Risk Factors Update Summary

• Added risks related to prolonged high inflation, labor market challenges, supply chain disruptions, and geopolitical instability.
• Business plan now includes acquiring additional properties, facing risks like higher operating costs.
• Increased consolidated debt from $3.1 billion in 2022 to $[VALUE] billion in 2023.
• Added concerns about the impact of interest rate increases on borrowing costs and financing availability.
• Added concerns about the impact of interest rate increases on interest expenses and potential decline in property values.
• Potential difficulties in acquisitions include undisclosed defects, market changes, and unexpected costs.
• Added risks related to the inability to refinance maturing debt and the increased cost of refinanced debt.
• Added risks associated with secured debt and potential foreclosure on properties securing debt.
• Ownership interest in AlerisLife increased to approximately 34.0% after a $14.9 million acquisition.
• Increased focus on ESG sustainability initiatives and market expectations, impacting compliance costs and financial results.
• Moody's downgraded senior notes ratings from Ba3 to B2 and B3 to Caa3.
• Standard & Poor's downgraded senior notes ratings from BB- to B and B to CCC+.
• Moody's and Standard & Poor's downgraded ratings for 2025 and 2031 Notes, affecting liquidity.
• Restrictions on repurchasing notes upon a change of control event could lead to default.