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## H&R REAL ESTATE INVESTMENT TRUST H&R FINANCE TRUST 

Notes to Combined Financial Statements  (In thousands of dollars, except unit and per unit amounts) Years ended December 31, 2010 and 2009 

7. Mortgages payable (continued): 

Future principal mortgage pay ments are as follow s: 

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* Relates to seven non-recourse mortgages to the REIT for income properties in which the tenants, Boscov’s Department Store, Bruno’s Supermarkets LLC and Great Atlantic and Pacific Tea Company (“A&P”), have filed for protection under Chapter 11 of the United States Bankruptcy Code. The REIT has handed over control of three of these income properties to the lenders and therefore expects to be released from any further obligations under these non-recourse mortgages upon the transfer of title to the lenders. 

8. Debentures payable: 

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