H&R said it suffered a net loss of $17.3 million or 12 cents per stapled unit in the quarter, compared with a profit of $22.1 million or 16 cents in the same prior-year period. Rental revenue from imcome properties declined to $151.2 million from $156.3 million.
Funds from operations were $13.5 million or nine cents for the quarter, down from $70.4 million or 40 cents in the 2009 quarter. Adjusted funds from operations totalled $12.2 million or eight cents compared with $61.3 million or 42 cents.
"FFO, AFFO and net earnings were all reduced by a one-time, non-recurring loss of $38.8 million on early repayment of Fairfax non-convertible debentures," H&R said in a news release.
"Excluding the one-time debenture repayment loss, AFFO per unit would have been 34 cents for the three months ended March 31, 2010, and net earnings per unit would have been 14 cents."
Meanwhile, the company said it anticipates being compliant with Canadian specified investment flow-through rules by the end of June.
"In which case, the future income tax liability of $139.8 million recorded as at March 31, 2010, would be reversed into income in the second quarter this year," it said.
H&R is an open-ended real estate investment trust which owns a North American portfolio of 33 office, 118 industrial and 121 retail properties comprising nearly 39 million square feet, with a net book value of $4.1 billion.
In Ottawa, the REIT's portfolio includes the 988,700-square-foot Place Bell on Elgin Street and the 118,000-square-foot retail store at 1880 Innes Rd., occupied by Rona.
Its units were up 17 cents at $16.82 in mid-afternoon trading Friday on the Toronto Stock Exchange.
