Retirement Residences Real Estate Investment Trust Completes the Defeasance of Its 8.25% and 5.50% Convertible Debentures

Market Wire, March, 2007

Retirement Residences Real Estate Investment Trust ("Retirement REIT") (TSX: RRR.DB.B)(TSX: RRR.DB.C) announced today the defeasance of its convertible debentures was completed by depositing, in a new trust for the benefit of holders of convertible debentures, cash and direct obligations of the Government of Canada with CIBC Mellon Trust Company, as trustee, in an amount sufficient to pay, satisfy and discharge the entire amount of principal and interest to maturity for each series of convertible debentures. The convertible debentures are deemed to be satisfied and discharged and the provisions of the trust indenture are no longer binding on Retirement REIT, except for certain provisions dealing with the payment of principal and interest, redemption, conversion and enforcement by the trustee.

The convertible debentures of Retirement REIT will be delisted from the Toronto Stock Exchange at the close of business on March 13, 2007.

About Retirement REIT

Retirement REIT is the largest provider of accommodation and care for seniors in Canada. Retirement REIT owns 224 retirement and long term care facilities, including 40 facilities in select United States markets, and provides management services to 8 homes for other parties, with an aggregate resident capacity in excess of 26,500. Retirement REIT also provides nursing placement and in-home health care through its Central Health Services unit. For further information, see the Retirement REIT website at www.retirementreit.com .

Contacts: Retirement Residences Real Estate Investment Trust Tim Benson Vice President, Investor Relations & Corporate Finance (289) 360-1224 (289) 360-1228 (FAX) Website: www.retirementreit.com