H&R REAL ESTATE INVESTMENT TRUST $24.19 (Toronto symbol HR.UN; Units outstanding: 180.8 million; Market cap: $4.4 billion; TSINetwork Rating: Extra Risk; Dividend yield: 4.8%; www.hr-reit.com) owns stakes in 40 office buildings, 117 industrial properties and 133 retail properties across Canada. H&R has a 99.1% occupancy rate.

In the three months ended December 31, 2011, the REIT’s revenue rose 10.9%, to $178.2 million from $160.7 million a year earlier. Cash flow rose 10.1%, to $67.8 million from $61.6 million. Cash flow per unit fell 2.4%, to $0.40 from $0.41, on more units outstanding.

The REIT recently made two major purchases in the U.S. In October 2011, it bought Two Gotham Center in New York City for $415.5 million U.S. The newly built, 22-storey tower is leased to the City of New York for 20 years.

In December 2011, H&R bought the Hess Tower in Houston for $442.5 million U.S. This 29-storey tower, which was completed in June 2011, is fully leased to the Hess Corporation. Two Gotham and the Hess Tower are H&R’s largest acquistions to date.

H&R is now nearly finished building The Bow, a $1.33-billion, two-million-square-foot office building in Calgary. Encana Corp. has already leased the entire building for 25 years.

The REIT raised its yearly distribution by 4.5%, to $1.15, in April 2012. It will continue to raise its distributions every quarter until the annual rate reaches $1.25 in the fourth quarter of 2012.

H&R REIT is still a buy.