Brookdale Senior Living (BKD) 8-K Brookdale Announces Fourth Quarter and Full Year 2015 Results

Exhibit 99.2

Brookdale Senior Living Inc.

Corporate Overview - selected financial information

As of December 31, 2015

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.  As of December 31, 2015, the Company operates independent living, assisted living and dementia-care communities and continuing care retirement centers ("CCRCs"), with 1,123 communities in 47 states and the ability to serve approximately 108,000 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 Q4 2015 Resident and Management Fees	Percentage of Q4 2015 Facility Operating Income	Percentage of FY 2015 Resident and Management Fees	Percentage of FY 2015 Facility Operating Income
Owned	413	36,304	39.1%	37.7%	38.8%	37.5%
Leased	546	44,763	48.1%	53.2%	48.7%	53.1%
Brookdale Ancillary Services	N/A	N/A	11.3%	4.8%	11.1%	5.2%
Managed	164	27,353	1.5%	4.3%	1.4%	4.2%
Total	1,123	108,420	100.0%	100.0%	100.0%	100.0%
Operating Type - By Segment
Retirement Centers	95	17,140	15.7%	20.2%	15.5%	19.7%
Assisted Living	820	53,504	57.5%	61.0%	57.7%	60.5%
CCRCs - Rental	44	10,423	14.0%	9.7%	14.3%	10.4%
Brookdale Ancillary Services	N/A	N/A	11.3%	4.8%	11.1%	5.2%
Management Services	164	27,353	1.5%	4.3%	1.4%	4.2%
Total	1,123	108,420	100.0%	100.0%	100.0%	100.0%

CFFO Per Share

($ except where indicated)	FY 2014										FY 2015
		Q1		Q2		Q3		Q4	Full Year(2)			Q1		Q2		Q3		Q4	Full Year(2)
CFFO	$	0.54	$	0.61	$	0.14	$	0.28	$	1.57	$	0.48	$	0.44	$	0.36	$	0.44	$	1.72
Add: integration, transaction, transaction-related and EMR roll-out costs (1)		0.10		0.10		0.49		0.25		0.94		0.15		0.16		0.23		0.14		0.68
Adjusted CFFO	$	0.64	$	0.71	$	0.63	$	0.53	$	2.51	$	0.63	$	0.60	$	0.59	$	0.58	$	2.40
Weighted average shares (000's)		124,478		125,058		159,003		183,432				183,678		184,266		184,570		184,805
Period end outstanding shares (excluding unvested restricted shares) (000's)		124,816		125,408		183,410		183,486				184,143		184,500		184,779		184,885

(1) The calculation of Cash From Facility Operations ("CFFO") includes integration, transaction, transaction-related and EMR roll-out costs of $24.9 million and $46.0 million for the three months ended December 31, 2015 and December 31, 2014, respectively, and $123.7 million and $146.4 million for the years ended December 31, 2015 and December 31, 2014, respectively.  For the year ended December 31, 2015, integration costs include $23.9 million of transition costs associated with the Emeritus merger and organizational restructuring (such as severance and retention payments and recruiting expenses), $42.6 million of third party consulting expenses directly related to the integration of Emeritus (in areas such as cost savings and synergy realization, branding and technology and systems work), and $29.4 million of internal costs such as training, travel and labor, reflecting time spent by Company personnel on integration activities and projects.  EMR roll-out costs of $8.9 million for the year ended December 31, 2015 include third party consulting expenses and internal costs such as training, travel and labor, reflecting time spent by Company personnel on the EMR roll-out project.  Transaction and transaction-related costs of $18.9 million for the year ended December 31, 2015 include third party costs directly related to the acquisition of Emeritus, other acquisition and disposition activity, community financing and leasing activity and corporate capital structure assessment activities (including shareholder relations advisory matters), and are primarily comprised of legal, finance, consulting, professional fees and other third party costs.

(2) 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@brookdale.com

Note Regarding Non-GAAP Financial Measures.  This supplemental presentation contains financial measures utilized by management to evaluate the Company's financial and operating performance that are not calculated in accordance with U.S. generally accepted accounting principles ("GAAP").  Each of these measures, Adjusted EBITDA, CFFO, CFFO per share, and Facility Operating Income, should not be considered in isolation from or as superior or a substitute for net income (loss), income (loss) from operations, cash flows provided by or used in operations, or other financial measures determined in accordance with GAAP.  This supplemental presentation should be read in conjunction with the Company's earnings release dated February 8, 2016 and the consolidated financial statements included therein.  The Company strongly urges you to review the information under "Reconciliation of Non-GAAP Financial Measures" in such earnings release for the Company's definitions of each of these non-GAAP financial measures and a reconciliation of each measure to net income (loss).  The Company cautions investors that amounts presented in accordance with the Company's definitions of such financial measures may not be comparable to similar measures disclosed by other companies, because not all companies calculate these non-GAAP financial measures in the same manner.

Page 1

Brookdale Senior Living Inc.

Segment Financial Data

As of December 31, 2015

Financial Data and Operating Information

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

Retirement Centers	FY 2014 (1) (2)															FY 2015
		Q1			Q2			Q3			Q4		Full Year				Q1 (4)			Q2			Q3			Q4		Full Year
Revenue		132,349			133,441			155,227			161,295			582,312			163,486			164,409			164,415			165,630			657,940
Expenses		76,119			76,550			88,022			92,738			333,429			92,962			92,365			94,081			93,275			372,683
Segment Operating Income		56,230			56,891			67,205			68,557			248,883			70,524			72,044			70,334			72,355			285,257
Segment Operating Margin		42.5	%		42.6	%		43.3	%		42.5	%		42.7	%		43.1	%		43.8	%		42.8	%		43.7	%		43.4	%
Number of communities (period end)		74			74			100			99			99			99			98			98			95			95
Total average units(5)		14,161			14,162			16,594			17,315			15,558			17,369			17,279			17,289			17,293			17,308
Weighted average unit occupancy		89.3	%		88.9	%		89.8	%		89.9	%		89.5	%		88.8	%		88.4	%		88.7	%		89.1	%		88.8	%
Senior Housing average monthly revenue per unit(6)	$	3,490		$	3,532		$	3,472		$	3,454		$	3,485		$	3,533		$	3,589		$	3,573		$	3,584		$	3,570
Assisted Living	FY 2014 (2)															FY 2015
		Q1			Q2			Q3			Q4		Full Year				Q1 (4)			Q2			Q3			Q4		Full Year
Revenue		277,431			277,230			516,640			614,262			1,685,563			617,344			611,838			608,393			607,882			2,445,457
Expenses		172,439			172,984			328,486			403,165			1,077,074			393,838			388,479			397,180			388,657			1,568,154
Segment Operating Income		104,992			104,246			188,154			211,097			608,489			223,506			223,359			211,213			219,225			877,303
Segment Operating Margin		37.8	%		37.6	%		36.4	%		34.4	%		36.1	%		36.2	%		36.5	%		34.7	%		36.1	%		35.9	%
Number of communities (period end)		440			440			841			838			838			837			833			832			820			820
Total average units(5)		22,435			22,463			45,260			55,241			36,350			55,073			54,700			54,592			54,492			54,714
Weighted average unit occupancy		89.6	%		89.0	%		88.8	%		88.2	%		88.7	%		87.2	%		86.4	%		86.5	%		86.6	%		86.7	%
Senior Housing average monthly revenue per unit(6)	$	4,599		$	4,622		$	4,286		$	4,203		$	4,356		$	4,283		$	4,316		$	4,292		$	4,296		$	4,297
CCRCs - Rental	FY 2014 (1) (2) (3)															FY 2015
		Q1			Q2			Q3			Q4		Full Year				Q1(4)			Q2			Q3			Q4		Full Year
Revenue		97,944			98,212			144,074			152,943			493,173			155,991			151,561			149,572			147,448			604,572
Expenses		71,114			72,519			109,582			118,297			371,512			117,420			115,701			108,177			112,779			454,077
Segment Operating Income		26,830			25,693			34,492			34,646			121,661			38,571			35,860			41,395			34,669			150,495
Segment Operating Margin		27.4	%		26.2	%		23.9	%		22.7	%		24.7	%		24.7	%		23.7	%		27.7	%		23.5	%		24.9	%
Number of communities (period end)		26			26			45			45			45			45			46			45			44			44
Total average units(5)		6,457			6,469			9,783			10,483			8,298			10,480			10,543			10,515			10,405			10,486
Weighted average unit occupancy		86.6	%		85.9	%		85.1	%		85.9	%		85.8	%		86.0	%		83.6	%		83.9	%		83.9	%		84.4	%
Senior Housing average monthly revenue per unit(6)	$	5,839		$	5,894		$	5,740		$	5,637		$	5,757		$	5,744		$	5,697		$	5,626		$	5,601		$	5,668
CCRCs - Entry Fee	FY 2014 (2) (3)																FY 2015
		Q1			Q2			Q3			Q4		Full Year				Q1			Q2			Q3			Q4		Full Year
Revenue		79,169			79,100			44,145			-			202,414			-			-			-			-			-
Expenses		59,534			60,733			33,714			-			153,981			-			-			-			-			-
Segment Operating Income		19,635			18,367			10,431			-			48,433			-			-			-			-			-
Segment Operating Margin		24.8	%		23.2	%		23.6	%		-			23.9	%		-			-			-			-			-
Number of communities (period end)		15			15			-			-			-			-			-			-			-			-
Total average units(5)		5,527			5,534			2,954			-			3,504			-			-			-			-			-
Weighted average unit occupancy		84.7	%		84.7	%		87.0	%		-			85.2	%		-			-			-			-			-
Senior Housing average monthly revenue per unit(6)	$	5,124		$	5,091		$	5,085		$	-		$	5,103		$	-		$	-		$	-		$	-		$	-

Total Senior Housing	FY 2014 (2)												FY 2015
		Q1		Q2		Q3		Q4		Full Year				Q1(4)		Q2		Q3		Q4		Full Year
Revenue		586,893		587,983		860,086		928,500			2,963,462			936,821		927,808		922,380		920,960			3,707,969
Expenses		379,206		382,786		559,804		614,200			1,935,996			604,220		596,545		599,438		594,711			2,394,914
Operating Income		207,687		205,197		300,282		314,300			1,027,466			332,601		331,263		322,942		326,249			1,313,055
Operating Margin		35.4	%	34.9	%	34.9	%	33.9	%		34.7	%		35.5	%	35.7	%	35.0	%	35.4	%		35.4	%
G&A Allocation(7)		24,396		22,589		33,912		35,365			116,262			42,093		37,399		36,968		42,881			159,341
Adjusted Operating Income		183,291		182,608		266,370		278,935			911,204			290,508		293,864		285,974		283,368			1,153,714
Adjusted Operating Margin		31.2	%	31.1	%	31.0	%	30.0	%		30.7	%		31.0	%	31.7	%	31.0	%	30.8	%		31.1	%

Number of communities (period end)		555			555			986			982			982			981			977			975			959			959
Total average units(5)		48,580			48,628			74,591			83,039			63,710			82,922			82,522			82,396			82,190			82,508
Weighted average unit occupancy		88.6	%		88.1	%		88.5	%		88.3	%		88.3	%		87.4	%		86.5	%		86.7	%		86.8	%		86.8	%
Senior Housing average monthly revenue per unit(6)	$	4,491		$	4,518		$	4,317		$	4,220		$	4,357		$	4,305		$	4,331		$	4,303		$	4,302		$	4,310

Page 2

Brookdale Senior Living Inc.

Segment Financial Data

As of December 31, 2015

Financial Data and Operating Information (continued)

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

Brookdale Ancillary Services	FY 2014 (2)												FY 2015
		Q1		Q2		Q3		Q4		Full Year				Q1		Q2		Q3		Q4		Full Year
Revenue		63,417		65,534		95,426		113,458			337,835			115,411		116,170		117,702		119,875			469,158
Expenses		50,664		52,629		77,280		93,799			274,372			92,669		98,446		100,282		102,551			393,948
Segment Operating Income		12,753		12,905		18,146		19,659			63,463			22,742		17,724		17,420		17,324			75,210
Segment Operating Margin		20.1	%	19.7	%	19.0	%	17.3	%		18.8	%		19.7	%	15.3	%	14.8	%	14.5	%		16.0	%
G&A Allocation(7)		5,642		5,908		5,709		9,050			26,309			8,251		7,811		6,678		8,203			30,943
Adjusted Segment Operating Income		7,111		6,997		12,437		10,609			37,154			14,491		9,913		10,742		9,121			44,267
Adjusted Segment Operating Margin		11.2	%	10.7	%	13.0	%	9.4	%		11.0	%		12.6	%	8.5	%	9.1	%	7.6	%		9.4	%
Brookdale units served:
Outpatient Therapy		52,112		52,270		56,615		54,007						59,660		61,385		66,581		63,938
Home Health		47,337		47,397		49,290		55,960						63,497		64,307		66,078		65,936
Outpatient Therapy treatment codes		812,632		798,754		762,993		679,057			3,053,436			636,413		667,836		612,970		588,984			2,506,203
Home Health average census		5,084		5,257		10,314		12,723			8,345			13,767		13,884		14,126		15,065			14,211

Total Senior Housing and Brookdale Ancillary Services	FY 2014 (2)												FY 2015
		Q1		Q2		Q3		Q4		Full Year				Q1 (4)		Q2		Q3		Q4		Full Year
Revenue		650,310		653,517		955,512		1,041,958			3,301,297			1,052,232		1,043,978		1,040,082		1,040,835			4,177,127
Expenses		429,870		435,415		637,084		707,999			2,210,368			696,889		694,991		699,720		697,262			2,788,862
Operating Income		220,440		218,102		318,428		333,959			1,090,929			355,343		348,987		340,362		343,573			1,388,265
Operating Margin		33.9	%	33.4	%	33.3	%	32.1	%		33.0	%		33.8	%	33.4	%	32.7	%	33.0	%		33.2	%
G&A Allocation(7)		30,038		28,497		39,621		44,415			142,571			50,344		45,210		43,646		51,084			190,284
Adjusted Operating Income		190,402		189,605		278,807		289,544			948,358			304,999		303,777		296,716		292,489			1,197,981
Adjusted Operating Margin		29.3	%	29.0	%	29.2	%	27.8	%		28.7	%		29.0	%	29.1	%	28.5	%	28.1	%		28.7	%

Management Services	FY 2014 (2)															FY 2015
		Q1			Q2			Q3			Q4		Full Year				Q1 (4)			Q2			Q3			Q4		Full Year
Revenue (Management Fees)		7,402			7,489			10,428			16,920			42,239			15,097			14,839			14,694			15,553			60,183
Expenses (G&A Allocation)(7)		6,116			5,649			7,453			10,732			29,950			9,755			8,878			9,978			11,506			40,117
Segment Operating Income		1,286			1,840			2,975			6,188			12,289			5,342			5,961			4,716			4,047			20,066
Segment Operating Margin		17.4	%		24.6	%		28.5	%		36.6	%		29.1	%		35.4	%		40.2	%		32.1	%		26.0	%		33.3	%
Number of communities (period end)		92			92			161			161			161			160			160			157			164			164
Total average units(5)		17,140			16,978			20,919			27,318			20,589			27,185			27,026			26,590			26,464			26,834
Weighted average occupancy		86.3	%		86.8	%		86.3	%		86.4	%		86.5	%		86.5	%		85.2	%		85.8	%		86.6	%		86.0	%
Senior Housing average monthly revenue per unit(6)	$	3,706		$	3,701		$	3,949		$	4,236		$	3,943		$	4,277		$	4,238		$	4,224		$	4,246		$	4,249

Total Senior Housing, Brookdale Ancillary and Management Services	FY 2014 (2)												FY 2015
		Q1		Q2		Q3		Q4		Full Year				Q1 (4)		Q2		Q3		Q4		Full Year
Revenue		657,712		661,006		965,940		1,058,878			3,343,536			1,067,329		1,058,817		1,054,776		1,056,388			4,237,310
Expenses		429,870		435,415		637,084		707,999			2,210,368			696,889		694,991		699,720		697,262			2,788,862
Operating Income		227,842		225,591		328,856		350,879			1,133,168			370,440		363,826		355,056		359,126			1,448,448
Operating Margin		34.6	%	34.1	%	34.0	%	33.1	%		33.9	%		34.7	%	34.4	%	33.7	%	34.0	%		34.2	%
G&A Allocation (7)		36,154		34,146		47,074		55,147			172,521			60,099		54,088		53,624		62,590			230,401
Adjusted Operating Income		191,688		191,445		281,782		295,732			960,647			310,341		309,738		301,432		296,536			1,218,047
Adjusted Operating Margin		29.1	%	29.0	%	29.2	%	27.9	%		28.7	%		29.1	%	29.3	%	28.6	%	28.1	%		28.7	%

Page 3

Brookdale Senior Living Inc.

Segment Financial Data

As of December 31, 2015

Financial Data and Operating Information (continued)

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

(1) During the quarter ended December 31, 2014, one community was moved from the Retirement Centers segment to the CCRCs - Rental segment to more accurately reflect the underlying product offering of the community. The movement did not change the Company's reportable segments, but it did impact the financial data and operating information reported within the Retirement Centers and CCRCs - Rental segments.  Prior quarters have not been recast.

(2) The third quarter of 2014 represents the first quarter of results that include the operations of Emeritus, which the Company acquired on July 31, 2014, as well as the impact from the transactions with HCP, Inc., which closed on August 29, 2014.  Results from the third and fourth quarter of 2014 reflect the impact of those transactions, and results from the first and second quarter of 2014 reflect legacy Brookdale on a stand-alone basis.

(3) In connection with the transactions completed with HCP on August 29, 2014, the Company contributed all but two of its entry fee CCRCs to the entry fee CCRC venture with HCP, at which time the communities were deconsolidated.  The results of the entry fee CCRCs contributed to the venture are reported in the Company's CCRCs - Entry Fee segment for the time periods prior to being contributed to the venture. The results of the two remaining entry fee CCRCs are reported in the Company's CCRCs - Rental segment beginning with the third quarter of 2014. The Company no longer reports operating results for a CCRCs – Entry Fee segment.

(4) Certain prior period expense amounts have been reclassified to conform to the current financial statement presentation, with no effect on the Company's consolidated financial position or results of operations.

(5) Total average units operated represents the average number of units operated during the period, excluding equity homes.

(6) Senior Housing average monthly revenue per unit represents the average of total monthly revenues, excluding amortization of entrance fees and Brookdale Ancillary Services segment revenue, divided by average occupied units.

(7) Excludes non-cash stock-based compensation expense and integration, transaction, transaction-related and EMR roll-out costs.

Page 4

Brookdale Senior Living Inc.

Senior Housing Data by Ownership Type

As of December 31, 2015

Financial Data and Operating Information

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

Owned Properties	FY 2014 (1)															FY 2015
		Q1			Q2			Q3			Q4		Full Year				Q1 (2)			Q2			Q3			Q4		Full Year
Revenue		277,700			277,748			369,078			385,654			1,310,180			412,555			411,576			409,249			412,678			1,646,058
Expenses		182,706			184,773			247,359			260,901			875,739			276,225			274,608			274,427			277,509			1,102,769
Segment Operating Income		94,994			92,975			121,719			124,753			434,441			136,330			136,968			134,822			135,169			543,289
Segment Operating Margin		34.2	%		33.5	%		33.0	%		32.3	%		33.2	%		33.0	%		33.3	%		32.9	%		32.8	%		33.0	%
Number of communities (period end)		226			226			403			399						422			424			424			413
Total average units(3)		22,775			22,799			32,079			34,904						36,923			37,182			37,128			37,431
Weighted average unit occupancy		88.5	%		88.0	%		88.2	%		87.6	%					86.5	%		85.4	%		85.7	%		85.9	%
Senior Housing average monthly revenue per unit(4)	$	4,516		$	4,532		$	4,302		$	4,202					$	4,305		$	4,319		$	4,286		$	4,277
Leased Properties with Purchase Options	FY 2014 (1)															FY 2015
		Q1			Q2			Q3			Q4		Full Year				Q1 (2)			Q2			Q3			Q4		Full Year
Revenue		77,863			77,418			87,008			86,441			328,730			82,064			79,516			79,568			75,462			316,610
Expenses		49,497			49,719			57,026			57,839			214,081			52,414			50,638			51,187			47,852			202,091
Segment Operating Income		28,366			27,699			29,982			28,602			114,649			29,650			28,878			28,381			27,610			114,519
Segment Operating Margin		36.4	%		35.8	%		34.5	%		33.1	%		34.9	%		36.1	%		36.3	%		35.7	%		36.6	%		36.2	%
Number of communities (period end)		84			84			111			112						103			101			101			96
Total average units(3)		6,391			6,391			7,347			7,555						7,027			6,803			6,806			6,340
Weighted average unit occupancy		89.0	%		88.4	%		88.6	%		88.5	%					87.8	%		86.7	%		87.4	%		88.2	%
Senior Housing average monthly revenue per unit(4)	$	4,447		$	4,440		$	4,394		$	4,312					$	4,433		$	4,492		$	4,458		$	4,498
Leased Properties without Purchase Options	FY 2014 (1)															FY 2015
		Q1			Q2			Q3			Q4		Full Year				Q1 (2)			Q2			Q3			Q4		Full Year
Revenue		231,330			232,817			404,000			456,405			1,324,552			442,202			436,716			433,563			432,820			1,745,301
Expenses		147,003			148,294			255,419			295,460			846,176			275,581			271,299			273,824			269,350			1,090,054
Segment Operating Income		84,327			84,523			148,581			160,945			478,376			166,621			165,417			159,739			163,470			655,247
Segment Operating Margin		36.5	%		36.3	%		36.8	%		35.3	%		36.1	%		37.7	%		37.9	%		36.8	%		37.8	%		37.5	%
Number of communities (period end)		245			245			472			471						456			452			450			450
Total average units(3)		19,414			19,438			35,165			40,580						38,972			38,537			38,462			38,419
Weighted average unit occupancy		88.2	%		87.9	%		88.6	%		88.8	%					88.2	%		87.4	%		87.5	%		87.3	%
Senior Housing average monthly revenue per unit(4)	$	4,491		$	4,533		$	4,314		$	4,218					$	4,282		$	4,313		$	4,289		$	4,294

Total Senior Housing	FY 2014 (1)												FY 2015
		Q1		Q2		Q3		Q4		Full Year				Q1 (2)		Q2		Q3		Q4		Full Year
Revenue		586,893		587,983		860,086		928,500			2,963,462			936,821		927,808		922,380		920,960			3,707,969
Expenses		379,206		382,786		559,804		614,200			1,935,996			604,220		596,545		599,438		594,711			2,394,914
Operating Income		207,687		205,197		300,282		314,300			1,027,466			332,601		331,263		322,942		326,249			1,313,055
Operating Margin		35.4	%	34.9	%	34.9	%	33.9	%		34.7	%		35.5	%	35.7	%	35.0	%	35.4	%		35.4	%

Number of communities (period end)		555			555			986			982			981			977			975			959
Total average units(3)		48,580			48,628			74,591			83,039			82,922			82,522			82,396			82,190
Weighted average unit occupancy		88.6	%		88.1	%		88.5	%		88.3	%		87.4	%		86.5	%		86.7	%		86.8	%
Senior Housing average monthly revenue per unit(4)	$	4,491		$	4,518		$	4,317		$	4,220		$	4,305		$	4,331		$	4,303		$	4,302

(1) The third quarter of 2014 represents the first quarter of results that include the operations of Emeritus, which the Company acquired on July 31, 2014, as well as the impact from the transactions with HCP, Inc., which closed on August 29, 2014.  Results from the third and fourth quarter of 2014 reflect the impact of those transactions, and results from the first and second quarter of 2014 reflect legacy Brookdale on a stand-alone basis.

(2) Certain prior period expense amounts have been reclassified to conform to the current financial statement presentation, with no effect on the Company's consolidated financial position or results of operations.

(3) Total average units operated represents the average number of units operated during the period, excluding equity homes.

(4) Senior Housing average monthly revenue per unit represents the average of total monthly revenues, excluding amortization of entrance fees and Brookdale Ancillary Services segment revenue, divided by average occupied units.

Page 5

Brookdale Senior Living Inc.

Same Community and Capital Expenditure Information

As of December 31, 2015

Same Community Information

($ in 000s, except Avg. Mo. Revenue/Unit)

	Legacy Brookdale Senior Housing									Legacy Brookdale Senior Housing
	Three Months Ended December 31,									Year Ended December 31,
	2015			2014			% Change			2015			2014			% Change
Revenue	$	493,094		$	490,942			0.4	%	$	1,932,950		$	1,905,869			1.4	%
Operating Expense		318,962			329,739			-3.3	%		1,240,908			1,235,309			0.5	%
Same Community Operating Income	$	174,132		$	161,203			8.0	%	$	692,042		$	670,560			3.2	%
Same Communitity Operating Margin		35.3	%		32.8	%		2.5	%		35.8	%		35.2	%		0.6	%
# Communities		511			511						505			505
Avg. Period Occupancy		87.2	%		89.0	%		-1.8	%		87.3	%		89.0	%		-1.7	%
Avg. Mo. Revenue/Unit	$	4,616		$	4,506			2.4	%	$	4,626		$	4,475			3.4	%
		Legacy Emeritus Senior Housing									Legacy Emeritus Senior Housing
	Three Months Ended December 31,									Year Ended December 31,
		2015			2014		% Change				2015			2014		% Change
Revenue	$	388,620		$	394,181			-1.4	%	$	1,561,307		$	1,583,870			-1.4	%
Operating Expense		250,525			255,531			-2.0	%		1,017,816			1,032,754			-1.4	%
Same Community Operating Income	$	138,095		$	138,650			-0.4	%	$	543,491		$	551,116			-1.4	%
Same Communitity Operating Margin		35.5	%		35.2	%		0.3	%		34.8	%		34.8	%		0.0	%
# Communities		433			433						433			433
Avg. Period Occupancy		86.7	%		88.5	%		-1.8	%		86.7	%		88.9	%		-2.2	%
Avg. Mo. Revenue/Unit	$	3,937		$	3,908			0.7	%	$	3,943		$	3,903			1.0	%
	Combined Brookdale and Emeritus Senior Housing										Combined Brookdale and Emeritus Senior Housing
	Three Months Ended December 31,									Year Ended December 31,
		2015			2014		% Change				2015			2014		% Change
Revenue	$	881,714		$	885,123			-0.4	%	$	3,494,257		$	3,489,739			0.1	%
Operating Expense		569,487			585,270			-2.7	%		2,258,724			2,268,063			-0.4	%
Same Community Operating Income	$	312,227		$	299,853			4.1	%	$	1,235,533		$	1,221,676			1.1	%
Same Communitity Operating Margin		35.4	%		33.9	%		1.5	%		35.4	%		35.0	%		0.4	%
# Communities		944			944						938			938
Avg. Period Occupancy		86.9	%		88.8	%		-1.9	%		87.0	%		88.9	%		-1.9	%
Avg. Mo. Revenue/Unit	$	4,290		$	4,218			1.7	%	$	4,293		$	4,196			2.3	%
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 December 31,									Year Ended December 31,
Type		2015			2014						2015			2014
Recurring	$	16,484		$	16,353					$	69,720		$	50,762
Reimbursements		(2,506	)		-						(8,783	)		-
Net Recurring		13,978			16,353						60,937			50,762
EBITDA-enhancing / Major Projects (1)		72,484			35,727						179,720			109,209
Program Max, net (2)		12,384			16,210						37,428			60,587
Corporate, integration and other (3)		22,376			16,850						83,822			49,055
Total Capital Expenditures, net of lessor reimbursement (4)	$	121,222		$	85,140					$	361,907		$	269,613

(1)  Includes EBITDA-enhancing projects (primarily community renovations and apartment upgrades) and other major building infrastructure projects. Amounts shown are amounts invested, net of third party lessor funding received of $16.6 million and $49.7 million for the three and twelve months ended December 31, 2015, respectively. There was no third party lessor funding received during 2014.

(2)  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 $6.6 million for each of the three months ended December 31, 2015 and 2014, respectively and $28.3 million and $34.6 million for the year ended December 31, 2015 and 2014, respectively.

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

(4)  Amounts shown are gross expenditures (including related payables), net of lessor reimbursements. Approximately $15.5 million and $16.9 million of expense was recognized during the three months ended December 31, 2015 and 2014, respectively, and $63.5 million and $51.4 million was recognized during the year ended December 31, 2015 and 2014, respectively for normal repairs and maintenance and capital spend under $1,500 per invoice, except for unit turnovers.

Page 6

Brookdale Senior Living Inc.

Capital Structure - selected financial information

As of December 31, 2015

($ in 000s)

Debt Maturities and Scheduled Principal Repayments

	Maturities
	Mortgage		weighted			Line of		weighted			Capital and		weighted			Total
	Debt (1)		rate (2)			Credit		rate (2)			Financing Leases		rate (2)			Debt
2016 (3)	$	173,454		4.83	%	$	-		-		$	62,150		7.92	%	$	235,604
2017		300,106		5.50	%		-		-			91,992		8.43	%		392,098
2018		1,174,220		4.43	%		-		-			115,541		7.87	%		1,289,761
2019		141,303		5.72	%		-		-			99,276		7.45	%		240,579
2020		488,678		4.96	%		310,000		3.82	%		48,876		7.57	%		847,554
Thereafter		1,355,064		3.71	%		-		-			2,071,753		8.16	%		3,426,817
Total	$	3,632,825		4.39	%	$	310,000		3.82	%	$	2,489,588		8.11	%	$	6,432,413

Coverage Ratios

	Year ended December 31, 2015 (4)
			Senior Housing
	Units		Operating Income		Adj. Operating Income **		Interest/Cash Lease Payments		Coverage
Owned communities		36,304	$	543,289	$	448,264	$	173,484		2.6x
Leased communities *		44,763	$	769,766	$	651,005	$	611,104		1.1x

*  Leased communities include capital leases.

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

Debt Amortization

	Year ended December 31,
	2015		2014
Scheduled debt amortization	$	84,597	$	65,505
Lease financing debt amortization - FMV or no purchase option(5)		51,296		28,618
Lease financing debt amortization - bargain purchase option		6,116		13,417
Total debt amortization	$	142,009	$	107,540

Line Availability

	12/31/14		03/31/15		06/30/15		09/30/15		12/31/15
Total line commitment	$	500,000	$	500,000	$	500,000	$	500,000	$	500,000
Line of credit (6)	$	488,389	$	466,746	$	468,092	$	443,378	$	416,605
Ending line balance		100,000		300,000		270,000		310,000		310,000
Available to draw	$	388,389	$	166,746	$	198,092	$	133,378	$	106,605
Cash and cash equivalents		104,083		115,182		78,496		70,391		88,029
Total liquidity (available to draw + cash)	$	492,472	$	281,928	$	276,588	$	203,769	$	194,634
Total letters of credit outstanding	$	72,730	$	83,935	$	83,685	$	83,940	$	82,413

Leverage Ratios (7)

				Annualized
				Leverage
Year ended December 31, 2015 Adjusted EBITDAR	$	1,282,310
Less: cash lease expense		(370,105	)
Adjusted EBITDA		912,205
Less: cash capital and financing lease payments		(233,824	)
Adjusted EBITDA after capital and financing lease payments		678,381
Debt (1)		3,632,825			5.4	x
Line of credit		310,000
Less: unrestricted cash		(88,029	)
Less: cash held as collateral against existing debt		(3,429	)
Total net debt		3,851,367			5.7	x
Plus: cash capital and financing lease payments multiplied by 8		1,870,592
Total net debt including capital and financing leases		5,721,959			6.3	x
Cash lease expense multiplied by 8		2,960,840
Total adjusted net debt	$	8,682,799			6.8	x

Debt Structure

			Weighted
	Balance		rate (2)
Fixed rate debt (1)	$	2,356,258		5.19	%
Variable rate debt (1)		1,276,567		2.90	%
Capital and financing leases		2,489,588		8.11	%
Line of credit (cash borrowings)		310,000		3.82	%
Total debt	$	6,432,413
	Balance		% of total
Variable rate debt with interest rate caps (1) (8)	$	953,641		74.7	%
Variable rate debt - unhedged (1)		322,926		25.3	%
Total variable rate debt (1)	$	1,276,567		100.0	%

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

(2) Pertaining to variable rate debt, reflects a) market rates as of December 31, 2015 and b) applicable cap rates for hedged debt.

(3) Maturities of mortgage debt in 2016 includes the following debt instruments with post-2016 scheduled maturity dates: (i) $61 million of debt on Assets Held for Sale and (ii) 29 million of demand notes payable to the unconsolidated entrance fee venture, which we utilize in certain states in lieu of cash reserves.

(4) Senior housing operating income and adjusted operating income exclude Brookdale Ancillary Services segment operating income.

(5) Payments are included in CFFO.

(6) The actual amount available to borrow under the line of credit 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.

(7) Adjusted EBITDAR and Adjusted EBITDA as reported in the calculation of leverage ratios exclude integration, transaction, transaction-related and EMR roll-out costs of $116.8 million (excluding $6.9 million of debt modification costs included in CFFO) and cash lease payments for communities acquired during the year, of which $2.0 million and $5.1 million related to operating leases and capital and financial leases, respectively.

(8) Weighted cap rate for stated reporting period of 4.33% is materially above current market rates, therefore caps have no impact on consolidated interest expense for given period.

Page 7

Brookdale Senior Living Inc.

CFFO Reconciliation

As of December 31, 2015

Revenue Reconciliation (1)

($ in 000s except average monthly revenue per quarter)

	FY 2014															FY 2015															Q4 2015 CFFO Distribution
		Q1			Q2			Q3			Q4		Full Year				Q1 (3)			Q2			Q3			Q4		Full Year			Owned			Other (4)			Transaction/ Integration
Revenue reconciliation excl. entrance fee amortization
Average monthly revenue per quarter	$	4,491		$	4,518		$	4,317		$	4,220		$	4,357		$	4,305		$	4,331		$	4,303		$	4,302		$	4,310		$	4,277		$	4,344		$	-
Average monthly units (excluding equity homes) available		48,562			48,608			74,538			82,995			63,731			82,927			82,470			82,358			82,132			82,524			37,442			44,752			-
Average occupancy for the quarter		88.6	%		88.1	%		88.5	%		88.3	%		88.3	%		87.4	%		86.5	%		86.7	%		86.8	%		86.8	%		85.9	%		87.0	%		-
Senior Housing resident fee revenue	$	579,691		$	580,436		$	854,329		$	927,786		$	2,942,242		$	936,054		$	926,878		$	921,761		$	920,072		$	3,704,765		$	412,678		$	507,394		$	-
Add:  Brookdale Ancillary Services segment revenue		63,417			65,534			95,426			113,458			337,835			115,411			116,170			117,702			119,875			469,158			-			119,875			-
Add:  Management fee revenue		7,402			7,489			10,428			16,920			42,239			15,097			14,839			14,694			15,553			60,183			-			15,553			-
Total revenues excluding entrance fee amortization	$	650,510		$	653,459		$	960,183		$	1,058,164		$	3,322,316		$	1,066,562		$	1,057,887		$	1,054,157		$	1,055,500		$	4,234,106		$	412,678		$	642,822		$	-
CFFO Reconciliation to the Income Statement
($ in 000s)
Resident and management fee revenue	$	657,712		$	661,006		$	965,940		$	1,058,878		$	3,343,536		$	1,067,329		$	1,058,817		$	1,054,776		$	1,056,388		$	4,237,310		$	412,678		$	643,710		$	-
Less: Entrance fee amortization		(7,202	)		(7,547	)		(5,757	)		(714	)		(21,220	)		(767	)		(930	)		(619	)		(888	)		(3,204	)		-			(888	)		-
Adjusted revenues		650,510			653,459			960,183			1,058,164			3,322,316			1,066,562			1,057,887			1,054,157			1,055,500			4,234,106			412,678			642,822			-
Less: Facility operating expenses		(429,870	)		(435,415	)		(637,084	)		(707,999	)		(2,210,368	)		(696,889	)		(694,991	)		(699,720	)		(697,262	)		(2,788,862	)		(277,509	)		(419,753	)		-
Add:  Change in future service obligation		-			-			-			670			670			-			-			-			(941	)		(941	)		-			(941	)		-
Adjusted facility operating expenses		(429,870	)		(435,415	)		(637,084	)		(707,329	)		(2,209,698	)		(696,889	)		(694,991	)		(699,720	)		(698,203	)		(2,789,803	)		(277,509	)		(420,694	)		-
Less: G&A including non-cash stock-based compensation expense		(44,665	)		(47,008	)		(90,020	)		(98,574	)		(280,267	)		(89,530	)		(89,545	)		(99,534	)		(91,970	)		(370,579	)		(20,989	)		(47,381	)		(23,600	)
Less: Transaction costs		(10,844	)		(6,808	)		(41,572	)		(7,725	)		(66,949	)		(6,742	)		(421	)		-			(1,089	)		(8,252	)		-			-			(1,089	)
Add:  G&A non-cash stock-based compensation expense		7,572			7,729			7,869			5,129			28,299			8,873			6,851			10,147			5,780			31,651			1,774			4,006			-
Net G&A (5)		(47,937	)		(46,087	)		(123,723	)		(101,170	)		(318,917	)		(87,399	)		(83,115	)		(89,387	)		(87,279	)		(347,180	)		(19,215	)		(43,375	)		(24,689	)
Less: Facility lease expense		(69,869	)		(70,030	)		(91,462	)		(92,469	)		(323,830	)		(94,471	)		(91,338	)		(91,144	)		(90,621	)		(367,574	)		-			(90,621	)		-
Add:  Straight-line lease expense		(223	)		(217	)		2,840			(961	)		1,439			2,801			1,919			1,731			505			6,956			-			505			-
Add: Amortization of (above) below market lease, net		-			-			(1,377	)		(2,067	)		(3,444	)		(1,959	)		(1,840	)		(1,626	)		(1,733	)		(7,158	)		-			(1,733	)		-
Less: Amortization of deferred gain		(1,093	)		(1,093	)		(1,093	)		(1,093	)		(4,372	)		(1,093	)		(1,093	)		(1,093	)		(1,093	)		(4,372	)		-			(1,093	)		-
Net lease expense		(71,185	)		(71,340	)		(91,092	)		(96,590	)		(330,207	)		(94,722	)		(92,352	)		(92,132	)		(92,942	)		(372,148	)		-			(92,942	)		-
Add:  Entrance fee receipts		14,959			25,924			9,576			2,587			53,046			2,491			3,408			4,498			2,655			13,052			-			2,655			-
Less: Entrance fee disbursements		(8,446	)		(9,213	)		(7,668	)		(538	)		(25,865	)		(829	)		(988	)		(1,434	)		(1,160	)		(4,411	)		-			(1,160	)		-
Net entrance fees		6,513			16,711			1,908			2,049			27,181			1,662			2,420			3,064			1,495			8,641			-			1,495			-
Add:  CFFO from unconsolidated ventures (6)		2,241			1,996			9,435			11,662			25,334			14,213			11,177			15,481			18,896			59,767			-			18,896			-
Adjusted EBITDA		110,272			119,324			119,627			166,786			516,009			203,427			201,026			191,463			197,467			793,383			115,954			106,202			(24,689	)
Less: Recurring capital expenditures, net		(9,369	)		(11,841	)		(13,199	)		(16,353	)		(50,762	)		(15,003	)		(17,425	)		(14,531	)		(13,978	)		(60,937	)		(5,825	)		(8,153	)		-
Less: Interest expense, net		(29,677	)		(29,372	)		(73,030	)		(91,933	)		(224,012	)		(89,424	)		(90,530	)		(90,847	)		(88,738	)		(359,539	)		(43,084	)		(45,654	)		-
Less: Lease financing debt amortization with fair market value or no purchase options		(3,897	)		(3,983	)		(10,710	)		(10,028	)		(28,618	)		(12,439	)		(12,756	)		(12,852	)		(13,249	)		(51,296	)		-			(13,249	)		-
Less: Other		133			2,528			217			2,847			5,725			1,542			607			(6,983	)		281			(4,553	)		-			445			(164	)
CFFO	$	67,462		$	76,656		$	22,905		$	51,319		$	218,342		$	88,103		$	80,922		$	66,250		$	81,783		$	317,058		$	67,045		$	39,591		$	(24,853	)
Add:  integration, transaction, transaction-related and EMR roll-out costs		11,783			11,941			76,649			46,023			146,396			27,300			29,027			42,499			24,853			123,679			-			-			24,853
Adjusted CFFO	$	79,245		$	88,597		$	99,554		$	97,342		$	364,738		$	115,403		$	109,949		$	108,749		$	106,636		$	440,737		$	67,045		$	39,591		$	-
CFFO Per Share
($ except where indicated)	FY 2014															FY 2015															Q4 2015 Distribution
		Q1			Q2			Q3			Q4		Full Year(2)				Q1			Q2			Q3			Q4		Full Year(2)			Owned			Other			Transaction/ Integration
CFFO	$	0.54		$	0.61		$	0.14		$	0.28		$	1.57		$	0.48		$	0.44		$	0.36		$	0.44		$	1.72		$	0.36		$	0.21		$	(0.14	)
Add:  integration, transaction, transaction-related and EMR roll-out costs		0.10			0.10			0.49			0.25			0.94			0.15			0.16			0.23			0.14			0.68			-			-			0.14
Adjusted CFFO	$	0.64		$	0.71		$	0.63		$	0.53		$	2.51		$	0.63		$	0.60		$	0.59		$	0.58		$	2.40		$	0.36		$	0.21		$	-
Shares used in calculation of CFFO (000's)		124,478			125,058			159,003			183,432						183,678			184,266			184,570			184,805						184,805			184,805			184,805

(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.

(3) Certain prior period expense amounts have been reclassified to conform to the current financial statement presentation, with no effect on the Company's consolidated financial position or results of operations.

(4) Other includes financial data and operating information from leased communities, Brookdale Ancillary Services, and Management Services.

(5) Allocation of G&A to Owned and Other is based upon a percentage of revenue and excludes non-cash stock-based compensation expense and integration, transaction, transaction-related and EMR roll-out costs.

(6) The definition of Adjusted EBITDA was changed in the first quarter of 2015 to include CFFO from unconsolidated ventures.  Prior periods have been recast to conform to the new definition. 

Page 8

Brookdale Senior Living Inc.

CFFO from Unconsolidated Ventures

As of December 31, 2015

CFFO from Unconsolidated Ventures Reconciliation

($ in 000s)	Entrance Fee Venture															Other Ventures
	FY 2014			FY 2015												FY 2014			FY 2015
		Q4			Q1			Q2			Q3			Q4			Q4			Q1			Q2			Q3			Q4
Number of communities (period end)		14			14			14			14			15			85			86			122			122			125
Total average units		6,836			6,843			6,848			6,919			7,068			11,943			11,949			12,082			17,219			17,283
Weighted average unit occupancy		84.5	%		85.3	%		84.4	%		84.0	%		84.8	%		86.9	%		86.6	%		86.0	%		87.5	%		88.1	%
Senior Housing average monthly revenue per unit		4,901			4,929			4,829			4,887			4,901			4,072			4,110			4,119			3,930			3,947
Resident revenue	$	85,546		$	87,473		$	85,179		$	87,059		$	89,830		$	125,970		$	127,513		$	126,435		$	177,678		$	180,362
Less: Entrance fee amortization		(554	)		(1,141	)		(1,482	)		(1,828	)		(1,718	)		-			-			-						-
Adjusted revenues		84,992			86,332			83,697			85,231			88,112			125,970			127,513			126,435			177,678			180,362
Less: Facility operating expenses		(68,288	)		(67,451	)		(68,544	)		(70,756	)		(70,788	)		(84,306	)		(83,469	)		(83,094	)		(117,433	)		(116,343	)
Less: General and administrative expenses		(4,948	)		(4,707	)		(4,691	)		(4,765	)		(5,345	)		(6,077	)		(6,153	)		(6,080	)		(8,625	)		(9,344	)
Add:  Entrance fee receipts		26,210			23,251			26,040			27,744			35,017			-			-			-			-			-
Less: Entrance fee disbursements		(13,888	)		(9,181	)		(13,042	)		(10,875	)		(9,565	)		-			-			-			-			-
Net entrance fees		12,322			14,070			12,998			16,869			25,452			-			-			-			-			-
Adjusted EBITDA		24,078			28,244			23,460			26,579			37,431			35,587			37,891			37,261			51,620			54,675
Less: Recurring capital expenditures, net		(1,347	)		(1,159	)		(1,898	)		(1,860	)		(2,201	)		(2,431	)		(2,336	)		(2,760	)		(3,577	)		(4,052	)
Less: Interest expense, net		(1,575	)		(1,530	)		(1,500	)		(1,528	)		(1,462	)		(26,447	)		(25,845	)		(26,198	)		(34,371	)		(35,300	)
Less: Other		-			-			-			-			(8	)		(276	)		(613	)		(103	)		(300	)		(616	)
CFFO from Unconsolidated Ventures	$	21,156		$	25,555		$	20,062		$	23,191		$	33,760		$	6,433		$	9,097		$	8,201		$	13,372		$	14,707
Add: Integration, transaction, transaction-related and EMR roll-out costs (1)		210			-			-			4,683			-			-			-			-			-			-
Adjusted CFFO from Unconsolidated Ventures	$	21,366		$	25,555		$	20,062		$	27,874		$	33,760		$	6,433		$	9,097		$	8,201		$	13,372		$	14,707
Brookdale Weighted Average Ownership %		51.0	%		51.0	%		51.0	%		51.0	%		51.0	%		11.9	%		13.0	%		11.5	%		9.5	%		11.4	%
CFFO from Unconsolidated Ventures	$	10,896		$	13,033		$	10,232		$	14,216		$	17,218		$	766		$	1,180		$	945		$	1,265		$	1,678
Leverage Ratio for Unconsolidated Ventures (2)
Debt Principal as of December 31, 2015													$	211,523														$	1,956,270
Adjusted EBITDA														115,714															218,700
Leverage														1.8	x														8.9	x
Unconsolidated Ventures Schedule of Capital Expenditures
($ in 000s)	FY 2014			FY 2015
Type		Q4			Q1			Q2			Q3			Q4
Recurring	$	3,778		$	3,495		$	4,658		$	5,437		$	6,253
EBITDA-enhancing / Major Projects		17,199			13,243			24,562			27,167			37,079
Program Max		3,665			4,340			7,685			6,178			8,332
Total Capital Expenditures	$	24,642		$	21,078		$	36,905		$	38,782		$	51,664

(1) Integration, transaction-related and EMR roll-out costs include third party expenses directly related to integration activities, as well as internal costs such as labor reflecting time spent by Company personnel on integration and EMR roll-out activity.  Transaction costs include third party costs directly related to the formation of the unconsolidated ventures and other acquisition activity.

(2) Adjusted EBITDA from unconsolidated other ventures includes results on a normalized basis for a new RIDEA venture formed on June 30, 2015 and community acquisitions during the year ended December 31, 2015.

Page 9

Brookdale Senior Living Inc.

Cash Lease and Interest Expense

As of December 31, 2015

Cash Lease and Interest Expense

($ in 000s)

	FY 2014			FY 2015
		Q4			Q1			Q2			Q3			Q4
Facility Lease Payments
Facility lease expense	$	92,469		$	94,471		$	91,338		$	91,144		$	90,621
Less:  Straight-line lease expense, net		3,028			(842	)		(79	)		(105	)		1,228
Add: Amortization of deferred gain		1,093			1,093			1,093			1,093			1,093
Cash lease payments - Operating Leases	$	96,590		$	94,722		$	92,352		$	92,132		$	92,942
Supplemental breakout:
Communities with purchase options	$	6,320		$	6,343		$	6,311		$	5,734		$	5,968
Communities without purchase options		90,270			88,379			86,041			86,398			86,974
	$	96,590		$	94,722		$	92,352		$	92,132		$	92,942
Capital Lease Interest	$	56,873		$	53,203		$	53,043		$	53,217		$	51,669
Less: Capital and financing Lease Interest - noncash		(6,700	)		(5,700	)		(5,816	)		(5,942	)		(6,014	)
Add: Capital and financing lease principal (1)		10,028			12,439			12,756			12,852			13,249
Cash lease payments - Capital and Financing Leases	$	60,201		$	59,942		$	59,983		$	60,127		$	58,904
Supplemental breakout:
Communities with purchase options	$	14,755		$	14,205		$	13,558		$	13,975		$	12,233
Communities without purchase options		45,446			45,737			46,425			46,152			46,671
	$	60,201		$	59,942		$	59,983		$	60,127		$	58,904
Total cash lease payments	$	156,791		$	154,664		$	152,335		$	152,259		$	151,846
Interest Expense
Property level debt interest expense	$	39,930		$	40,174		$	41,510		$	41,798		$	41,306
Convertible debt interest expense		2,174			2,174			2,174			2,174			2,174
Total debt interest payments		42,104			42,348			43,684			43,972			43,480
Less: interest income		(345	)		(427	)		(382	)		(398	)		(396	)
Interest expense, net	$	41,759		$	41,921		$	43,302		$	43,574		$	43,084

(1) Includes lease financing debt amortization on communities with FMV or no purchase option. Payments are included in CFFO.

Page 10

Brookdale Senior Living Inc.

Quarterly Cash Flow Statements

As of December 31, 2015

($ in 000s)

Cash Flow Statements

		Q1 2014			Q2 2014			Q3 2014			Q4 2014		FY 2014				Q1 2015			Q2 2015			Q3 2015			Q4 2015		FY 2015
Cash Flows from Operating Activities
Net income (loss)	$	(2,299	)	$	(3,295	)	$	(37,036	)	$	(106,796	)	$	(149,426	)	$	(130,709	)	$	(84,807	)	$	(68,336	)	$	(174,303	)	$	(458,155	)
Adjustments to reconcile net income (loss) to net cash provided by operating activities:
Loss on extinguishment of debt, net		-			3,197			569			2,621			6,387			44			-			-			77			121
Depreciation and amortization, net		74,334			75,166			178,810			216,202			544,512			220,808			225,483			161,331			128,894			736,516
Asset impairment		-			-			-			9,992			9,992			-			-			-			57,941			57,941
Equity in (earnings) loss of unconsolidated ventures		(636	)		(1,523	)		1,246			742			(171	)		(1,484	)		672			1,578			38			804
Distributions from unconsolidated ventures from cumulative share of net earnings		245			370			595			630			1,840			500			950			6,375			-			7,825
Amortization of deferred gain		(1,093	)		(1,093	)		(1,093	)		(1,093	)		(4,372	)		(1,093	)		(1,093	)		(1,093	)		(1,093	)		(4,372	)
Amortization of entrance fees		(7,202	)		(7,547	)		(5,757	)		(714	)		(21,220	)		(767	)		(930	)		(619	)		(888	)		(3,204	)
Proceeds from deferred entrance fee revenue		9,035			14,906			6,188			2,575			32,704			2,455			2,858			3,574			2,226			11,113
Deferred income tax provision (benefit)		598			(5	)		(116,757	)		(66,207	)		(182,371	)		(79,237	)		(53,225	)		(31,552	)		68,753			(95,261	)
Change in deferred lease liability		(223	)		(217	)		2,840			(961	)		1,439			2,801			1,919			1,731			505			6,956
Change in fair value of derivatives		847			1,322			10			532			2,711			550			76			164			7			797
Loss (gain) on sale of assets		76			39			200			(761	)		(446	)		-			-			(1,723	)		453			(1,270	)
Change in future service obligation		-			-			-			670			670			-			-			-			(941	)		(941	)
Non-cash stock-based compensation		7,572			7,729			7,869			5,129			28,299			8,873			6,851			10,147			5,780			31,651
Non-cash interest expense on financing lease obligations		-			-			5,947			6,700			12,647			5,700			5,816			5,942			6,014			23,472
Amortization of (above) below market rents, net		-			-			(1,377	)		(2,067	)		(3,444	)		(1,959	)		(1,840	)		(1,626	)		(1,733	)		(7,158	)
Other		-			-			-			-			-			-			(1,416	)		(856	)		(885	)		(3,157	)
Changes in operating assets and liabilities:
Accounts receivable, net		(2,499	)		3,914			23,671			(21,576	)		3,510			(13,140	)		899			9,334			8,515			5,608
Prepaid expenses and other assets, net		(5,816	)		(8,369	)		(53,861	)		15,178			(52,868	)		24,504			12,989			2,404			11,182			51,079
Accounts payable and accrued expenses		(27,561	)		14,245			6,222			23,906			16,812			(38,773	)		(10,763	)		26,344			(37,372	)		(60,564	)
Tenant refundable fees and security deposits		(615	)		138			(674	)		(32	)		(1,183	)		(510	)		(7	)		(221	)		214			(524	)
Deferred revenue		7,933			(7,459	)		(4,978	)		1,134			(3,370	)		11,494			(3,665	)		(31,537	)		16,797			(6,911	)
Net cash provided by operating activities		52,696			91,518			12,634			85,804			242,652			10,057			100,767			91,361			90,181			292,366
Cash Flows from Investing Activities
Decrease (increase) in lease security deposits and lease acquisition deposits, net		7			(73	)		3,326			(52,204	)		(48,944	)		13,037			2,686			(3,182	)		(1,675	)		10,866
Decrease (increase) in cash and escrow deposits — restricted		6,627			(6,039	)		14,052			42,295			56,935			12,289			(2,083	)		(3,384	)		22,464			29,286
Additions to property, plant and equipment and leasehold intangibles, net		(59,717	)		(73,712	)		(79,104	)		(91,712	)		(304,245	)		(79,129	)		(99,219	)		(123,430	)		(109,273	)		(411,051	)
Acquisition of assets, net of related payables and cash received		(515	)		-			(39,303	)		(623	)		(40,441	)		(174,305	)		(18,396	)		(750	)		2,235			(191,216	)
Acquisition of Emeritus Corporation, cash acquired		-			-			28,429			-			28,429			-			-			-			-			-
Investment in unconsolidated ventures		-			-			(25,532	)		(967	)		(26,499	)		(3,923	)		(34,686	)		(2,100	)		(28,588	)		(69,297	)
Distributions received from unconsolidated ventures		-			2,643			9,414			218			12,275			-			-			7,038			2,016			9,054
Proceeds from sale of assets, net		-			-			-			4,339			4,339			-			4,993			3,079			41,154			49,226
Other		76			2,564			73			556			3,269			740			1,499			924			992			4,155
Net cash used in investing activities		(53,522	)		(74,617	)		(88,645	)		(98,098	)		(314,882	)		(231,291	)		(145,206	)		(121,805	)		(70,675	)		(568,977	)
Cash Flows from Financing Activities
Proceeds from debt		20,516			159,638			46,356			100,129			326,639			85,365			79,828			384,938			35,519			585,650
Repayment of debt and capital and financing lease obligations		(22,401	)		(159,412	)		(92,568	)		(309,964	)		(584,345	)		(47,555	)		(36,482	)		(369,352	)		(32,373	)		(485,762	)
Proceeds from line of credit		70,000			12,000			160,000			200,000			442,000			445,000			240,000			285,000			205,000			1,175,000
Repayment of line of credit		(75,000	)		(25,000	)		(172,000	)		(100,000	)		(372,000	)		(245,000	)		(270,000	)		(245,000	)		(205,000	)		(965,000	)
Proceeds from public equity offering, net		-			-			330,405			(19	)		330,386			-			-			-			-			-
Payment of financing costs, net of related payables		(2,905	)		2,087			(202	)		(8,373	)		(9,393	)		(1,481	)		(1,985	)		(28,785	)		(371	)		(32,622	)
Refundable entrance fees:																													-
Proceeds from refundable entrance fees		5,924			11,018			3,388			12			20,342			36			550			924			429			1,939
Refunds of entrance fees		(8,446	)		(9,213	)		(7,668	)		(538	)		(25,865	)		(829	)		(988	)		(1,434	)		(1,160	)		(4,411	)
Cash portion of loss on extinguishment of debt, net		-			(3,180	)		(921	)		-			(4,101	)		(44	)		-			-			-			(44	)
Payment on lease termination		-			-			(3,875	)		(3,875	)		(7,750	)		(3,875	)		(3,875	)		(4,625	)		(4,625	)		(17,000	)
Other		328			394			486			681			1,889			716			705			673			713			2,807
Net cash (used in) provided by financing activities		(11,984	)		(11,668	)		263,401			(121,947	)		117,802			232,333			7,753			22,339			(1,868	)		260,557
Net (decrease) increase in cash and cash equivalents		(12,810	)		5,233			187,390			(134,241	)		45,572			11,099			(36,686	)		(8,105	)		17,638			(16,054	)
Cash and cash equivalents at beginning of period		58,511			45,701			50,934			238,324			58,511			104,083			115,182			78,496			70,391			104,083
Cash and cash equivalents at end of period	$	45,701		$	50,934		$	238,324		$	104,083		$	104,083		$	115,182		$	78,496		$	70,391		$	88,029		$	88,029

Page 11