For fourteen years, we have executed a conservative strategy founded on  stability through discipline .  As the effects of the global financial crisis waned in Canada, we improved our financial results last year,  and resumed our disciplined program of property acquisitions that are intended to be accretive. We also  amended the terms of our construction loan for The Bow so as to reduce our interest costs and increase  distributions to unitholders. By year end, we had grown H&R’s portfolio of high-quality properties and improved the capital structure of  its balance sheet. Our Stapled Unit price closed at $19.43, increasing 26% during the year, compared to  14% for the S&P/TSX Composite Index and 15% for the Capped Real Estate Index. Including this capital  gain and distributions, the overall return on investment for our unitholders was 31% for 2010, and a  compound average annual return of approximately 15% since inception in 1996.  We continue to build  The Bow  – our trophy office project in downtown Calgary, which at year end was 77% complete, comprising 58 storeys and two million square feet. The Class AAA office tower is  expected to become the landmark in Calgary’s downtown financial district and will be the keystone of our  property portfolio.  The Bow  will be the largest Canadian office tower west of Toronto – its striking design  crowning Calgary’s skyline. The project will also feature three sky gardens and an energy-efficient design,  and will be integrated with the city’s rail and bus transit system and elevated pedestrian walkway. EnCana Corporation – a leading North American natural gas producer and one of Canada’s largest public  companies with strong investment grade ratings – has preleased 100% of the skyscraper and all  underground parking spaces on a triple-net basis for an initial term of 25 years. The $1.5-billion complex  will be occupied in tranches and will be fully occupied by the second quarter 2012, after which it will  generate first year net rent of approximately $94 million. Rent step-ups thereafter will be 0.75% per  annum for the office space and 1.5% per annum for parking over the full term of the lease.  As part of our transition to IFRS, we report the fair value of H&R REIT’s investment properties as follows:  Equity and credit market conditions in Canada have improved over the past year, which has allowed the  REIT to reduce financing costs and strengthen its balance sheet through a series of debenture offerings.  More abundant and cheaper capital has increased demand for commercial properties, placing downward  pressure on capitalization rates and thereby increasing the market value of our portfolio. We expect to continue acquiring properties on a very selective and disciplined basis. In the United States,  the recovery in commercial real estate and capital markets has been much slower, resulting in higher  capitalization rates than for equivalent Canadian properties, and financing for high-quality properties is  becoming increasingly available at attractive pricing.  Outlook  Adoption of International Financial Reporting Standards Development of  The Bow Financial Results  President’s Message to Unitholders  December 31, 2010 (billions)  January 1, 2010 (billions) Net Book Value as reported under Canadian GAAP, including tenant  inducements, deferred leasing costs and intangible liabilities  $4.0  $4.1 Increase in value of income-producing properties  1.5  $.0 Fair value of investment properties to be reported under IFRS  $5.5  $5.1