H&R REAL ESTATE INVESTMENT TRUST  H&R FINANCE TRUST  3.  Income properties: Legal title to each of the United States properties is held by a separate legal entity which is 100% owned, directly or  indirectly, by U.S. Holdco. The assets of each such separate entity are not available to satisfy the debts or obligations of  any other person or entity. Each such separate entity maintains separate books and records. The identity of the owner  of a particular United States property is available from U.S. Holdco. This structure does not prevent distributions to the  entity owners provided there are no conditions of default.  During the year ended December 31, 2010, the lenders accepted title to five U.S. income properties, one previously  occupied by Circuit City and four previously occupied by Boscov’s Department Stores, thereby releasing the REIT from  any further obligation with respect to the mortgages on such properties. The REIT recorded a gain on the  extinguishment of this debt of $17,296 for the year ended December 31, 2010 (2009 - $nil).  During the year ended December 31, 2010, the REIT recorded an impairment charge of $14,862 on two of its U.S.  income properties (2009 - $14,764 on four of its U.S. income properties). Each impairment was triggered by the tenant  vacating the premises following their bankruptcy announcement. Notes to Combined Financial Statements   (In thousands of dollars, except unit and per unit amounts)  Years ended December 31, 2010 and 2009  Accumulated depreciation and Net book December 31, 2010 Cost amortization value Land 878,625 $ $ - 878,625 $ Buildings 3,251,583 (508,622) 2,742,961 Building improvements  38,637 (8,812) 29,825 Paving and equipment 120,129 (59,609) 60,520 4,288,974 (577,043) 3,711,931 Intangible assets  442,183 (135,259) 306,924 4,731,157 $ (712,302) $  4,018,855 $ Accumulated depreciation and Net book December 31, 2009  C ost amortization v alue Land 877,530 $ $ - 877,530 $ Buildings 3,282,641 (444,212) 2,838,429 Building improv ements  23,260 (5,997) 17,263 Pav ing and equipment 128,820 (56,156) 72,664 4,312,251 (506,365) 3,805,886 Intangible assets  442,708 (123,738) 318,970 4,754,959 $ (630,103) $ 4,124,856 $ 11 