RE:SALES OF H&R IN 2022 IMPORTANT INFORMATION

There was no immediate taxable event to unit holders of either H&R REIT (H&R) or Primaris REIT (Primaris) as a result of the spin off of the Primaris units by H&R. HOWEVER it is critical that unit holders ascertain an accurate adjusted cost base (ACB) of their H&R units IMMEDIATELY PRIOR TO THE SPIN OFF OF PRIMARIS UNITS MADE IN EARLY JANUARY 2022. H&R have stated that 27% of an investors ACB of H&R holdings be allocated to the Primaris units received, with 73% of the ACB allocated to the H&R position retained. Over the years, a portion of the H&R distributions received have been a return of capital (ROC) that reduces the ACB. On December 31, 2021, H&R paid a $0.63 non-cash (phantom) distribution that increased the ACB for tax purposes of the H&R position as of that date. Failure to factor in ROC payments and the phantom distriubution, will result in an inaccurate calculation of the H&R ACB as of year end 2021, as well as the initial ACB of the Primaris units received.