H&R Real Estate Investment Trust : Q3 2024

MANAGEMENT'S DISCUSSION AND ANALYSIS OF H&R REAL ESTATE INVESTMENT TRUST

For the three and nine months ended September 30, 2024

Dated: November 12, 2024

TABLE OF CONTENTS
SECTION I	2
Basis of Presentation	2
Forward-LookingDisclaimer	2
Overview and Strategy	3
Environmental, Social and Governance	4
SECTION II	5
Summary of Significant 2024Activity	5
Portfolio Summary	9
Key Performance Drivers	10
Portfolio Overview	11
Lease Maturity Profile	12
Top Twenty Sources of Revenue by Tenant	13
Financial Highlights	14
SECTION III	15
Financial Position	15
Investment Properties	16
Valuation of Investment Properties	18
Intensification Opportunities	19
Properties Under Development	20
Equity Accounted Investments	22
Debt	25
Other Liabilities	27
Unitholders' Equity	30
Results of Operations	32
Net Operating Income	34
Segment Information	35
Net Income, FFO And AFFO From Equity Accounted Investments	38
Income and Expense Items	39
Funds From Operations and Adjusted Funds From Operations	43
Liquidity and Capital Resources	45
Off-BalanceSheet Items	48
Derivative Instruments	49
Selected Financial Information	50
SECTION IV	51
Non-GAAPMeasures and Non-GAAPRatios	51
Risks and Uncertainties	54
Outstanding Unit Data	54
Additional Information	55
Subsequent Event	55

H&R REIT - MD&A - September 30, 2024

SECTION I

BASIS OF PRESENTATION

Management's Discussion and Analysis ("MD&A") of the results of operations and financial position of H&R Real Estate Investment Trust ("H&R" or the "REIT") for the three and nine months ended September 30, 2024 includes material information up to November 12, 2024. Financial data for the three and nine months ended September 30, 2024 and 2023 have been prepared in accordance with International Accounting Standard ("IAS") 34, Interim Financial Reporting. This MD&A should be read in conjunction with the unaudited condensed consolidated interim financial statements of the REIT and related notes for the three and nine months ended September 30, 2024 ("REIT's Financial Statements"), together with the audited consolidated financial statements of the REIT and related notes and MD&A for the year ended December 31, 2023. All amounts in this MD&A are in thousands of Canadian dollars, except where otherwise stated. Historical results, including trends which might appear, should not be taken as indicative of future operations or results.

The Bow office property in Calgary, AB (the "Bow") was legally disposed of in October 2021. The 100 Wynford office property in Toronto, ON ("100 Wynford") was legally disposed of in August 2022. These transactions did not meet the criteria of a transfer of control under International Financing Reporting Standards ("IFRS") 15 Revenue from Contracts with Customers ("IFRS 15") as the REIT has an option to repurchase 100% of both of these properties in 2038 and 2036, respectively, or earlier under certain circumstances. As such, the REIT continues to recognize these income producing properties in the REIT's Financial Statements and MD&A. Certain operating metrics within this MD&A have been adjusted to exclude the impact of the Bow and 100 Wynford and H&R has identified these disclosures accordingly. Refer to the "Other Liabilities - Deferred Revenue" section of this MD&A for further information.

FORWARD-LOOKING DISCLAIMER

Certain information in this MD&A contains forward-looking information within the meaning of applicable securities laws (also known as forward-looking statements) including, among others, statements made or implied under the headings "Investment Properties", "Intensification Opportunities", "Other Liabilities", "Liquidity and Capital Resources", "Environmental, Social and Governance", "Properties Under Development", and "Equity Accounted Investments" relating to H&R's objectives, beliefs, plans, estimates, targets, projections and intentions and similar statements concerning anticipated future events, results, circumstances, performance or expectations that are not historical facts, including the statements made under the headings "Summary of Significant 2024 Activity" and "Income and Expense Items" including with respect to H&R's future plans and targets, H&R's intention to continue disposing of office and retail properties, the expected timing of, and gross proceeds from, properties under contract to be sold, H&R's strategy to grow its exposure to residential assets in U.S. sun belt and gateway cities, the ability of H&R to capture potential upside in the Calgary office market, leasing of the REIT's investment properties and the termination of existing leases, H&R's expectation with respect to the future developments and activities of its development properties, including the acquisition, development and use of new properties, the expected yield on cost from the REIT's development properties, the timing of approvals, construction and completion, expected construction costs, anticipated number of units and square footage, H&R's expectations and intentions with respect to zoning and rezoning requests, expected credit losses, the impact of the REIT's commitment to sustainability on its portfolio, the value of assets and liabilities held for sale, capitalization rates and cash flow models used to estimate fair values, expectations regarding future operating fundamentals, management's expectations regarding future distributions by the REIT, and management's expectation to be able to meet all of the REIT's ongoing obligations. Forward- looking statements generally can be identified by words such as "outlook", "objective", "may", "will", "expect", "intend", "estimate", "anticipate", "believe", "should", "plans", "project", "budget" or "continue" or similar expressions suggesting future outcomes or events. Such forward-looking statements reflect H&R's current beliefs and are based on information currently available to management.

Forward-looking statements are provided for the purpose of presenting information about management's current expectations and plans relating to the future, and readers are cautioned that such statements may not be appropriate for other purposes. These statements are not guarantees of future performance and are based on H&R's estimates and assumptions that are subject to risks, uncertainties and other factors including those risks and uncertainties described below under "Risks and Uncertainties" and those discussed in H&R's materials filed with the Canadian securities regulatory authorities from time to time, which could cause the actual results, performance or achievements of H&R to differ materially from the forward-looking statements contained in this MD&A. Material factors or assumptions that were applied in drawing a conclusion or making an estimate set out in the forward- looking statements include assumptions relating to the general economy, including debt markets continuing to provide access to

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H&R REIT - MD&A - September 30, 2024

capital at a reasonable cost; and assumptions concerning currency exchange and interest rates. Additional risks and uncertainties include, among other things, those related to: real property ownership; the current economic environment; credit risk and tenant concentration; lease rollover risk; interest rate and other debt-related risks; development risks; residential rental risk; capital expenditure risk; currency risk; liquidity risk; cyber security risk; risks associated with disease outbreaks; financing credit risk; ESG and climate change risk; co-ownership interest in properties; general uninsured losses; joint arrangement and investment risks; dependence on key personnel and succession planning; potential acquisition, investment and disposition opportunities and joint venture arrangements; potential undisclosed liabilities associated with acquisitions; competition for real property investments; potential conflicts of interest; Unit prices; availability of cash for distributions; credit ratings; ability to access capital markets; dilution; unitholder liability; redemption right; investment eligibility; debentures; statutory remedies; tax risk; and tax risks applicable to the REIT and to unitholders. H&R cautions that these lists of factors, risks and uncertainties are not exhaustive. Although the forward-looking statements contained in this MD&A are based upon what H&R believes are reasonable assumptions, there can be no assurance that actual results will be consistent with these forward-looking statements.

Readers are also urged to examine H&R's materials filed with the Canadian securities regulatory authorities from time to time as they may contain discussions on risks and uncertainties which could cause the actual results and performance of H&R to differ materially from the forward-looking statements contained in this MD&A. All forward-looking statements in this MD&A are qualified by these cautionary statements. These forward-looking statements are made as of November 12, 2024 and the REIT, except as required by applicable Canadian law, assumes no obligation to update or revise them to reflect new information or the occurrence of future events or circumstances.

OVERVIEW AND STRATEGY

H&R is one of Canada's largest real estate investment trusts with total assets of approximately $10.2 billion as at September 30, 2024. H&R has ownership interests in a North American portfolio comprised of high-quality residential (operating as Lantower Residential), industrial, office and retail properties totalling approximately 26.1 million square feet. H&R is an unincorporated open- ended trust created by a declaration of trust ("H&R's Declaration of Trust") and governed by the laws of the Province of Ontario. H&R's units ("Units") are listed and posted for trading on the Toronto Stock Exchange ("TSX") under the symbol HR.UN. H&R's objective is to maximize net asset value ("NAV") per Unit through ongoing active management of H&R's assets and the development and construction of projects.

H&R's strategy is to create a simplified, growth-oriented business focused on residential and industrial properties in order to create sustainable long-term value for unitholders. H&R is currently undergoing a repositioning plan and intends to sell its office and retail properties as market conditions permit. H&R's vision is to be a leading owner, operator and developer of residential and industrial properties, creating value through redevelopment and greenfield development in prime locations within Toronto, Montreal, and high growth U.S. sun belt and gateway cities.

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H&R REIT - MD&A - September 30, 2024

Since the announcement of H&R's Strategic Repositioning Plan, H&R has sold ownership interests in 57 real estate assets totalling approximately $2.8 billion, including the Bow and 100 Wynford. In addition, H&R completed a spin off, on a tax-free basis, of 27 properties including all of the REIT's enclosed shopping centres to a new publicly-traded REIT, Primaris REIT, valued at approximately $2.4 billion.

Real Estate Assets (Fair Value)(1)

Q2 2021⁽²⁾

Q3 2024⁽³⁾

Residential

Retail25% 29%

Retail 15%

Office	Residential
14%
47%

Industrial

10%Rezoning⁽⁴⁾

5%

Office	Industrial
19%
36%

1. At the REIT's proportionate share, including assets classified as held for sale. Refer to the "Non-GAAPMeasures" section of this MD&A.
2. Q2 2021 has been used as a benchmark since H&R's Strategic Repositioning Plan was announced prior to the release of Q3 2021 results.
3. Excludes the Bow and 100 Wynford, which were legally sold in October 2021 and August 2022, respectively.
4. Includes four office properties advancing through the process of rezoning into residential properties.

ENVIRONMENTAL, SOCIAL AND GOVERNANCE

As one of Canada's largest real estate investment trusts, H&R strives to lead by example and be a part of the ever-changing journey to a more sustainable future. Having an integrated and forward-thinking sustainability program is of utmost importance. H&R formally implemented its Sustainability Policy and established its Sustainability Committee in 2019. The REIT views sustainability as its responsibility to its unitholders in terms of transparency, to its employees in terms of communication, collaboration and opportunity, to its tenants in terms of providing healthy working and living environments and to the greatest extent, to the communities in which the REIT's employees live and the REIT does business.

H&R is committed to, among other things, investing responsibly, monitoring its use of resources and associated emissions, reducing consumption and pollution, increasing energy efficiency and integrating sustainability into the REIT's business, including the REIT's decision-making processes.

Key programs and initiatives are outlined in the "Environmental, Social and Governance" section of the REIT's annual MD&A for the year ended December 31, 2023 as well as H&R's Annual Information Form for the year ended December 31, 2023 ("2023 Annual Information Form"), each of which were filed with the securities regulatory authorities in each of the provinces of Canada and are available on SEDAR+ at www.sedarplus.com.

The REIT's 2023 Sustainability report highlights how the REIT's commitment to sustainability is manifesting itself in its portfolio and resulting in lasting changes for its properties, tenants, employees, stakeholders and communities at large.

For more information on H&R's Sustainability Policy and additional information about its Sustainability Committee, Sustainability Report and Sustainability Supplement as well as H&R's Green Financing Framework and Second-Party Opinion of Green Financing Framework, visit H&R's website under "Investor Relations - Sustainability". The contents of the REIT's website, including the REIT's Sustainability Policy, Sustainability Report and Sustainability Report Supplement, Green Financing Framework and Second-Party Opinion of Green Financing Framework, are expressly not incorporated by reference into, and do not form part of, this MD&A.

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SECTION II

SUMMARY OF SIGNIFICANT 2024 ACTIVITY

2024 Net Operating Income Highlights:

	Three months ended September 30	Nine months ended September 30
(in thousands of Canadian dollars)	2024	2023	% Change	2024	2023	% Change
Operating Segment:
Same-Property net operating income (cash basis) - Residential(1)	$40,228	$40,500	(0.7)%	$124,858	$123,692	0.9%
Same-Property net operating income (cash basis) - Industrial(1)	17,729	17,261	2.7%	52,898	50,775	4.2%
Same-Property net operating income (cash basis) - Office(1)	38,656	41,262	(6.3)%	116,160	120,764	(3.8)%
Same-Property net operating income (cash basis) - Retail(1)	25,160	24,567	2.4%	74,862	71,049	5.4%
Same-Property net operating income (cash basis)(1)	121,773	123,590	(1.5)%	368,778	366,280	0.7%
Net operating income (cash basis) from Transactions at the REIT's
proportionate share(1)(2)	28,539	38,636	(26.1)%	93,797	120,122	(21.9)%
Realty taxes in accordance with IFRIC 21 at the REIT's
proportionate share(1)(3)	14,757	15,324	(3.7)%	(14,686)	(14,946)	1.7%
Straight-lining of contractual rent at the REIT's proportionate
share(1)	4,305	1,406	206.2%	14,729	9,477	55.4%
Net operating income from equity accounted investments(1)	(29,262)	(29,540)	0.9%	(83,849)	(81,689)	(2.6)%
Net operating income per the REIT's Financial Statements	$140,112	$149,416	(6.2)%	$378,769	$399,244	(5.1)%

1. These are non-generally accepted accounting principles ("GAAP") measures. Refer to the "Non-GAAPMeasures" section of this MD&A.
2. Transactions are defined in the "Net Operating Income" section of this MD&A.
3. IFRIC 21 is defined in the "Non-GAAPMeasures" section of this MD&A.

Refer to the "Net Operating Income" section of this MD&A for further explanations on the net operating income changes for the three and nine months ended September 30, 2024.

Transaction Highlights

Property Dispositions

During the nine months ended September 30, 2024, H&R sold its ownership interests in 12 real estate assets for gross proceeds of $368.3 million.

Subsequent to September 30, 2024, H&R sold a 372,207 square foot industrial property in Brampton, ON for approximately $60.7 million, at H&R's 50% ownership interest. The property was encumbered with a $24.6 million mortgage, at H&R's 50% ownership interest bearing interest at 3.5%, which was repaid on closing. The property was sold to the tenant who exercised their option to purchase.

H&R continues to successfully execute on its strategic repositioning plan with real estate assets sold or under contract to be sold totalling approximately $438.4 million, as at September 30, 2024.

Leasing Highlights:

During the nine months ended September 30, 2024, H&R completed seven industrial lease renewals across Canada totaling approximately 387,364 square feet at H&R's ownership interest and achieved an average increase of $5.40 per square foot.

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H&R REIT - MD&A - September 30, 2024

Development Update

Canadian Properties under Development

In January 2024, development of two of the REIT's industrial properties, 1965 and 1925 Meadowvale Boulevard in Mississauga, ON reached substantial completion and the properties were transferred from properties under development to investment properties. The properties are fully leased with annual contractual rental escalations; both leases commenced in February 2024 and will expire in May 2036 and March 2037, respectively. The REIT recognized a fair value increase of $19.3 million on these properties between the start of construction and substantial completion.

In Q1 2024, H&R transferred 6900 Maritz Drive in Mississauga, ON from investment properties to properties under development. In January 2024, H&R received approval from the City of Mississauga to replace the existing 104,689 square foot office building on the property with a new 122,367 square foot industrial building. Demolition of the existing office building was completed in April 2024. The property will include sustainability elements such as EV charging stations and solar panel readiness and is targeted to achieve LEED Gold certification. Construction has commenced and substantial completion is expected in Q1 2025. As at September 30, 2024, the total development budget for this property was approximately $43.6 million with costs remaining to complete the new building of approximately $14.7 million.

In Q3 2024, H&R transferred 53 & 55 Yonge Street in Toronto, ON from investment properties to properties under development. The buildings are fully vacant and demolition is expected to commence in Q4 2024. H&R has elected to demolish both buildings in order to reduce property operating costs. H&R will continue to advance the rezoning process for these properties, but does not have any plans to start re-developing these properties in the near future.

Refer to the "Properties Under Development - Canadian Properties Under Development" section of this MD&A for further information.

U.S. Properties under Development

In Q3 2024, Lantower West Love, a 413 residential rental unit property in Dallas, TX reached substantial completion and was transferred from properties under development to investment properties. Lantower West Love received National Green Building Standard Silver certification. The REIT recognized a fair value increase of $31.3 million (U.S. $23.2 million). The property is expected to be completed on budget with costs remaining to complete of $9.4 million (U.S. $7.0 million), and the stabilized yield on budgeted cost is expected to be 5.7%. As at September 30, 2024, there were 164 residential rental units leased of which 148 residential rental units were occupied. As at November 5, 2024, there were 177 residential rental units leased of which 166 residential rental units were occupied.

Lantower Midtown, a 350 residential rental unit property under development in Dallas, TX is currently under construction and is expected to reach substantial completion in Q4 2024. As at September 30, 2024, the total development budget for Lantower Midtown was approximately $140.6 million (U.S. $104.1 million) with costs remaining to complete of approximately $16.5 million (U.S. $12.2 million). As at September 30, 2024, Lantower Midtown received certificates of occupancy for 152 of the 350 residential rental units. As at November 5, 2024, there were 86 residential rental units leased of which 52 residential rental units were occupied.

Refer to the "Properties Under Development - U.S. Properties Under Development" section of this MD&A for further information.

Equity Accounted Investments

H&R has a 50% managing ownership interest in 560 & 600 Slate Drive, a 26.6 acre land site in Mississauga, ON, located next to Toronto Pearson International Airport and in close proximity to access points on the 410, 401 and 407 Highways. The partnership through which H&R owns its interest submitted a Site Plan Approval application in 2022 to develop two single storey industrial buildings totalling 309,727 square feet and 160,485 square feet respectively. Both buildings have been designed with flexibility such that they can accommodate either single or multiple tenants. Both will include sustainability elements such as EV charging stations and solar panel readiness and are targeted to achieve LEED Gold certification. As at September 30, 2024, the total budget for 560 & 600 Slate Drive was approximately $66.3 million with costs remaining to complete of $41.8 million, all at H&R's ownership interest. In Q3 2024, H&R obtained an external appraisal and recognized a fair value increase of $8.4 million at H&R's ownership interest

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H&R REIT - MD&A - September 30, 2024

primarily due to strong industrial demand given the close proximity to Toronto's Pearson International Airport and access points to three major highways. The yield on cost for the overall project is expected to be approximately 6.6% with completion expected in Q3 2025. H&R is the development and leasing manager for this project and expects to earn approximately $2.4 million in aggregate for these services over the development period of the project.

In February 2024, the REIT created Lantower Residential Real Estate Development Trust (No. 1) (the "REDT") which completed an initial public offering in April 2024. The REDT raised U.S. $52.0 million of equity capital from investors to acquire an interest in and fund the development of two residential development projects ("the REDT Projects") in Florida totalling 601 residential rental units. The REIT contributed the land to Lantower Residential REDT (No.1) JV LP ("REDT JV LP"), in exchange for a 29.1% ownership interest in the REDT JV LP. The REIT is accounting for its ownership interest in the REDT Projects as an equity accounted investment. H&R retains an option to acquire the REDT Projects. H&R is earning a development fee of 4% of the total hard and soft costs of the REDT Projects (excluding land and financing costs) and is expecting to earn a 1% asset management fee on gross proceeds raised by the REDT. H&R will also be entitled to 20% of the distribution proceeds over and above its pro-rata share of the equity after investors receive an 8% internal rate of return and 30% after investors receive a 15% internal rate of return. As at September 30, 2024, the total budget for the REDT Projects was approximately $82.3 million (U.S. $61.0 million) with costs remaining to complete of $65.7 million (U.S. $48.7 million), all at H&R's ownership interest. The REDT Projects are expected to be completed in mid-2026.

Future Intensification

In January 2024, the Toronto East York Community Council approved H&R's official plan and zoning by-law amendment application at 69 Yonge Street to convert the existing heritage building from office use to 127 residential units. The approval facilitates adaptive reuse of the existing 15-storey building, while adding density through infilling the southeast corner of the building and adding 5 residential floors to the overall height. H&R is addressing the conditions outlined by the Toronto East York Community Council and anticipates that the zoning by-law amendment will come into effect by Q1 2025.

In October 2024, H&R submitted rezoning applications to the City of Toronto for 53 & 55 Yonge St., 145 Wellington St. W., and 310 Front St. W., to remove the current approved replacement office density and instead convert those areas to residential uses, including some affordable housing. H&R anticipates receiving approval for these applications in Q4 2025.

Debt & Liquidity Highlights

Mortgages

During the nine months ended September 30, 2024, H&R repaid two mortgages and one mortgage was assumed by a purchaser totalling $89.6 million at a weighted average interest rate of 5.1%.

Debentures

In January 2024, H&R redeemed all of its $350.0 million Series N Senior Debentures, which bore interest at 3.369% per annum.

In February 2024, H&R completed a private placement of $250.0 million Series T Senior Debentures, bearing interest at 5.457% and maturing February 28, 2029.

Unsecured Term Loans

In March 2024, H&R secured a two-year extension on a $250.0 million unsecured term loan which will now mature March 7, 2027.

In April 2024, H&R secured a one-year extension on a $125.0 million unsecured term loan which will now mature November 30, 2026.

Lines of Credit

In March 2024, H&R secured a two-year extension on its $150.0 million revolving unsecured line of credit which will now mature on September 20, 2026. Subsequent to September 30, 2024, H&R secured a one-year extension on this revolving unsecured line of credit which will now mature on September 20, 2027.

As at September 30, 2024, debt to total assets per the REIT's Financial Statements was 34.6% compared to 34.2% as at December 31, 2023. As at September 30, 2024, debt to total assets at the REIT's proportionate share (a non-GAAP ratio, refer to the "Non-GAAP Measures" section of this MD&A) was 44.9% compared to 44.0% as at December 31, 2023.

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H&R REIT - MD&A - September 30, 2024

As at September 30, 2024, H&R had cash and cash equivalents of $68.4 million, $863.6 million available under its unused lines of credit and an unencumbered property pool of approximately $4.1 billion.

Environmental, Social and Governance

The REIT's 2023 Sustainability report highlights how the REIT's commitment to sustainability is manifesting itself in its portfolio and resulting in lasting changes for its properties, tenants, employees, stakeholders and communities at large.

In August 2024, H&R's 6900 Maritz Drive industrial development site in Mississauga, ON was shortlisted for a World Demolition Award in the Recycling & Environmental category. The project involved the demolition of a 104,689-square-foot steel structure office building with a total weight of 8,758 tonnes. The waste diversion program recycled all of the steel and concrete equaling 8,113 tonnes (93%) of the total material weight. The project was completed with zero safety incidents and zero lost-time injuries. Being recognized in this category underscores H&R's continued commitment to sustainable practices and environmental stewardship.

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PORTFOLIO SUMMARY

(in thousands of Canadian dollars, except for statistics)
(All periods exclude the Bow and 100 Wynford)	Q3 2024	Q4 2023	Q3 2023
Residential:(1)
Number of properties	25	24	24
Square feet (in thousands)	7,849	7,499	7,499
Residential rental units	8,579	8,166	8,166
Occupancy	91.3%	94.3%	94.9%
Contractual mortgages payable	$1,747,940	$1,698,031	$1,824,771
Investment properties including assets classified as held for sale	$3,803,416	$3,668,856	$3,765,215
Capitalization rate	4.56%	4.47%	4.49%
Rentals from investment properties	$72,335	$71,752	$71,415
Net operating income	$48,823	$50,483	$49,518
Same-Property net operating income (cash basis)(2)	$40,228	$41,451	$40,500
Industrial:(1)
Number of properties	66	70	72
Square feet (in thousands)	8,540	8,554	8,728
Occupancy	98.9%	99.2%	99.2%
Average remaining term to maturity of commercial leases (in years)	5.4	4.6	4.9
Contractual mortgages payable	$245,982	$258,015	$266,513
Investment properties including assets classified as held for sale	$1,566,419	$1,473,037	$1,507,005
Capitalization rate(3)	5.49%	5.30%	5.28%
Rentals from investment properties	$26,565	$24,508	$24,354
Net operating income	$20,530	$19,005	$18,776
Same-Property net operating income (cash basis)(2)	$17,729	$17,693	$17,261
Office:(1)
Number of properties	16	21	22
Square feet (in thousands)	4,520	5,611	5,702
Occupancy	96.8%	95.9%	98.0%
Average remaining term to maturity of commercial leases (in years)	6.1	6.8	6.9
Contractual mortgages payable	$139,535	$230,683	$237,140
Investment Properties including assets classified as held for sale	$1,888,477	$2,463,487	$2,527,824
Capitalization rate(3)	8.86%	6.87%	6.87%
Rentals from investment properties	$64,331	$71,533	$77,356
Net operating income	$44,668	$50,935	$55,207
Same-Property net operating income (cash basis)(2)	$38,656	$38,255	$41,262
Retail:(1)
Number of properties	270	272	274
Square feet (in thousands)	5,192	5,203	5,209
Occupancy	97.0%	96.2%	95.7%
Average remaining term to maturity of commercial leases (in years)	8.1	8.3	8.4
Contractual mortgages payable	$106,196	$111,145	$116,947
Investment properties including assets classified as held for sale(4)	$1,499,618	$1,561,406	$1,597,119
Capitalization rate	7.03%	6.49%	6.47%
Rentals from investment properties	$35,659	$35,369	$34,634
Net operating income	$28,004	$27,683	$27,984
Same-Property net operating income (cash basis)(2)	$25,160	$24,526	$24,567
Total:(1)
Number of properties	377	387	392
Square feet (in thousands)	26,101	26,867	27,138
Occupancy	95.9%	96.5%	97.0%
Average remaining term to maturity of commercial leases (in years)	6.6	6.8	6.9
Contractual mortgages payable	$2,239,653	$2,297,874	$2,445,371
Investment properties including assets classified as held for sale(4)	$8,757,930	$9,166,786	$9,397,163
Capitalization rate(3)	5.93%	5.59%	5.59%
Rentals from investment properties	$198,890	$203,162	$207,759
Net operating income	$142,025	$148,106	$151,485
Same-Property net operating income (cash basis)(2)	$121,773	$121,925	$123,590

1. All figures have been reported at the REIT's proportionate share, which is a non-GAAP measure defined in the "Non-GAAPMeasures" section of this MD&A.
2. Same-Propertynet operating income (cash basis) is a non-GAAP measure defined in the "Non-GAAPMeasures" section of this MD&A.
3. Industrial and office capitalization rates for Q3 2024 exclude one industrial property and four office properties advancing through the process of rezoning, which have been valued using the comparable sales approach, which is further described in the "Valuation of Investment Properties" section of this MD&A.
4. Includes right-of-use assets in a leasehold interest for Q3 2024, Q4 2023 and Q3 2023 of $28.7 million, $31.3 million and $32.9 million, respectively (included within equity accounted investments), which was measured at an amount equal to the corresponding lease liabilities.

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