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HEALTH EQUITY REPORTS CONTINUED INCREASES IN NET INCOME AND FUNDS FROM OPERATIONS FOR THIRD QUARTER

 HEALTH EQUITY REPORTS CONTINUED INCREASES IN NET
 INCOME AND FUNDS FROM OPERATIONS FOR THIRD QUARTER
 WINSTON-SALEM, N.C., Oct. 15 /PRNewswire/-- Health Equity Properties (NYSE: EQP) announced operating results today for the third quarter ended Sept. 30, 1992. Net income for the third quarter was $1,944,784 ($0.13 per share) compared to a net loss of $253,087 ($0.03 per share) for the same period of 1991. The third quarter's operations brings net income for the nine months ended Sept. 30, 1992 to $4,450,592 ($0.35 per share), compared to a loss of $925,054 ($0.15 per share) for the same period of 1991.
 For the nine months ended Sept. 30, 1992, funds from operations equaled $9,631,057 ($0.75 per share). Funds from operations, as defined by the National Association of Real Estate Investment Trusts, is net income (computed in accordance with generally accepted accounting principles) less gains or plus losses from debt restructuring and sales of property, plus depreciation and amortization expense.
 The Company has declared dividends for the first three quarters of 1992 totaling $0.705 per share up from 1991's total of $0.645 for the three quarters. The third quarter of 1992 dividend increase is consistent with the Company's practice of raising the dividend by $0.005 per quarter, and is the eighth consecutive quarterly increase.
 The dramatic increase in net income for the nine months of 1992 versus 1991 results from changes in several items. The largest change was a $3.5 million decrease in interest expenses which is a result of the decrease in debt over the last twelve months. Debt was reduced from $51.3 million on Dec. 31, 1991 to $26.1 million on Sept. 30, 1992 through the conversion of the senior debentures and retirement of debt with the proceeds of three stock offerings. On Aug. 17, 1992, the Company reduced its loan which currently matures in 1997 (the Company's shortest term debt) by $7 million with general corporate funds generated by the most recent offering. The Company's secured debt to equity ratio is now less than 0.3 to 1. As a result of the paydowns, the Company experienced a one-time, noncash, extraordinary loss during the third quarter of $120,949 due to the write-off of unamortized loan costs.
 Other items affecting increases in net income in 1992 as compared to 1991 were increases in additional rent of approximately $259,000 (40 percent), increases in interest income of approximately $212,000 (60 percent), reductions in amortization expenses of approximately $539,500 (25 percent) and reductions in administrative and other expenses of $294,000 (20 percent).
 The Company now has cash reserves of $7.8 million resulting from the April stock offering. Uses for the remaining offering proceeds include the possible acquisition of properties, the retirement of additional debt and general corporate purposes.
 Based in Winston-Salem, N.C., Health Equity Properties is an equity real estate investment trust which owns 75 long-term health care facilities in five states. The Company is managed by a nine member board of directors, five of whom are independent from the Company.
 SELECTED OPERATING DATA:
 (Unaudited)
 3 Months 3 Months 9 Months 9 Months
 Ended Ended Ended Ended
 9/30/92 9/30/91 9/30/92 9/30/91
 Rent $4,607,030 $4,425,105 $13,570,030 $13,314,858
 Interest and
 other income $ 224,309 $ 207,332 $ 565,439 $ 353,292
 Net income
 (loss) before
 extraordinary
 item $2,065,733 $ 250,858 $ 4,780,017 ($421,109)
 Net income
 (loss) $1,944,784 ($253,087) $ 4,450,542 ($925,054)
 Net income
 (loss) before
 extraordinary
 item per share $0.14 $0.02 $0.37 ($0.07)
 Net income
 (loss) per share $0.13 ($0.03) $0.35 ($0.15)
 Funds from
 operations $3,669,224 $2,428,111 $9,631,057 $5,398,914
 Net cash
 provided from
 operations $3,380,229 $1,430,580 $8,799,493 $4,447,655
 Cash dividends
 declared per
 share $0.24 $0.22 $0.705 $0.645
 Average shares
 outstanding 14,475,108 9,341,617 12,828,993 6,190,101
 SELECTED BALANCE SHEET DATA:
 Sept. 30, 1992 Dec. 31, 1991
 (Unaudited)
 Nursing home properties, gross $122,588,489 $122,380,130
 Cash and cash equivalents $ 7,811,495 $ 2,293,818
 Total assets $118,719,220 $117,657,029
 Mortgage debt $ 24,779,158 $ 47,173,115
 Senior debentures $ 1,355,000 $ 4,140,000
 Shareholders' equity $ 87,591,424 $ 62,406,766
 -0- 10/15/92
 /CONTACT: William G. Benton or Jody Ragan of Health Equity Properties, 919-723-7580/
 (EQP) CO: Health Equity Properties ST: North Carolina IN: HEA SU: ERN


CM-MM -- CH011 -- 0532 10/15/92 14:46 EDT
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Date:Oct 15, 1992
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