Risk Factors Update Summary

• Added "commercial" to risk factors, highlighting industry conditions, including prolonged high inflation, labor market challenges, and supply chain disruptions.
• Business plan includes acquiring additional properties, facing risks like higher operating costs and unexpected market changes.
• Debt increased from $3.1 billion in 2022 to $3.2 billion in 2023, impacting refinancing risks.
• Potential difficulties in acquiring properties include undisclosed defects, unknown liabilities, and incorrect assumptions.
• Interest rates significantly increased, affecting borrowing costs and refinancing risks.
• Ownership interest in AlerisLife may not yield expected benefits due to limited influence and trading restrictions.
• Increased insurance costs may impact profitability and returns for managers and tenants.
• Downgrades in credit ratings from Ba3 to B2 and B3 to Caa3 may impact ability to raise capital.
• Focus on ESG sustainability initiatives may lead to additional costs and risks for the company.
• Moody's downgraded 2025 and 2031 Notes ratings from Caa3 to Ca and senior unsecured debt rating from Ca to C.
• Increased insurance costs may adversely affect the ability of managers to operate profitably.
• Standard & Poor's downgraded 2025 and 2031 Notes ratings from B to CCC + and senior unsecured debt rating from CCC + to CCC -.
• Increased insurance costs may affect the ability of tenants to pay rent or result in losses.
• Standard & Poor's upgraded 2025 and 2031 Notes ratings from CCC + to B and senior unsecured debt rating from CCC - to CCC +.