LOS ANGELES, Jan. 19 /PRNewswire-FirstCall/ -- LifeHouse Retirement Properties, Inc. (OTC:LHRP) closed on the purchase of two additional assisted living facilities on December 30, 2005. The purchased facilities include the Cottages of Crystal Manor, Cutlerville, Michigan with 80 units and Waldon Woods, Wyoming, Michigan with 85 units. The Company had been operating both facilities for one year under a lease agreement with a purchase option. The Company exercised its purchase option on both facilities using over $900,000 of its $25 million Acquisition Line as a down payment and arranged an additional $8 million in senior debt financing. The Crystal Manor facility was purchased for $5.6 million or $70,472 per unit. Operating results based on June 2005 annualized and 2004 year-end actual for Crystal Manor were EBITDA of $300,000 and $655,000, respectively. Management expects the Crystal Manor facility to generate over $700,000 of EBITDA upon stabilization (calculated based on 95% occupancy within the next eighteen months), which implies a pro forma Capitalization Rate of 12.5%. The Waldon Woods facility was purchased for $3.3 million or $38,287 per unit. Operating results based on June 2005 annualized and 2004 year-end actual for Waldon Woods were EBITDA of $345,000 and $228,000, respectively. Management expects the Waldon Woods facility to generate over $630,000 of EBITDA upon stabilization (calculated based on 95% occupancy within the next eighteen months), which implies a pro forma Capitalization Rate of 19.7%. Upon stabilization, LHRP therefore expects these acquisitions to contribute an incremental $1.3 million to consolidated EBITDA for the Company. Mr. Lou Andriotti, COO of LifeHouse Retirement Properties, Inc. and President of LifeHouse Management Services, a wholly owned subsidiary, explained that the Waldon Woods and Crystal Manor communities are already an integral part of the Company's operations in Western Michigan. "Our Waldon Woods facility is running at approximately 90% occupancy. At Crystal Manor we've repositioned the facility with a whole new theme and approach to resident care and services. Crystal Manor is currently running at a 57.5% occupancy overall, however we've just renovated and reopened one of the four 20 unit buildings. The other three buildings at Crystal Manor are currently approaching the 80% occupancy range and we expect to quickly reach that same level with our new 'Nantucket' building. Both communities should continue building occupancy until we are well over the 90% mark. It will be our aim to take these new communities to higher levels of performance and to set new standards for the industry in quality care." These two acquisitions bring the total number of LifeHouse owned communities to seven. The Company has letters of intent to purchase three additional assisted living communities and is working to close on these in the first quarter of 2006. 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 553 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. First Call Analyst: FCMN Contact: DATASOURCE: LifeHouse Retirement Properties, Inc. CONTACT: Gordon Wolf, Investor Relations of LifeHouse Retirement Properties, Inc., +1-508-993-5320, fax: +1-508-997-2169, email:

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