H&R REAL ESTATE INVESTMENT TRUST  H&R FINANCE TRUST  Combined Balance Sheets  (In thousands of dollars)  December 31, 2010 and 2009  2010 2009 Assets Income properties (note 3) 4,018,855 $  4,124,856 $  Properties under development (note 4) 1,268,331 794,534 Accrued rent receivable  136,605 125,212 Other assets (note 5) 97,013 178,262 Cash and cash equivalents (note 6) 10,730 109,224 Assets held for sale and discontinued operations (note 24) - 19,035 5,531,534 $  5,351,123 $  Mortgages payable (note 7) 2,706,707 $  2,818,476 $  Debentures payable (note 8) 822,340 565,758 Accounts payable and accrued liabilities 170,544 166,971 Future income tax liability (note 23) - 138,122 Bank indebtedness (notes 9(a) and 9(b)) 89,045 13,556 Intangible liabilities  55,668 57,237 Derivative instruments (notes 7 and 9(b)) 3,317 - Liabilities related to discontinued operations (note 24) - 2,215 3,847,621 3,762,335 Non-controlling interest (note 10) 77,261 75,122 Unitholders' equity (notes 11 and 12) 1,606,652 1,513,666 Commitments and contingencies (note 25) Subsequent events (note 27) 5,531,534 $ 5,351,123 $  See accompanying notes to combined financial statements. Approved by the Trustees:  “Robert Dickson” Trustee  “Thomas J. Hofstedter” Trustee  2  Liabilities and Unitholders' Equity Liabilities: