Senior Housing Properties Trust to Restate 2005 and First Quarter 2006 Results.

NEWTON, Mass. -- Senior Housing Properties Trust (NYSE: SNH) today announced that it will restate its financial results for 2005 and the first quarter of 2006, as follows:

On December 7, 2005, SNH called for redemption $52.5 million of its 7 7/8 % senior notes due in 2015. In connection with this redemption, SNH recorded charges of $5.2 million which represented a redemption premium and write off of deferred finance costs allocated to the redeemed senior notes. Because the obligation to redeem the senior notes became an irrevocable obligation of SNH at the time the call was issued on December 7, 2005, SNH recorded the redemption premium and the write off of deferred finance costs as charges in its year end report for 2005. At the time of SNH's year end 2005 financial statements were prepared, SNH reviewed these charges with its independent accounting firm and that firm concurred in this accounting.

The senior notes which were called for redemption on December 7, 2005, were redeemed and the redemption premium paid on January 9, 2006.

During a review of SNH's financial results for the year ended December 31, 2006, SNH has now determined that applicable GAAP accounting rules require that the redemption premium and the allocated deferred costs arising from the aforesaid redemption should have been charged to earnings in the first quarter of 2006, rather than in the fourth quarter of 2005 as previously reported. The impacts upon SNH's financial statements as reported and as restated are expected to be as follows:

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The year to date income statement amounts in SNH's quarterly reports related to the second and third quarters of 2006 will also be restated to reflect the first quarter adjustment. SNH expects there will be no changes to its previously reported 2006 balance sheets.

Because of the restatements described herein, SNH's previously filed financial reports for the year ended December 31, 2005 and for the periods ended March 31, June 30 and September 30, 2006, should no longer be relied upon. The restated reports are expected to be filed with the Securities and Exchange Commission, or SEC, and other interested parties on or before the due date for SNH's 2006 annual report on March 1, 2007.

This press release includes a reference to funds from operations, or FFO. FFO is a non-GAAP measure of financial performance widely used in the real estate industry. Please see the detailed reconciliation of FFO to income from continuing operations for the periods presented on the page attached hereto.

Senior Housing Properties Trust is a real estate investment trust, or REIT, which owns 196 senior living properties located in 32 states. SNH is headquartered in Newton, Massachusetts.

WARNING REGARDING FORWARD LOOKING STATEMENTS

THIS PRESS RELEASE CONTAINS FORWARD LOOKING STATEMENTS WITHIN THE MEANING OF THE PRIVATE SECURITIES LITIGATION REFORM ACT OF 1995 AND OTHER FEDERAL SECURITIES LAWS. THESE FORWARD LOOKING STATEMENTS ARE BASED UPON SNH'S PRESENT INTENT, BELIEFS OR EXPECTATIONS, BUT THEY MAY NOT OCCUR. FOR EXAMPLE:

* THE FINANCIAL REPORTING IMPACTS DESCRIBED IN THIS PRESS RELEASE HAVE BEEN PREPARED BY SNH AND SUBMITTED TO ITS INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM FOR REVIEW. THIS ACCOUNTING FIRM HAS NOT COMPLETED ITS REVIEW OF THESE NUMBERS. AS A RESULT OF THIS REVIEW OR FURTHER STUDY BY SNH, THESE NUMBERS MAY CHANGE OR OTHER, DIFFERENT CHANGES TO SNH'S HISTORICAL FINANCIAL STATEMENT MAY BE MADE.

* THIS PRESS RELEASE STATES THAT SNH EXPECTS TO FILE RESTATED 2005 AND QUARTERLY 2006 REPORTS WITH THE SEC AND OTHER INTERESTED PARTIES ON OR BEFORE THE DUE DATE FOR SNH'S 2006 ANNUAL REPORT ON MARCH 1, 2007. THE EXISTENCE OF THE HISTORICAL ERROR DESCRIBED IN THIS PRESS RELEASE MAY INDICATE A MATERIAL WEAKNESS IN SNH'S INTERNAL CONTROL OVER FINANCIAL REPORTING. SUCH A WEAKNESS, IF IT EXISTS, MAY AFFECT OTHER PARTS OF SNH'S HISTORICAL FINANCIAL REPORTING AND SNH MAY REQUIRE ADDITIONAL TIME TO REMEDIATE ANY SUCH WEAKNESS. ACCORDINGLY, THE PREPARATION OF THESE RESTATED REPORTS MAY BE DELAYED.

FOR THESE REASONS AND OTHERS, INVESTORS ARE CAUTIONED NOT TO PLACE UNDUE RELIANCE UPON FORWARD LOOKING STATEMENTS IN THIS PRESS RELEASE.

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