Brookdale Senior Living (BKD) 8-K Brookdale Announces First Quarter 2009 Results; CFFO of $0.49 per Share

Brookdale Senior Living Inc.

Corporate Overview - selected financial information

As of March 31, 2009

Corporate Overview

Brookdale Senior Living Inc. ("BKD") is a leading owner and operator of senior living communities throughout the United States.  The Company is committed to providing an exceptional living experience through properties that are designed, purpose-built and operated to provide the highest-quality service, care and living accommodations for residents.  Currently the Company owns and operates independent living, assisted living, and dementia-care communities and continuing care retirement centers, with 548 communities in 35 states and the ability to serve approximately 52,000 residents.

Stock Listing

Common Stock

NYSE: BKD

Community Information
Ownership Type	Number of Facilities		Number of Units/Beds		Percentage of Q1 2009 Revenues			Percentage of Q1 2009 Facility Operating Income
Owned		168		18,547		39.5	%		37.4	%
Leased		358		28,993		60.1	%		61.6	%
Managed		22		4,348		0.4	%		1.0	%
Total		548		51,888		100.0	%		100.0	%
Operating Type
Retirement Centers		85		15,258		27.0	%		31.6	%
Assisted Living		406		20,808		43.7	%		43.7	%
CCRCs		35		11,474		28.9	%		23.7	%
Managed		22		4,348		0.4	%		1.0	%
Total		548		51,888		100.0	%		100.0	%

CFFO Per Share ($)
($ except where indicated)	FY 2008										FY 2009
		Q1		Q2		Q3		Q4	Full Year			Q1
Reported CFFO	$	0.38	$	0.36	$	0.22	$	0.32	$	1.28	$	0.49
Add:  hurricane costs		-		-		0.04		0.01		0.05		-
Add:  non-recurring, integration and system costs		0.03		0.10		0.04		0.02		0.19		-
Adjusted CFFO	$	0.41	$	0.46	$	0.30	$	0.35	$	1.52	$	0.49
Shares used in calculation of CFFO (000's)		102,191		101,477		101,349		101,714		101,683		101,786

Investor Relations

Ross Roadman

SVP, Investor Relations

Brookdale Senior Living

111 Westwood Place, Suite 200

Brentwood, TN 37027

Phone (615) 376-2412

rroadman@brookdaleliving.com

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

Page 1 of 8

Brookdale Senior Living Inc.
Operating Segment Info
As of March 31, 2009
Selected Segment Operating and Other Data as Reported in the 10Q
	FY 2008															FY 2009
		Q1			Q2			Q3			Q4		Full Year				Q1
Retirement Centers
Number of communities (period end)		87			87			87			85			85			85
Total units/beds		15,747			15,693			15,710			15,251			15,251			15,258
Total units/beds excluding equity homes		15,652			15,598			15,615			15,156			15,156			15,163
Weighted average occupancy		90.5	%		89.6	%		90.6	%		90.2	%		90.3	%		88.9	%
Average monthly revenue per unit/bed	$	3,191		$	3,225		$	3,232		$	3,276		$	3,229		$	3,329
Assisted Living
Number of communities (period end)		409			410			410			409			409			406
Total units/beds		20,906			21,020			21,059			21,021			21,021			20,808
Weighted average occupancy		89.8	%		88.9	%		90.2	%		90.6	%		89.9	%		89.6	%
Average monthly revenue per unit/bed	$	3,740		$	3,751		$	3,723		$	3,737		$	3,738		$	3,895
CCRCs
Number of communities (period end)		32			32			32			32			32			35
Total units/beds		10,798			10,838			10,871			11,183			11,183			11,474
Total units/beds excluding equity homes		9,998			10,038			10,076			10,392			10,392			10,679
Weighted average occupancy		89.4	%		88.1	%		87.4	%		87.2	%		87.9	%		86.7	%
Average monthly revenue per unit/bed	$	4,699		$	4,767		$	4,810		$	4,864		$	4,759		$	5,017

Consolidated Totals
Number of communities (period end)		528			529			529			526			526			526
Total units/beds		47,451			47,551			47,640			47,455			47,455			47,540
Total units/beds excluding equity homes		46,556			46,656			46,750			46,569			46,569			46,650
Weighted average occupancy		90.0	%		88.9	%		89.7	%		89.7	%		89.6	%		88.7	%
Average monthly revenue per unit/bed	$	3,759		$	3,791		$	3,786		$	3,830		$	3,791		$	3,961

Management Services
Number of communities (period end)	22		21		21		22		22		22
Total units/beds	4,406		4,296		4,293		4,349		4,349		4,348
Weighted average occupancy	83.4	%	83.7	%	85.3	%	87.4	%	84.9	%	86.3	%

Average Occupancy and Rates based on Average Occupied Units in the Period
The table below represents occupancy based on a consistent treatment of units across all product lines. The table above is a combination of both units and beds.
	FY 2008															FY 2009
		Q1			Q2			Q3			Q4		Full Year				Q1
Retirement Centers
Number of communities (period end)		87			87			87			85			85			85
Total average units		15,623			15,569			15,586			15,127			15,127			15,139
Weighted average unit occupancy		89.3	%		88.4	%		88.9	%		89.0	%		88.9	%		87.5	%
Average monthly revenue per unit	$	3,241		$	3,274		$	3,302		$	3,328		$	3,286		$	3,387
Assisted Living
Number of communities (period end)		409			410			410			409			409			406
Total average units		19,164			19,169			19,298			19,277			19,277			19,064
Weighted average unit occupancy		86.5	%		85.6	%		86.6	%		87.2	%		86.5	%		86.1	%
Average monthly revenue per unit	$	4,235		$	4,251		$	4,228		$	4,234		$	4,237		$	4,427
CCRCs
Number of communities (period end)		32			32			32			32			32			35
Total average units		9,998			10,038			10,076			10,392			10,392			10,679
Weighted average unit occupancy		89.4	%		87.9	%		87.1	%		86.8	%		87.8	%		86.5	%
Average monthly revenue per unit	$	4,701		$	4,779		$	4,829		$	4,887		$	4,799		$	5,030

Consolidated Totals
Number of communities (period end)		528			529			529			526			526			526
Total average units		44,785			44,776			44,960			44,796			44,796			44,882
Weighted average unit occupancy		88.1	%		87.1	%		87.5	%		87.7	%		87.6	%		86.6	%
Average monthly revenue per unit	$	3,989		$	4,026		$	4,036		$	4,073		$	4,031		$	4,215

Page 2 of 8

Brookdale Senior Living Inc.
Same Community, Capital Expenditure and ISC Information
As of March 31, 2009
Same Community Information
($ in 000s, except Avg. Mo. Revenue/unit)
	Three Months Ended March 31,									Twelve Months Ended March 31,
	2009			2008			% Change			2009(1)			2008(2)			% Change
Revenue	$	470,813		$	452,509			4.0	%	$	1,837,935		$	1,768,603			3.9	%
Operating Expense		301,125			290,093			3.8	%		1,199,527			1,136,132			5.6	%
Facility Operating Income	$	169,688		$	162,416			4.5	%	$	638,408		$	632,471			0.9	%
Facility Operating Margin		36.0	%		35.9	%		0.1	%		34.7	%		35.8	%		-1.1	%
# Communities		519			519						517			517
Avg. Period Occupancy		89.1	%		90.1	%		-1.0	%		89.5	%		90.8	%		-1.3	%
Avg. Mo. Revenue/unit	$	3,936		$	3,739			5.3	%	$	3,822		$	3,625			5.4	%
Excluding the $7.0 million of charges relating to integration-related accounting items in the fourth quarter of 2007, the same community data is as follows:
	Three Months Ended March 31,									Twelve Months Ended March 31,
	2009			2008			% Change			2009(1)			2008			% Change
Revenue	$	470,813		$	452,509			4.0	%	$	1,837,935		$	1,768,603			3.9	%
Operating Expense		301,125			290,093			3.8	%		1,199,527			1,129,087			6.2	%
Facility Operating Income	$	169,688		$	162,416			4.5	%	$	638,408		$	639,516			-0.2	%
Facility Operating Margin		36.0	%		35.9	%		0.1	%		34.7	%		36.2	%		-1.5	%

(1) Excludes $4.8 million of expenses related to hurricane and named-tropical storms for the twelve months ended March 31, 2009.

(2) Includes $7.0 million of charges to facility operating expenses in the quarter ended December 31, 2007 which related to the Company's desire to conform its policies across all of its platforms including $5.9 million of estimated uncollectible accounts and $1.1 million of accounting conformity adjustments pertaining to expensing inventory and certain accrual policies.

Schedule of Capital Expenditures							Information on Ancillary Services
($ in 000s)
								Three Months Ended March 31,
	Three Months Ended March 31,							2009		2008
	2009			2008			Brookdale Units Served:
Type							Therapy
Recurring	$	3,326		$	7,197		Legacy ARC		12,711		12,711
Reimbursements		(671	)		(1,160	)	Total		34,180		29,562
Net Recurring		2,655			6,037
Corporate(1)		883			3,914		Home Health
EBITDA-enhancing(2)		3,339			13,921		Legacy ARC		10,087		7,405
							Total		16,498		6,573
Development(3)		25,943			21,181
Reimbursements(4)		(27,036	)		(1,389	)	Avg. Mo. NOI/Occupied Unit
Net Development		(1,093	)		19,792		Legacy ARC	$	243	$	185
Net Total Capital Expenditures	$	5,784		$	43,664		Total	$	167	$	125

(1) Corporate primarily includes capital expenditures for information technology systems and equipment

(2) EBITDA-enhancing capital expenditures generally represent unusual or non-recurring capital items and/or major renovations

(3) Development capital expenditures primarily relate to the facilty expansion and de novo development program

(4) Development reimbursements are typically received after expenditures are actually made.  Only includes cash reimbursement received during the period

Page 3 of 8

Brookdale Senior Living Inc.

Capital Structure - selected financial information

As of March 31, 2009

($ in 000s)

Debt Maturities and Scheduled Principal Repayments
	Initial Maturities
	Mortgage		weighted			Line of		weighted			Mort. Debt		weighted			Capital		weighted			Total
	Debt (1)		rate (2)			Credit		rate (2)			& Line		rate (2)			Leases		rate (2)			Debt
2009 (4)		3,291		7.15	%		20,759		10.00	%		24,050		9.61	%		14,250		8.29	%		38,300
2010		137,195		2.39	%		134,241		10.00	%		271,436		6.15	%		22,322		8.31	%		293,758
2011		323,235		6.76	%		-					323,235		6.76	%		25,420		8.33	%		348,655
2012		876,891		3.54	%		-					876,891		3.54	%		26,402		8.38	%		903,293
2013		488,988		5.02	%		-					488,988		5.02	%		27,676		8.42	%		516,664
Thereafter		266,298		4.69	%		-					266,298		4.69	%		197,792		9.14	%		464,090
Total		2,095,898		4.45	%		155,000		10.00	%		2,250,898		4.83	%		313,862		8.85	%		2,564,760

	Final Maturities (3)
	Mortgage		weighted			Line of		weighted			Mort. Debt		weighted			Capital		weighted			Total
	Debt (1)		rate (2)			Credit		rate (2)			& Line		rate (2)			Leases		rate (2)			Debt
2009 (4)		3,291		7.15	%		20,759		10.00	%		24,050		9.61	%		14,250		8.29	%		38,300
2010		6,195		6.77	%		134,241		10.00	%		140,436		9.86	%		22,322		8.31	%		162,758
2011		295,495		4.03	%		-					295,495		4.03	%		25,420		8.33	%		320,915
2012		875,423		3.53	%		-					875,423		3.53	%		26,402		8.38	%		901,825
2013		522,378		5.85	%		-					522,378		5.85	%		27,676		8.42	%		550,054
Thereafter		393,116		4.93	%		-					393,116		4.93	%		197,792		9.14	%		590,908
Total		2,095,898		4.45	%		155,000		10.00	%		2,250,898		4.83	%		313,862		8.85	%		2,564,760

	Coverage Ratios
		Three months ended March 31, 2009
		Units	FOI	Adj. FOI*	Interest/Cash Lease Payments	Coverage
Owned Communities		18,547	67,288	50,963	32,821	1.6x
Leased Communities		28,993	110,829	85,704	64,579	1.3x

*  Adjusted for 5% management fee and capital expenditures @ $350/unit.

	Debt Amortization
		Three months ended March 31, 2009
		2008	2009
Scheduled Debt Amortization		391	819
Lease Financing Debt Amortization - FMV or no Purchase Option (5)		1,625	1,780
Lease Financing Debt Amortization - Bargain Purchase Option		2,351	2,804
Total Debt Amortization		4,367	5,403

	Line Availability
($000s)		Dec-08	Feb-09	Mar-09
Revolver Balance		159,453	195,000	155,000
Letters of Credit Outstanding (8)		107,261	23,271	20,759
Ending Line Balance		266,714	218,271	175,759
Cash		53,973	42,139	52,507
Total Line Capacity			230,000	220,000
Total Liquidity (Line Availability + Cash)			53,868	96,748
Letters of credit outstanding on line (8)		107,261	23,271	20,759
Other letters of credit		42,475	48,475	48,475
Total letters of credit outstanding (8)		149,736	71,746	69,234

Leverage Ratios
		Annualized
	Balance	Leverage
Mortgage Debt (1)	2,095,898
Capital Leases	313,862
Total Property-Level Debt	2,409,760	7.0x
Plus: Line of Credit (cash borrowings)	155,000
Less: Cash	(52,507)
Less: Cash held as collateral against existing debt	(27,700)
Total Debt	2,484,553	7.2x
Q1 09 Adjusted EBITDA	85,921
Annualized Cash Lease Expense multiplied by 8	2,066,528
Total Adjusted Debt	4,551,081	7.6x
Q1 09 Adjusted EBITDAR	150,500

Debt Structure
		weighted
	Balance	rate (2)
Fixed Rate Mortgage Debt (1)	944,828	6.06%
Variable Rate Mortgage Debt (1)	1,151,070	3.14%
Capital Leases	313,862	8.85%
Line of Credit (cash borrowings)	155,000	10.00%
Total Debt	2,564,760
	Balance	% of total
Variable Rate debt with Interest Rate Swaps (6)	351,840	30.5%
Variable Rate debt with Interest Rate Caps (1), (7)	670,521	58.3%
Variable Rate debt - Unhedged	128,709	11.2%
Total Variable Rate Mortgage Debt	1,151,070	100.0%

(1) Also includes both bond and construction financing.

(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) Assumes extension options are exercised.  These options are mainly at the company's sole discretion.

(4) Gives effect to pending exercise of an extension option.

(5) Payments are included in CFFO.

(6) Weighted swap rate for stated reporting period is 3.74%.

(7) Weighted cap rate for stated reporting period of 6.02% is materially above current market rates, therefore caps have no impact on consolidated interest expense for given period.

(8) Includes $32.2 million of duplicative letters of credit that were returned during the first quarter

Page 4 of 8

Brookdale Senior Living Inc.

CFFO Reconciliation

As of March 31, 2009

($ in 000s)

CFFO Calculation
	Three Months Ended March 31,
	2009			2008
Net cash provided by operating activities (includes non-refundable entrance fees)	$	68,757		$	40,629
Less: Changes in operating assets and liabilities (eliminates cash flow effect)		(11,933	)		4,695
Add: Refundable entrance fees received		3,638			3,492
Less: Entrance fee refunds disbursed		(5,836	)		(3,632	)
Less: Recurring capital expenditures, net		(2,655	)		(6,037	)
Less: Lease financing debt amortization with fair market value or no purchase options		(1,780	)		(1,625	)
Add: Reimbursement of operating expenses and other		-			1,063
Cash From Facility Operations	$	50,191		$	38,585

Revenue Reconciliation
	FY 2008															FY 2009
		Q1			Q2			Q3			Q4		Full Year				Q1
Revenue reconciliation excl. entrance fee amortization
Average monthly revenue per quarter		3,759			3,791			3,786			3,830			3,791			3,961
Average monthly units available		46,520			46,566			46,725			46,576			46,603			46,595
Average occupancy for the quarter		90.0	%		88.9	%		89.7	%		89.7	%		89.6	%		88.7	%
Resident fee revenue	$	472,144		$	470,808		$	476,043		$	480,040		$	1,899,035		$	491,119
Add:  management fee revenue		1,813			2,264			1,527			1,390			6,994			1,717
Total revenues excluding entrance fee amortization	$	473,957		$	473,072		$	477,570		$	481,430		$	1,906,029		$	492,836

CFFO Reconciliation to the Income Statement
Resident fee revenue	$	480,648		$	478,201		$	482,277		$	486,928		$	1,928,054		$	497,946
Less:  Entrance fee amortization		(6,691	)		(5,129	)		(4,707	)		(5,498	)		(22,025	)		(5,110	)
Adjusted revenues		473,957			473,072			477,570			481,430			1,906,029			492,836
Less:  Facility operating expenses		(305,059	)		(306,526	)		(326,214	)		(323,782	)		(1,261,581	)		(318,112	)
Less:  G&A excluding non-cash stock expense		(36,388	)		(40,297	)		(32,948	)		(31,286	)		(140,919	)		(33,707	)
Add:  G&A non-cash stock expense		8,010			8,621			6,737			5,569			28,937			6,809
Net G&A		(28,378	)		(31,676	)		(26,211	)		(25,717	)		(111,982	)		(26,898	)
Less:  Facility lease expense		(67,812	)		(67,199	)		(67,017	)		(67,441	)		(269,469	)		(67,741	)
Add:  Straight-line lease expense		5,751			5,215			4,709			4,910			20,585			4,248
Less:  Amortization of deferred gain		(1,085	)		(1,086	)		(1,086	)		(1,085	)		(4,342	)		(1,086	)
Net lease expense		(63,146	)		(63,070	)		(63,394	)		(63,616	)		(253,226	)		(64,579	)
Entrance fee receipts		6,272			12,597			11,526			12,077			42,472			8,510
Entrance fee disbursements		(3,632	)		(4,843	)		(5,856	)		(4,819	)		(19,150	)		(5,836	)
Net entrance fees		2,640			7,754			5,670			7,258			23,322			2,674
Adjusted EBITDA		80,014			79,554			67,421			75,573			302,562			85,921
Less:  Recurring capital expenditures, net		(6,037	)		(6,614	)		(6,965	)		(7,696	)		(27,312	)		(2,655	)
Less:  Interest expense, net		(34,245	)		(34,264	)		(36,216	)		(35,046	)		(139,771	)		(32,001	)
Less:  Lease financing debt amortization with fair market value or no purchase options		(1,625	)		(1,662	)		(1,688	)		(1,716	)		(6,691	)		(1,780	)
Less:  Other		478			(341	)		(96	)		1,315			1,356			706
Reported CFFO	$	38,585		$	36,673		$	22,456		$	32,430		$	130,144		$	50,191
Add:  hurricane costs		-			-			3,613			1,187			4,800			-
Add:  non-recurring, integration and system costs		2,880			10,447			3,902			2,282			19,511			-
Adjusted CFFO	$	41,465		$	47,120		$	29,971		$	35,899		$	154,455		$	50,191

CFFO Per Share ($)
($ except where indicated)	FY 2008										FY 2009
		Q1		Q2		Q3		Q4	Full Year			Q1
Reported CFFO	$	0.38	$	0.36	$	0.22	$	0.32	$	1.28	$	0.49
Add:  hurricane costs		-		-		0.04		0.01		0.05		-
Add:  non-recurring, integration and system costs		0.03		0.10		0.04		0.02		0.19		-
Adjusted CFFO	$	0.41	$	0.46	$	0.30	$	0.35	$	1.52	$	0.49
Shares used in calculation of CFFO (000's)		102,191		101,477		101,349		101,714		101,683		101,786

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 condensed consolidated financial statements, included in the accompanying earnings release.

Page 5 of 8

Brookdale Senior Living Inc.

Quarterly Entry Fee Information

As of March 31, 2009

	Q1 07	Q2 07	Q3 07	Q4 07	Q1 08	Q2 08	Q3 08	Q4 08	Q1 09
Ending # EF Vacant Units	372	406	379	429	434	416	448	447	475
# Closings	51	60	70	60	40	78	67	65	48
# of Refunds	88	65	75	83	47	69	95	67	69
Cash Basis ($000's)
Resale Receipts:
Proceeds from non-refundable entrance fees (1)	3,916	4,726	5,673	5,015	2,780	5,177	7,253	7,391	4,872
Proceeds from refundable entrance fees (2)	4,258	4,064	8,696	8,901	3,492	7,420	4,273	4,686	3,638
Total Cash Proceeds	8,174	8,790	14,369	13,916	6,272	12,597	11,526	12,077	8,510
Refunds of entrance fees (3)	(6,315)	(4,089)	(5,084)	(4,069)	(3,632)	(4,843)	(5,856)	(4,819)	(5,836)
Net Resale Cash Flow	1,859	4,701	9,285	9,847	2,640	7,754	5,670	7,258	2,674
Average Resale $ (excluding My Choice proceeds)	160,275	143,300	153,486	153,033	145,850	151,244	163,134	178,969	170,042
Average Refund $	(71,761)	(62,908)	(67,787)	(49,024)	(79,830)	(72,623)	(61,642)	(71,925)	(84,580)

Notes:

(1)  From Statement of Cash Flows (Operating Activities section) with line description: Proceeds from deferred entrance fee revenue

(2)  From Statement of Cash Flows (Financing Activities section) with line description: Proceeds from refundable entrance fees (which includes My Choice proceeds)

(3)  From Statement of Cash Flows (Financing Activities section) with line description: Refunds of entrance fees

Value of Unsold Inventory ($ in 000's)
Gross Value @ Average Resale Price of $170,000	80,750
Refund Attachments	(6,795)
Net Cash Value	73,955

Income Statement Impact ($ in 000's)

On BKD's income statement, non-refundable entrance fees are amortized into revenue based on the unamortized balance per contract divided by the actuarial life of the resident. The following are the non-cash amortized non-refundable entrance fees for each quarter:

	Q1 07	Q2 07	Q3 07	Q4 07	Q1 08	Q2 08	Q3 08	Q4 08	Q1 09
Amortization of entrance fees (incl. gains on terminations)	(4,259)	(4,641)	(5,322)	(5,019)	(6,691)	(5,129)	(4,707)	(5,498)	(5,110)

Principles of Entry Fee Accounting

Certain of BKD's communities have residency agreements which require the resident to pay an upfront fee prior to occupying the community and in return for a reduced monthly service fee and certain healthcare benefits.  BKD has a number of options for residents that give a choice of the amount of refundability of the upfront fee, the amount of entry fee for  the unit and the amount of health care benefit in the community’s various levels of care.  The non-refundable portion of the entrance fee is recorded as deferred revenue and amortized over the estimated stay of the resident based on an actuarial valuation.  The refundable portion of a resident’s entrance fee is generally refundable within a certain time period following  contract termination or in certain agreements, upon the resale of a comparable unit or 12 months after the resident vacates the unit and is not amortized.

Page 6 of 8

Brookdale Senior Living Inc.

Quarterly Entry Fee Information

As of March 31, 2009

American Retirement Corporation ("ARC"), acquired in 2006, was active in the entrance fee CCRC business for many years and operated seven such communities.  Prior to the ARC acquisition, BKD acquired three entrance fee CCRC's from a non-profit, the National Benevolent Association, which were in bankruptcy.  BKD has been repositioning those communities by upgrading/renovating, expanding the campus or levels of care offered and changing the form of contract to include such items as life care and health benefits.

Quarterly Entrance Fee Amortization
($ in 000's)	Actual			Actual			Actual			Actual			Actual
		Q1 08			Q2 08			Q3 08			Q4 08			Q1 09
Original ARC Communities
Occupancy		91	%		89	%		88	%		89	%		88	%
Ending # EF Vacant Units		181			222			249			243			271
# EF Closings		29			46			52			48			29
# of EF Refunds		27			44			58			45			41
EF Resale Receipts		4,906			8,729			9,699			8,739			5,344
EF Refunds Paid		(1,823	)		(2,795	)		(4,320	)		(3,644	)		(3,855	)
Net Resale Cash Flow		3,083			5,934			5,379			5,095			1,489
Average EF Resale $ (excluding My Choice proceeds)	$	154		$	177		$	175		$	175		$	174
Average EF Refund $	$	(72	)	$	(65	)	$	(74	)	$	(81	)	$	(94	)
Total NBA Communities
Occupancy		76	%		75	%		75	%		76	%		76	%
Ending # EF Vacant Units		207			194			199			204			204
# EF Closings		11			32			15			17			19
# of EF Refunds (1)		20			25			37			22			28
EF Resale Receipts		1,366			3,868			1,827			3,338			3,166
EF Refunds Paid (1)		(1,809	)		(2,048	)		(1,536	)		(1,175	)		(1,981	)
Net Resale Cash Flow		(443	)		1,820			291			2,163			1,185
Average EF Resale $ (excluding My Choice proceeds)	$	124		$	114		$	122		$	189		$	163
Average EF Refund $	$	(90	)	$	(87	)	$	(42	)	$	(53	)	$	(71	)
Total Consolidated EF Communities
Occupancy		87	%		86	%		85	%		85	%		85	%
Ending # EF Vacant Units		388			416			448			447			475
# EF Closings		40			78			67			65			48
# of EF Refunds		47			69			95			67			69
EF Resale Receipts		6,272			12,597			11,526			12,077			8,510
EF Refunds Paid		(3,632	)		(4,843	)		(5,856	)		(4,819	)		(5,836	)
Net Resale Cash Flow		2,640			7,754			5,670			7,258			2,674
Average EF Resale $ (excluding My Choice proceeds)	$	146		$	151		$	163		$	179		$	170
Average EF Refund $	$	(77	)	$	(70	)	$	(62	)	$	(72	)	$	(85	)
(1)  Includes certain refunds accelerated for repositioning of the community

Page 7 of 8

Brookdale Senior Living Inc.

Quarterly Cash Flow Statements

As of March 31, 2009

($ in 000s)

Cash Flow Statements
		Q1 2008			Q2 2008			Q3 2008			Q4 2008		YTD 2008				Q1 2009
Cash Flows from Operating Activities
Net loss	$	(55,093	)	$	(3,485	)	$	(35,877	)	$	(278,786	)	$	(373,241	)	$	(13,636	)
Adjustments to reconcile net loss to net cash provided by operating activities:
Non-cash portion of loss on extinguishment of debt		2,821			231			-			-			3,052			-
Depreciation and amortization		73,497			71,255			70,070			71,087			285,909			69,675
Goodwill and asset impairment		-			-			-			220,026			220,026			-
Gain on sale of assets		-			-			-			(2,131	)		(2,131	)		(4,455	)
Equity in (earnings) loss of unconsolidated ventures		173			935			(358	)		111			861			(595	)
Distributions received from JVs		190			1,182			546			1,834			3,752			11
Amortization of deferred gain		(1,085	)		(1,086	)		(1,086	)		(1,085	)		(4,342	)		(1,086	)
Amortization of entrance fees		(6,691	)		(5,129	)		(4,707	)		(5,498	)		(22,025	)		(5,110	)
Proceeds from deferred entrance fee revenue		2,780			5,177			7,253			7,391			22,601			4,872
Deferred income tax benefit		(30,662	)		(3,532	)		(23,049	)		(32,255	)		(89,498	)		(8,194	)
Change in deferred lease liability		5,751			5,215			4,709			4,910			20,585			4,248
Change in fair value of derivatives and amortization		45,633			(36,743	)		8,454			50,802			68,146			4,285
Non-cash stock-based compensation		8,010			8,621			6,737			5,569			28,937			6,809
Changes in operating assets and liabilities:
Accounts receivable, net		(6,392	)		(2,067	)		(9,706	)		(6,985	)		(25,150	)		(3,118	)
Prepaid expenses and other assets, net		2,515			12,164			(9,037	)		(18,306	)		(12,664	)		(4,602	)
Accounts payable and accrued expenses		(5,083	)		(11,080	)		19,214			12,377			15,428			4,966
Deferred revenue		3,081			(5,747	)		(726	)		1,206			(2,186	)		15,057
Tenant refundable fees and security deposits		1,184			184			(1,807	)		(854	)		(1,293	)		(370	)
Net cash provided by operating activities		40,629			36,095			30,630			29,413			136,767			68,757
Cash Flows from Investing Activities
Decrease in lease security deposits and lease acquisition deposits, net		1,763			109			544			1,065			3,481			1,480
Increase in cash and escrow deposits — restricted		(20,663	)		16,830			(3,962	)		(13,965	)		(21,760	)		(57,897	)
Additions to property, plant, and equipment and leasehold intangibles,net of related payables		(46,213	)		(41,455	)		(46,511	)		(54,849	)		(189,028	)		(33,491	)
Acquisition of assets, net of related payables and cash received		(745	)		(462	)		(3,898	)		(1,626	)		(6,731	)		-
Payment on (issuance of) notes receivable, net		10,112			29,549			-			(299	)		39,362			(36	)
Investment in unconsolidated ventures		(356	)		(137	)		(670	)		(1,616	)		(2,779	)		(1,106	)
Distributions received from unconsolidated ventures		-			154			146			3,616			3,916			525
Proceeds from sale of business		-			-			-			2,935			2,935			9,166
Proceeds from sale of unconsolidated venture		-			-			4,165			-			4,165			8,843
Net cash (used in) provided by investing activities		(56,102	)		4,588			(50,186	)		(64,739	)		(166,439	)		(72,516	)
Cash Flows from Financing Activities
Proceeds from debt		288,479			155,868			23,422			43,575			511,344			26,521
Repayment of debt and capital lease obligations		(181,327	)		(42,865	)		(5,018	)		(26,279	)		(255,489	)		(10,403	)
Buyout of capital lease obligation														-
Proceeds from line of credit		125,000			45,000			94,757			74,696			339,453			60,446
Repayment of line of credit		(120,000	)		(198,000	)		(60,000	)		-			(378,000	)		(64,899	)
Payment of dividends		(51,897	)		(25,955	)		(25,844	)		(25,759	)		(129,455	)		-
Purchase of treasury stock		-			(20,020	)		(9,167	)		-			(29,187	)		-
Payment of financing costs, net of related payables		(853	)		(12,571	)		(296	)		(572	)		(14,292	)		(6,895	)
Other		(403	)		(400	)		(1,075	)		(1,096	)		(2,974	)		(279	)
Refundable entrance fees:														-
Proceeds from refundable entrance fees		3,492			7,420			4,273			4,686			19,871			3,638
Refunds of entrance fees		(3,632	)		(4,843	)		(5,856	)		(4,819	)		(19,150	)		(5,836	)
Recouponing and payment of swap termination		(23,942	)		(3,180	)		-			(31,018	)		(58,140	)		-
Cash portion of loss on extinguishment of debt		(812	)		(231	)		(197	)		-			(1,240	)		-
Net cash (used in) provided by financing activities		34,105			(99,777	)		14,999			33,414			(17,259	)		2,293
Net increase (decrease) in cash and cash equivalents		18,632			(59,094	)		(4,557	)		(1,912	)		(46,931	)		(1,466	)
Cash and cash equivalents at beginning of period		100,904			119,536			60,442			55,885			100,904			53,973
Cash and cash equivalents at end of period	$	119,536		$	60,442		$	55,885		$	53,973		$	53,973		$	52,507

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