Brookdale Senior Living Inc. - FORM 8-K - EX-99.2 - SUPPLEMENTAL INFORMATION

Attached files

Attached files

Stock widget

Investing forum

Brookdale Senior Living Inc. Reports

file	filename
8-K - FORM 8-K - Brookdale Senior Living Inc.	form8-k.htm
EX-99.1 - PRESS RELEASE - Brookdale Senior Living Inc.	exhibit99_1.htm

Exhibit 99.2

Brookdale Senior Living Inc.

Corporate Overview - selected financial information

As of September 30, 2014

Corporate Overview

Brookdale Senior Living Inc. ("Brookdale") is the leading operator of senior living communities throughout the United States. The Company is committed to providing senior living solutions primarily within properties that are designed, purpose-built and operated to provide the highest quality service, care and living accommodations for residents. The Company operates independent living, assisted living and dementia-care communities and continuing care retirement centers ("CCRCs"), with approximately 1,150 communities in 46 states and the ability to serve over 111,000 residents. Through its ancillary services program, the Company also offers a range of outpatient therapy, home health, personalized living and hospice services.

Stock Listing

Common Stock
NYSE: BKD

Community Information

Ownership Type	Number of Communities	Number of Units	Percentage of Q3 2014 Resident and Management Fees	Percentage of Q3 2014 Facility Operating Income	Percentage of YTD 2014 Resident and Management Fees	Percentage of YTD 2014 Facility Operating Income
Owned	403	35,171	38.2%	37.0%	40.5%	39.6%
Leased	583	48,081	50.8%	54.3%	48.6%	51.6%
Brookdale Ancillary Services	N/A	N/A	9.9%	5.5%	9.8%	5.6%
Managed	161	27,883	1.1%	3.2%	1.1%	3.2%
Total	1,147	111,135	100.0%	100.0%	100.0%	100.0%

Operating Type - By Segment
Retirement Centers	100	17,762	16.0%	20.4%	18.4%	23.1%
Assisted Living	841	55,304	53.5%	57.2%	46.9%	50.8%
CCRCs - Rental	45	10,186	14.9%	10.5%	14.9%	11.1%
CCRCs - Entry Fee ⁽¹⁾	-	-	4.6%	3.2%	8.9%	6.2%
Brookdale Ancillary Services	N/A	N/A	9.9%	5.5%	9.8%	5.6%
Management Services	161	27,883	1.1%	3.2%	1.1%	3.2%
Total	1,147	111,135	100.0%	100.0%	100.0%	100.0%

CFFO Per Share

($ except where indicated)	FY 2013										FY 2014
		Q1		Q2		Q3		Q4	Full Year⁽³⁾			Q1		Q2		Q3
Reported CFFO	$	0.55	$	0.58	$	0.57	$	0.68	$	2.38	$	0.54	$	0.61	$	0.14
Add: integration, transaction and EMR roll-out costs ⁽²⁾		0.02		0.03		0.04		0.03		0.12		0.10		0.10		0.49
Adjusted CFFO	$	0.57	$	0.61	$	0.61	$	0.71	$	2.50	$	0.64	$	0.71	$	0.63

Weighted average shares (000's)		122,823		123,405		124,128		124,308				124,478		125,058		159,003
Period end outstanding shares (excluding unvested restricted shares) (000's)		123,040		124,061		124,285		124,354				124,816		125,408		183,410

(1) In connection with the creation of the Entry Fee CCRC venture between the Company and HCP on August 29, 2014, the Company contributed to the venture all but two of the communities in the CCRCs - Entry Fee segment. Financial and operating data for the two communities not contributed to the venture is included in the CCRCs - Entry Fee segment for the six months ended June 30, 2014 and the CCRCs - Rental segment for the three month period ended September 30, 2014. The financial data and operating information of the communities contributed to the venture is included in the CCRC – Entry Fee segment for the time periods prior to being contributed.

(2) Integration and EMR roll-out costs include third party expenses directly related to the integration of Emeritus as well as internal costs such as labor reflecting time spent by Company personnel on integration and transaction activity. Transaction costs include third party costs directly related to the acquisition of Emeritus and the completion of the transactions contemplated by the Master Agreement with HCP and include fees such as lender costs, legal, banking, accounting and consulting.

(3) Full year CFFO for all periods is calculated as the sum of the quarterly amounts for the year.

Investor Relations

Ross Roadman
SVP, Investor Relations
Brookdale Senior Living Inc.
111 Westwood Place, Suite 400
Brentwood, TN 37027
Phone (615) 564-8104
rroadman@brookdaleliving.com

Note: See accompanying third quarter earnings release for non-GAAP financial measure definitions and reconciliations.

Page 1

Brookdale Senior Living Inc.
Segment Financial Data
As of September 30, 2014

Financial Data and Operating Information

($ in 000s, except Senior Housing average monthly revenue per unit)

Retirement Centers	FY 2013															FY 2014 (1)
		Q1			Q2			Q3			Q4		Full Year				Q1			Q2			Q3		YTD				Q3P (3)
Revenue		128,922			130,170			133,272			133,920			526,284			132,349			133,441			155,227			421,017			164,557
Expenses		75,588			75,993			76,452			75,969			304,002			76,119			76,550			88,022			240,691			93,382
Segment Operating Income		53,334			54,177			56,820			57,951			222,282			56,230			56,891			67,205			180,326			71,175
Segment Operating Margin		41.4	%		41.6	%		42.6	%		43.3	%		42.2	%		42.5	%		42.6	%		43.3	%		42.8	%		43.3	%

Number of communities (period end)		76			76			76			76			76			74			74			100			-			100
Total average units(4)		14,429			14,429			14,444			14,454			14,439			14,161			14,162			16,594			-			17,667
Weighted average unit occupancy		89.5	%		89.4	%		90.2	%		90.1	%		89.8	%		89.3	%		88.9	%		89.8	%		-			90.0	%
Senior Housing average monthly revenue per unit(5)	$	3,328		$	3,362		$	3,408		$	3,426		$	3,381		$	3,490		$	3,532		$	3,472			-		$	3,450

Assisted Living	FY 2013															FY 2014 (1)
		Q1			Q2			Q3			Q4		Full Year				Q1			Q2			Q3		YTD				Q3P (3)
Revenue		260,615			260,497			262,524			268,232			1,051,868			277,431			277,230			516,640			1,071,301			620,328
Expenses		164,330			164,316			165,774			167,770			662,190			172,439			172,984			328,486			673,909			394,399
Segment Operating Income		96,285			96,181			96,750			100,462			389,678			104,992			104,246			188,154			397,392			225,929
Segment Operating Margin		36.9	%		36.9	%		36.9	%		37.5	%		37.0	%		37.8	%		37.6	%		36.4	%		37.1	%		36.4	%

Number of communities (period end)		431			432			432			438			438			440			440			841			-			841
Total average units(4)		21,556			21,499			21,513			22,149			21,679			22,435			22,463			45,260			-			55,245
Weighted average unit occupancy		89.1	%		89.4	%		90.0	%		90.1	%		89.7	%		89.6	%		89.0	%		88.8	%		-			88.9	%
Senior Housing average monthly revenue per unit(5)	$	4,523		$	4,519		$	4,518		$	4,480		$	4,510		$	4,599		$	4,622		$	4,286			-		$	4,214

CCRCs - Rental	FY 2013															FY 2014
		Q1			Q2			Q3			Q4		Full Year				Q1			Q2			Q3 (2)		YTD				Q3P (3)
Revenue		100,327			97,562			100,076			99,010			396,975			97,944			98,212			144,074			340,230			147,539
Expenses		71,250			71,995			73,063			71,641			287,949			71,114			72,519			109,582			253,215			111,673
Segment Operating Income		29,077			25,567			27,013			27,369			109,026			26,830			25,693			34,492			87,015			35,866
Segment Operating Margin		29.0	%		26.2	%		27.0	%		27.6	%		27.5	%		27.4	%		26.2	%		23.9	%		25.6	%		24.3	%

Number of communities (period end)		27			27			27			26			26			26			26			45			-			45
Total average units(4)		6,687			6,684			6,687			6,617			6,669			6,457			6,469			9,783			-			10,130
Weighted average unit occupancy		87.6	%		86.2	%		86.7	%		86.8	%		86.8	%		86.6	%		85.9	%		85.1	%		-			85.4	%
Senior Housing average monthly revenue per unit(5)	$	5,709		$	5,649		$	5,759		$	5,742		$	5,715		$	5,839		$	5,894		$	5,740			-		$	5,640

CCRCs - Entry Fee	FY 2013															FY 2014
		Q1			Q2			Q3			Q4		Full Year				Q1			Q2			Q3 (2)		YTD				Q3P (3)
Revenue		74,308			74,016			74,110			75,322			297,756			79,169			79,100			44,145			202,414			-
Expenses		54,737			56,244			55,892			54,490			221,363			59,534			60,733			33,714			153,981			-
Segment Operating Income		19,571			17,772			18,218			20,832			76,393			19,635			18,367			10,431			48,433			-
Segment Operating Margin		26.3	%		24.0	%		24.6	%		27.7	%		25.7	%		24.8	%		23.2	%		23.6	%		23.9	%

Bridge to Cash Basis for CCRCs - Entry Fee segment
Revenue		74,308			74,016			74,110			75,322			297,756			79,169			79,100			44,145			202,414			-
Less: revenue amortization (non-cash)		(7,133	)		(7,032	)		(7,013	)		(7,831	)		(29,009	)		(7,202	)		(7,547	)		(4,930	)		(19,679	)		-
Add: net entrance fees (cash)		7,553			16,422			11,370			21,661			57,006			6,513			16,711			(576	)		22,648			-
Adjusted revenue		74,728			83,406			78,467			89,152			325,753			78,480			88,264			38,639			205,383			-
Expenses		54,737			56,244			55,892			54,490			221,363			59,534			60,733			33,714			153,981			-
Adjusted Segment Operating Income		19,991			27,162			22,575			34,662			104,390			18,946			27,531			4,925			51,402			-
Adjusted Segment Operating Margin		26.8	%		32.6	%		28.8	%		38.9	%		32.0	%		24.1	%		31.2	%		12.7	%		25.0	%

Number of communities (period end)		14			14			14			14			14			15			15			-			-			-
Total average units(4)		5,281			5,295			5,308			5,329			5,303			5,527			5,534			2,954			-			-
Weighted average unit occupancy		84.6	%		83.8	%		84.1	%		84.3	%		84.2	%		84.7	%		84.7	%		87.0	%		-			-
Senior Housing average monthly revenue per unit(5)	$	5,011		$	5,025		$	4,994		$	5,023		$	5,013		$	5,124		$	5,091		$	5,085			-			-

Total Senior Housing	FY 2013												FY 2014
		Q1		Q2		Q3		Q4		Full Year				Q1		Q2		Q3 (2)		YTD			Q3P (3)
Revenue		564,172		562,245		569,982		576,484			2,272,883			586,893		587,983		860,086			2,034,962		932,424
Expenses		365,905		368,548		371,181		369,870			1,475,504			379,206		382,786		559,804			1,321,796		599,454
Operating Income		198,267		193,697		198,801		206,614			797,379			207,687		205,197		300,282			713,166		332,970
Operating Margin		35.1	%	34.5	%	34.9	%	35.8	%		35.1	%		35.4	%	34.9	%	34.9	%		35.0	%	35.7	%
G&A Allocation (6)		25,526		23,224		22,647		24,658			96,055			24,396		22,589		33,912			80,897
Adjusted Operating Income		172,741		170,473		176,154		181,956			701,324			183,291		182,608		266,370			632,269
Adjusted Operating Margin		30.6	%	30.3	%	30.9	%	31.6	%		30.9	%		31.2	%	31.1	%	31.0	%		31.1	%

Number of communities (period end)		548			549			549			554			554			555			555			986		-		986
Total average units(4)		47,953			47,907			47,952			48,549			48,090			48,580			48,628			74,591		-		83,042
Weighted average unit occupancy		88.5	%		88.3	%		89.0	%		89.0	%		88.7	%		88.6	%		88.1	%		88.5	%	-		88.7	%
Senior Housing average monthly revenue per unit(5)	$	4,375		$	4,373		$	4,397		$	4,387		$	4,383		$	4,491		$	4,518		$	4,315		-	$	4,217

Page 2

Brookdale Senior Living Inc.
Segment Financial Data
As of September 30, 2014

Financial Data and Operating Information (continued)
($ in 000s, except Senior Housing average monthly revenue per unit)

Brookdale Ancillary Services	FY 2013												FY 2014
		Q1		Q2		Q3		Q4		Full Year				Q1		Q2		Q3		YTD			Q3P (3)
Revenue		60,198		58,693		61,162		62,097			242,150			63,417		65,534		95,426			224,377		110,677
Expenses		47,098		47,479		49,398		52,466			196,441			50,664		52,629		77,280			180,573		89,397
Segment Operating Income		13,100		11,214		11,764		9,631			45,709			12,753		12,905		18,146			43,804		21,280
Segment Operating Margin		21.8	%	19.1	%	19.2	%	15.5	%		18.9	%		20.1	%	19.7	%	19.0	%		19.5	%	19.2	%
G&A Allocation (6)		6,055		6,005		5,516		5,806			23,382			5,642		5,908		5,709			17,259
Adjusted Segment Operating Income		7,045		5,209		6,248		3,825			22,327			7,111		6,997		12,437			26,545
Adjusted Segment Operating Margin		11.7	%	8.9	%	10.2	%	6.2	%		9.2	%		11.2	%	10.7	%	13.0	%		11.8	%

Brookdale units served:
Outpatient Therapy consolidated		38,017		38,075		38,253		38,308			-			37,974		38,328		37,899			-
Home Health consolidated		32,389		32,864		33,940		33,894			-			34,518		35,061		44,297			-
Outpatient Therapy non-consolidated		13,502		14,177		14,733		14,017			-			14,138		13,942		18,716			-
Home Health non-consolidated		13,326		13,232		13,601		12,884			-			12,819		12,336		16,133			-
Total Brookdale units served:
Outpatient Therapy		51,519		52,252		52,986		52,325			-			52,112		52,270		56,615			-
Home Health		45,715		46,096		47,541		46,778			-			47,337		47,397		60,430			-

Outpatient Therapy treatment codes		821,308		840,076		818,758		844,987			-			812,632		798,754		762,993			-
Home Health average census		4,289		4,366		4,574		4,762			-			5,084		5,257		10,314			-

Total Senior Housing and Brookdale Ancillary Services	FY 2013												FY 2014
		Q1		Q2		Q3		Q4		Full Year				Q1		Q2		Q3	(2)	YTD			Q3P (3)
Revenue		624,370		620,938		631,144		638,581			2,515,033			650,310		653,517		955,512			2,259,339		1,043,101
Expenses		413,003		416,027		420,579		422,336			1,671,945			429,870		435,415		637,084			1,502,369		688,851
Operating Income		211,367		204,911		210,565		216,245			843,088			220,440		218,102		318,428			756,970		354,250
Operating Margin		33.9	%	33.0	%	33.4	%	33.9	%		33.5	%		33.9	%	33.4	%	33.3	%		33.5	%	34.0	%
G&A Allocation (6)		31,581		29,229		28,163		30,464			119,437			30,038		28,497		39,621			98,156
Adjusted Operating Income		179,786		175,682		182,402		185,781			723,651			190,402		189,605		278,807			658,814
Adjusted Operating Margin		28.8	%	28.3	%	28.9	%	29.1	%		28.8	%		29.3	%	29.0	%	29.2	%		29.2	%

Management Services	FY 2013															FY 2014
		Q1			Q2			Q3			Q4		Full Year				Q1			Q2			Q3		YTD				Q3P (3)
Revenue (Management Fees)		7,609			7,744			7,622			8,150			31,125			7,402			7,489			10,428			25,319			15,816
Expenses (G&A Allocation) (6)		6,031			6,192			6,106			6,334			24,663			6,116			5,649			7,453			19,218
Segment Operating Income		1,578			1,552			1,516			1,816			6,462			1,286			1,840			2,975			6,101
Segment Operating Margin		20.7	%		20.0	%		19.9	%		22.3	%		20.8	%		17.4	%		24.6	%		28.5	%		24.1	%

Number of communities (period end)		101			101			102			95			95			92			92			161			-			161
Total average units(4)		18,114			18,310			18,291			17,618			18,083			17,140			16,978			21,352			-			27,640
Weighted average occupancy		84.9	%		84.9	%		85.7	%		86.1	%		85.4	%		86.3	%		86.8	%		85.8	%		-			85.6	%
Senior Housing average monthly revenue per unit(5)	$	3,460		$	3,505		$	3,499		$	3,588		$	3,512		$	3,706		$	3,701		$	3,966			-		$	4,204

Total Senior Housing, Brookdale Ancillary and Management Services	FY 2013												FY 2014
		Q1		Q2		Q3		Q4		Full Year				Q1		Q2		Q3 (2)		YTD			Q3P (3)
Revenue		631,979		628,682		638,766		646,731			2,546,158			657,712		661,006		965,940			2,284,658		1,058,917
Expenses		413,003		416,027		420,579		422,336			1,671,945			429,870		435,415		637,084			1,502,369		688,851
Operating Income		218,976		212,655		218,187		224,395			874,213			227,842		225,591		328,856			782,289		370,066
Operating Margin		34.6	%	33.8	%	34.2	%	34.7	%		34.3	%		34.6	%	34.1	%	34.0	%		34.2	%	34.9	%
G&A Allocation (6)		37,612		35,421		34,269		36,798			144,100			36,154		34,146		47,074			117,374
Adjusted Operating Income		181,364		177,234		183,918		187,597			730,113			191,688		191,445		281,782			664,915
Adjusted Operating Margin		28.7	%	28.2	%	28.8	%	29.0	%		28.7	%		29.1	%	29.0	%	29.2	%		29.1	%

(1) During the nine months ended September 30, 2014, two communities were moved from the Retirement Centers segment to the Assisted Living segment to more accurately reflect the underlying product offering of the communities. The movement did not change the Company's reportable segments, but it did impact the operating information reported within the Retirement Centers and Assisted Living segments. Revenue and expenses for the three and nine months ended September 30, 2013 have not been recast.
(2) In connection with the creation of the Entry Fee CCRC venture between the Company and HCP on August 29, 2014, the Company contributed to the venture all but two of the communities in the CCRCs - Entry Fee segment. Financial and operating data for the two communities not contributed to the venture is included in the CCRCs - Entry Fee segment for the six months ended June 30, 2014 and the CCRCs - Rental segment for the three month period ended September 30, 2014. The financial data and operating information of the communities contributed to the venture is included in the CCRC – Entry Fee segment for the time periods prior to being contributed.
(3) Q3 2014 Pro Forma information gives effect to the acquisition of Emeritus (which closed July 31, 2014) and the HCP Transactions (which closed August 29, 2014) as if they both had occurred on July 1, 2014. Additionally, the pro forma information excludes results from the 49 HCP-owned communities that were leased by Emeritus, which were contributed to a RIDEA venture with HCP, and results from the Entry Fee CCRC communities that were contributed to the Entry Fee CCRC venture with HCP. Additional information on the Company's interest in these ventures and the pro forma impact to the on-going Company is on page 8 "CFFO from Unconsolidated Ventures Reconciliation".
(4) Senior Housing total average units operated represent the average units operated during the period, excluding equity homes.
(5) Average monthly revenue per unit represents the average of the total monthly revenues, excluding amortization of entrance fees and Brookdale Ancillary Services segment revenue, divided by average occupied units.
(6) Excludes non-cash stock-based compensation expense and integration, transaction and EMR roll-out costs.

Page 3

Brookdale Senior Living Inc.
Senior Housing Data by Ownership Type
As of September 30, 2014

Financial Data
($ in 000s, except Senior Housing average monthly revenue per unit)

Owned Properties	FY 2013															FY 2014
		Q1			Q2			Q3			Q4		Full Year				Q1			Q2			Q3		YTD				Q3P (1)
Revenue		266,322			265,139			267,922			273,439			1,072,822			277,700			277,748			369,078			924,526			387,061
Expenses		175,672			176,623			178,382			178,941			709,618			182,706			184,773			247,359			614,838			253,988
Segment Operating Income		90,650			88,516			89,540			94,498			363,204			94,994			92,975			121,719			309,688			133,073
Segment Operating Margin		34.0	%		33.4	%		33.4	%		34.6	%		33.9	%		34.2	%		33.5	%		33.0	%		33.5	%		34.4	%

Bridge to Cash Basis for Entrance Fees
Revenue		266,322			265,139			267,922			273,439			1,072,822			277,700			277,748			369,078			924,526			387,061
Less: revenue amortization (non-cash)		(4,664	)		(4,821	)		(4,660	)		(5,404	)		(19,549	)		(4,635	)		(4,933	)		(3,878	)		(13,446	)		(108	)
Add: net entrance fees (cash)		5,449			10,936			8,014			13,694			38,093			4,079			11,710			(399	)		15,390			850
Adjusted revenue		267,107			271,254			271,276			281,729			1,091,366			277,144			284,525			364,801			926,470			387,803
Expenses		175,672			176,623			178,382			178,941			709,618			182,706			184,773			247,359			614,838			253,988
Adjusted Segment Operating Income		91,435			94,631			92,894			102,788			381,748			94,438			99,752			117,442			311,632			133,815
Adjusted Segment Operating Margin		34.2	%		34.9	%		34.2	%		36.5	%		35.0	%		34.1	%		35.1	%		32.2	%		33.6	%		34.5	%

Number of communities (period end)		219			220			220			225			-			226			226			403			-			403
Total average units(2)		22,243			22,153			22,190			22,754			-			22,775			22,799			32,079			-			34,906
Weighted average unit occupancy		88.8	%		88.7	%		89.1	%		89.2	%		-			88.5	%		88.0	%		88.2	%		-			88.2	%
Senior Housing average monthly revenue per unit(3)	$	4,416		$	4,416		$	4,438		$	4,402			-		$	4,516		$	4,532		$	4,302			-		$	4,187

Leased Properties with Purchase Options	FY 2013															FY 2014
		Q1			Q2			Q3			Q4		Full Year				Q1			Q2			Q3		YTD				Q3P (1)
Revenue		75,096			74,504			75,902			76,651			302,153			77,863			77,418			87,008			242,289			87,418
Expenses		47,706			48,319			48,458			48,811			193,294			49,497			49,719			57,026			156,242			56,782
Segment Operating Income		27,390			26,185			27,444			27,840			108,859			28,366			27,699			29,982			86,047			30,636
Segment Operating Margin		36.5	%		35.1	%		36.2	%		36.3	%		36.0	%		36.4	%		35.8	%		34.5	%		35.5	%		35.0	%

Number of communities (period end)		83			83			84			84			-			84			84			111			-			111
Total average units(2)		6,313			6,309			6,357			6,381			-			6,391			6,391			7,347			-			7,602
Weighted average unit occupancy		89.6	%		89.4	%		89.8	%		89.8	%		-			89.0	%		88.4	%		88.6	%		-			88.3	%
Senior Housing average monthly revenue per unit(3)	$	4,313		$	4,298		$	4,318		$	4,348			-		$	4,447		$	4,440		$	4,394			-		$	4,342

Leased Properties without Purchase Options	FY 2013															FY 2014
		Q1			Q2			Q3			Q4		Full Year				Q1			Q2			Q3		YTD				Q3P (1)
Revenue		222,754			222,602			226,158			226,394			897,908			231,330			232,817			404,000			868,147			457,945
Expenses		142,527			143,606			144,341			142,118			572,592			147,003			148,294			255,419			550,716			288,684
Segment Operating Income		80,227			78,996			81,817			84,276			325,316			84,327			84,523			148,581			317,431			169,261
Segment Operating Margin		36.0	%		35.5	%		36.2	%		37.2	%		36.2	%		36.5	%		36.3	%		36.8	%		36.6	%		37.0	%

Number of communities (period end)		246			246			245			245			-			245			245			472			-			472
Total average units(2)		19,397			19,445			19,405			19,414			-			19,414			19,438			35,165			-			40,534
Weighted average unit occupancy		87.9	%		87.6	%		88.5	%		88.6	%		-			88.2	%		87.9	%		88.6	%		-			89.1	%
Senior Housing average monthly revenue per unit(3)	$	4,344		$	4,348		$	4,381		$	4,377			-		$	4,491		$	4,533		$	4,314			-		$	4,218

Total Senior Housing	FY 2013												FY 2014
		Q1		Q2		Q3		Q4		Full Year				Q1		Q2		Q3		YTD			Q3P (1)
Revenue		564,172		562,245		569,982		576,484			2,272,883			586,893		587,983		860,086			2,034,962		932,424
Expenses		365,905		368,548		371,181		369,870			1,475,504			379,206		382,786		559,804			1,321,796		599,454
Operating Income		198,267		193,697		198,801		206,614			797,379			207,687		205,197		300,282			713,166		332,970
Operating Margin		35.1	%	34.5	%	34.9	%	35.8	%		35.1	%		35.4	%	34.9	%	34.9	%		35.0	%	35.7	%

Number of communities (period end)		548			549			549			554		-		555			555			986		-		986
Total average units(2)		47,953			47,907			47,952			48,549		-		48,580			48,628			74,591		-		83,042
Weighted average unit occupancy		88.5	%		88.3	%		89.0	%		89.0	%	-		88.6	%		88.1	%		88.5	%	-		88.7	%
Senior Housing average monthly revenue per unit(3)	$	4,375		$	4,373		$	4,397		$	4,387		-	$	4,491		$	4,518		$	4,317		-	$	4,217

(1) Q3 2014 Pro Forma information gives effect to the acquisition of Emeritus (which closed July 31, 2014) and the HCP Transactions (which closed August 29, 2014) as if they both had occurred on July 1, 2014. Additionally, the pro forma information excludes results from the 49 HCP-owned communities that were leased by Emeritus, which were contributed to a RIDEA venture with HCP, and results from the Entry Fee CCRC communities that were contributed to the Entry Fee CCRC venture with HCP. Additional information on the Company's interest in these ventures and the pro forma impact to the on-going Company is on page 8 "CFFO from Unconsolidated Ventures Reconciliation".
(2) Senior Housing total average units operated represent the average units operated during the period, excluding equity homes.
(3) Average monthly revenue per unit represents the average of the total monthly revenues, excluding amortization of entrance fees and Brookdale Ancillary Services segment revenue, divided by average occupied units.

Page 4

Brookdale Senior Living Inc.
Same Community and Capital Expenditure Information
As of September 30, 2014

Same Community Information

($ in 000s, except Avg. Mo. Revenue/Unit)	Legacy Brookdale Senior Housing									Legacy Brookdale Senior Housing
	Three Months Ended September 30,									Twelve Months Ended September 30,
	2014			2013			% Change			2014			2013			% Change
Revenue	$	476,035		$	464,095			2.6	%	$	1,883,654		$	1,832,424			2.8	%
Operating Expense		307,629			299,742			2.6	%		1,205,056			1,192,080			1.1	%
Facility Operating Income	$	168,406		$	164,353			2.5	%	$	678,598		$	640,344			6.0	%
Facility Operating Margin		35.4	%		35.4	%		-			36.0	%		34.9	%		1.1	%

# Communities		508			508						508			508
Avg. Period Occupancy		88.7	%		89.4	%		-0.7	%		88.9	%		89.1	%		-0.2	%
Avg. Mo. Revenue/Unit	$	4,529		$	4,380			3.4	%	$	4,471		$	4,339			3.0	%


	Legacy Emeritus Senior Housing									Legacy Emeritus Senior Housing
	Three Months Ended September 30,									Twelve Months Ended September 30,
		2014			2013		% Change				2014			2013		% Change
Revenue	$	360,762		$	357,014			1.0	%	$	1,432,574		$	1,411,883			1.5	%
Operating Expense		232,065			236,301			-1.8	%		938,101			921,678			1.8	%
Facility Operating Income	$	128,697		$	120,713			6.6	%	$	494,473		$	490,205			0.9	%
Facility Operating Margin		35.7	%		33.8	%		1.9	%		34.5	%		34.7	%		-0.2	%

# Communities		403			403						398			398
Avg. Period Occupancy		88.4	%		88.4	%		-			88.4	%		88.1	%		0.3	%
Avg. Mo. Revenue/Unit	$	3,970		$	3,932			1.0	%	$	3,944		$	3,900			1.1	%


	Combined Brookdale and Emeritus Senior Housing										Combined Brookdale and Emeritus Senior Housing
	Three Months Ended September 30,									Twelve Months Ended September 30,
		2014			2013		% Change				2014			2013		% Change
Revenue	$	836,797		$	821,109			1.9	%	$	3,316,228		$	3,244,307			2.2	%
Operating Expense		539,694			536,043			0.7	%		2,143,157			2,113,758			1.4	%
Facility Operating Income	$	297,103		$	285,066			4.2	%	$	1,173,071		$	1,130,549			3.8	%
Facility Operating Margin		35.5	%		34.7	%		0.8	%		35.4	%		34.8	%		0.6	%

# Communities		911			911						906			906
Avg. Period Occupancy		88.6	%		88.9	%		-0.3	%		88.6	%		88.6	%		-
Avg. Mo. Revenue/Unit	$	4,270		$	4,173			2.3	%	$	4,227		$	4,137			2.2	%

Same Community Information reflects historical results from operations for same store communities (utilizing the Company's methodology for determining same store communities).

Schedule of Capital Expenditures
($ in 000s)

	Three Months Ended September 30,
Type	2014		2013
Recurring	$	13,199	$	12,127
Corporate (1)		10,163		4,135
EBITDA-enhancing / Major Projects (2)		25,462		28,940
Program Max / Development, net (3)		21,870		12,666
Net Total Capital Expenditures (4)	$	70,694	$	57,868

Page 5

Brookdale Senior Living Inc.

Capital Structure - selected financial information

As of September 30, 2014

($ in 000s)

Debt Maturities and Scheduled Principal Repayments

	Maturities
	Mortgage		weighted			Line of		weighted	Capital		weighted			Total
	Debt (1)		rate (2)			Credit		rate (2)	Leases		rate (2)			Debt

2014	$	301,612		5.34	%	$	-		$	12,589		7.80	%	$	314,201
2015		163,947		4.60	%		-			56,235		7.92	%		220,182
2016		67,814		5.04	%		-			144,578		5.66	%		212,392
2017		554,798		5.88	%		-			101,580		8.13	%		656,378
2018		1,296,418		4.60	%		-			95,060		8.20	%		1,391,478
Thereafter		1,343,475		4.23	%		-			2,276,923		8.57	%		3,620,398
Total	$	3,728,064		4.73	%	$	-		$	2,686,965		8.37	%	$	6,415,029

Coverage Ratios

	Nine months ended September 30, 2014
							Interest/Cash Lease
	Units		FOI		Adj. FOI **		Payments		Coverage
Owned communities		35,171	$	323,873	$	264,665	$	85,898		3.1	x
Leased communities *		48,081	$	419,917	$	347,547	$	299,386		1.2	x

* The leased communities include the capital leases.
** Adjusted for 5% management fee and capital expenditures @ $350/unit.

Debt Amortization

	Nine months ended September 30,
	2014		2013
Scheduled debt amortization	$	42,563	$	37,096
Lease financing debt amortization - FMV or no purchase option (3)		18,590		10,332
Lease financing debt amortization - bargain purchase option		12,376		12,586
Total debt amortization	$	73,529	$	60,014

Line Availability

($000s)	09/30/13		12/31/13		03/31/14		06/30/14		09/30/14

Total line commitment	$	250,000	$	250,000	$	250,000	$	250,000	$	250,000

Line availability (5)	$	238,565	$	250,000	$	250,000	$	250,000	$	202,860
Ending line balance		45,000		30,000		25,000		12,000		-
Available to draw	$	193,565	$	220,000	$	225,000	$	238,000	$	202,860
Cash and cash equivalents		42,690		58,511		45,701		50,934		238,324
Total liquidity (available to draw + cash)	$	236,255	$	278,511	$	270,701	$	288,934	$	441,184

Total letters of credit outstanding	$	71,762	$	72,464	$	71,675	$	71,650	$	74,488

Leverage Ratios

				Annualized
				Leverage
September 2014 annualized Adjusted EBITDAR	$	1,325,292
Less: cash lease expense		(379,968	)
September 2014 annualized Adjusted EBITDA		945,324
Less: cash capital lease payments		(241,536	)
Sept 2014 annualized Adj EBITDA after capital lease payments		703,788

Debt		3,728,064			5.3	x
Line of credit		-
Less: unrestricted cash		(238,324	)
Less: cash held as collateral against existing debt		(18,232	)
Total net debt		3,471,508			4.9	x

Plus: capital leases		2,686,965
Total net debt after capital leases		6,158,473			6.5	x

September 2014 annualized cash lease expense multiplied by 8		3,039,744
Total adjusted net debt	$	9,198,217			6.9	x

Debt Structure

			Weighted
	Balance		rate (2)
Fixed rate debt (1)	$	2,556,096		5.35	%
Variable rate debt (1)		1,171,968		3.37	%
Capital leases		2,686,965		8.37	%
Line of credit (cash borrowings)		-
Total debt	$	6,415,029

	Balance		% of total
Variable rate debt with interest rate caps (1) (4)	$	831,883		71.0	%
Variable rate debt - unhedged (1)		340,085		29.0	%
Total variable rate debt (1)	$	1,171,968		100.0	%

(1) Includes mortgage debt and convertible notes, but excludes capital leases and line of credit.

(2) Pertaining to variable rate debt, reflects a) market rates for stated reporting period and b) applicable swap rates / cap rates for hedged debt.

(3) Payments are included in CFFO.

(4) Weighted cap rate for stated reporting period of 4.69% is materially above current market rates, therefore caps have no impact on consolidated interest expense for given period.

(5) The actual amount available to borrow under the line may vary from time to time as it is based on borrowing base calculations related to the value and performance of the communities securing the facility.

(6) September 2014 information includes the actual results of the Company subsequent to the acquisition of Emeritus (which closed July 31, 2014) and the HCP Transactions (which closed August 29, 2014).

Page 6

Brookdale Senior Living Inc.
CFFO Reconciliation
As of September 30, 2014

CFFO Calculation

($ in 000s)

	Three Months Ended September 30,
	2014			2013

Net cash provided by operating activities (includes non-refundable entrance fees)	$	12,634		$	104,247
Changes in operating assets and liabilities (eliminates cash flow effect)		29,620			(21,464	)
Add: Refundable entrance fees received		3,388			9,875
Less: Entrance fee refunds disbursed		(7,668	)		(7,728	)
Less: Recurring capital expenditures, net		(13,199	)		(12,127	)
Less: Lease financing debt amortization with fair market value or no purchase options		(10,710	)		(3,518	)
Less: Distributions from unconsolidated ventures from cumulative share of net earnings		(595	)		(648	)
Add: CFFO from unconsolidated ventures		9,435			1,922
Cash From Facility Operations	$	22,905		$	70,559

Add: Integration, transaction and EMR roll-out costs		76,649			4,661
Adjusted Cash From Facility Operations	$	99,554		$	75,220

Revenue Reconciliation (1)
($ in 000s except average monthly revenue per quarter)	FY 2013															FY 2014
		Q1			Q2			Q3			Q4		Full Year				Q1			Q2			Q3
Revenue reconciliation excl. entrance fee amortization
Average monthly revenue per quarter		4,375			4,373			4,397			4,387			4,383			4,491			4,518			4,317
Average monthly units (excluding equity homes) available		47,956			47,929			47,953			48,548			48,097			48,562			48,608			74,538
Average occupancy for the quarter		88.5	%		88.3	%		89.0	%		89.0	%		88.7	%		88.6	%		88.1	%		88.5	%
Senior Housing resident fee revenue	$	557,039		$	555,213		$	562,969		$	568,653		$	2,243,874		$	579,691		$	580,436		$	854,329

Add: Brookdale Ancillary Services segment revenue		60,198			58,693			61,162			62,097			242,150			63,417			65,534			95,426
Add: management fee revenue		7,609			7,744			7,622			8,150			31,125			7,402			7,489			10,428
Total revenues excluding entrance fee amortization	$	624,846		$	621,650		$	631,753		$	638,900		$	2,517,149		$	650,510		$	653,459		$	960,183

CFFO Reconciliation to the Income Statement

Resident and management fee revenue	$	631,979		$	628,682		$	638,766		$	646,731		$	2,546,158		$	657,712		$	661,006		$	965,940
Less: Entrance fee amortization		(7,133	)		(7,032	)		(7,013	)		(7,831	)		(29,009	)		(7,202	)		(7,547	)		(5,757	)
Adjusted revenues		624,846			621,650			631,753			638,900			2,517,149			650,510			653,459			960,183

Less: Facility operating expenses		(413,003	)		(416,027	)		(420,579	)		(422,336	)		(1,671,945	)		(429,870	)		(435,415	)		(637,084	)
Add: Change in future service obligation		-			-			-			(1,917	)		(1,917	)		-			-			-
Adjusted facility operating expenses		(413,003	)		(416,027	)		(420,579	)		(424,253	)		(1,673,862	)		(429,870	)		(435,415	)		(637,084	)

Less: G&A including non-cash stock-based compensation expense		(46,611	)		(46,035	)		(45,824	)		(46,078	)		(184,548	)		(44,665	)		(47,008	)		(90,020	)
Less: Transaction costs		-			-			-			-			-			(10,844	)		(6,808	)		(41,572	)
Add: G&A non-cash stock-based compensation expense		6,894			6,988			6,894			5,202			25,978			7,572			7,729			7,869
Net G&A		(39,717	)		(39,047	)		(38,930	)		(40,876	)		(158,570	)		(47,937	)		(46,087	)		(123,723	)

Less: Facility lease expense		(69,019	)		(68,777	)		(69,232	)		(69,701	)		(276,729	)		(69,869	)		(70,030	)		(91,462	)
Add: Straight-line lease expense		748			684			818			347			2,597			(223	)		(217	)		2,840
Add: Amortization of (above) below market lease, net		-			-			-			-			-			-			-			(1,377	)
Less: Amortization of deferred gain		(1,093	)		(1,093	)		(1,093	)		(1,093	)		(4,372	)		(1,093	)		(1,093	)		(1,093	)
Net lease expense		(69,364	)		(69,186	)		(69,507	)		(70,447	)		(278,504	)		(71,185	)		(71,340	)		(91,092	)

Add: Entrance fee receipts		16,873			23,878			19,098			32,482			92,331			14,959			25,924			9,576
Less: Entrance fee disbursements		(9,320	)		(7,456	)		(7,728	)		(10,821	)		(35,325	)		(8,446	)		(9,213	)		(7,668	)
Net entrance fees		7,553			16,422			11,370			21,661			57,006			6,513			16,711			1,908

Adjusted EBITDA		110,315			113,812			114,107			124,985			463,219			108,031			117,328			110,192

Less: Recurring capital expenditures, net		(9,324	)		(10,664	)		(12,127	)		(10,786	)		(42,901	)		(9,369	)		(11,841	)		(13,199	)
Less: Interest expense, net		(30,668	)		(29,591	)		(29,170	)		(30,557	)		(119,986	)		(29,677	)		(29,372	)		(73,030	)
Less: Lease financing debt amortization with fair market value or no purchase options		(3,371	)		(3,444	)		(3,518	)		(3,594	)		(13,927	)		(3,897	)		(3,983	)		(10,710	)
Add: CFFO from unconsolidated ventures		1,958			2,099			1,922			1,825			7,804			2,241			1,996			9,435
Less: Other		(1,068	)		(1,060	)		(655	)		2,597			(186	)		133			2,528			217

Reported CFFO	$	67,842		$	71,152		$	70,559		$	84,470		$	294,023		$	67,462		$	76,656		$	22,905

Add: integration, transaction and EMR roll-out costs		2,105			3,626			4,661			4,078			14,470			11,783			11,941			76,649
Adjusted CFFO	$	69,947		$	74,778		$	75,220		$	88,548		$	308,493		$	79,245		$	88,597		$	99,554

CFFO Per Share

($ except where indicated)	FY 2013										FY 2014
		Q1		Q2		Q3		Q4	Full Year(2)			Q1		Q2		Q3
Reported CFFO	$	0.55	$	0.58	$	0.57	$	0.68	$	2.38	$	0.54	$	0.61	$	0.14
Add: integration, transaction and EMR roll-out costs		0.02		0.03		0.04		0.03		0.12		0.10		0.10		0.49
Adjusted CFFO	$	0.57	$	0.61	$	0.61	$	0.71	$	2.50	$	0.64	$	0.71	$	0.63

Shares used in calculation of CFFO (000's)		122,823		123,405		124,128		124,308				124,478		125,058		159,003

(1) Revenue excludes reimbursed costs incurred on behalf of managed communities.

(2) Full year CFFO for all periods is calculated as the sum of the quarterly amounts for the year.

Note: CFFO is a measurement of liquidity that is not calculated in accordance with GAAP and should not be considered in isolation as a substitute for any GAAP financial measure. CFFO is not a measure of financial performance under GAAP. We strongly urge you to review the reconciliation of CFFO to GAAP net cash provided by operating activities, along with our consolidated financial statements, included in the accompanying earnings release.

Page 7

Brookdale Senior Living Inc.
CFFO from Unconsolidated Ventures
As of September 30, 2014

CFFO from Unconsolidated Ventures reconciliation

($ in 000s)	Entrance Fee Ventures						Senior Housing Rental Ventures
	FY 2014						FY 2014
		Q3			Q3P (1)			Q3			Q3P (1)

Resident revenue	$	33,257		$	82,720		$	80,862		$	118,541
Less: Entrance fee amortization		(638	)		(284	)		-			-
Adjusted revenues		32,619			82,436			80,862			118,541

Less: Facility operating expenses		(25,040	)		(63,286	)		(51,698	)		(78,634	)
Add: Change in future service obligation		-			-			-			-
Adjusted facility operating expenses		(25,040	)		(63,286	)		(51,698	)		(78,634	)

Less: G&A including non-cash stock-based compensation expense		(6,015	)		(4,935	)		(3,925	)		(3,963	)
Add: G&A non-cash stock-based compensation expense		-			-			-			-
Net G&A		(6,015	)		(4,935	)		(3,925	)		(3,963	)

Add: Entrance fee receipts		16,112			24,702			-			-
Less: Entrance fee disbursements		(4,780	)		(13,997	)		-			-
Net entrance fees		11,332			10,705			-			-

Adjusted EBITDA		12,896			24,920			25,239			35,944

Less: Recurring capital expenditures, net		(193	)		(341	)		(974	)		(1,086	)
Less: Interest expense, net		(1,161	)		(1,586	)		(15,648	)		(26,117	)

Reported Cash From Facility Operations for Unconsolidated Ventures	$	11,542		$	22,993		$	8,617		$	8,741

Add: integration, transaction and EMR roll-out costs		4,088			-			738			-
Adjusted Cash From Facility Operations for Unconsolidated Ventures	$	15,630		$	22,993		$	9,355		$	8,741


Brookdale Weighted Average Ownership %		51.7	%		51.0	%		14.5	%		14.4	%
CFFO from Unconsolidated Ventures	$	8,081		$	11,727		$	1,354		$	1,263

Leverage Ratio for Unconsolidated Ventures
Debt as of September 30, 2014	$	203,621		$	1,435,689
Annualized Adjusted EBITDA		99,680			143,776
Annualized Leverage		2.0	x		10.0	x

(1) Q3 2014 Pro Forma information gives effect to the acquisition of Emeritus (which closed July 31, 2014) and the HCP Transactions (which closed August 29, 2014) as if they both had occurred on July 1, 2014.

Unconsolidated Ventures Schedule of Capital Expenditures

($ in 000s)	FY 2014
Type		Q3
Recurring	$	1,167
EBITDA-enhancing / Major Projects		5,247
Program Max / Development, net		2,758
Net Total Capital Expenditures	$	9,172

Page 8

Brookdale Senior Living Inc.
Cash Lease and Interest Expense
As of September 30, 2014

Cash Lease and Interest Expense

($ in 000s)	FY 2014
		Q3		Q3P (1)

Facility Lease Payments

Facility lease expense		91,462		100,035
Less: Straight-line lease expense and amortization, net		(1,463	)	(6,135	)
Add: Amortization of deferred gain		1,093		1,093
Cash lease payments - Operating Leases		91,092		94,993
Supplemental breakout:
Communities with purchase options		5,590		6,237
Communities without purchase options		85,502		88,756
		91,092		94,993

Capital Lease Interest		40,916		56,073
Capital Lease Interest - noncash		(5,947	)	(8,270	)
Capital lease principal (2)		10,710		10,987
Net lease payments - Capital and Financing Leases		45,679		58,790
Supplemental breakout:
Communities with purchase options		13,571		15,129
Communities without purchase options		32,108		43,661
		45,679		58,790

Total net lease payments		136,771		153,783

(1) Q3 2014 Pro Forma information gives effect to the acquisition of Emeritus (which closed July 31, 2014) and the HCP Transactions (which closed August 29, 2014) as if they both had occurred on July 1, 2014. Additionally, the pro forma information excludes results from the 49 HCP-owned communities that were leased by Emeritus, which were contributed to a RIDEA venture with HCP, and results from the Entry Fee CCRC communities that were contributed to the Entry Fee CCRC venture with HCP. Additional information on the Company's interest in these ventures and the pro forma impact to the on-going Company is on page 8 "CFFO from Unconsolidated Ventures Reconciliation".
(2) Includes lease financing debt amortization on communities with FMV or no purchase option. Payments are included in CFFO.

Page 9

Brookdale Senior Living Inc.

Quarterly Cash Flow Statements

As of September 30, 2014

($ in 000s)

Cash Flow Statements

		Q1 2013			Q2 2013			Q3 2013			Q4 2013		FY 2013				Q1 2014			Q2 2014			Q3 2014
Cash Flows from Operating Activities
Net income (loss)	$	3,558		$	(5,200	)	$	(967	)	$	(975	)	$	(3,584	)	$	(2,299	)	$	(3,295	)	$	(37,036	)
Adjustments to reconcile net income (loss) to net cash provided by operating activities:
Loss on extinguishment of debt		-			893			53			319			1,265			-			3,197			569
Depreciation and amortization, net		69,228			71,602			72,744			72,237			285,811			74,334			75,166			178,810
Asset impairment		-			2,154			504			10,233			12,891			-			-			-
Equity in (earnings) loss of unconsolidated ventures		(115	)		(445	)		(431	)		(493	)		(1,484	)		(636	)		(1,523	)		1,246
Distributions from unconsolidated ventures from cumulative share of net earnings		668			773			648			602			2,691			245			370			595
Amortization of deferred gain		(1,093	)		(1,093	)		(1,093	)		(1,093	)		(4,372	)		(1,093	)		(1,093	)		(1,093	)
Amortization of entrance fees		(7,133	)		(7,032	)		(7,013	)		(7,831	)		(29,009	)		(7,202	)		(7,547	)		(5,757	)
Proceeds from deferred entrance fee revenue		9,237			12,124			9,223			13,607			44,191			9,035			14,906			6,188
Deferred income tax (benefit) provision		-			-			-			(183	)		(183	)		598			(5	)		(116,757	)
Change in deferred lease liability		748			684			818			347			2,597			(223	)		(217	)		2,840
Change in fair value of derivatives		(135	)		(1,836	)		1,377			(386	)		(980	)		847			1,322			10
(Gain) loss on sale of assets		(926	)		24			26			(96	)		(972	)		76			39			200
Change in future service obligation		-			-			-			(1,917	)		(1,917	)		-			-			-
Non-cash stock-based compensation		6,894			6,988			6,894			5,202			25,978			7,572			7,729			7,869
Non-cash interest expense on financing leases		-			-			-			-			-			-			-			5,947
Amortization of (above) below market rents, net		-			-			-			-			-			-			-			(1,377	)
Changes in operating assets and liabilities:
Accounts receivable, net		(9,064	)		1,736			(2,154	)		4,033			(5,449	)		(2,499	)		3,914			23,671
Prepaid expenses and other assets, net		9,140			(12,679	)		734			10,288			7,483			(5,816	)		(8,369	)		(53,861	)
Accounts payable and accrued expenses		(10,871	)		12,926			18,540			13,242			33,837			(27,561	)		14,245			6,222
Tenant refundable fees and security deposits		(335	)		(258	)		(235	)		36			(792	)		(615	)		138			(674	)
Deferred revenue		(5,316	)		(1,018	)		4,579			(126	)		(1,881	)		7,933			(7,459	)		(4,978	)
Net cash provided by operating activities		64,485			80,343			104,247			117,046			366,121			52,696			91,518			12,634
Cash Flows from Investing Activities
(Increase) decrease in lease security deposits and lease acquisition deposits, net		(1,952	)		(1,066	)		972			(5	)		(2,051	)		7			(73	)		3,326
Decrease (increase) in cash and escrow deposits — restricted		826			2,195			(537	)		8,242			10,726			6,627			(6,039	)		14,052
Additions to property, plant and equipment and leasehold intangibles, net		(51,614	)		(48,677	)		(61,231	)		(96,005	)		(257,527	)		(59,717	)		(73,712	)		(79,104	)
Acquisition of assets, net of related payables and cash received		(2	)		(4,833	)		(2,559	)		(27,292	)		(34,686	)		(515	)		-			(39,303	)
Acquisition of Emeritus Corporation, cash acquired		-			-			-			-			-			-			-			28,429
(Issuance of) payment on notes receivable, net		(17	)		(47	)		159			73			168			76			2,564			73
Investment in unconsolidated ventures		(5,843	)		(2,149	)		(9,180	)		-			(17,172	)		-			-			(25,532	)
Distributions received from unconsolidated ventures		-			-			100			1,500			1,600			-			2,643			9,414
Proceeds from sale of assets, net		440			7,114			-			26,582			34,136			-			-			-
Net cash used in investing activities		(58,162	)		(47,463	)		(72,276	)		(86,905	)		(264,806	)		(53,522	)		(74,617	)		(88,645	)
Cash Flows from Financing Activities
Proceeds from debt		8,955			418,667			170,230			65,082			662,934			20,516			159,638			46,356
Repayment of debt and capital and financing lease obligations		(17,707	)		(470,825	)		(163,209	)		(72,392	)		(724,133	)		(22,401	)		(159,412	)		(92,568	)
Proceeds from line of credit		105,000			85,000			130,000			105,000			425,000			70,000			12,000			160,000
Repayment of line of credit		(140,000	)		(60,000	)		(155,000	)		(120,000	)		(475,000	)		(75,000	)		(25,000	)		(172,000	)
Proceeds from public equity offering, net		-			-			-			-			-			-			-			330,405
Payment of financing costs, net of related payables		(2,200	)		(5,695	)		(3,299	)		(382	)		(11,576	)		(2,905	)		2,087			(202	)
Refundable entrance fees:
Proceeds from refundable entrance fees		7,636			11,754			9,875			18,875			48,140			5,924			11,018			3,388
Refunds of entrance fees		(9,320	)		(7,456	)		(7,728	)		(10,821	)		(35,325	)		(8,446	)		(9,213	)		(7,668	)
Cash portion of loss on extinguishment of debt, net		-			(453	)		(49	)		-			(502	)		-			(3,180	)		(921	)
Payment on lease termination		-			-			-			-			-			-			-			(3,875	)
Purchase of derivatives		-			(1,489	)		(1,374	)		-			(2,863	)		-			-			-
Other		315			321			327			318			1,281			328			394			486
Net cash (used in) provided by financing activities		(47,321	)		(30,176	)		(20,227	)		(14,320	)		(112,044	)		(11,984	)		(11,668	)		263,401
Net (decrease) increase in cash and cash equivalents		(40,998	)		2,704			11,744			15,821			(10,729	)		(12,810	)		5,233			187,390
Cash and cash equivalents at beginning of period		69,240			28,242			30,946			42,690			69,240			58,511			45,701			50,934
Cash and cash equivalents at end of period	$	28,242		$	30,946		$	42,690		$	58,511		$	58,511		$	45,701		$	50,934		$	238,324

Page 10

(1) Corporate includes capital expenditures for information technology systems and equipment and expenditures supporting the expansion of our support platform and ancillary services programs.

(2) Includes EBITDA-enhancing projects (primarily community renovations and apartment upgrades) and other major building infrastructure projects.

(3) Includes community expansions and major repositioning or upgrade projects. Also includes de novo community developments. Amounts shown are amounts invested, net of third party lessor funding received of $8.4 million and $3.4 million for the three months ended September 30, 2014 and 2013, respectively.

(4) Approximately $14.5 million and $10.5 million of expense was recognized during the three months ended September 30, 2014 and 2013, respectively, for normal repairs and maintenance and capital spend under $1,500 per invoice, except for unit turnovers.