* Q2 FFO C$0.38 vs C$0.36 year ago
* Rentals from income properties up 2 pct
Aug 12 (Reuters) - H&R Real Estate Investment Trust HR_u.TO posted higher quarterly funds from operations (FFO) helped by increased rentals.
FFO -- a property measure that strips out the distorting effects of depreciation and other factors from earnings -- for the REIT in the quarter was C$56.6 million, or 38 Canadian cents per stapled basic unit.
That compares with FFO of C$53.4 million, or 36 Canadian cents per stapled basic unit in the year-ago period.
Adjusted FFO came in at C$55.8 million or 37 Canadian cents per stapled basic unit.
Rentals from income properties rose to C$151.3 million in the quarter from C$149 million last year.
Units of the REIT, which gained 12 percent over the past 3 months, were down 10 Canadian cents at C$17.96 Thursday morning on the Toronto Stock Exchange. (Reporting by Isheeta Sanghi in Bangalore; Editing by Vyas Mohan)