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

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

Exhibit 99.2

Brookdale Senior Living Inc.
Corporate Overview - selected financial information
As of June 30, 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 June 30, 2015, the Company operates independent living, assisted living and dementia-care communities and continuing care retirement centers ("CCRCs"), with 1,136 communities in 47 states and the ability to serve approximately 110,000 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 Q2 2015 Resident and Management Fees	Percentage of Q2 2015 Facility Operating Income	Percentage of YTD 2015 Resident and Management Fees	Percentage of YTD 2015 Facility Operating Income
Owned	424	37,349	38.9%	37.6%	38.8%	37.2%
Leased	553	45,337	48.7%	53.4%	48.9%	53.2%
Brookdale Ancillary Services	N/A	N/A	11.0%	4.9%	10.9%	5.5%
Managed	159	27,252	1.4%	4.1%	1.4%	4.1%
Total	1,136	109,938	100.0%	100.0%	100.0%	100.0%

Operating Type - By Segment
Retirement Centers	98	17,315	15.5%	19.8%	15.4%	19.4%
Assisted Living	833	54,693	57.8%	61.4%	57.8%	60.9%
CCRCs - Rental	46	10,678	14.3%	9.8%	14.5%	10.1%
Brookdale Ancillary Services	N/A	N/A	11.0%	4.9%	10.9%	5.5%
Management Services	159	27,252	1.4%	4.1%	1.4%	4.1%
Total	1,136	109,938	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
Reported CFFO	$	0.54	$	0.61	$	0.14	$	0.28	$	1.57	$	0.48	$	0.44
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
Adjusted CFFO	$	0.64	$	0.71	$	0.63	$	0.53	$	2.51	$	0.63	$	0.60

Weighted average shares (000's)		124,478		125,058		159,003		183,432				183,678		184,266
Period end outstanding shares (excluding unvested restricted shares) (000's)		124,816		125,408		183,410		183,486				184,143		184,500

(1) Integration, transaction-related and EMR roll-out costs include third party expenses directly related to the integration of Emeritus and corporate capital structure assessment activities (including shareholder relations advisory matters), as well as internal costs such as labor reflecting time spent by Company personnel on integration and transaction-related activity and severance costs. Transaction costs include third party costs directly related to the acquisition of Emeritus and other acquisition and community leasing activity 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: See accompanying second quarter earnings release for non-GAAP financial measure definitions and reconciliations.

Page 1

Brookdale Senior Living Inc.
Segment Financial Data
As of June 30, 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
Revenue		132,349			133,441			155,227			161,295			582,312			163,486			164,409
Expenses		76,119			76,550			88,022			92,738			333,429			92,962			92,365
Segment Operating Income		56,230			56,891			67,205			68,557			248,883			70,524			72,044
Segment Operating Margin		42.5	%		42.6	%		43.3	%		42.5	%		42.7	%		43.1	%		43.8	%

Number of communities (period end)		74			74			100			99			99			99			98
Total average units(5)		14,161			14,162			16,594			17,315			15,558			17,369			17,279
Weighted average unit occupancy		89.3	%		88.9	%		89.8	%		89.9	%		89.5	%		88.8	%		88.4	%
Senior Housing average monthly revenue per unit(6)	$	3,490		$	3,532		$	3,472		$	3,454		$	3,485		$	3,533		$	3,589

Assisted Living	FY 2014 (2)															FY 2015
		Q1			Q2			Q3			Q4		Full Year				Q1 (4)			Q2
Revenue		277,431			277,230			516,640			614,262			1,685,563			617,344			611,838
Expenses		172,439			172,984			328,486			403,165			1,077,074			393,838			388,479
Segment Operating Income		104,992			104,246			188,154			211,097			608,489			223,506			223,359
Segment Operating Margin		37.8	%		37.6	%		36.4	%		34.4	%		36.1	%		36.2	%		36.5	%

Number of communities (period end)		440			440			841			838			838			837			833
Total average units(5)		22,435			22,463			45,260			55,241			36,350			55,073			54,700
Weighted average unit occupancy		89.6	%		89.0	%		88.8	%		88.2	%		88.7	%		87.2	%		86.4	%
Senior Housing average monthly revenue per unit(6)	$	4,599		$	4,622		$	4,286		$	4,203		$	4,356		$	4,283		$	4,316

CCRCs - Rental	FY 2014 (1) (2) (3)															FY 2015
		Q1			Q2			Q3			Q4		Full Year				Q1 (4)			Q2
Revenue		97,944			98,212			144,074			152,943			493,173			155,991			151,561
Expenses		71,114			72,519			109,582			118,297			371,512			117,420			115,701
Segment Operating Income		26,830			25,693			34,492			34,646			121,661			38,571			35,860
Segment Operating Margin		27.4	%		26.2	%		23.9	%		22.7	%		24.7	%		24.7	%		23.7	%

Number of communities (period end)		26			26			45			45			45			45			46
Total average units(5)		6,457			6,469			9,783			10,483			8,298			10,480			10,543
Weighted average unit occupancy		86.6	%		85.9	%		85.1	%		85.9	%		85.8	%		86.0	%		83.6	%
Senior Housing average monthly revenue per unit(6)	$	5,839		$	5,894		$	5,740		$	5,637		$	5,757		$	5,744		$	5,697

CCRCs - Entry Fee	FY 2014 (2) (3)															FY 2015
		Q1			Q2			Q3			Q4		Full Year				Q1			Q2
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
Revenue		586,893			587,983			860,086			928,500			2,963,462			936,821			927,808
Expenses		379,206			382,786			559,804			614,200			1,935,996			604,220			596,545
Operating Income		207,687			205,197			300,282			314,300			1,027,466			332,601			331,263
Operating Margin		35.4	%		34.9	%		34.9	%		33.9	%		34.7	%		35.5	%		35.7	%
G&A Allocation(7)		24,396			22,589			33,912			35,365			116,262			42,093			37,399
Adjusted Operating Income		183,291			182,608			266,370			278,935			911,204			290,508			293,864
Adjusted Operating Margin		31.2	%		31.1	%		31.0	%		30.0	%		30.7	%		31.0	%		31.7	%

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

Page 2

Brookdale Senior Living Inc.
Segment Financial Data
As of June 30, 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
Revenue		63,417			65,534			95,426			113,458			337,835			115,411			116,170
Expenses		50,664			52,629			77,280			93,799			274,372			92,669			98,446
Segment Operating Income		12,753			12,905			18,146			19,659			63,463			22,742			17,724
Segment Operating Margin		20.1	%		19.7	%		19.0	%		17.3	%		18.8	%		19.7	%		15.3	%
G&A Allocation(7)		5,642			5,908			5,709			9,050			26,309			8,251			7,811
Adjusted Segment Operating Income		7,111			6,997			12,437			10,609			37,154			14,491			9,913
Adjusted Segment Operating Margin		11.2	%		10.7	%		13.0	%		9.4	%		11.0	%		12.6	%		8.5	%

Brookdale units served:
Outpatient Therapy consolidated		37,974			38,328			37,899			36,843						40,740			42,289
Home Health consolidated		34,518			35,061			33,254			37,006						44,239			44,928
Outpatient Therapy non-consolidated		14,138			13,942			18,716			17,164						18,920			19,096
Home Health non-consolidated		12,819			12,336			16,036			18,954						19,258			19,379
Total Brookdale units served:
Outpatient Therapy		52,112			52,270			56,615			54,007						59,660			61,385
Home Health		47,337			47,397			49,290			55,960						63,497			64,307

Outpatient Therapy treatment codes		812,632			798,754			762,993			679,057						636,413			667,836
Home Health average census		5,084			5,257			10,314			12,723						13,767			13,884

Total Senior Housing and Brookdale Ancillary Services	FY 2014 (2)															FY 2015
		Q1			Q2			Q3			Q4		Full Year				Q1 (4)			Q2
Revenue		650,310			653,517			955,512			1,041,958			3,301,297			1,052,232			1,043,978
Expenses		429,870			435,415			637,084			707,999			2,210,368			696,889			694,991
Operating Income		220,440			218,102			318,428			333,959			1,090,929			355,343			348,987
Operating Margin		33.9	%		33.4	%		33.3	%		32.1	%		33.0	%		33.8	%		33.4	%
G&A Allocation(7)		30,038			28,497			39,621			44,415			142,571			50,344			45,210
Adjusted Operating Income		190,402			189,605			278,807			289,544			948,358			304,999			303,777
Adjusted Operating Margin		29.3	%		29.0	%		29.2	%		27.8	%		28.7	%		29.0	%		29.1	%

Management Services	FY 2014 (2)															FY 2015
		Q1			Q2			Q3			Q4		Full Year				Q1 (4)			Q2
Revenue (Management Fees)		7,402			7,489			10,428			16,920			42,239			15,097			14,839
Expenses (G&A Allocation)(7)		6,116			5,649			7,453			10,732			29,950			9,755			8,878
Segment Operating Income		1,286			1,840			2,975			6,188			12,289			5,342			5,961
Segment Operating Margin		17.4	%		24.6	%		28.5	%		36.6	%		29.1	%		35.4	%		40.2	%

Number of communities (period end)		92			92			161			161			161			160			159
Total average units(5)		17,140			16,978			20,919			27,318			20,589			27,185			27,026
Weighted average occupancy		86.3	%		86.8	%		86.3	%		86.4	%		86.5	%		86.5	%		85.2	%
Senior Housing average monthly revenue per unit(6)	$	3,706		$	3,701		$	3,949		$	4,236		$	3,943		$	4,277		$	4,238

Total Senior Housing, Brookdale Ancillary and Management Services	FY 2014 (2)															FY 2015
		Q1			Q2			Q3			Q4		Full Year				Q1 (4)			Q2
Revenue		657,712			661,006			965,940			1,058,878			3,343,536			1,067,329			1,058,817
Expenses		429,870			435,415			637,084			707,999			2,210,368			696,889			694,991
Operating Income		227,842			225,591			328,856			350,879			1,133,168			370,440			363,826
Operating Margin		34.6	%		34.1	%		34.0	%		33.1	%		33.9	%		34.7	%		34.4	%
G&A Allocation (7)		36,154			34,146			47,074			55,147			172,521			60,099			54,088
Adjusted Operating Income		191,688			191,445			281,782			295,732			960,647			310,341			309,738
Adjusted Operating Margin		29.1	%		29.0	%		29.2	%		27.9	%		28.7	%		29.1	%		29.3	%

Page 3

Brookdale Senior Living Inc.
Segment Financial Data
As of June 30, 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 June 30, 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
Revenue		277,700			277,748			369,078			385,654			1,310,180			412,555			411,576
Expenses		182,706			184,773			247,359			260,901			875,739			276,225			274,608
Segment Operating Income		94,994			92,975			121,719			124,753			434,441			136,330			136,968
Segment Operating Margin		34.2	%		33.5	%		33.0	%		32.3	%		33.2	%		33.0	%		33.3	%

Number of communities (period end)		226			226			403			399						422			424
Total average units(3)		22,775			22,799			32,079			34,904						36,923			37,182
Weighted average unit occupancy		88.5	%		88.0	%		88.2	%		87.6	%					86.5	%		85.4	%
Senior Housing average monthly revenue per unit(4)	$	4,516		$	4,532		$	4,302		$	4,202					$	4,305		$	4,319

Leased Properties with Purchase Options	FY 2014 (1)															FY 2015
		Q1			Q2			Q3			Q4		Full Year				Q1 (2)			Q2
Revenue		77,863			77,418			87,008			86,441			328,730			82,064			79,516
Expenses		49,497			49,719			57,026			57,839			214,081			52,414			50,638
Segment Operating Income		28,366			27,699			29,982			28,602			114,649			29,650			28,878
Segment Operating Margin		36.4	%		35.8	%		34.5	%		33.1	%		34.9	%		36.1	%		36.3	%

Number of communities (period end)		84			84			111			112						103			101
Total average units(3)		6,391			6,391			7,347			7,555						7,027			6,803
Weighted average unit occupancy		89.0	%		88.4	%		88.6	%		88.5	%					87.8	%		86.7	%
Senior Housing average monthly revenue per unit(4)	$	4,447		$	4,440		$	4,394		$	4,312					$	4,433		$	4,492

Leased Properties without Purchase Options	FY 2014 (1)															FY 2015
		Q1			Q2			Q3			Q4		Full Year				Q1 (2)			Q2
Revenue		231,330			232,817			404,000			456,405			1,324,552			442,202			436,716
Expenses		147,003			148,294			255,419			295,460			846,176			275,581			271,299
Segment Operating Income		84,327			84,523			148,581			160,945			478,376			166,621			165,417
Segment Operating Margin		36.5	%		36.3	%		36.8	%		35.3	%		36.1	%		37.7	%		37.9	%

Number of communities (period end)		245			245			472			471						456			452
Total average units(3)		19,414			19,438			35,165			40,580						38,972			38,537
Weighted average unit occupancy		88.2	%		87.9	%		88.6	%		88.8	%					88.2	%		87.4	%
Senior Housing average monthly revenue per unit(4)	$	4,491		$	4,533		$	4,314		$	4,218					$	4,282		$	4,313

Total Senior Housing	FY 2014 (1)															FY 2015
		Q1			Q2			Q3			Q4		Full Year				Q1 (2)			Q2
Revenue		586,893			587,983			860,086			928,500			2,963,462			936,821			927,808
Expenses		379,206			382,786			559,804			614,200			1,935,996			604,220			596,545
Operating Income		207,687			205,197			300,282			314,300			1,027,466			332,601			331,263
Operating Margin		35.4	%		34.9	%		34.9	%		33.9	%		34.7	%		35.5	%		35.7	%

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

(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 June 30, 2015

Same Community Information

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

		Legacy Brookdale Senior Housing									Legacy Brookdale Senior Housing
		Three Months Ended June 30,									Twelve Months Ended June 30,
		2015			2014			% Change			2015			2014			% Change
Revenue		$	488,136		$	480,209			1.7	%	$	1,899,011		$	1,853,185			2.5	%
Operating Expense			313,598			306,215			2.4	%		1,231,678			1,180,817			4.3	%
Facility Operating Income		$	174,538		$	173,994			0.3	%	$	667,333		$	672,368			-0.7	%
Facility Operating Margin			35.8	%		36.2	%		-0.4	%		35.1	%		36.3	%		-1.2	%

# Communities			509			509						497			497
Avg. Period Occupancy			86.8	%		88.7	%		-1.9	%		88.0	%		89.1	%		-1.1	%
Avg. Mo. Revenue/Unit		$	4,654		$	4,484			3.8	%	$	4,596		$	4,429			3.8	%


		Legacy Emeritus Senior Housing									Legacy Emeritus Senior Housing
		Three Months Ended June 30,									Twelve Months Ended June 30,
			2015			2014		% Change				2015			2014		% Change
Revenue		$	393,754		$	399,331			-1.4	%	$	1,406,044		$	1,411,793			-0.4	%
Operating Expense			254,916			263,791			-3.4	%		921,301			936,523			-1.6	%
Facility Operating Income		$	138,838		$	135,540			2.4	%	$	484,743		$	475,270			2.0	%
Facility Operating Margin			35.3	%		33.9	%		1.4	%		34.5	%		33.7	%		0.8	%

# Communities			437			437						396			396
Avg. Period Occupancy			86.5	%		89.1	%		-2.6	%		87.1	%		88.6	%		-1.5	%
Avg. Mo. Revenue/Unit		$	3,964		$	3,903			1.6	%	$	3,993		$	3,945			1.2	%


	Combined Brookdale and Emeritus Senior Housing										Combined Brookdale and Emeritus Senior Housing
		Three Months Ended June 30,									Twelve Months Ended June 30,
			2015			2014		% Change				2015			2014		% Change
Revenue		$	881,890		$	879,540			0.3	%	$	3,305,055		$	3,264,978			1.2	%
Operating Expense			568,514			570,006			-0.3	%		2,152,979			2,117,340			1.7	%
Facility Operating Income		$	313,376		$	309,534			1.2	%	$	1,152,076		$	1,147,638			0.4	%
Facility Operating Margin			35.5	%		35.2	%		0.3	%		34.9	%		35.1	%		-0.2	%

# Communities			946			946						893			893
Avg. Period Occupancy			86.7	%		88.9	%		-2.2	%		87.6	%		88.9	%		-1.3	%
Avg. Mo. Revenue/Unit		$	4,318		$	4,200			2.8	%	$	4,319		$	4,206			2.7	%

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 June 30,
Type	2015			2014
Recurring	$	19,527		$	11,841
Reimbursements		(2,102	)		-
Net Recurring		17,425			11,841
EBITDA-enhancing / Major Projects (1)		35,235			25,139
Program Max, net (2)		1,621			18,282
Corporate, integration and other (3)		29,468			10,416
Net Total Capital Expenditures (4)	$	83,749		$	65,678

Page 6

Brookdale Senior Living Inc.

Capital Structure - selected financial information

As of June 30, 2015

($ in 000s)

Debt Maturities and Scheduled Principal Repayments

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

2015	$	103,181		4.67	%	$	-		-		$	28,889		8.02	%	$	132,070
2016		68,477		4.98	%		-		-			137,758		6.99	%		206,235
2017		566,251		5.83	%		-		-			89,163		8.62	%		655,414
2018		1,308,811		4.57	%		-		-			113,612		7.91	%		1,422,423
2019		154,365		6.07	%		-		-			123,522		8.61	%		277,887
Thereafter		1,419,825		4.08	%		270,000		3.77	%		2,092,430		8.21	%		3,782,255
Total	$	3,620,910		4.65	%	$	270,000		3.77	%	$	2,585,374		8.16	%	$	6,476,284

Coverage Ratios

	Six months ended June 30, 2015 (3)
			Senior Housing				Interest/Cash Lease
	Units		FOI		Adj. FOI **		Payments		Coverage
Owned communities		37,349	$	273,298	$	225,556	$	86,032		2.6	x
Leased communities *		45,337	$	390,566	$	330,608	$	306,999		1.1	x

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

Debt Amortization

	Six months ended June 30,
	2015		2014
Scheduled debt amortization	$	44,684	$	24,497
Lease financing debt amortization - FMV or no purchase option (4)		25,195		7,880
Lease financing debt amortization - bargain purchase option		2,585		9,435
Total debt amortization	$	72,464	$	41,812

Line Availability

	06/30/14		09/30/14		12/31/14		03/31/15		06/30/15

Total line commitment	$	250,000	$	250,000	$	500,000	$	500,000	$	500,000

Line availability (6)	$	250,000	$	202,860	$	488,389	$	466,746	$	468,092
Ending line balance		12,000		-		100,000		300,000		270,000
Available to draw	$	238,000	$	202,860	$	388,389	$	166,746	$	198,092
Cash and cash equivalents		50,934		238,324		104,083		115,182		78,496
Total liquidity (available to draw + cash)	$	288,934	$	441,184	$	492,472	$	281,928	$	276,588

Total letters of credit outstanding	$	71,650	$	74,488	$	72,730	$	83,935	$	83,685

Leverage Ratios

				Annualized
				Leverage
Six months ended June 30, 2015 annualized Adjusted EBITDAR	$	1,295,708
Less: cash lease expense		(374,148	)
Six months ended June 30, 2015 annualized Adjusted EBITDA		921,560
Less: cash capital and financing lease payments		(239,850	)
Six months ended June 30, 2015 annualized Adjusted EBITDA after capital and financing lease payments		681,710

Debt (1)		3,620,910			5.3	x
Line of credit		270,000
Less: unrestricted cash		(78,496	)
Less: cash held as collateral against existing debt		(2,962	)
Total net debt		3,809,452			5.6	x

Plus: Six months ended June 30, 2015 annualized cash capital and financing lease payments multiplied by 8		1,918,800
Total net debt after capital and financing leases		5,728,252			6.2	x

Six months ended June 30, 2015 annualized cash lease expense multiplied by 8		2,993,184
Total adjusted net debt	$	8,721,436			6.7	x

Debt Structure

			Weighted
	Balance		rate (2)
Fixed rate debt (1)	$	2,607,155		5.27	%
Variable rate debt (1)		1,013,755		3.06	%
Capital and financing leases		2,585,374		8.16	%
Line of credit (cash borrowings)		270,000		3.77	%
Total debt	$	6,476,284

	Balance		% of total
Variable rate debt with interest rate caps (1) (5)	$	819,850		80.9	%
Variable rate debt - unhedged (1)		193,905		19.1	%
Total variable rate debt (1)	$	1,013,755		100.0	%

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

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

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

(4) Payments are included in CFFO.

(5) Weighted cap rate for stated reporting period of 4.31% is materially above current market rates, therefore caps have no impact on consolidated interest expense for given period.

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

Page 7

Brookdale Senior Living Inc.
CFFO Reconciliation
As of June 30, 2015

CFFO Calculation
($ in 000s)

	Three Months Ended June 30,
	2015			2014

Net cash provided by operating activities (includes non-refundable entrance fees)	$	100,767		$	91,518
Changes in operating assets and liabilities (eliminates cash flow effect)		547			(2,469	)
Add: Refundable entrance fees received		550			11,018
Less: Entrance fee refunds disbursed		(988	)		(9,213	)
Less: Recurring capital expenditures, net		(17,425	)		(11,841	)
Less: Lease financing debt amortization with fair market value or no purchase options		(12,756	)		(3,983	)
Less: Distributions from unconsolidated ventures from cumulative share of net earnings		(950	)		(370	)
Add: CFFO from unconsolidated ventures		11,177			1,996
Cash From Facility Operations	$	80,922		$	76,656

Add: Integration, transaction, transaction-related and EMR roll-out costs		29,027			11,941
Adjusted Cash From Facility Operations	$	109,949		$	88,597

Revenue Reconciliation (1)

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

	FY 2014															FY 2015						Q2 2015 CFFO Distribution
		Q1			Q2			Q3			Q4		Full Year				Q1 (3)			Q2		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		$	4,319		$	4,341		$	-
Average monthly units (excluding equity homes) available		48,562			48,608			74,538			82,995			254,923			82,927			82,470			37,195			45,329			-
Average occupancy for the quarter		88.6	%		88.1	%		88.5	%		88.3	%		88.3	%		87.4	%		86.5	%		85.4	%		87.3	%		-
Senior Housing resident fee revenue	$	579,691		$	580,436		$	854,329		$	927,786		$	2,942,242		$	936,054		$	926,878		$	411,576		$	515,302		$	-

Add: Brookdale Ancillary Services segment revenue		63,417			65,534			95,426			113,458			337,835			115,411			116,170			-			116,170			-
Add: Management fee revenue		7,402			7,489			10,428			16,920			42,239			15,097			14,839			-			14,839			-
Total revenues excluding entrance fee amortization	$	650,510		$	653,459		$	960,183		$	1,058,164		$	3,322,316		$	1,066,562		$	1,057,887		$	411,576		$	646,311		$	-

CFFO Reconciliation to the Income Statement

Resident and management fee revenue	$	657,712		$	661,006		$	965,940		$	1,058,878		$	3,343,536		$	1,067,329		$	1,058,817		$	411,576		$	647,241		$	-
Less: Entrance fee amortization		(7,202	)		(7,547	)		(5,757	)		(714	)		(21,220	)		(767	)		(930	)		-			(930	)		-
Adjusted revenues		650,510			653,459			960,183			1,058,164			3,322,316			1,066,562			1,057,887			411,576			646,311			-

Less: Facility operating expenses		(429,870	)		(435,415	)		(637,084	)		(707,999	)		(2,210,368	)		(696,889	)		(694,991	)		(274,608	)		(420,383	)		-
Add: Change in future service obligation		-			-			-			670			670			-			-			-			-			-
Adjusted facility operating expenses		(429,870	)		(435,415	)		(637,084	)		(707,329	)		(2,209,698	)		(696,889	)		(694,991	)		(274,608	)		(420,383	)		-

Less: G&A including non-cash stock-based compensation expense		(44,665	)		(47,008	)		(90,020	)		(98,574	)		(280,267	)		(89,530	)		(89,545	)		(18,691	)		(42,248	)		(28,606	)
Less: Transaction costs		(10,844	)		(6,808	)		(41,572	)		(7,725	)		(66,949	)		(6,742	)		(421	)		-			-			(421	)
Add: G&A non-cash stock-based compensation expense		7,572			7,729			7,869			5,129			28,299			8,873			6,851			2,101			4,750			-
Net G&A (5)		(47,937	)		(46,087	)		(123,723	)		(101,170	)		(318,917	)		(87,399	)		(83,115	)		(16,590	)		(37,498	)		(29,027	)

Less: Facility lease expense		(69,869	)		(70,030	)		(91,462	)		(92,469	)		(323,830	)		(94,471	)		(91,338	)		-			(91,338	)		-
Add: Straight-line lease expense		(223	)		(217	)		2,840			(961	)		1,439			2,801			1,919			-			1,919			-
Add: Amortization of (above) below market lease, net		-			-			(1,377	)		(2,067	)		(3,444	)		(1,959	)		(1,840	)		-			(1,840	)		-
Less: Amortization of deferred gain		(1,093	)		(1,093	)		(1,093	)		(1,093	)		(4,372	)		(1,093	)		(1,093	)		-			(1,093	)		-
Net lease expense		(71,185	)		(71,340	)		(91,092	)		(96,590	)		(330,207	)		(94,722	)		(92,352	)		-			(92,352	)		-

Add: Entrance fee receipts		14,959			25,924			9,576			2,587			53,046			2,491			3,408			-			3,408			-
Less: Entrance fee disbursements		(8,446	)		(9,213	)		(7,668	)		(538	)		(25,865	)		(829	)		(988	)		-			(988	)		-
Net entrance fees		6,513			16,711			1,908			2,049			27,181			1,662			2,420			-			2,420			-

Add: CFFO from unconsolidated ventures		2,241			1,996			9,435			11,662			25,334			14,213			11,177			-			11,177			-

Adjusted EBITDA		110,272			119,324			119,627			166,786			516,009			203,427			201,026			120,378			109,675			(29,027	)

Less: Recurring capital expenditures, net		(9,369	)		(11,841	)		(13,199	)		(16,353	)		(50,762	)		(15,003	)		(17,425	)		(9,009	)		(8,416	)		-
Less: Interest expense, net		(29,677	)		(29,372	)		(73,030	)		(91,933	)		(224,012	)		(89,424	)		(90,530	)		(43,302	)		(47,228	)		-
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	)		-			(12,756	)		-
Less: Other		133			2,528			217			2,847			5,725			1,542			607			-			607			-

Reported CFFO	$	67,462		$	76,656		$	22,905		$	51,319		$	218,342		$	88,103		$	80,922		$	68,067		$	41,882		$	(29,027	)

Add: integration, transaction, transaction-related and EMR roll-out costs		11,783			11,941			76,649			46,023			146,396			27,300			29,027			-			-			29,027
Adjusted CFFO	$	79,245		$	88,597		$	99,554		$	97,342		$	364,738		$	115,403		$	109,949		$	68,067		$	41,882		$	-

CFFO Per Share

($ except where indicated)	FY 2014															FY 2015						Q2 2015 Distribution
		Q1			Q2			Q3			Q4		Full Year(2)				Q1			Q2		Owned			Other			Transaction/ Integration
Reported CFFO	$	0.54		$	0.61		$	0.14		$	0.28		$	1.57		$	0.48		$	0.44		$	0.37		$	0.23		$	(0.16	)
Add: integration, transaction, transaction-related and EMR roll-out costs		0.10			0.10			0.49			0.25			0.94			0.15			0.16			-			-			0.16
Adjusted CFFO	$	0.64		$	0.71		$	0.63		$	0.53		$	2.51		$	0.63		$	0.60		$	0.37		$	0.23		$	-

Shares used in calculation of CFFO (000's)		124,478			125,058			159,003			183,432						183,678			184,266			184,266			184,266			184,266

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

Page 8

Brookdale Senior Living Inc.
CFFO from Unconsolidated Ventures
As of June 30, 2015

CFFO from Unconsolidated Ventures reconciliation

($ in 000s)	Entrance Fee Ventures												Senior Housing Rental Ventures
	FY 2014						FY 2015						FY 2014						FY 2015
		Q3			Q4			Q1			Q2			Q3			Q4			Q1			Q2

Resident revenue	$	33,257		$	85,546		$	87,473		$	85,179		$	80,862		$	125,970		$	127,513		$	126,435
Less: Entrance fee amortization		(638	)		(554	)		(1,141	)		(1,482	)		-			-			-			-
Adjusted revenues		32,619			84,992			86,332			83,697			80,862			125,970			127,513			126,435

Less: Facility operating expenses		(25,040	)		(68,288	)		(67,451	)		(68,544	)		(51,698	)		(84,306	)		(83,469	)		(83,088	)

Less: Management Fee Expense		(6,015	)		(4,948	)		(4,707	)		(4,691	)		(3,925	)		(6,077	)		(6,153	)		(6,080	)

Add: Entrance fee receipts		16,112			26,210			23,251			26,040			-			-			-			-
Less: Entrance fee disbursements		(4,780	)		(13,888	)		(9,181	)		(13,042	)		-			-			-			-
Net entrance fees		11,332			12,322			14,070			12,998			-			-			-			-

Adjusted EBITDA		12,896			24,078			28,244			23,460			25,239			35,587			37,891			37,261

Less: Recurring capital expenditures, net		(193	)		(1,347	)		(1,159	)		(1,898	)		(974	)		(2,431	)		(2,336	)		(2,760	)
Less: Interest expense, net		(1,161	)		(1,575	)		(1,530	)		(1,500	)		(15,648	)		(26,447	)		(25,845	)		(26,198	)
Less: Other		-			-			-			-			-			(276	)		(613	)		(103	)

Reported Cash From Facility Operations for Unconsolidated Ventures	$	11,542		$	21,156		$	25,555		$	20,062		$	8,617		$	6,433		$	9,097		$	8,201
Add: integration, transaction, transaction-related and EMR roll-out costs		4,088			210			-			-			738			-			-			-

Adjusted Cash From Facility Operations for Unconsolidated Ventures	$	15,630		$	21,366		$	25,555		$	20,062		$	9,355		$	6,433		$	9,097		$	8,201


Brookdale Weighted Average Ownership %		51.7	%		51.0	%		51.0	%		51.0	%		14.5	%		11.9	%		13.0	%		11.5	%
CFFO from Unconsolidated Ventures	$	8,081		$	10,896		$	13,033		$	10,232		$	1,354		$	766		$	1,180		$	945


Leverage Ratio for Unconsolidated Ventures (1)
Debt Principal as of June 30, 2015										$	194,827											$	1,325,516
Annualized Adjusted EBITDA											103,408												150,304
Annualized Leverage											1.9	x											8.8	x

Unconsolidated Ventures Schedule of Capital Expenditures
($ in 000s)	FY 2014				FY 2015
Type		Q3		Q4		Q1		Q2
Recurring	$	1,167	$	3,778	$	3,495	$	4,658
EBITDA-enhancing / Major Projects		5,247		17,199		13,243		24,562
Program Max, net		2,758		3,665		4,340		7,685
Net Total Capital Expenditures	$	9,172	$	24,642	$	21,078	$	36,905

(1) The debt principal amount inlcuded in the annualized leverage calculation for the Senior Housing Rental Ventures excludes $550 million of debt incurred upon the formation of a new RIDEA venture on June 30, 2015.

Page 9

Brookdale Senior Living Inc.
Cash Lease and Interest Expense
As of June 30, 2015

Cash Lease and Interest Expense

($ in 000s)	FY 2014						FY 2015
		Q3			Q4			Q1			Q2

Facility Lease Payments

Facility lease expense	$	91,462		$	92,469		$	94,471		$	91,338
Less: Straight-line lease expense, net		(1,463	)		3,028			(842	)		(79	)
Add: Amortization of deferred gain		1,093			1,093			1,093			1,093
Cash lease payments - Operating Leases	$	91,092		$	96,590		$	94,722		$	92,352
Supplemental breakout:
Communities with purchase options	$	5,590		$	6,320		$	6,343		$	6,311
Communities without purchase options		85,502			90,270			88,379			86,041
	$	91,092		$	96,590		$	94,722		$	92,352

Capital Lease Interest	$	40,916		$	56,873		$	53,203		$	53,043
Less: Capital Lease Interest - noncash		(5,947	)		(6,700	)		(5,700	)		(5,816	)
Add: Capital lease principal (1)		10,710			10,028			12,439			12,756
Cash lease payments - Capital and Financing Leases	$	45,679		$	60,201		$	59,942		$	59,983
Supplemental breakout:
Communities with purchase options	$	13,571		$	14,755		$	14,205		$	13,558
Communities without purchase options		32,108			45,446			45,737			46,425
	$	45,679		$	60,201		$	59,942		$	59,983

Total cash lease payments	$	136,771		$	156,791		$	154,664		$	152,335

Interest Expense

Property level debt interest expense	$	36,278		$	39,930		$	40,174		$	41,510
Convertible debt interest expense		2,174			2,174			2,174			2,174
Total debt interest payments		38,452			42,104			42,348			43,684
Less: interest income		(392	)		(345	)		(427	)		(382	)
Interest expense, net	$	38,060		$	41,759		$	41,921		$	43,302

(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 June 30, 2015

($ in 000s)

Cash Flow Statements

		Q1 2014			Q2 2014			Q3 2014			Q4 2014		FY 2014				Q1 2015			Q2 2015
Cash Flows from Operating Activities
Net loss	$	(2,299	)	$	(3,295	)	$	(37,036	)	$	(106,796	)	$	(149,426	)	$	(130,709	)	$	(84,807	)
Adjustments to reconcile net loss to net cash provided by operating activities:
Debt modification and extinguishment costs		-			3,197			569			2,621			6,387			44			-
Depreciation and amortization, net		74,334			75,166			178,810			216,202			544,512			220,808			225,483
Asset impairment		-			-			-			9,992			9,992			-			-
Equity in (earnings) loss of unconsolidated ventures		(636	)		(1,523	)		1,246			742			(171	)		(1,484	)		672
Distributions from unconsolidated ventures from cumulative share of net earnings		245			370			595			630			1,840			500			950
Amortization of deferred gain		(1,093	)		(1,093	)		(1,093	)		(1,093	)		(4,372	)		(1,093	)		(1,093	)
Amortization of entrance fees		(7,202	)		(7,547	)		(5,757	)		(714	)		(21,220	)		(767	)		(930	)
Proceeds from deferred entrance fee revenue		9,035			14,906			6,188			2,575			32,704			2,455			2,858
Deferred income tax provision (benefit)		598			(5	)		(116,757	)		(66,207	)		(182,371	)		(79,237	)		(53,225	)
Change in deferred lease liability		(223	)		(217	)		2,840			(961	)		1,439			2,801			1,919
Change in fair value of derivatives		847			1,322			10			532			2,711			550			76
Change in future service obligation		-			-			-			670			670			-			-
Non-cash stock-based compensation		7,572			7,729			7,869			5,129			28,299			8,873			6,851
Non-cash interest expense on financing lease obligations		-			-			5,947			6,700			12,647			5,700			5,816
Amortization of (above) below market rents, net		-			-			(1,377	)		(2,067	)		(3,444	)		(1,959	)		(1,840	)
Other		76			39			200			(761	)		(446	)		-			(1,416	)
Changes in operating assets and liabilities:
Accounts receivable, net		(2,499	)		3,914			23,671			(21,576	)		3,510			(13,140	)		899
Prepaid expenses and other assets, net		(5,816	)		(8,369	)		(53,861	)		15,178			(52,868	)		24,504			12,989
Accounts payable and accrued expenses		(27,561	)		14,245			6,222			23,906			16,812			(38,773	)		(10,763	)
Tenant refundable fees and security deposits		(615	)		138			(674	)		(32	)		(1,183	)		(510	)		(7	)
Deferred revenue		7,933			(7,459	)		(4,978	)		1,134			(3,370	)		11,494			(3,665	)
Net cash provided by operating activities		52,696			91,518			12,634			85,804			242,652			10,057			100,767
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
Decrease (increase) in cash and escrow deposits — restricted		6,627			(6,039	)		14,052			42,295			56,935			12,289			(2,083	)
Additions to property, plant and equipment and leasehold intangibles, net		(59,717	)		(73,712	)		(79,104	)		(91,712	)		(304,245	)		(79,129	)		(99,219	)
Acquisition of assets, net of related payables and cash received		(515	)		-			(39,303	)		(623	)		(40,441	)		(174,305	)		(18,396	)
Acquisition of Emeritus Corporation, cash acquired		-			-			28,429			-			28,429			-			-
Investment in unconsolidated ventures		-			-			(25,532	)		(967	)		(26,499	)		(3,923	)		(34,686	)
Distributions received from unconsolidated ventures		-			2,643			9,414			218			12,275			-			-
Proceeds from sale of assets, net		-			-			-			4,339			4,339			-			4,993
Other		76			2,564			73			556			3,269			740			1,499
Net cash used in investing activities		(53,522	)		(74,617	)		(88,645	)		(98,098	)		(314,882	)		(231,291	)		(145,206	)
Cash Flows from Financing Activities
Proceeds from debt		20,516			159,638			46,356			100,129			326,639			85,365			79,828
Repayment of debt and capital and financing lease obligations		(22,401	)		(159,412	)		(92,568	)		(309,964	)		(584,345	)		(47,555	)		(36,482	)
Proceeds from line of credit		70,000			12,000			160,000			200,000			442,000			445,000			240,000
Repayment of line of credit		(75,000	)		(25,000	)		(172,000	)		(100,000	)		(372,000	)		(245,000	)		(270,000	)
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	)
Refundable entrance fees:
Proceeds from refundable entrance fees		5,924			11,018			3,388			12			20,342			36			550
Refunds of entrance fees		(8,446	)		(9,213	)		(7,668	)		(538	)		(25,865	)		(829	)		(988	)
Cash portion of loss on extinguishment of debt, net		-			(3,180	)		(921	)		-			(4,101	)		(44	)		-
Payment on lease termination		-			-			(3,875	)		(3,875	)		(7,750	)		(3,875	)		(3,875	)
Other		328			394			486			681			1,889			716			705
Net cash (used in) provided by financing activities		(11,984	)		(11,668	)		263,401			(121,947	)		117,802			232,333			7,753
Net (decrease) increase in cash and cash equivalents		(12,810	)		5,233			187,390			(134,241	)		45,572			11,099			(36,686	)
Cash and cash equivalents at beginning of period		58,511			45,701			50,934			238,324			58,511			104,083			115,182
Cash and cash equivalents at end of period	$	45,701		$	50,934		$	238,324		$	104,083		$	104,083		$	115,182		$	78,496

Page 11

(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 $6.1 million for the three months ended June 30, 2015.

(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 $7.2 million and $8.0 million for the three months ended June 30, 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) Approximately $16.5 million and $10.0 million of expense was recognized during the three months ended June 30, 2015 and 2014, respectively, for normal repairs and maintenance and capital spend under $1,500 per invoice, except for unit turnovers.