Mr. Scott White reports

MAINSTREET HEALTH INVESTMENTS INC. REPORTS FOURTH QUARTER AND FULL YEAR 2016 RESULTS

Mainstreet Health Investments Inc. today released its results for the three and 12 months ended Dec. 31, 2016. All amounts are in U.S. dollars, unless otherwise noted.

Fourth quarter highlights:

• Reported adjusted funds from operations (AFFO) of 24 cents per common share;
• Acquired interests in nine seniors housing and care facilities located in New York, Texas, Arkansas, Illinois and Kansas;
• Expanded portfolio into Canada with the acquisition of interests in four facilities in Ontario;
• Completed investments in the development of six new facilities by advancing mezzanine loans with purchase options located in Arizona, Colorado, Nebraska and Missouri;
• Internalized management, including executive officers;
• Completed a $74.8-million subscription receipt offering of common shares;
• Completed a $45-million public offering of convertible debentures.

"We are very excited about the activity and achievement in the fourth quarter," said Scott White, chief executive officer of the company. "In the short period of time we have been a public company, we have been able to acquire exceptional assets, build strong operating partnerships, raise capital and internalize management. We have continued to execute on our strategy by diversifying our portfolio by geography, operator and facility type. We have a great team and a great opportunity to continue to grow and build long-term shareholder value."

                             FINANCIAL HIGHLIGHTS
             (in thousands of U.S dollars, except per share values)

                                                 Three months             12 months
                                                ended Dec. 31,        ended Dec. 31, 
                                                         2016                  2016

Revenue                                               $13,849               $40,865               
General and administrative expenses                    $2,115                $5,178                
Finance costs                                          $3,100               $13,967               
Net income                                             $5,138                $4,877                
Funds from operations (FFO) (1)                        $5,803               $14,736               
Funds from operations per share                         $0.20                 $0.91                 
Adjusted funds from operations (1)                     $7,149               $19,571               
Adjusted funds from operations per share                $0.24                 $1.21                 

(1) FFO and AFFO are measures used by management to evaluate operating performance.

                   BALANCE SHEET AND PORTFOLIO HIGHLIGHTS
         (in thousands of U.S. dollars, except number of properties)

                                                      Dec. 31, 2016    Dec. 31, 2015
                                                                                             
Cash                                                         $7,651           $7,189      
Total assets                                               $677,719         $279,053    
Number of owned properties                                       35               10               
Debt                                                       $356,220         $144,692    
Debt/gross book value                                         52.6%            51.9%            

"In 2016, we tripled our portfolio by facility count and more than doubled our asset value. We executed on a series of accretive transactions, while maintaining our targeted leverage profile and establishing a strong operating platform to grow from," commented Scott Higgs, chief financial officer for the company.

Subsequent events

As previously announced in March, 2017, the company entered into a definitive agreement for the acquisition of three facilities located in California and Arizona in a sale leaseback transaction with The Ensign Group Inc. The acquisition exemplifies the company's further diversification as these will represent the company's first acquisition in both California and Arizona.

Please refer to the recent activities section of the company's annual 2016 management's discussion and analysis available on the company's website and on SEDAR for more information.

Investor conference call

A conference call hosted by the company's senior management team will be held Thursday, March 30, 2017, at 10 a.m. ET. The telephone numbers for the conference call are: local -- 647-427-7450 or toll-free -- 888-231-8191. The passcode for the conference call is 69576461. The conference will also be available through webcast on the company's website. Please log on at least 15 minutes before the call commences. The telephone numbers to listen to the call after it is completed (taped replay) are: local -- 416-849-0833 or toll-free -- 855-859-2056. The passcode for the taped replay is 69576461.

About Mainstreet Health Investments Inc.

Mainstreet Health Investments is a health care real estate company with a portfolio of high-quality properties located in the United States and Canada. The company's properties are operated by best-in-class health care providers primarily under long-term, triple net leases.

We seek Safe Harbor.