SOURCE: LifeHouse Retirement Properties, Inc.

June 23, 2006 13:23 ET

LifeHouse Retirement Properties, Inc. Acquires Two Oakridge Manor Assisted Living Communities

LOS ANGELES, CA -- (MARKET WIRE) -- June 23, 2006 -- LifeHouse Retirement Properties, Inc. (PINKSHEETS: LHRP) is pleased to announce it closed on the purchase of two Oakridge Manor Assisted Living Communities, located in Dixon and Rockford, Illinois, on June 22, 2006.

The Oakridge Manor acquisition was completed for $7.9 million, with senior debt provided by Credit Suisse. For calendar year 2005, both facilities generated approximately $869,000 of EBITDA, which implies a capitalization rate of 11.0% for this acquisition. The Oakridge Manor acquisition includes 76 private-pay assisted living units.

Mr. Rowan Farber, CEO of LifeHouse Retirement Properties, Inc., explained that "these acquisitions launch our entry into the Illinois suburban marketplace and expand our platform's operating footprint substantially. We are excited about the further acquisition opportunities in this market and the ability to expand the LifeHouse brand and healthcare service delivery model to this region. This also marks our fifth acquired community in the past six months, which together with the 9.8% growth in occupancy at our current portfolio, demonstrates the teams acquisition and turnaround capabilities."

This acquisition brings the total number of LifeHouse owned and operated communities to ten. The Company still has approximately $19.0 million of capital to deploy in its Acquisition Line, which Management believes can be leveraged to approximately $76.0 million of additional buying power.

LifeHouse Retirement Properties, Inc., is focused on strategic acquisitions of senior assisted and independent living facilities in the U.S. The Company's platform provides a strong acquisition and operating team with significant experience in investment banking, health care, hospitality, finance, construction, and real estate, particularly effective in turnaround operations of under performing properties or entire business units. The Company has approximately 602 units and 500 full-time and part-time employees.

Forward-Looking Statements: The information contained herein should not be construed as a recommendation to purchase any securities. Statements in this news release concerning the company's business outlook or future economic performance, anticipated profitability, revenues, expenses, or other financial items; and statements concerning assumptions made or expectations as to any future events, conditions, performance or other matters, may be forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Forward-looking statements are subject to risks, uncertainties and other factors which could cause actual results to differ materially from those contained in such statements. Such risks, uncertainties, and factors include, but are not limited to, future capital needs, changes and delays in development plans and schedules, acquisition risks, licensing risks, business conditions, competition, changes in interest rates, our ability to manage our expenses, market factors that could affect the value of our properties, the risks of downturns in general economic conditions, availability of financing for development and acquisitions. The Company assumes no obligation to update or supplement forward-looking statements that become untrue because of subsequent events. Investments in small cap companies are generally deemed to be highly speculative and to involve substantial risk, making it appropriate for readers to consult with professional investment advisors and to make independent investigations before acting on the information. Any investment in small cap companies could prove to be high risk investments with the result in the loss of part, or the total principal investment.

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