New York, NY (August 13, 2009) Citi and Fannie Mae are pleased to announce that Citi closed on a $512.9 million Fannie Mae Delegated Underwriting and Servicing (DUS^®) credit facility for a Senior Housing Properties Trust (NYSE: SNH) transaction. Collateral for the transaction is comprised of a portfolio of 27 senior housing facilities located in 16 states across the U.S. Taken together, these facilities serve over 6,000 seniors by delivering high-quality Independent Living, Assisted Living, Alzheimer's/Dementia Care and Skilled Nursing care. This transaction is the largest financing in the senior housing sector this year and third largest senior housing deal ever financed by Fannie Mae.

Citi worked closely with Citi's Real Estate Investment Banking Group, which has a strong, long-term relationship with SNH and Fannie Mae. "Addressing the housing needs of seniors and providing a stable source of financing to the senior housing industry are priorities at Fannie Mae, and the company is pleased to provide liquidity to SNH for these senior living properties," said Susanne Hiegel, Vice President of Structured Customer Management at Fannie Mae.

Citi Managing Director, Mark Dean, said "Citi was pleased to provide an attractive financing option to an important client at a time when other financing techniques have been impacted by market turmoil." Citi and Fannie Mae are among the largest sources of financing to the senior housing sector.

The transaction featured a mix of 60% fixed rate debt and 40% floating rate debt with an embedded interest rate cap. With a 30 year amortization, a term of 10 years and a prepayment premium for 9 1/2 years on the fixed rate debt, SNH was afforded the flexibility to manage both its portfolio and balance sheet while still accessing competitively priced long-term capital with a blended interest rate of 6.592%.

According to David Hegarty, President and Chief Operating Officer of SNH, "The transaction just completed with Citi and Fannie Mae positions SNH to opportunistically pursue our long-term growth strategy. We are pleased to have been able to lock in an attractive cost of capital for the long term". SNH intends to deploy this capital to acquire attractively priced assets, to repay amounts outstanding under its revolving credit facility, and for general business purposes.