Senior Housing Properties Discusses Acquisitions, Dispositions in Q3 Results

Senior Housing Properties Trust Recent Activities:
- In August 2009, we closed a $512.9 million mortgage financing with the Federal National Mortgage Association (NYSE: FNM). This 10 year loan is secured by first liens on 28 senior living properties leased to Five Star Quality Care, Inc., or Five Star, with 5,618 living units / beds located in 16 states. We used the proceeds from this mortgage financing to repay amounts outstanding under our revolving credit facility, to complete the purchase of the remaining seven MOBs we had previously agreed to buy from HRPT Properties Trust (NYSE: HRP) and to acquire 10 MOBs and one senior living property from two unaffiliated parties as described below.

In connection with the FNM transaction, we realigned our four leases with Five Star. Lease No. 1 (excluding one property sold subsequent to September 30, 2009 as described below) now includes 79 properties, including independent living communities, assisted living communities and skilled nursing facilities, and expires in 2024. Lease No. 2 (excluding one property sold subsequent to September 30, 2009 as described below) now includes 49 properties, including independent living communities, assisted living communities, skilled nursing facilities and two rehabilitation hospitals, and expires in 2026. Lease No. 3 now includes the 28 FNM financed properties, including independent living communities and assisted living communities, and expires in 2028. Lease No. 4 (including one property acquired subsequent to September 30, 2009 as described below) now includes 26 properties, including independent living communities, assisted living communities and skilled nursing facilities, and expires in 2017.

- In September 2009, we issued 6.9 million common shares in a public offering, raising net proceeds of approximately $127.2 million. We used a portion of the net proceeds from this offering to acquire 10 MOBs and one senior living property from two unaffiliated parties as described below. We intend to use the balance of the net proceeds for general business purposes, including funding pending acquisitions and for possible future acquisitions.

- In September 2009, we acquired 10 MOBs with a total of 643,000 square feet for approximately $169.0 million, plus closing costs, from an unaffiliated party for initial cash rent of $15.0 million per year. These buildings are currently 100% leased to Aurora Health Care Inc., one of the largest not for profit hospital and health care providers in Wisconsin, for a lease term of 15 years plus renewal options. We funded this acquisition using cash on hand and from proceeds from our September equity offering and FNM mortgage financing described above.

- In October 2009, we acquired one senior living property for approximately $21.0 million, plus closing costs, from an unaffiliated party. We leased this property to Five Star and added this property to Five Star Lease No. 4 for initial rent of approximately $1.8 million per year. Percentage rent, based on increases in gross revenues at these properties, will commence in 2011. We funded this acquisition using cash on hand and proceeds from our September equity offering and FNM mortgage financing described above.

- In October 2009, we sold one skilled nursing facility to an unaffiliated party for $500,000 and, on November 1, 2009, we sold another one of our skilled nursing facilities to an unaffiliated party for $1.4 million. The two sold properties had been included in Five Star Lease No. 1 and Five Star Lease No. 2, respectively.

- In October 2009, we agreed to acquire 10 senior living properties for approximately $97.3 million from two unaffiliated parties. We intend to lease these properties to Five Star and expect initial rent to be approximately $8.5 million per year. We expect to fund these acquisitions using cash on hand and borrowings under our revolving credit facility. The purchase of these properties is contingent upon completion of our diligence and other customary closing conditions. We can provide no assurance that we will purchase these properties.

A live audio web cast of the Nov. 3 conference call will be available in listen only mode on the SNH website. The archived webcast will be available for replay on the SNH website for about one week after the call.