H&R REAL ESTATE INVESTMENT TRUST  H&R FINANCE TRUST  Notes to Combined Financial Statements   (In thousands of dollars, except unit and per unit amounts)  On May 11, 2009, the Trusts issued a short form base shelf prospectus allowing the Trusts to offer and issue the  following securities: (i) unsecured debt securities; (ii) subscription receipts exchangeable for Stapled Units and/or other  securities of the Trusts; (iii) warrants exercisable to acquire Stapled Units and/or other securities of the Trusts; and (iv)  securities comprised of more than one of Stapled Units, debt securities, subscription receipts and/or warrants offered  together as a unit, or any combination thereof having an offer price of up to $500,000 in aggregate (or the equivalent  thereof, at the date of issue, in any other currency or currencies, as the case may be) at any time during the 25-month  period that the short form base shelf prospectus (including any amendments) remains valid. On July 17, 2009, the  Trusts filed Amendment No. 1 to the short form base shelf prospectus dated May 11, 2009, to provide that the securities  that may be offered and issued thereunder include senior unsecured debt securities of the REIT. On January 18, 2010,  the Trusts filed Amendment No. 2 to the short form base shelf prospectus dated May 11, 2009 and amended July 17,  2009, to increase the aggregate offer price of securities that may be offered under the short form base shelf prospectus  from $500,000 to $1,000,000 (or the equivalent thereof, at the date of issue, in any other currency or currencies, as the  case may be). On June 5, 2009, the Trusts entered into an equity distribution agreement with Canaccord Capital Corporation who will  act as agent for the issuance and sale of Stapled Units over an approximate two year period, by way of “at-the-market  distributions” over the TSX. The timing of any sale over such approximate two year period, and the number of Stapled  Units actually sold during such period, are at the discretion of the Trusts. Pursuant to applicable securities laws, the  market value of Stapled Units sold pursuant to the equity distribution agreement must not exceed 10% of the aggregate  market value of outstanding Stapled Units, as determined as at the last trading day of the month before the month in  which the first trade under the equity distribution agreement is made. The Stapled Units will be distributed at market  prices prevailing at the time of sale of such Stapled Units (if any) and, as a result, prices may vary between purchasers  and during the period of distribution. As at December 31, 2010, no trades were made pursuant to the equity distribution  agreement. With the issue of the Series D Debentures (note 27), the REIT has issued $960,000 of securities under the short form  base shelf prospectus and as such, only a maximum of $40,000 of Stapled Units can now be issued under the equity  distribution agreement.  26  11.  Unitholders’ equity (continued):  (d) Short form base shelf prospectus:  (e) Equity distribution agreement:  Years ended December 31, 2010 and 2009 