H&R Real Estate Investment Trust ("H&R REIT") announced that it has entered into a new senior unsecured credit facility for up to $200 million with Bank of Montreal, available on a non-revolving basis, maturing March 17, 2021 with no scheduled principal repayments prior to maturity. The credit facility will bear interest at a floating rate of CDOR or LIBOR plus 1.2% per year. H&R REIT has immediately drawn down U.S.$140 million and C$18.2 million on the credit facility to repay other revolving credit facilities.

H&R REIT also announced that it has entered into interest rate swap agreements which effectively fix the interest rate on:

 (i) U.S.$130 million of the U.S. dollar portion of the credit facility draw down at 2.56% per annum; (ii) the $60 million floating rate Series I Senior Debentures maturing in January 2017 at 2.54% per annum; (iii) the U.S. $125.0 million floating rate Series J Senior Debentures maturing in February 2018 at 2.04% per annum; and (iv) the $200 million floating rate Series K Senior Debentures maturing in March 2019 at 2.36% per annum (collectively, the "Senior Debentures").

Such interest rate swap agreements are intended to limit H&R REIT's interest rate exposure during the respective terms of the credit facility and the senior debentures.

H&R REIT is Canada's largest diversified real estate investment trust with total assets of approximately $14.0 billion as at December 31, 2015. H&R REIT is a fully internalized real estate investment trust and has ownership interests in a North American portfolio of high quality office, retail, industrial and residential properties comprising over 47 million square feet.