Atlas Cold Storage Completes C$215 Million Sale Leaseback of 12 Rrefrigerated Distribution Facilities in Canada

H&R REIT Web Site - September 25, 2007

H&R Real Estate Investment Trust (TSX: HR.UN) (“H&R”) announced that it has acquired a portfolio of 12 refrigerated distribution facilities in six provinces totaling 1.7 million square feet, for approximately $215 million. The cold storage properties will be leased for a weighted average term of 19.3 years to Eimskip Atlas Canada Inc. The leases will be indemnified by hf Eimskipafelag Islands - an Icelandic, publicly listed company with a market cap of over USD$1 billion, and the largest North American refrigerated warehouse company.

H&R President and CEO Tom Hofstedter said, “This transaction will be highly accretive to the REIT. We have secured $161 million of first mortgage financing for a term of 10 years at an interest rate of 5.66% per annum. The REIT’s levered return on equity invested is expected to be in excess of 12%. Moreover, the acquisition of this nationwide portfolio further diversifies H&R’s income by type of asset and by geographic region.” Sphere: Related Content