912240--3/31/2006--G&L_REALTY

related topics

{investment, property, distribution}

{loan, real, estate}

{regulation, government, change}

{stock, price, operating}

{loss, insurance, financial}

{personnel, key, retain}

{acquisition, growth, future}

{debt, indebtedness, cash}

{stock, price, share}

{provision, law, control}

{tax, income, asset}

{regulation, change, law}

{cost, regulation, environmental}

Our earnings are derived from a relatively small and concentrated number of properties. Failure of our tenants to comply with health-care regulations could affect their operations and their ability to make lease payments to us. Delays in reimbursement by healthcare payors to our tenants could adversely impact their ability to pay rent. We have greater operating costs than other real estate operators due to our healthcare focus. Properties we acquire or develop may underperform forecasted results. We may be limited in our ability to finance future acquisitions. We depend on debt financing which could result in foreclosure on our properties if we are unable to make required payments. We may be unable to renew leases or relet space as leases expire. Closure of nearby hospitals could affect the desirability of our properties. We face competition from other health-care investors, which may prevent us from taking advantage of investment opportunities. We face potential liability relating to environmental matters. We are exposed to risks related to our historic skilled nursing facilities and assisted living facilities assets and business. Our financial performance will be affected by risks associated with the real estate industry. We may incur significant costs complying with the Americans with Disabilities Act and similar laws. Illiquidity of real estate investments could significantly impede our ability to respond to adverse changes in the performance of our properties and harm our financial condition. Our properties are subject to property taxes that may increase in the future and adversely affect our business. Potential losses may not be covered by insurance. An uninsured loss or a loss that exceeds the policies on our properties could subject us to lost capital or revenue on those properties. We are subject to the risks associated with the contracting out of substantially all of the day-to-day management of our business. Messrs. Gottlieb and Lebowitz control all matters that are subject to stockholder approval as a result of their ownership of 100% of our common stock. There may be potential conflicts between our two common stockholders. Our common stockholders may dispose of their shares of common stock at any time and in a manner that may materially adversely affect our Company. We may pursue less vigorous enforcement of terms of certain agreements because of conflicts of interest with our two common stockholders. Our success depends on key personnel whose continued service is not guaranteed. We do not have a formal succession plan. We may authorize and issue preferred stock without stockholder approval. Our Board of Directors may change our investment and financing policies without stockholder approval. The composition of our Board of Directors may be altered at any time by Messrs. Gottlieb and Lebowitz. Our articles of incorporation contain ownership limitations that may prevent transactions that may be beneficial to the Company. Our debt level reduces the cash available for distribution. Failure to qualify as a REIT would have significant adverse consequences to us and the value of our stock.

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912240--3/31/2006--G&L_REALTY_CORP