1075415--2/29/2008--SENIOR_HOUSING_PROPERTIES

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{debt, indebtedness, cash}

{loan, real, estate}

{capital, credit, financial}

{investment, property, distribution}

{tax, income, asset}

{stock, price, share}

{interest, director, officer}

{regulation, government, change}

{loss, insurance, financial}

{provision, law, control}

{acquisition, growth, future}

{cost, regulation, environmental}

{competitive, industry, competition}

Financial and other difficulties at Five Star could adversely affect us. Five Star may not be able to operate the two rehabilitation hospitals we own profitably. Sunrise s operation of our properties may adversely affect us. The operations of some of our facilities are dependent upon payments from the Medicare and Medicaid programs. Our tenants are faced with significant potential litigation and rising insurance costs that not only affect their ability to obtain and maintain adequate liability and other insurance, but also may affect their ability to pay their lease payments and fulfill their insurance and indemnification obligations to us. Our properties and their operations are subject to complex regulations. We may be unable to access the capital necessary to repay debts or to grow. An increase in interest rates would increase our interest costs on variable rate debt and could adversely impact our ability to refinance existing debt or sell assets. Also, interest rate changes often affect the value of dividend paying securities. Acquisitions that we make may not be successful. Competition may adversely affect some of our facilities. Increasing investor interest in healthcare related real estate may increase competition and reduce our growth. Our business dealings with our managing trustees and affiliated entities may create conflicts of interest. Our business dealings with Five Star may create conflicts of interest. Ownership limitations and anti-takeover provisions in our declaration of trust, bylaws and rights plan and under Maryland law may prevent our shareholders from receiving a takeover premium. The loss of our tax status as a REIT or tax authority challenges would have significant adverse consequences to us and reduce the market price of our common shares. Real estate ownership creates risks and liabilities. There is no assurance that we will make distributions in the future. We may have substantial debt obligations and may incur additional debt. Any notes we may issue will be effectively subordinated to the debts of our subsidiaries and to our secured debt. We may be required to prepay our debts upon a change of control. Our notes may be redeemed before maturity, and our noteholders may be unable to reinvest proceeds at the same or a higher rate. There may be no public market for notes we may issue and one may not develop.

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1075415--2/29/2008--SENIOR_HOUSING_PROPERTIES_TRUST