%  45%  Assets (billions)  $5.5  $5.4  Unitholders’ equity (billions)  $1.6  $1.5  Debt as percent of gross book value of assets $^{(3)}$ 50% 53% (1) H&R’s MD&A includes the reconciliations of net earnings to FFO and NFFO, FFO to AFFO, and AFFO to cash provided by  operations. As these are non-GAAP measures, readers are strongly encouraged to refer to H&R’s MD&A for further discussion of  such measures.  (2) NFFO adjusts FFO for additional recoveries of capital expenditures in excess of items expensed in property operating costs, the  net loss on derivative instruments and foreign exchange, the mortgage interest accruals on non-recourse mortgage defaults and  other non-recurring items. (3) Calculated in accordance with the REIT's Declaration of Trust  First Quarter 2011 Highlights  • Closed $180-million offering of 4.8% senior unsecured debentures, to fund property acquisitions and  for general corporate purposes  • Entered into an agreement to acquire Atrium on Bay, a 1.1 million square foot office complex located  in downtown Toronto for $345 million  • Purchased two retail properties in the United States for USD$32 million