Brookdale Senior Living (BKD) 8-K Brookdale Announces Third Quarter 2016 Results Board Authorizes $100 Million Share Repurchase Program

Exhibit 99.2

Brookdale Senior Living Inc.

Corporate Overview - Selected Financial Information

As of September 30, 2016

Corporate Overview   Investor Relations

Brookdale Senior Living Inc. ("Brookdale" or the "Company") 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 September 30, 2016, the Company operates independent living, assisted living and dementia-care communities and continuing care retirement centers ("CCRCs"), with 1,077 communities in 47 states and the ability to serve approximately 105,000 residents. Through its ancillary services program, the Company also offers a range of outpatient therapy, home health, personalized living and hospice services. Ross Roadman SVP, Investor Relations Brookdale Senior Living Inc. 111 Westwood Place, Suite 400 Brentwood, TN 37027 Phone (615) 564-8104 rroadman@brookdale.com

Community Information

Ownership Type	Period End Number of Communities	Period End Number of Units	Percentage of Q3 2016 Resident and Management Fees	Percentage of Q3 2016 Operating Income	Percentage of YTD 2016 Resident and Management Fees	Percentage of YTD 2016 Operating Income
Owned	375	33,949	38.1%	37.3%	38.2%	37.3%
Leased	546	44,762	49.3%	54.2%	48.9%	53.7%
Brookdale Ancillary Services	N/A	N/A	11.1%	4.1%	11.3%	4.4%
Managed	156	26,415	1.5%	4.4%	1.6%	4.6%
Total	1,077	105,126	100.0%	100.0%	100.0%	100.0%
Operating Type - By Segment
Retirement Centers	95	17,152	16.1%	20.6%	15.9%	20.3%
Assisted Living	783	51,498	57.4%	61.6%	57.2%	61.4%
CCRCs - Rental	43	10,061	13.9%	9.3%	14.0%	9.3%
Brookdale Ancillary Services	N/A	N/A	11.1%	4.1%	11.3%	4.4%
Management Services	156	26,415	1.5%	4.4%	1.6%	4.6%
Total	1,077	105,126	100.0%	100.0%	100.0%	100.0%

Statement of Cash Flow Information

($ in 000s)	FY 2015										FY 2016
		Q1		Q2		Q3		Q4	Full Year			Q1		Q2		Q3	Year to Date
Net cash provided by operating activities (as reported in the Company's consolidated financial statements)	$	10,057	$	100,767	$	91,361	$	90,181	$	292,366	$	70,343	$	107,496	$	99,442	$	277,281
Net cash provided by operating activities of unconsolidated ventures		4,904		50,321		57,202		67,839		180,266		54,593		55,842		47,095		157,530
CFFO and Adjusted CFFO (See Note Regarding Non-GAAP Financial Measures)
($ in 000s)	FY 2015										FY 2016
		Q1		Q2		Q3		Q4	Full Year			Q1		Q2		Q3	Year to Date
The Company's CFFO	$	73,890	$	69,745	$	50,769	$	62,887	$	257,291	$	70,800	$	90,125	$	85,212	$	246,137
Add: Integration, transaction, transaction-related and strategic project costs (1)		27,300		29,027		42,499		24,853		123,679		20,928		17,324		8,775		47,027
Adjusted CFFO	$	101,190	$	98,772	$	93,268	$	87,740	$	380,970	$	91,728	$	107,449	$	93,987	$	293,164
The Company's proportionate share of CFFO of unconsolidated ventures	$	14,213	$	11,177	$	13,093	$	18,896	$	57,379	$	15,354	$	15,939	$	13,837	$	45,130

(1) The calculation of the Company's CFFO includes integration, transaction, transaction-related and strategic project costs of $47.0 million and $98.8 million for the nine months ended September 30, 2016 and September 30, 2015, respectively. For the nine months ended September 30, 2016, integration costs include $15.2 million of transition costs associated with the Emeritus merger and organizational restructuring (such as severance and retention payments and recruiting expenses), $2.4 million of third party consulting expenses directly related to the integration of Emeritus (in areas such as technology and systems work), and $3.8 million of internal costs such as training, travel and labor, reflecting time spent by Company personnel on integration activities and projects. Transaction and transaction-related costs of $4.8 million for the nine months ended September 30, 2016 include third party costs directly related to acquisition and disposition activity, community financing and leasing activity and corporate capital structure assessment activities, and are primarily comprised of legal, finance, consulting, professional fees and other third party costs. Strategic project costs of $20.8 million for the nine months ended September 30, 2016 include costs associated with certain strategic projects related to refining the Company's strategy, building out enterprise-wide capabilities for the post-merger platform (including the EMR roll-out project) and reducing costs and achieving synergies by capitalizing on scale.

Stock Information
Common Stock Listing	FY 2015					FY 2016
NYSE: BKD	Q1	Q2	Q3	Q4	Full Year	Q1	Q2	Q3	Year to Date
Weighted average shares used in computing basic and diluted net income (loss) per share (000's)	183,678	184,266	184,570	184,805	184,333	185,153	185,825	185,946	185,641

Note Regarding Non-GAAP Financial Measures. This supplemental presentation contains financial measures utilized by management to evaluate our operating performance and liquidity that are not calculated in accordance with U.S. generally accepted accounting principles ("GAAP").  Each of these measures, Adjusted EBITDA, Cash From Facility Operations ("CFFO") and Adjusted CFFO, should not be considered in isolation from or as superior to or as a substitute for net income (loss), income (loss) from operations, net cash provided by (used in) operating activities, or other financial measures determined in accordance with GAAP.  This supplemental presentation should be read in conjunction with the Company's earnings release dated November 1, 2016 and the consolidated financial statements and reconciliations 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, a detailed description of why the Company believes such measures are useful and the limitations of each measure, and a reconciliation of Adjusted EBITDA from the Company's net income (loss), a reconciliation of the Company's CFFO and Adjusted CFFO from the Company's net cash provided by (used in) operating activities, and a reconciliation of the Company's proportionate share of CFFO of unconsolidated ventures from such ventures' net cash provided by (used in) operating activities.  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.

As noted in the Company's earnings release dated November 1, 2016, the Company has changed its definition and calculation of CFFO from prior periods, which no longer will include the Company's proportionate share of CFFO of unconsolidated ventures.  To conform to this new definition, prior period amounts of CFFO and Adjusted CFFO have been recast to reflect the Company's CFFO and Adjusted CFFO separate from, and exclusive of, the Company's proportionate share of CFFO of unconsolidated ventures.

In addition, the Company changed its definition and calculation of Adjusted EBITDA when it reported results for the second quarter of 2016.  Prior period amounts of Adjusted EBITDA presented herein have been recast to conform to the new definition.  See the Company's earnings release issued on August 8, 2016, for more information regarding the changes made to the definition and calculation of Adjusted EBITDA.

1

Brookdale Senior Living Inc.

Segment Financial Data

As of September 30, 2016

Financial Data and Operating Information

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

Retirement Centers	FY 2015															FY 2016
		Q1 (1)			Q2			Q3			Q4		Full Year				Q1			Q2			Q3
Revenue	$	163,486		$	164,409		$	164,415		$	165,630		$	657,940		$	169,426		$	169,990		$	170,706
Segment Facility Operating Expenses(2)		92,962			92,365			94,081			93,275			372,683			94,977			95,236			97,594
Segment Operating Income	$	70,524		$	72,044		$	70,334		$	72,355		$	285,257		$	74,449		$	74,754		$	73,112
Segment Operating Margin		43.1	%		43.8	%		42.8	%		43.7	%		43.4	%		43.9	%		44.0	%		42.8	%
Number of communities (period end)		99			98			98			95			95			95			95			95
Total average units(3)		17,369			17,279			17,289			17,293			17,308			17,096			17,095			17,105
Weighted average unit occupancy		88.8	%		88.4	%		88.7	%		89.1	%		88.8	%		88.9	%		88.9	%		89.3	%
Senior Housing average monthly revenue per unit(4)	$	3,533		$	3,589		$	3,573		$	3,584		$	3,570		$	3,715		$	3,727		$	3,727
Assisted Living	FY 2015															FY 2016
		Q1 (1)			Q2			Q3			Q4		Full Year				Q1			Q2			Q3
Revenue	$	617,344		$	611,838		$	608,393		$	607,882		$	2,445,457		$	617,270		$	613,017		$	607,345
Segment Facility Operating Expenses(2)		393,838			388,479			397,180			388,657			1,568,154			396,460			378,932			389,467
Segment Operating Income	$	223,506		$	223,359		$	211,213		$	219,225		$	877,303		$	220,810		$	234,085		$	217,878
Segment Operating Margin		36.2	%		36.5	%		34.7	%		36.1	%		35.9	%		35.8	%		38.2	%		35.9	%
Number of communities (period end)		837			833			832			820			820			820			818			783
Total average units(3)		55,073			54,700			54,592			54,492			54,714			53,510			53,521			52,991
Weighted average unit occupancy		87.2	%		86.4	%		86.5	%		86.6	%		86.7	%		85.6	%		85.3	%		85.6	%
Senior Housing average monthly revenue per unit(4)	$	4,283		$	4,316		$	4,292		$	4,296		$	4,297		$	4,493		$	4,478		$	4,461
CCRCs - Rental	FY 2015															FY 2016
		Q1 (1)			Q2			Q3			Q4		Full Year				Q1			Q2			Q3
Revenue	$	155,991		$	151,561		$	149,572		$	147,448		$	604,572		$	152,260		$	148,225		$	147,517
Segment Facility Operating Expenses(2)		117,420			115,701			108,177			112,779			454,077			116,791			114,631			114,521
Segment Operating Income	$	38,571		$	35,860		$	41,395		$	34,669		$	150,495		$	35,469		$	33,594		$	32,996
Segment Operating Margin		24.7	%		23.7	%		27.7	%		23.5	%		24.9	%		23.3	%		22.7	%		22.4	%
Number of communities (period end)		45			46			45			44			44			44			43			43
Total average units(3)		10,480			10,543			10,515			10,405			10,486			10,335			10,084			9,963
Weighted average unit occupancy		86.0	%		83.6	%		83.9	%		83.9	%		84.4	%		84.3	%		83.7	%		84.0	%
Senior Housing average monthly revenue per unit(4)	$	5,744		$	5,697		$	5,626		$	5,601		$	5,668		$	5,790		$	5,812		$	5,833

Total Senior Housing	FY 2015															FY 2016
		Q1 (1)			Q2			Q3			Q4		Full Year				Q1			Q2			Q3
Revenue	$	936,821		$	927,808		$	922,380		$	920,960		$	3,707,969		$	938,956		$	931,232		$	925,568
Facility Operating Expenses		604,220			596,545			599,438			594,711			2,394,914			608,228			588,799			601,582
Operating Income	$	332,601		$	331,263		$	322,942		$	326,249		$	1,313,055		$	330,728		$	342,433		$	323,986
Operating Margin		35.5	%		35.7	%		35.0	%		35.4	%		35.4	%		35.2	%		36.8	%		35.0	%
G&A Allocation(5)	$	42,093		$	37,399		$	36,968		$	42,881		$	159,341		$	44,524		$	45,806		$	33,672
Operating Income (Including G&A Allocation)	$	290,508		$	293,864		$	285,974		$	283,368		$	1,153,714		$	286,204		$	296,627		$	290,314
Operating Margin (Including G&A Allocation)		31.0	%		31.7	%		31.0	%		30.8	%		31.1	%		30.5	%		31.9	%		31.4	%

Number of communities (period end)		981			977			975			959			959			959			956			921
Total average units(3)		82,922			82,522			82,396			82,190			82,508			80,941			80,700			80,059
Weighted average unit occupancy		87.4	%		86.5	%		86.7	%		86.8	%		86.8	%		86.1	%		85.8	%		86.2	%
Senior Housing average monthly revenue per unit(4)	$	4,305		$	4,331		$	4,303		$	4,302		$	4,310		$	4,485		$	4,476		$	4,465

2

Brookdale Senior Living Inc.

Segment Financial Data

As of September 30, 2016

Financial Data and Operating Information (continued)

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

Brookdale Ancillary Services	FY 2015															FY 2016
		Q1 (1)			Q2			Q3			Q4		Full Year				Q1			Q2			Q3
Revenue	$	115,411		$	116,170		$	117,702		$	119,875		$	469,158		$	122,192		$	123,336		$	117,263
Segment Facility Operating Expenses(2)		92,669			98,446			100,282			102,551			393,948			107,674			104,304			102,639
Segment Operating Income	$	22,742		$	17,724		$	17,420		$	17,324		$	75,210		$	14,518		$	19,032		$	14,624
Segment Operating Margin		19.7	%		15.3	%		14.8	%		14.5	%		16.0	%		11.9	%		15.4	%		12.5	%
G&A Allocation(5)	$	8,251		$	7,811		$	6,678		$	8,203		$	30,943		$	7,965		$	7,998		$	6,323
Segment Operating Income (Including G&A Allocation)	$	14,491		$	9,913		$	10,742		$	9,121		$	44,267		$	6,553		$	11,034		$	8,301
Segment Operating Margin (Including G&A Allocation)		12.6	%		8.5	%		9.1	%		7.6	%		9.4	%		5.4	%		8.9	%		7.1	%
Outpatient Therapy treatment codes		636,413			667,836			612,970			588,984			2,506,203			509,651			476,530			419,619
Home Health average daily census		13,767			13,884			14,126			15,065			14,211			16,490			16,126			15,270
Hospice average daily census		389			439			486			558			468			654			737			813

Total Senior Housing and Brookdale Ancillary Services	FY 2015															FY 2016
		Q1 (1)			Q2			Q3			Q4		Full Year				Q1			Q2			Q3
Revenue	$	1,052,232		$	1,043,978		$	1,040,082		$	1,040,835		$	4,177,127		$	1,061,148		$	1,054,568		$	1,042,831
Facility Operating Expenses		696,889			694,991			699,720			697,262			2,788,862			715,902			693,103			704,221
Operating Income	$	355,343		$	348,987		$	340,362		$	343,573		$	1,388,265		$	345,246		$	361,465		$	338,610
Operating Margin		33.8	%		33.4	%		32.7	%		33.0	%		33.2	%		32.5	%		34.3	%		32.5	%
G&A Allocation(5)	$	50,344		$	45,210		$	43,646		$	51,084		$	190,284		$	52,489		$	53,804		$	39,995
Operating Income (Including G&A Allocation)	$	304,999		$	303,777		$	296,716		$	292,489		$	1,197,981		$	292,757		$	307,661		$	298,615
Operating Margin (Including G&A Allocation)		29.0	%		29.1	%		28.5	%		28.1	%		28.7	%		27.6	%		29.2	%		28.6	%

Management Services	FY 2015															FY 2016
		Q1 (1)			Q2			Q3			Q4		Full Year				Q1			Q2			Q3
Revenue (Management Fees)	$	15,097		$	14,839		$	14,694		$	15,553		$	60,183		$	16,780		$	18,186		$	15,532
Expenses (G&A Allocation)(5)		9,755			8,878			9,978			11,506			40,117			11,256			11,200			8,567
Segment Operating Income (Including G&A Allocation)	$	5,342		$	5,961		$	4,716		$	4,047		$	20,066		$	5,524		$	6,986		$	6,965
Segment Operating Margin (Including G&A Allocation)		35.4	%		40.2	%		32.1	%		26.0	%		33.3	%		32.9	%		38.4	%		44.8	%
Number of communities (period end)		160			160			157			164			164			162			158			156
Total average units(3)		27,185			27,026			26,590			26,464			26,834			26,613			26,435			26,088
Weighted average occupancy		86.5	%		85.2	%		85.8	%		86.6	%		86.0	%		87.1	%		86.8	%		87.2	%
Senior Housing average monthly revenue per unit(4)	$	4,277		$	4,238		$	4,224		$	4,246		$	4,249		$	4,371		$	4,350		$	4,322

Total Senior Housing, Brookdale Ancillary and Management Services	FY 2015															FY 2016
		Q1 (1)			Q2			Q3			Q4		Full Year				Q1			Q2			Q3
Revenue	$	1,067,329		$	1,058,817		$	1,054,776		$	1,056,388		$	4,237,310		$	1,077,928		$	1,072,754		$	1,058,363
Expenses		696,889			694,991			699,720			697,262			2,788,862			715,902			693,103			704,221
Operating Income	$	370,440		$	363,826		$	355,056		$	359,126		$	1,448,448		$	362,026		$	379,651		$	354,142
Operating Margin		34.7	%		34.4	%		33.7	%		34.0	%		34.2	%		33.6	%		35.4	%		33.5	%
G&A Allocation(5)	$	60,099		$	54,088		$	53,624		$	62,590		$	230,401		$	63,745		$	65,004		$	48,562
Operating Income (Including G&A Allocation)	$	310,341		$	309,738		$	301,432		$	296,536		$	1,218,047		$	298,281		$	314,647		$	305,580
Operating Margin (Including G&A Allocation)		29.1	%		29.3	%		28.6	%		28.1	%		28.7	%		27.7	%		29.3	%		28.9	%

(1) 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.

(2) Segment facility operating expenses exclude depreciation and amortization.

(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 resident fee revenues, excluding amortization of entrance fees and Brookdale Ancillary Services segment revenue, divided by average occupied units.

(5) Excludes non-cash stock-based compensation expense and integration, transaction, transaction-related and strategic project costs.

3

Brookdale Senior Living Inc.

Senior Housing Data by Ownership Type

As of September 30, 2016

Financial Data and Operating Information

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

Owned Properties	FY 2015															FY 2016
		Q1 (1)			Q2			Q3			Q4		Full Year				Q1			Q2			Q3
Revenue	$	412,555		$	411,576		$	409,249		$	412,678		$	1,646,058		$	415,775		$	406,908		$	403,655
Facility Operating Expenses		276,225			274,608			274,427			277,509			1,102,769			278,140			267,901			271,664
Operating Income	$	136,330		$	136,968		$	134,822		$	135,169		$	543,289		$	137,635		$	139,007		$	131,991
Operating Margin		33.0	%		33.3	%		32.9	%		32.8	%		33.0	%		33.1	%		34.2	%		32.7	%
Number of communities (period end)		422			424			424			413						407			407			375
Total average units(2)		36,923			37,182			37,128			37,431						36,248			35,615			35,206
Weighted average unit occupancy		86.5	%		85.4	%		85.7	%		85.9	%					85.5	%		85.1	%		85.4	%
Senior Housing average monthly revenue per unit(3)	$	4,305		$	4,319		$	4,286		$	4,277					$	4,470		$	4,474		$	4,473
Leased Properties with Purchase Options	FY 2015															FY 2016
		Q1 (1)			Q2			Q3			Q4		Full Year				Q1			Q2			Q3
Revenue	$	82,064		$	79,516		$	79,568		$	75,462		$	316,610		$	77,455		$	75,301		$	75,148
Facility Operating Expenses		52,414			50,638			51,187			47,852			202,091			49,583			47,522			48,503
Operating Income	$	29,650		$	28,878		$	28,381		$	27,610		$	114,519		$	27,872		$	27,779		$	26,645
Operating Margin		36.1	%		36.3	%		35.7	%		36.6	%		36.2	%		36.0	%		36.9	%		35.5	%
Number of communities (period end)		103			101			101			96						95			94			94
Total average units(2)		7,027			6,803			6,806			6,340						6,336			6,144			6,143
Weighted average unit occupancy		87.8	%		86.7	%		87.4	%		88.2	%					87.8	%		87.9	%		88.0	%
Senior Housing average monthly revenue per unit(3)	$	4,433		$	4,492		$	4,458		$	4,498					$	4,641		$	4,647		$	4,634
Leased Properties without Purchase Options	FY 2015															FY 2016
		Q1 (1)			Q2			Q3			Q4		Full Year				Q1			Q2			Q3
Revenue	$	442,202		$	436,716		$	433,563		$	432,820		$	1,745,301		$	445,726		$	449,023		$	446,765
Facility Operating Expenses		275,581			271,299			273,824			269,350			1,090,054			280,505			273,376			281,415
Operating Income	$	166,621		$	165,417		$	159,739		$	163,470		$	655,247		$	165,221		$	175,647		$	165,350
Operating Margin		37.7	%		37.9	%		36.8	%		37.8	%		37.5	%		37.1	%		39.1	%		37.0	%
Number of communities (period end)		456			452			450			450						457			455			452
Total average units(2)		38,972			38,537			38,462			38,419						38,357			38,941			38,710
Weighted average unit occupancy		88.2	%		87.4	%		87.5	%		87.3	%					86.4	%		86.2	%		86.7	%
Senior Housing average monthly revenue per unit(3)	$	4,282		$	4,313		$	4,289		$	4,294					$	4,474		$	4,450		$	4,430

Total Senior Housing	FY 2015															FY 2016
		Q1 (1)			Q2			Q3			Q4		Full Year				Q1			Q2			Q3
Revenue	$	936,821		$	927,808		$	922,380		$	920,960		$	3,707,969		$	938,956		$	931,232		$	925,568
Facility Operating Expenses		604,220			596,545			599,438			594,711			2,394,914			608,228			588,799			601,582
Operating Income	$	332,601		$	331,263		$	322,942		$	326,249		$	1,313,055		$	330,728		$	342,433		$	323,986
Operating Margin		35.5	%		35.7	%		35.0	%		35.4	%		35.4	%		35.2	%		36.8	%		35.0	%

Number of communities (period end)		981			977			975			959			959			956			921
Total average units(2)		82,922			82,522			82,396			82,190			80,941			80,700			80,059
Weighted average unit occupancy		87.4	%		86.5	%		86.7	%		86.8	%		86.1	%		85.8	%		86.2	%
Senior Housing average monthly revenue per unit(3)	$	4,305		$	4,331		$	4,303		$	4,302		$	4,485		$	4,476		$	4,465

(1) 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.

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

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

4

Brookdale Senior Living Inc.

Same Community and Capital Expenditure Information

As of September 30, 2016

Senior Housing Same Community Information
($ in 000s, except Senior Housing average monthly revenue per unit)	Three Months Ended September 30,									Twelve Months Ended September 30,
	2016			2015			% Change			2016			2015			% Change
Revenue	$	883,104		$	865,784			2.0	%	$	3,475,027		$	3,435,295			1.2	%
Operating Expense		568,754			556,923			2.1	%		2,219,941			2,206,419			0.6	%
Same Community Operating Income	$	314,350		$	308,861			1.8	%	$	1,255,086		$	1,228,876			2.1	%
Same Community Operating Margin		35.6	%		35.7	%		-0.1	%		36.1	%		35.8	%		0.3	%
Number of communities (period end)		896			896						888			888
Weighted average unit occupancy		86.5	%		87.5	%		-1.0	%		86.6	%		88.1	%		-1.5	%
Senior Housing average monthly revenue per unit (1)	$	4,446		$	4,308			3.2	%	$	4,415		$	4,291			2.9	%
Same community information reflects historical results from senior housing 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,						Nine Months Ended September 30,
Type	2016			2015			2016			2015
Recurring	$	19,406		$	16,947		$	50,684		$	53,236
Less: reimbursements		(2,516	)		(2,416	)		(6,845	)		(6,277	)
Net Recurring (2)		16,890			14,531			43,839			46,959
EBITDA-enhancing / Major Projects (3)		20,609			45,865			81,730			107,236
Corporate, integration and other (4)		18,112			18,433			45,835			61,456
Non-Development Capital Expenditures		55,611			78,829			171,404			215,651
Development (Program Max, net) (5)		6,000			14,284			16,722			25,044
Total Capital Expenditures (6)	$	61,611		$	93,113		$	188,126		$	240,695
Add: Total lessor reimbursements	$	10,385		$	30,317		$	42,711		$	61,083
Add: Change in related payables		1,894			-			33,113			-
Cash paid for additions to PP&E	$	73,890		$	123,430		$	263,950		$	301,778

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

(2)  Payments are included in CFFO.

(3)  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 reimbursements of $5.2 million and $24.1 million for the three months ended September 30, 2016 and 2015, respectively, and $18.0 million and $33.1 million for the nine months ended September 30, 2016 and 2015, respectively.

(4)  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.

(5)  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 reimbursements of $2.7 million and $3.8 million for the three months ended September 30, 2016 and 2015, respectively, and $17.9 million and $21.7 million for the nine months ended September 30, 2016 and 2015, respectively.

(6)  Amounts shown are gross expenditures (including related payables), net of third party lessor reimbursements. Approximately $20.5 million and $30.3 million of expense was recognized during the three months ended September 30, 2016 and 2015, respectively, and $55.5 million and $61.1 million of expense was recognized during the nine months ended September 30, 2016 and 2015, respectively, for normal repairs and maintenance and capital spend under $1,500 per invoice, except for unit turnovers.

5

Brookdale Senior Living Inc.

Capital Structure - selected financial information

As of September 30, 2016

($ in 000s)

Long Term Debt and Line of Credit Maturities

	Maturities
	Mortgage		weighted			Line of		weighted			Total
	Debt (1)		rate (2)			Credit		rate (2)			Debt
2016 (3)	$	93,761		4.63	%	$	-		-		$	93,761
2017 (4)		278,452		5.58	%		-		-			278,452
2018		1,223,507		4.48	%		-		-			1,223,507
2019		136,611		5.83	%		-		-			136,611
2020		468,607		5.09	%		100,000		3.19	%		568,607
Thereafter		1,438,422		3.93	%		-		-			1,438,422
Total	$	3,639,360		4.47	%	$	100,000		3.19	%	$	3,739,360

Coverage Ratios

	Nine Months Ended September 30, 2016 (5)
	Owned			Leased
	Communities			Communities*
Units		33,949			44,762
Operating Income	$	408,633		$	588,514
Operating Income adjusted for 5% management fee and capital expenditures at $350/unit	$	338,404		$	498,292
Interest Payments	$	131,422
Cash Lease Payments				$	462,140
Coverage		2.6	x		1.1	x
* Leased communities include communities subject to capital and financing leases.

Debt Amortization

	Nine Months Ended September 30,
	2016		2015
Scheduled debt amortization	$	64,718	$	67,188
Lease financing debt amortization with fair market value or no purchase option (6)		42,525		38,047
Lease financing debt amortization with bargain purchase option		4,731		4,401
Total debt amortization	$	111,974	$	109,636

 Credit Facility Availability

	09/30/15			12/31/15			03/31/16			06/30/16			09/30/16
Total credit facility commitment	$	500,000		$	500,000		$	500,000		$	500,000		$	500,000
Line of credit (7)	$	443,378		$	416,605		$	441,048		$	453,744		$	409,576
Less: term loan balance		(100,000	)		(100,000	)		(100,000	)		(100,000	)		(100,000	)
Less: revolving credit facility balance		(210,000	)		(210,000	)		(110,000	)		(86,500	)		-
Available to draw	$	133,378		$	106,605		$	231,048		$	267,244		$	309,576
Cash and cash equivalents		70,391			88,029			70,862			39,053			74,184
Total liquidity (available to draw + cash)	$	203,769		$	194,634		$	301,910		$	306,297		$	383,760
Total letters of credit outstanding	$	83,940		$	82,413		$	86,667		$	86,441		$	90,268

Leverage Ratios (8)

				Annualized
Trailing twelve months ended September 30, 2016				Leverage
Adjusted EBITDAR	$	1,214,103
Less: cash operating lease payments		(380,723	)
Adjusted EBITDA		833,380
Less: cash capital and financing lease payments		(233,263	)
Adjusted EBITDA after capital and financing lease payments		600,117
Debt as of September 30, 2016
Debt (1)		3,639,360
Line of credit		100,000
Less: cash and cash equivalents		(74,184	)
Less: cash held as collateral against existing debt		(2,711	)
Total net debt		3,662,465		6.1	x
Plus: cash lease payments multiplied by 8		4,911,888
Total adjusted net debt	$	8,574,353		7.1	x

Debt Structure

			Weighted
	Balance		rate (2)
Fixed rate debt (1)	$	2,416,620		5.14	%
Variable rate debt (1)		1,222,740		3.14	%
Line of credit (cash borrowings)		100,000		3.19	%
Total long term debt and line of credit	$	3,739,360
	Balance		% of total
Variable rate debt with interest rate caps (1) (9)	$	807,771		66.1	%
Variable rate debt - unhedged (1)		414,969		33.9	%
Total variable rate debt (1)	$	1,222,740		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 September 30, 2016 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) $46.3 million of debt on Assets Held for Sale and (ii) $29.1 million of demand notes payable to the unconsolidated entrance fee venture, which we utilize in certain states in lieu of cash reserves.

(4) Maturities of mortgage debt in 2017 includes $60.6 million of debt on Assets Held for Sale.

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

(6) Payments are included in CFFO.

(7) 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. The availability is reduced by letters of credit issued under the line of credit as of the reporting date.

(8) Adjusted EBITDAR and Adjusted EBITDA as reported in the calculation of leverage ratios exclude integration, transaction, transaction-related and strategic project costs of $68.9 million (excluding $2.9 million of debt modification costs included in CFFO) for the trailing twelve months ended September 30, 2016.

(9) Weighted cap rate for stated reporting period of 4.63% is materially above current market rates, therefore caps have no impact on consolidated interest expense for given period.

6

Brookdale Senior Living Inc.

Adjusted EBITDA and CFFO Calculations

As of September 30, 2016

Reconciliation of the Company's CFFO and Adjusted CFFO

($ in 000s)	FY 2015															FY 2016
		Q1			Q2			Q3			Q4		Full Year				Q1			Q2			Q3		Year to Date
Net cash provided by operating activities	$	10,057		$	100,767		$	91,361		$	90,181		$	292,366		$	70,343		$	107,496		$	99,442		$	277,281
Net cash used in investing activities		(231,291	)		(145,206	)		(121,805	)		(70,675	)		(568,977	)		(74,448	)		(82,288	)		102,362			(54,374	)
Net cash provided by (used in) financing activities		232,333			7,753			22,339			(1,868	)		260,557			(13,062	)		(57,017	)		(166,673	)		(236,752	)
Net increase (decrease) in cash and cash equivalents	$	11,099		$	(36,686	)	$	(8,105	)	$	17,638		$	(16,054	)	$	(17,167	)	$	(31,809	)	$	35,131		$	(13,845	)
Net cash provided by operating activities	$	10,057		$	100,767		$	91,361		$	90,181		$	292,366		$	70,343		$	107,496		$	99,442		$	277,281
Changes in operating assets and liabilities		16,425			547			(6,324	)		664			11,312			28,140			10,420			23,967			62,527
Add: Refundable entrance fees received		36			550			924			429			1,939			535			611			840			1,986
Less: Entrance fee refunds disbursed		(829	)		(988	)		(1,434	)		(1,160	)		(4,411	)		(1,128	)		(617	)		(1,148	)		(2,893	)
Less: Recurring capital expenditures, net		(15,003	)		(17,425	)		(14,531	)		(13,978	)		(60,937	)		(13,281	)		(13,668	)		(16,890	)		(43,839	)
Less: Lease financing debt amortization with fair market value or no purchase options		(12,439	)		(12,756	)		(12,852	)		(13,249	)		(51,296	)		(13,809	)		(14,117	)		(14,599	)		(42,525	)
Add: Loss on facility lease termination		76,143			-			-			-			76,143			-			-			-			-
Less: Distributions from unconsolidated ventures from cumulative share of net earnings		(500	)		(950	)		(6,375	)		-			(7,825	)		-			-			(6,400	)		(6,400	)
CFFO	$	73,890		$	69,745		$	50,769		$	62,887		$	257,291		$	70,800		$	90,125		$	85,212		$	246,137
Add:  Integration, transaction, transaction-related and strategic project costs		27,300			29,027			42,499			24,853			123,679			20,928			17,324			8,775			47,027
Adjusted CFFO	$	101,190		$	98,772		$	93,268		$	87,740		$	380,970		$	91,728		$	107,449		$	93,987		$	293,164

Calculation of Adjusted EBITDA and the Company's CFFO and Adjusted CFFO

($ in 000s)	FY 2015															FY 2016												Q3 2016 CFFO Distribution
		Q1 (1)			Q2			Q3			Q4		Full Year				Q1			Q2			Q3		Year to Date			Owned			Other (2)			Transaction/ Integration
Resident fee and management fee revenue	$	1,067,329		$	1,058,817		$	1,054,776		$	1,056,388		$	4,237,310		$	1,077,928		$	1,072,754		$	1,058,363			3,209,045		$	403,655		$	654,708		$	-
Less: Facility operating expenses		(696,889	)		(694,991	)		(699,720	)		(697,262	)		(2,788,862	)		(715,902	)		(693,103	)		(704,221	)		(2,113,226	)		(271,664	)		(432,557	)		-
Add:  Change in future service obligation		-			-			-			(941	)		(941	)		-			-									-			-			-
Adjusted facility operating expenses		(696,889	)		(694,991	)		(699,720	)		(698,203	)		(2,789,803	)		(715,902	)		(693,103	)		(704,221	)		(2,113,226	)		(271,664	)		(432,557	)		-
Less: G&A expense (including non-cash stock-based compensation expense)		(89,530	)		(89,545	)		(99,534	)		(91,970	)		(370,579	)		(92,621	)		(90,695	)		(63,425	)		(246,741	)		(14,685	)		(42,332	)		(6,408	)
Less: Transaction costs		(6,742	)		(421	)		-			(1,089	)		(8,252	)		(850	)		(441	)		(659	)		(1,950	)		-			-			(659	)
Add:  non-cash stock-based compensation expense		8,873			6,851			10,147			5,780			31,651			9,769			8,994			8,455			27,218			-			8,455			-
Net G&A (3)		(87,399	)		(83,115	)		(89,387	)		(87,279	)		(347,180	)		(83,702	)		(82,142	)		(55,629	)		(221,473	)		(14,685	)		(33,877	)		(7,067	)
Less: Facility lease expense		(94,471	)		(91,338	)		(91,144	)		(90,621	)		(367,574	)		(96,689	)		(92,682	)		(92,519	)		(281,890	)		-			(92,519	)		-
Add:  Straight-line (income) expense		2,801			1,919			1,731			505			6,956			3,935			(523	)		(859	)		2,553			-			(859	)		-
Add: Amortization of (above) below market lease, net		(1,959	)		(1,840	)		(1,626	)		(1,733	)		(7,158	)		(1,733	)		(1,733	)		(1,699	)		(5,165	)		-			(1,699	)		-
Less: Amortization of deferred gain		(1,093	)		(1,093	)		(1,093	)		(1,093	)		(4,372	)		(1,093	)		(1,093	)		(1,093	)		(3,279	)		-			(1,093	)		-
Cash lease payments - operating leases		(94,722	)		(92,352	)		(92,132	)		(92,942	)		(372,148	)		(95,580	)		(96,031	)		(96,170	)		(287,781	)		-			(96,170	)		-
Adjusted EBITDA		188,319			188,359			173,537			177,964			728,179			182,744			201,478			202,343			586,565			117,306			92,104			(7,067	)
Less: Amortization of entrance fee revenue		(767	)		(930	)		(619	)		(888	)		(3,204	)		(926	)		(1,013	)		(1,172	)		(3,111	)		-			(1,172	)		-
Add:  Entrance fee receipts		2,491			3,408			4,498			2,655			13,052			3,622			4,982			4,709			13,313			-			4,709			-
Less: Entrance fee disbursements		(829	)		(988	)		(1,434	)		(1,160	)		(4,411	)		(1,128	)		(617	)		(1,149	)		(2,894	)		-			(1,149	)		-
Net entrance fees		1,662			2,420			3,064			1,495			8,641			2,494			4,365			3,560			10,419			-			3,560			-
Less: Recurring capital expenditures, net		(15,003	)		(17,425	)		(14,531	)		(13,978	)		(60,937	)		(13,281	)		(13,668	)		(16,890	)		(43,839	)		(7,313	)		(9,577	)		-
Less: Interest expense, net		(89,424	)		(90,530	)		(90,847	)		(88,738	)		(359,539	)		(87,428	)		(87,008	)		(86,581	)		(261,017	)		(43,701	)		(42,880	)		-
Less: Lease financing debt amortization with fair market value or no purchase options		(12,439	)		(12,756	)		(12,852	)		(13,249	)		(51,296	)		(13,809	)		(14,117	)		(14,599	)		(42,525	)		-			(14,599	)		-
Less: Other		1,542			607			(6,983	)		281			(4,553	)		1,006			88			(1,449	)		(355	)		-			259			(1,708	)
CFFO	$	73,890		$	69,745		$	50,769		$	62,887		$	257,291		$	70,800		$	90,125		$	85,212		$	246,137		$	66,292		$	27,695		$	(8,775	)
Add:  Integration, transaction, transaction-related and strategic project costs		27,300			29,027			42,499			24,853			123,679			20,928			17,324			8,775			47,027			-			-			8,775
Adjusted CFFO	$	101,190		$	98,772		$	93,268		$	87,740		$	380,970		$	91,728		$	107,449		$	93,987		$	293,164		$	66,292		$	27,695		$	-

(1) 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.

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

(3) 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 strategic project costs.

7

Brookdale Senior Living Inc.

CFFO of Unconsolidated Ventures

As of September 30, 2016

Cash Flow reconciliation of the Company's proportionate share of CFFO of unconsolidated ventures

($ in 000s)	FY 2015															FY 2016
		Q1			Q2			Q3			Q4		Full Year				Q1			Q2			Q3		��	Year to Date
Net cash provided by operating activities	$	4,904		$	50,321		$	57,202		$	67,839		$	180,266		$	54,593		$	55,842		$	47,095			$	157,530
Net cash used in investing activities		(62,323	)		(944,063	)		(36,471	)		(175,244	)		(1,218,101	)		(37,924	)		(45,682	)		(40,885	)			(124,491	)
Net cash provided by (used in) financing activities		45,241			911,636			(25,021	)		96,706			1,028,562			(5,851	)		(14,784	)		(12,073	)			(32,708	)
Net increase (decrease) in cash and cash equivalents	$	(12,178	)	$	17,894		$	(4,290	)	$	(10,699	)	$	(9,273	)	$	10,818		$	(4,624	)	$	(5,863	)		$	331
Net cash provided by operating activities	$	4,904		$	50,321		$	57,202		$	67,839		$	180,266		$	54,593		$	55,842		$	47,095			$	157,530
Changes in operating assets and liabilities		34,041			(12,465	)		(11,936	)		(17,274	)		(7,634	)		(2,320	)		(5,205	)		(3,600	)			(11,125	)
Add: Refundable entrance fees received		8,383			8,107			7,609			13,720			37,819			8,677			13,229			11,972				33,878
Less: Entrance fee refunds disbursed		(9,181	)		(13,042	)		(10,875	)		(9,565	)		(42,663	)		(10,776	)		(13,906	)		(11,940	)			(36,622	)
Less: Recurring capital expenditures, net		(3,495	)		(4,658	)		(5,437	)		(6,253	)		(19,843	)		(4,316	)		(5,189	)		(5,256	)			(14,761	)
CFFO of unconsolidated ventures	$	34,652		$	28,263		$	36,563		$	48,467		$	147,945		$	45,858		$	44,771		$	38,271			$	128,900
Brookdale Weighted Average Ownership percentage		41.0	%		39.5	%		35.8	%		39.0	%		38.8	%		33.5	%		35.6	%		36.2	%			35.0	%
Brookdale's proportionate share of CFFO of unconsolidated ventures	$	14,213		$	11,177		$	13,093		$	18,896		$	57,379		$	15,354		$	15,939		$	13,837			$	45,130

Reconciliation of the Company's proportionate share of CFFO of unconsolidated ventures (line items present all unconsolidated ventures on an aggregate basis)

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

	FY 2015															FY 2016
		Q1			Q2			Q3			Q4		Full Year				Q1			Q2			Q3		Year to Date
Number of communities (period end)		100			136			136			140						140			139			140
Total average units		18,792			18,930			24,138			24,351						24,668			24,585			24,456
Weighted average unit occupancy		86.1	%		85.4	%		86.5	%		87.2	%					87.6	%		87.0	%		87.3	%
Senior Housing average monthly revenue per unit	$	4,405		$	4,370		$	4,196		$	4,216					$	4,342		$	4,322		$	4,323
Resident fee revenue	$	214,986		$	211,614		$	264,737		$	270,192		$	961,529		$	284,930		$	281,541		$	281,585		$	848,056
Less: Facility operating expenses		(150,920	)		(151,638	)		(188,189	)		(187,131	)		(677,878	)		(193,691	)		(193,921	)		(197,872	)		(585,484	)
Less: General and administrative expenses including management fees		(10,860	)		(10,771	)		(13,390	)		(14,689	)		(49,710	)		(15,388	)		(14,881	)		(14,536	)		(44,805	)
Adjusted EBITDA of unconsolidated ventures		53,206			49,205			63,158			68,372			233,941			75,851			72,739			69,177			217,767
Less: Entrance fee amortization		(1,141	)		(1,482	)		(1,828	)		(1,718	)		(6,169	)		(3,395	)		(4,103	)		(4,544	)		(12,042	)
Add:  Entrance fee receipts		23,251			26,040			27,744			35,017			112,052			25,882			32,574			29,263			87,719
Less: Entrance fee disbursements		(9,181	)		(13,042	)		(10,875	)		(9,565	)		(42,663	)		(10,776	)		(13,906	)		(11,940	)		(36,622	)
Net entrance fees		14,070			12,998			16,869			25,452			69,389			15,106			18,668			17,323			51,097
Less: Recurring capital expenditures, net		(3,495	)		(4,658	)		(5,437	)		(6,253	)		(19,843	)		(4,316	)		(5,189	)		(5,256	)		(14,761	)
Less: Interest expense, net		(27,375	)		(27,698	)		(35,899	)		(36,762	)		(127,734	)		(36,639	)		(36,173	)		(37,460	)		(110,272	)
Less: Other		(613	)		(103	)		(300	)		(624	)		(1,640	)		(749	)		(1,171	)		(969	)		(2,889	)
CFFO of unconsolidated ventures	$	34,652		$	28,263		$	36,563		$	48,467		$	147,945		$	45,858		$	44,771		$	38,271		$	128,900
Brookdale weighted average ownership %		41.0	%		39.5	%		35.8	%		39.0	%		38.8	%		33.5	%		35.6	%		36.2	%		35.0	%
Brookdale's proportionate share of CFFO of unconsolidated ventures	$	14,213		$	11,177		$	13,093		$	18,896		$	57,379		$	15,354		$	15,939		$	13,837		$	45,130

Leverage Ratio for Unconsolidated Ventures

($ in 000s)

Debt Principal as of September 30, 2016	$	2,186,925
Annualized Adjusted EBITDA of unconsolidated ventures	$	290,356
Leverage		7.5	x

Aggregate Capital Expenditures of unconsolidated ventures

($ in 000s)	FY 2015										FY 2016
Type		Q1		Q2		Q3		Q4	Full Year			Q1		Q2		Q3
Recurring	$	3,495	$	4,658	$	5,437	$	6,253	$	19,843	$	4,316	$	5,189	$	5,256
EBITDA-enhancing / Major Projects		13,243		24,562		27,167		37,079		102,051		17,490		19,319		20,508
Development (Program Max)		8,409		9,272		5,634		12,966		36,281		7,863		10,307		8,810
Total Capital Expenditures	$	25,147	$	38,492	$	38,238	$	56,298	$	158,175	$	29,669	$	34,815	$	34,574

8

Brookdale Senior Living Inc.

Cash Lease and Interest Expense

As of September 30, 2016

Lease Maturity Information

	Leased Properties with Purchase Options		Leased Properties without Purchase Options		Total Leased Communities
	Community	Unit	Community	Unit	Community	Unit
Initial Lease Maturities	Count	Capacity	Count	Capacity	Count	Capacity
2016	-	-	3	260	3	260
2017	31	2,050	7	819	38	2,869
2018	42	2,169	11	1,503	��                    53	3,672
2019	3	327	50	2,762	53	3,089
2020	2	301	90	4,686	92	4,987
Thereafter	16	1,296	291	28,589	307	29,885
Total	94	6,143	452	38,619	546	44,762

Cash Lease Payments and Debt Interest Expense, Net

($ in 000s)	FY 2015												FY 2016
		Q1			Q2			Q3			Q4			Q1			Q2			Q3
Cash Lease Payments
Facility lease expense	$	94,471		$	91,338		$	91,144		$	90,621		$	96,689		$	92,682		$	92,519
Less:  Straight-line (income) expense, net		(2,801	)		(1,919	)		(1,731	)		(505	)		(3,935	)		523			859
Less:  Amortization of (above) below market lease, net		1,959			1,840			1,626			1,733			1,733			1,733			1,699
Add: Amortization of deferred gain		1,093			1,093			1,093			1,093			1,093			1,093			1,093
Cash operating lease payments	$	94,722		$	92,352		$	92,132		$	92,942		$	95,580		$	96,031		$	96,170
Supplemental breakout:
Communities with purchase options	$	6,343		$	6,311		$	5,734		$	5,968		$	5,779		$	5,784		$	5,814
Communities without purchase options		88,379			86,041			86,398			86,974			89,801			90,247			90,356
	$	94,722		$	92,352		$	92,132		$	92,942		$	95,580		$	96,031		$	96,170
Interest Expense: Capital and financing lease obligations	$	53,203		$	53,043		$	53,217		$	51,669		$	50,579		$	50,581		$	50,402
Less: Non-cash interest expense on financing lease obligations		(5,700	)		(5,816	)		(5,942	)		(6,014	)		(6,439	)		(6,575	)		(6,714	)
Add: Lease financing debt amortization with FMV or no purchase option		12,439			12,756			12,852			13,249			13,809			14,117			14,599
Cash capital and financing lease payments	$	59,942		$	59,983		$	60,127		$	58,904		$	57,949		$	58,123		$	58,287
Supplemental breakout:
Communities with purchase options	$	14,205		$	13,558		$	13,975		$	12,233		$	12,563		$	12,430		$	12,309
Communities without purchase options		45,737			46,425			46,152			46,671			45,386			45,693			45,978
	$	59,942		$	59,983		$	60,127		$	58,904		$	57,949		$	58,123		$	58,287
Total cash lease payments	$	154,664		$	152,335		$	152,259		$	151,846		$	153,529		$	154,154		$	154,457
Debt Interest Expense, Net
Property level debt interest expense	$	40,174		$	41,510		$	41,798		$	41,306		$	41,816		$	41,557		$	41,527
Convertible debt interest expense		2,174			2,174			2,174			2,174			2,174			2,174			2,174
Total debt interest expense		42,348			43,684			43,972			43,480			43,990			43,731			43,701
Less: interest income		(427	)		(382	)		(398	)		(396	)		(702	)		(728	)		(809	)
Debt interest expense, net	$	41,921		$	43,302		$	43,574		$	43,084		$	43,288		$	43,003		$	42,892

9

Brookdale Senior Living Inc.

Quarterly Cash Flow Statements

As of September 30, 2016

($ in 000s)

Cash Flow Statements

		Q1 2015			Q2 2015			Q3 2015			Q4 2015		FY 2015				Q1 2016			Q2 2016			Q3 2016		Year to Date
Cash Flows from Operating Activities
Net income (loss)	$	(130,709	)	$	(84,807	)	$	(68,336	)	$	(174,303	)	$	(458,155	)	$	(48,817	)	$	(35,491	)	$	(51,728	)	$	(136,036	)
Adjustments to reconcile net income (loss) to net cash provided by operating activities:
Loss on extinguishment of debt, net		44			-			-			77			121			139			-			236			375
Depreciation and amortization, net		220,808			225,483			161,331			128,894			736,516			129,447			135,682			133,163			398,292
Asset impairment		-			-			-			57,941			57,941			3,375			4,152			19,111			26,638
Equity in (earnings) loss of unconsolidated ventures		(1,484	)		672			1,578			38			804			(1,018	)		(338	)		878			(478	)
Distributions from unconsolidated ventures from cumulative share of net earnings		500			950			6,375			-			7,825			-			-			6,400			6,400
Amortization of deferred gain		(1,093	)		(1,093	)		(1,093	)		(1,093	)		(4,372	)		(1,093	)		(1,093	)		(1,093	)		(3,279	)
Amortization of entrance fee revenue		(767	)		(930	)		(619	)		(888	)		(3,204	)		(926	)		(1,013	)		(1,172	)		(3,111	)
Proceeds from deferred entrance fee revenue		2,455			2,858			3,574			2,226			11,113			3,087			4,371			3,869			11,327
Deferred income tax (benefit) provision		(79,237	)		(53,225	)		(31,552	)		68,753			(95,261	)		934			(602	)		3,472			3,804
Change in deferred lease liability		2,801			1,919			1,731			505			6,956			3,935			(523	)		(859	)		2,553
Change in fair value of derivatives		550			76			164			7			797			24			4			-			28
(Gain) loss on sale of assets		-			-			(1,723	)		453			(1,270	)		(2,749	)		198			425			(2,126	)
Change in future service obligation		-			-			-			(941	)		(941	)		-			-			-			-
Non-cash stock-based compensation		8,873			6,851			10,147			5,780			31,651			9,769			8,994			8,455			27,218
Non-cash interest expense on financing lease obligations		5,700			5,816			5,942			6,014			23,472			6,439			6,575			6,714			19,728
Amortization of (above) below market rents, net		(1,959	)		(1,840	)		(1,626	)		(1,733	)		(7,158	)		(1,733	)		(1,733	)		(1,699	)		(5,165	)
Other		-			(1,416	)		(856	)		(885	)		(3,157	)		(2,330	)		(1,267	)		(2,763	)		(6,360	)
Changes in operating assets and liabilities:
Accounts receivable, net		(13,140	)		899			9,334			8,515			5,608			(2,738	)		8,177			2,744			8,183
Prepaid expenses and other assets, net		24,504			12,989			2,404			11,182			51,079			(36,554	)		19,709			9,507			(7,338	)
Accounts payable and accrued expenses		(38,773	)		(10,763	)		26,344			(37,372	)		(60,564	)		(1,388	)		(21,745	)		(50,759	)		(73,892	)
Tenant refundable fees and security deposits		(510	)		(7	)		(221	)		214			(524	)		(226	)		264			(731	)		(693	)
Deferred revenue		11,494			(3,665	)		(31,537	)		16,797			(6,911	)		12,766			(16,825	)		15,272			11,213
Net cash provided by operating activities		10,057			100,767			91,361			90,181			292,366			70,343			107,496			99,442			277,281
Cash Flows from Investing Activities
Decrease (increase) in lease security deposits and lease acquisition deposits, net		13,037			2,686			(3,182	)		(1,675	)		10,866			(1,210	)		(328	)		(238	)		(1,776	)
Decrease (increase) in cash and escrow deposits — restricted		12,289			(2,083	)		(3,384	)		22,464			29,286			72			283			(2,165	)		(1,810	)
Additions to property, plant and equipment and leasehold intangibles, net		(79,129	)		(99,219	)		(123,430	)		(109,273	)		(411,051	)		(108,510	)		(81,550	)		(73,890	)		(263,950	)
Acquisition of assets, net of related payables		(174,305	)		(18,396	)		(750	)		2,235			(191,216	)		(12,157	)		-			-			(12,157	)
Investment in unconsolidated ventures		(3,923	)		(34,686	)		(2,100	)		(28,588	)		(69,297	)		(2,365	)		(1,368	)		(2,338	)		(6,071	)
Distributions received from unconsolidated ventures		-			-			7,038			2,016			9,054			1,724			1,878			1,234			4,836
Proceeds from sale of assets, net		-			4,993			3,079			41,154			49,226			45,584			-			173,887			219,471
Other		740			1,499			924			992			4,155			2,414			(1,203	)		5,872			7,083
Net cash used in investing activities		(231,291	)		(145,206	)		(121,805	)		(70,675	)		(568,977	)		(74,448	)		(82,288	)		102,362			(54,374	)
Cash Flows from Financing Activities
Proceeds from debt		85,365			79,828			384,938			35,519			585,650			177,370			14,758			10,004			202,132
Repayment of debt and capital and financing lease obligations		(47,555	)		(36,482	)		(369,352	)		(32,373	)		(485,762	)		(84,016	)		(44,411	)		(89,269	)		(217,696	)
Proceeds from line of credit		445,000			240,000			285,000			205,000			1,175,000			448,500			446,000			382,000			1,276,500
Repayment of line of credit		(245,000	)		(270,000	)		(245,000	)		(205,000	)		(965,000	)		(548,500	)		(469,500	)		(468,500	)		(1,486,500	)
Payment of financing costs, net of related payables		(1,481	)		(1,985	)		(28,785	)		(371	)		(32,622	)		(818	)		177			(773	)		(1,414	)
Refundable entrance fees:
Proceeds from refundable entrance fees		36			550			924			429			1,939			535			611			840			1,986
Refunds of entrance fees		(829	)		(988	)		(1,434	)		(1,160	)		(4,411	)		(1,128	)		(617	)		(1,148	)		(2,893	)
Cash portion of loss on extinguishment of debt, net		(44	)		-			-			-			(44	)		-			-			-			-
Payment on lease termination		(3,875	)		(3,875	)		(4,625	)		(4,625	)		(17,000	)		(4,625	)		(4,625	)		-			(9,250	)
Other		716			705			673			713			2,807			(380	)		590			173			383
Net cash provided by (used in) financing activities		232,333			7,753			22,339			(1,868	)		260,557			(13,062	)		(57,017	)		(166,673	)		(236,752	)
Net increase (decrease) in cash and cash equivalents		11,099			(36,686	)		(8,105	)		17,638			(16,054	)		(17,167	)		(31,809	)		35,131			(13,845	)
Cash and cash equivalents at beginning of period		104,083			115,182			78,496			70,391			104,083			88,029			70,862			39,053			88,029
Cash and cash equivalents at end of period	$	115,182		$	78,496		$	70,391		$	88,029		$	88,029		$	70,862		$	39,053		$	74,184		$	74,184

10