Sabra Health Care REIT, Inc.

Previous wording

Our investment portfolio is primarily comprised of skilled nursing/transitional care facilities, senior housing communities (“Senior Housing - Leased”), behavioral health facilities, and specialty hospitals and other facilities, in each case leased to third-party operators; senior housing communities operated by third-party property managers pursuant to property management agreements (“Senior Housing - Managed”); investments in joint ventures; loans receivable; and preferred equity investments.

Current wording

Our investment portfolio is primarily comprised of skilled nursing/transitional care facilities, senior housing communities (“Senior Housing - Leased”) and specialty hospitals and other facilities, in each case leased to third-party operators; senior housing communities operated by third-party property managers pursuant to property management agreements (“senior housing operating portfolio” or “SHOP”); investments in joint ventures; loans receivable; and preferred equity investments.

Previous wording

To the extent that our tenants, borrowers and Senior Housing - Managed portfolio have faced or will face the negative impacts of such conditions, they may be unable to meet their obligations to us or experience a deterioration in operating results. If our tenants and borrowers default on these obligations, such defaults could result in the determination that the full amounts of our investments are not recoverable, which could result in an impairment charge. Further, prolonged deterioration in the operating results for our investments in our Senior Housing - Managed portfolio could result in the determination that the full amounts of our investments are not recoverable, which could result in an impairment charge.

Current wording

To the extent that our tenants, borrowers and SHOP communities have faced or will face the negative impacts of such conditions, they may be unable to meet their obligations to us or experience a deterioration in operating results. If our tenants and borrowers default on these obligations, such defaults could result in the determination that the full amounts of our investments are not recoverable, which could result in an impairment charge. Further, prolonged deterioration in the operating results for our investments in our SHOP communities could result in the determination that the full amounts of our investments are not recoverable, which could result in an impairment charge.

Previous wording

During the six months ended June 30, 2026, we acquired seven Senior Housing - Managed communities, two skilled nursing/transitional care facilities and exercised our option to acquire one skilled nursing/transitional care facility for aggregate consideration of $287.6 million, including acquisition costs. Additionally, during the six months ended June 30, 2026, we invested $8.2 million in the purchase of bed rights and land related to the development of one skilled nursing/transitional care facility and purchased the operations of one Senior Housing - Managed community previously leased to the tenant under a triple-net operating lease for $16.3 million. See Note 3, “Recent Real Estate Acquisitions (Consolidated),” in the Notes to Consolidated Financial Statements for additional information regarding these investments.

Current wording

During the nine months ended September 30, 2026, we acquired 14 SHOP communities, two skilled nursing/transitional care facilities and exercised our option to acquire one skilled nursing/transitional care facility for aggregate consideration of $511.4 million, including acquisition costs. Additionally, during the nine months ended September 30, 2026, we invested $8.2 million in the purchase of bed rights and land related to the development of one skilled nursing/transitional care facility and purchased the operations of one SHOP community previously leased to the tenant under a triple-net operating lease for $16.3 million. See Note 3, “Recent Real Estate Acquisitions (Consolidated),” in the Notes to Consolidated Financial Statements for additional information regarding these investments.

Previous wording

During the six months ended June 30, 2026, we completed the sale of six skilled nursing/transitional care facilities and one Senior Housing - Managed community for aggregate consideration, net of closing costs, of $93.6 million. The net carrying value of the assets and liabilities of these facilities was $55.9 million, which resulted in an aggregate $46.1 million net gain on sale from the disposition of three facilities, partially offset by an aggregate $8.4 million net loss on sale from the disposition of four facilities. We continue to evaluate additional assets for sale as we look to further improve our portfolio quality.

Current wording

During the nine months ended September 30, 2026, we completed the sale of seven specialty hospitals and other facilities, six skilled nursing/transitional care facilities and one SHOP community for aggregate consideration, net of closing costs, of $166.9 million. The net carrying value of the assets and liabilities of these facilities was $137.2 million, which resulted in an aggregate $55.6 million net gain on sale from the disposition of six facilities, partially offset by an aggregate $25.9 million net loss on sale from the disposition of eight facilities. We continue to evaluate additional assets for sale as we look to further improve our portfolio quality.

Previous wording

During the six months ended June 30, 2026, we agreed to and received a reduced cash payment of $200.0 million in full satisfaction of the $300.0 million Recovery Centers of America mortgage loan, resulting in a write-off of $100.0 million.

Current wording

During the nine months ended September 30, 2026, we agreed to and received a reduced cash payment of $200.0 million in full satisfaction of the $300.0 million Recovery Centers of America mortgage loan, resulting in a write-off of $100.0 million.

Previous wording

Our consolidated interim financial statements have been prepared in accordance with U.S. generally accepted accounting principles (“GAAP”) and in conjunction with the rules and regulations of the Securities and Exchange Commission (the “SEC”). The preparation of our financial statements requires significant management judgments, assumptions and estimates about matters that are inherently uncertain. These judgments affect the reported amounts of assets and liabilities and our disclosure of contingent assets and liabilities at the dates of the financial statements and the reported amounts of revenue and expenses during the reporting periods. With different estimates or assumptions, materially different amounts could be reported in our financial statements. Additionally, other companies may utilize different estimates that may impact the comparability of our results of operations to those of companies in similar businesses. A discussion of the accounting policies that management considers critical in that they involve significant management judgments and assumptions, require estimates about matters that are inherently uncertain and because they are important for understanding and evaluating our reported financial results is included in Part II, Item 7 of our 2025 Annual Report on Form 10-K filed with the SEC. There have been no significant changes to our critical accounting policies during the six months ended June 30, 2026.

Current wording

Our consolidated interim financial statements have been prepared in accordance with U.S. generally accepted accounting principles (“GAAP”) and in conjunction with the rules and regulations of the Securities and Exchange Commission (the “SEC”). The preparation of our financial statements requires significant management judgments, assumptions and estimates about matters that are inherently uncertain. These judgments affect the reported amounts of assets and liabilities and our disclosure of contingent assets and liabilities at the dates of the financial statements and the reported amounts of revenue and expenses during the reporting periods. With different estimates or assumptions, materially different amounts could be reported in our financial statements. Additionally, other companies may utilize different estimates that may impact the comparability of our results of operations to those of companies in similar businesses. A discussion of the accounting policies that management considers critical in that they involve significant management judgments and assumptions, require estimates about matters that are inherently uncertain and because they are important for understanding and evaluating our reported financial results is included in Part II, Item 7 of our 2025 Annual Report on Form 10-K filed with the SEC. There have been no significant changes to our critical accounting policies during the nine months ended September 30, 2026.

Previous wording

As of June 30, 2026, our investment portfolio consisted of 364 real estate properties held for investment, 11 investments in loans receivable, four preferred equity investments and two investments in unconsolidated joint ventures. As of June 30, 2025, our investment portfolio consisted of 359 real estate properties held for investment, 13 investments in loans receivable, four preferred equity investments and two investments in unconsolidated joint ventures. In general, we expect that income and expenses related to our portfolio will fluctuate in future periods in comparison to the corresponding prior periods as a result of investment and disposition activity and anticipated future changes in our portfolio. The results of operations presented are not directly comparable due to ongoing acquisition and disposition activity.

Current wording

As of September 30, 2026, our investment portfolio consisted of 364 real estate properties held for investment, 11 investments in loans receivable, four preferred equity investments and two investments in unconsolidated joint ventures. As of September 30, 2025, our investment portfolio consisted of 363 real estate properties held for investment, 14 investments in loans receivable, four preferred equity investments and two investments in unconsolidated joint ventures. In general, we expect that income and expenses related to our portfolio will fluctuate in future periods in comparison to the corresponding prior periods as a result of investment and disposition activity and anticipated future changes in our portfolio. The results of operations presented are not directly comparable due to ongoing acquisition and disposition activity.

Previous wording

During the three months ended June 30, 2026, we recognized $101.3 million of rental income compared to $99.8 million for the three months ended June 30, 2025. The $1.5 million net increase in rental income is related to (i) a $4.4 million increase in revenue as the result of changing our estimates of collectability for certain leases within our triple-net leased portfolio, lease amendments and annual rental increases based on changes in the Consumer Price Index, (ii) a $3.5 million net increase in revenue related to leases that are not accounted for on an accrual basis and (iii) a $1.1 million increase from properties acquired after April 1, 2025. These increases are partially offset by (i) a $4.5 million decrease related to facilities that were transitioned to Senior Housing - Managed communities after April 1, 2025, (ii) a $2.5 million decrease from properties disposed of after April 1, 2025 and (iii) a $0.6 million decrease related to facilities that were transitioned to new operators after April 1, 2025.

Current wording

During the three months ended September 30, 2026, we recognized $103.2 million of rental income compared to $85.4 million for the three months ended September 30, 2025. The $17.8 million net increase in rental income is primarily related to(i) a $10.2 million deferred rent payment collected from an operator that was previously accounted for on a cash basis, (ii) a $4.1 million increase in revenue as the result of changing our estimates of collectability for certain leases within our triple-net leased portfolio, lease amendments and annual rental increases based on changes in the Consumer Price Index, (iii) a $2.6 million net increase in non-cash revenue primarily due to a reduction in non-cash write-offs related to facilities that were transitioned to new operators or to SHOP after July 1, 2025, (iv) a $2.2 million net increase in revenue related to leases that are not accounted for on an accrual basis and (v) a $1.7 million increase from properties acquired after July 1, 2025. These increases are partially offset by a $2.0 million net decrease in cash revenue related to facilities that were transitioned to SHOP after July 1, 2025 and$1.5 million decrease from properties disposed of after July 1, 2025.

Previous wording

During the three months ended June 30, 2026, we recognized $128.8 million of resident fees and services compared to $79.0 million for the three months ended June 30, 2025. The $49.8 million net increase is due to (i) a $34.9 million increase related to 18 Senior Housing - Managed communities acquired after April 1, 2025, (ii) a $10.6 million increase related to five facilities that were transitioned to Senior Housing - Managed communities after April 1, 2025 and (iii) a $5.4 million increase primarily related to increased occupancy and an increase in rates. These increases are partially offset by a $0.7 million decrease due to one Senior Housing - Managed community that was closed in August 2025 and a $0.4 million decrease due to one Senior Housing - Managed community that was sold after April 1, 2025.

Current wording

During the three months ended September 30, 2026, we recognized $143.2 million of resident fees and services compared to $92.0 million for the three months ended September 30, 2025. The $51.1 million net increase is primarily due to (i) a $37.0 million increase related to 23 SHOP communities acquired after July 1, 2025, (ii) an $8.6 million increase related to five facilities that were transitioned to SHOP communities after July 1, 2025 and (iii) a $6.7 million increase primarily related to increased occupancy and an increase in rates. These increases are partially offset by a $1.0 million decrease due to one SHOP community that was sold after July 1, 2025.

Previous wording

Interest and other income primarily consists of income earned on our loans receivable investments and preferred returns earned on our preferred equity investments. During the three months ended June 30, 2026, we recognized $5.8 million of interest and other income compared to $10.3 million for the three months ended June 30, 2025. The net decrease of $4.6 million is primarily due to a $4.1 million decrease from investments that were repaid after April 1, 2025 and a $0.5 million decrease inlate fee income.

Current wording

Interest and other income primarily consists of income earned on our loans receivable investments and preferred returns earned on our preferred equity investments. During the three months ended September 30, 2026, we recognized $3.2 million of interest and other income compared to $12.7 million for the three months ended September 30, 2025. The net decrease of $9.4 million is primarily due to (i) a $6.3 million decrease from investments that were repaid after July 1, 2025, (ii) a $2.8 million decrease in lease termination income and (iii) a $0.6 million decrease inlate fee income.

Previous wording

During the three months ended June 30, 2026, we incurred $56.4 million of depreciation and amortization expense compared to $43.6 million for the three months ended June 30, 2025. The net increase of $12.8 million is due to a $15.0 million increase from properties acquired after April 1, 2025 and the acquisition of the operations of five Senior Housing - Managed communities previously leased to the tenant under triple-net operating leases and a $0.6 million increase from additions to real estate. These increases are partially offset by a $1.3 million decrease due to assets that have been fully depreciated and a $1.3 million decrease from properties disposed of after April 1, 2025.

Current wording

During the three months ended September 30, 2026, we incurred $64.8 million of depreciation and amortization expense compared to $48.5 million for the three months ended September 30, 2025. The net increase of $16.3 million is primarily due to (i) a $16.6 million increase from properties acquired after July 1, 2025 and the acquisition of the operations of five SHOP communities previously leased to the tenant under triple-net operating leases, (ii) a $2.7 million increase due to accelerating amortization of lease intangibles related to facilities that were transitioned to new operators and (iii) a $0.5 million increase from additions to real estate. These increases are partially offset by a $1.8 million decrease due to assets that have been fully depreciated and a $1.3 million decrease from properties disposed of after July 1, 2025.

Previous wording

We incur interest expense comprised of costs of borrowings plus the amortization of deferred financing costs related to our indebtedness. During the three months ended June 30, 2026, we incurred $29.8 million of interest expense compared to $27.5 million for the three months ended June 30, 2025. The $2.2 million net increase is primarily related to an increase in interest expense related to borrowings under the Credit Agreement (as defined below).

Current wording

We incur interest expense comprised of costs of borrowings plus the amortization of deferred financing costs related to our indebtedness. During the three months ended September 30, 2026, we incurred $29.2 million of interest expense compared to $28.9 million for the three months ended September 30, 2025. The $0.3 million net increase is primarily related to an increase in interest expense related to borrowings under the Credit Agreement (as defined below).

Previous wording

During the three months ended June 30, 2026, we recognized $88.6 million of Senior Housing - Managed portfolio operating expenses compared to $57.4 million for the three months ended June 30, 2025. The $31.2 million net increase is primarily due to (i) a $22.4 million increase related to 18 Senior Housing - Managed communities acquired after April 1, 2025, (ii) a $6.4 million increase related to five facilities that were transitioned to Senior Housing - Managed communities after April 1, 2025, (iii) a $1.4 million increase in employee compensation primarily due to increased labor rates and staffing, (iv) a $0.9 million increase in management fees and housekeeping costs due to increased occupancy and in dining expenses primarily due to outsourcing the service to a third party at certain communities, (v) a $0.6 million increase in advertising and marketing, (vi) a $0.3 million increase in repairs and maintenance and (vii) a $0.2 million increase in utilities due to increased rates and usage, partially offset by a $0.6 million decrease related to one Senior Housing - Managed community that was closed in August 2025 and a $0.4 million decrease related to one Senior Housing – Managed community that was sold after April 1, 2025.

Current wording

During the three months ended September 30, 2026, we recognized $99.3 million of senior housing operating portfolio operating expenses compared to $65.9 million for the three months ended September 30, 2025. The $33.4 million net increase is primarily due to (i) a $25.7 million increase related to 23 SHOP communities acquired after July 1, 2025, (ii) a $5.2 million increase related to five facilities that were transitioned to SHOP communities after July 1, 2025, (iii) a $1.1 million increase in dining and management fees primarily due to increased occupancy and the outsourcing of dining services at certain communities, (iv) a $0.8 million increase in employee compensation primarily due to increased labor rates and staffing, (v) a $0.7 million increase in advertising and marketing, (vi) a $0.5 million increase in repairs and maintenance and (vii) a $0.3 million increase in utilities due to increased rates and usage, partially offset by a $1.1 million decrease related to one SHOP community that was sold after July 1, 2025.

Previous wording

General and administrative expenses include compensation-related expenses as well as professional services, office costs, other costs associated with asset management, and acquisition costs. During the three months ended June 30, 2026, general and administrative expenses were $16.8 million compared to $12.5 million for the three months ended June 30, 2025. The $4.3 million net increase is primarily related to a $3.9 million increase in compensation for our teammates as a result of increased staffing, changes in performance-based payout assumptions on incentive compensation and annual salary adjustments.

Current wording

General and administrative expenses include compensation-related expenses as well as professional services, office costs, other costs associated with asset management, and acquisition costs. During the three months ended September 30, 2026, general and administrative expenses were $15.6 million compared to $12.6 million for the three months ended September 30, 2025. The $3.0 million net increase is primarily related to a $2.7 million increase in compensation for our teammates as a result of increased staffing, changes in performance-based payout assumptions on incentive compensation and annual salary adjustments.

Previous wording

During the three months ended June 30, 2026, we did not recognize any impairment of real estate. During the three months ended June 30, 2025, we recognized a $4.1 million impairment of real estate related to one sold facility.

Current wording

During the three months ended September 30, 2026, we did not recognize any impairment of real estate. During the three months ended September 30, 2025, we recognized a $2.6 million impairment of real estate related to one closed facility.

Previous wording

During the six months ended June 30, 2026, we recognized $2.7 million of other expense primarily due to lease termination expense related to one community that was transitioned from our triple-net portfolio to Senior Housing - Managed communities. During the six months ended June 30, 2025, we recognized $14.7 million of other income, including the reclassification of $17.2 million of gain related to six previously terminated interest rate swaps from accumulated other comprehensive loss to other income as the related forecasted transactions were determined to be probable not to occur and $1.0 million of other income related to insurance proceeds received related to a fire that occurred at one of our Senior Housing - Managed communities in 2022, partially offset by $3.2 million of transition expenses related to the transition of Senior Housing - Managed communities to new operators.

Current wording

During the three months ended September 30, 2026, we recognized $0.3 million of other expense primarily due to transaction expenses related to our SHOP communities. During the three months ended September 30, 2025, we recognized $0.8 million of other expense, including $1.2 million of lease termination expense related to four communities that were transitioned from our triple-net portfolio to SHOP communities, partially offset by $0.6 million of other income related to insurance proceeds received related to a fire that occurred at one of our SHOP communities in 2022.

Previous wording

During the three months ended June 30, 2026, we recognized an aggregate net gain of $37.7 million related to the disposition of seven facilities, including a $46.1 million gain on sale related to the disposition of three facilities, partially offset by an $8.4 million net loss on sale related to the disposition of four facilities. During the three months ended June 30, 2025, we recognized an aggregate net gain of $10.0 million related to the disposition of six facilities.

Current wording

During the three months ended September 30, 2026, we recognized an aggregate net loss of $8.1 million related to the disposition of seven facilities, including a $17.5 million net loss on sale related to the disposition of four facilities, partially offset by a $9.4 million net gain on sale related to the disposition of three facilities. During the three months ended September 30, 2025, we recognized an aggregate net loss of $4.4 million related to the disposition of two facilities.

Previous wording

During the three months ended June 30, 2026 and 2025, we recognized $2.2 million and$0.8 million of income from our unconsolidated joint ventures, respectively. The $1.4 million net increase is primarily related to a $0.8 million increase in revenues net of operating expenses primarily due to increased occupancy and rates and a $0.6 million decrease in depreciation expense primarily due to assets that have been fully depreciated.

Current wording

During the three months ended September 30, 2026 and 2025, we recognized $2.2 million and$1.2 million of income from our unconsolidated joint ventures, respectively. The $1.0 million net increase is primarily related to a $0.6 million increase in revenues net of operating expenses primarily due to increased occupancy and rates and a $0.3 million decrease in depreciation expense primarily due to assets that have been fully depreciated.

Previous wording

During the three months ended June 30, 2026 and 2025, we recognized $0.7 million and $0.5 million of income tax expense, respectively. The $0.2 million change is primarily due to higher taxable income.

Current wording

During the three months ended September 30, 2026 and 2025, we recognized $0.1 million and $0.4 million of income tax expense, respectively. The $0.4 million change is primarily due to lower taxable income.

Previous wording

Comparison of results of operations for the six months ended June 30, 2026 versus the six months ended June 30, 2025 (dollars in thousands):

Current wording

Comparison of results of operations for the nine months ended September 30, 2026 versus the nine months ended September 30, 2025 (dollars in thousands):

Previous wording

(1)Represents the dollar amount increase (decrease) for the six months ended June 30, 2026 compared to the six months ended June 30, 2025 as a result of investments/dispositions made after January 1, 2025.

Current wording

(1)Represents the dollar amount increase (decrease) for the nine months ended September 30, 2026 compared to the nine months ended September 30, 2025 as a result of investments/dispositions made after January 1, 2025.

Previous wording

(2)Represents the dollar amount increase (decrease) for the six months ended June 30, 2026 compared to the six months ended June 30, 2025 that is not a direct result of investments/dispositions made after January 1, 2025.

Current wording

(2)Represents the dollar amount increase (decrease) for the nine months ended September 30, 2026 compared to the nine months ended September 30, 2025 that is not a direct result of investments/dispositions made after January 1, 2025.

Previous wording

During the six months ended June 30, 2026, we recognized $196.4 million of rental income compared to $195.9 million for the six months ended June 30, 2025. The $0.5 million net increase in rental income is related to (i) a $7.7 million increase in revenue as the result of changing our estimates of collectability for certain leases within our triple-net leased portfolio, lease amendments and annual rental increases based on changes in the Consumer Price Index, (ii) a $4.5 million net increase in revenue related to leases that are not accounted for on an accrual basis and (iii) a $1.4 million increase from properties acquired after January 1, 2025. These increases are partially offset by (i) a $7.5 million decrease related to facilities that were transitioned to Senior Housing - Managed communities after January 1, 2025, (ii) a $3.9 million decrease from properties disposed of after January 1, 2025 and (iii) a $1.3 million decrease related to facilities that were transitioned to new operators after January 1, 2025.

Current wording

During the nine months ended September 30, 2026, we recognized $299.5 million of rental income compared to $281.2 million for the nine months ended September 30, 2025. The $18.3 million net increase in rental income is primarily related to (i) a $13.1 million increase in revenue as the result of changing our estimates of collectability for certain leases within our triple-net leased portfolio, lease amendments and annual rental increases based on changes in the Consumer Price Index, (ii) a $10.2 million deferred rent payment collected from an operator that was previously accounted for on a cash basis, (iii) a $4.7 million net increase in revenue related to leases that are not accounted for on an accrual basis and (iv) a $3.1 million increase from properties acquired after January 1, 2025. These increases are partially offset by (i) a $7.3 million decrease in revenue related to facilities that were transitioned to new operators or to SHOP after January 1, 2025, including an $8.1 million net decrease in cash collections, partially offset by a $0.8 million increase in non-cash write-offs and revenue, and (ii) a $5.2 million decrease from properties disposed of after January 1, 2025.

Previous wording

Our reported rental and related revenues may be subject to increased variability in the future as a result of lease accounting standards. If at any time we cannot determine that it is probable that substantially all rents over the life of a lease are collectible, rental revenue will be recognized only to the extent of payments received and all receivables associated with the lease will be written off, irrespective of amounts expected to be collectible. However, there can be no assurances regarding the timing and amount of these revenues. Amounts due under the terms of all of our lease agreements are subject to contractual increases, and contingent rental income may be earned from certain lease agreements. No material contingent rental income was derived during the six months ended June 30, 2026 and 2025.

Current wording

Our reported rental and related revenues may be subject to increased variability in the future as a result of lease accounting standards. If at any time we cannot determine that it is probable that substantially all rents over the life of a lease are collectible, rental revenue will be recognized only to the extent of payments received and all receivables associated with the lease will be written off, irrespective of amounts expected to be collectible. However, there can be no assurances regarding the timing and amount of these revenues. Amounts due under the terms of all of our lease agreements are subject to contractual increases, and contingent rental income may be earned from certain lease agreements. No material contingent rental income was derived during the nine months ended September 30, 2026 and 2025.

Previous wording

During the six months ended June 30, 2026, we recognized $245.5 million of resident fees and services compared to $156.4 million for the six months ended June 30, 2025. The $89.1 million net increase is due to(i) a $60.9 million increase related to 18 Senior Housing - Managed communities acquired after January 1, 2025, (ii) a $20.7 million increase related to eight facilities that were transitioned to Senior Housing - Managed communities after January 1, 2025 and (iii) a $9.5 million increase primarily related to increased occupancy and an increase in rates. These increases are partially offset by a $1.3 million decrease due to one Senior Housing - Managed community that was closed in August 2025 and a $0.6 million decrease due to one Senior Housing - Managed community that was disposed of after January 1, 2025.

Current wording

During the nine months ended September 30, 2026, we recognized $388.7 million of resident fees and services compared to $248.4 million for the nine months ended September 30, 2025. The $140.2 million net increase is due to(i) a $98.0 million increase related to 25 SHOP communities acquired after January 1, 2025, (ii) a $29.6 million increase related to eight facilities that were transitioned to SHOP communities after January 1, 2025 and (iii) a $15.8 million increase primarily related to increased occupancy and an increase in rates. These increases are partially offset by a $1.7 million decrease due to one SHOP community that was disposed of after January 1, 2025 anda $1.5 million decrease due to one SHOP community that was closed in August 2025.

Previous wording

Interest and other income primarily consists of income earned on our loans receivable investments and preferred returns earned on our preferred equity investments. During the six months ended June 30, 2026, we recognized $15.8 million of interest and other income compared to $20.4 million for the six months ended June 30, 2025. The net decrease of $4.6 million is primarily due to investments that were repaid after January 1, 2025.

Current wording

Interest and other income primarily consists of income earned on our loans receivable investments and preferred returns earned on our preferred equity investments. During the nine months ended September 30, 2026, we recognized $19.0 million of interest and other income compared to $33.1 million for the nine months ended September 30, 2025. The net decrease of $14.1 million is primarily due to (i) a $10.9 million decrease from investments that were repaid after January 1, 2025, (ii) a $2.8 million decrease in lease termination income and (iii) a $0.7 million decrease inlate fee income.

Previous wording

During the six months ended June 30, 2026, we incurred $109.5 million of depreciation and amortization expense compared to $87.1 million for the six months ended June 30, 2025. The net increase of $22.4 million is due toa $26.1 million increase from properties acquired after January 1, 2025 and the acquisition of the operations of five Senior Housing - Managed communities previously leased to the tenant under triple-net operating leases and a $1.4 million increase from additions to real estate. These increases are partially offset by a $3.5 million decrease due to assets that have been fully depreciated and a $2.2 million decrease from properties disposed of after January 1, 2025.

Current wording

During the nine months ended September 30, 2026, we incurred $174.3 million of depreciation and amortization expense compared to $135.6 million for the nine months ended September 30, 2025. The net increase of $38.7 million is primarily due to (i) a $42.7 million increase from properties acquired after January 1, 2025 and the acquisition of the operations of five SHOP communities previously leased to the tenant under triple-net operating leases, (ii) a $2.8 million increase due to accelerating amortization of lease intangibles related to facilities that were transitioned to new operators and (iii) a $1.8 million increase from additions to real estate. These increases are partially offset by a $5.3 million decrease due to assets that have been fully depreciated and a $3.7 million decrease from properties disposed of after January 1, 2025.

Previous wording

We incur interest expense comprised of costs of borrowings plus the amortization of deferred financing costs related to our indebtedness. During the six months ended June 30, 2026, we incurred $58.2 million of interest expense compared to $54.6 million for the six months ended June 30, 2025. The $3.5 millionnet increase is primarily related to an increase in interest expense related to borrowings under the Credit Agreement.

Current wording

We incur interest expense comprised of costs of borrowings plus the amortization of deferred financing costs related to our indebtedness. During the nine months ended September 30, 2026, we incurred $87.3 million of interest expense compared to $83.5 million for the nine months ended September 30, 2025. The $3.8 millionnet increase is primarily related to an increase in interest expense related to borrowings under the Credit Agreement.

Previous wording

During the six months ended June 30, 2026, we recognized $7.4 million of triple-net portfolio operating expenses compared to $7.2 million for the six months ended June 30, 2025. The $0.3 million net increase is primarilydue to adjustments in our estimates related to property taxes.

Current wording

During the nine months ended September 30, 2026, we recognized $11.1 million of triple-net portfolio operating expenses compared to $10.9 million for the nine months ended September 30, 2025. The $0.2 million net increase is primarily due to a $0.6 million increase due to adjustments in our estimates related to property taxes, partially offset by a $0.4 million decrease from properties disposed of after January 1, 2025.

Previous wording

During the six months ended June 30, 2026, we recognized $170.5 million of Senior Housing - Managed portfolio operating expenses compared to $113.9 million for the six months ended June 30, 2025. The $56.6 million net increase is primarily due to (i) a $39.3 million increase related to 18 Senior Housing - Managed communities acquired after January 1, 2025, (ii) a $13.6 million increase related to eight facilities that were transitioned to Senior Housing - Managed communities after January 1, 2025, (iii) a $2.5 million increase in employee compensation primarily due to increased labor rates and staffing, (iv) a $1.4 million increase in management fees and housekeeping costs due to increased occupancy and in dining expenses primarily due to outsourcing the service to a third partyat certain communities, (v) a $0.8 million increase in advertising and marketing, (vi) a $0.4 million increase in utilities due to increased rates and usage and (vii) a $0.3 million increase in repairs and maintenance, partially offset by a $1.4 million decrease related to one Senior Housing - Managed community that was closed in August 2025 and a $0.6 million decrease related to one Senior Housing – Managed community that wasdisposed of after January 1, 2025.

Current wording

During the nine months ended September 30, 2026, we recognized $269.8 million of senior housing operating portfolio operating expenses compared to $179.8 million for the nine months ended September 30, 2025. The $90.0 million net increase is primarily due to (i) a $65.2 million increase related to 25 SHOP communities acquired after January 1, 2025, (ii) an $18.9 million increase related to eight facilities that were transitioned to SHOP communities after January 1, 2025, (iii) a $3.2 million increase in employee compensation primarily due to increased labor rates and staffing, (iv) a $3.1 million increase in dining, management fees, and resident activities and services primarily due to increased occupancy and the outsourcing of dining servicesat certain communities, (v) a $1.4 million increase in advertising and marketing, (vi) a $0.7 million increase in repairs and maintenance and (vii) a $0.6 million increase in utilities due to increased rates and usage, partially offset by a $1.7 million decrease related to one SHOP community that wasdisposed of after January 1, 2025 and a $1.6 million decrease related to one SHOP community that was closed in August 2025.

Previous wording

General and administrative expenses include compensation-related expenses as well as professional services, office costs, other costs associated with asset management, and acquisition costs. During the six months ended June 30, 2026, general and administrative expenses were $31.7 million compared to $25.2 million for the six months ended June 30, 2025. The $6.4 million net increase isprimarily related to a $5.5 million increase in compensation for our teammates as a result of increased staffing, changes in performance-based payout assumptions on incentive compensation and annual salary adjustments and a $0.4 million increase related to hosting our 2026 Operator Conference during the six months ended June 30, 2026.

Current wording

General and administrative expenses include compensation-related expenses as well as professional services, office costs, other costs associated with asset management, and acquisition costs. During the nine months ended September 30, 2026, general and administrative expenses were $47.3 million compared to $37.8 million for the nine months ended September 30, 2025. The $9.5 million net increase isprimarily related to (i) an $8.2 million increase in compensation for our teamm ates as a result of increased staffing, changes in performance-based payout assumptions on incentive compensation and annual salary adjustments, (ii) $0.7 million paid to our former chief investment officer in accordance with the terms of her consulting agreementand (iii) a $0.4 million increase related to hosting our 2026 Operator Conference during the nine months ended September 30, 2026.

Previous wording

During the three months ended June 30, 2026, we recognized a $102.4 million provision for loan losses and other reserves primarily associated with the reduced cash repayment of $200.0 million in full satisfaction of the $300.0 million Recovery Centers of America mortgage loan. During the three months ended June 30, 2025, we recognized a $0.2 million recovery of loan losses associated with our loans receivable investments.

Current wording

During the nine months ended September 30, 2026, we recognized a $104.6 million provision for loan losses and other reserves primarily associated with the reduced cash repayment of $200.0 million in full satisfaction of the $300.0 million Recovery Centers of America mortgage loan. During the nine months ended September 30, 2025 we recognized a $0.6 million recovery of loan losses associated with our loans receivable investments.

Previous wording

During the six months ended June 30, 2026, we recognized a $0.4 million impairment of real estate related to one closed facility and one sold facility. During the six months ended June 30, 2025, we recognized a $4.1 million impairment of real estate related to one sold facility.

Current wording

During the nine months ended September 30, 2026, we recognized a $0.4 million impairment of real estate related to one closed facility and one sold facility. During the nine months ended September 30, 2025, we recognized a $6.7 million impairment of real estate related to one closed facility and one sold facility.

Previous wording

During the three months ended June 30, 2026, we recognized $2.7 million of other expense primarily due to lease termination expense related to one community that was transitioned from our triple-net portfolio to Senior Housing - Managed communities. During the three months ended June 30, 2025, we recognized $14.7 million of other income, including the reclassification of $17.2 million of gain related to six previously terminated interest rate swaps from accumulated other comprehensive loss to other income as the related forecasted transactions were determined to be probable not to occur and $1.0 million of other income related to insurance proceeds received related to a fire that occurred at one of our Senior Housing - Managed communities in 2022, partially offset by $3.2 million of transition expenses related to the transition of Senior Housing - Managed communities to new operators.

Current wording

During the nine months ended September 30, 2026, we recognized $3.0 million of other expense primarily due to lease termination expense related to one community that was transitioned from our triple-net portfolio to SHOP communities. During the nine months ended September 30, 2025, we recognized $14.0 million of other income, including the reclassification of $17.2 million of gain related to six previously terminated interest rate swaps from accumulated other comprehensive loss to other income as the related forecasted transactions were determined to be probable not to occur and $1.7 million of other income related to insurance proceeds received related to a fire that occurred at one of our SHOP communities in 2022, partially offset by $3.3 million of transition expenses related to the transition of SHOP communities to new operators and $1.2 million of lease termination expense related to the transition of four facilities from our triple-net portfolio to SHOP communities.

Previous wording

During the six months ended June 30, 2026, we recognized an aggregate net gain of $37.7 million related to the disposition of seven facilities, including a $46.1 million net gain on sale related to the disposition of three facilities, partially offset by an $8.4 million net loss on sale from the disposition of four facilities. During the six months ended June 30, 2025, we recognized an aggregate net gain of $10.0 million related to the disposition of five skilled nursing/transitional care facilities and one behavioral health facility.

Current wording

During the nine months ended September 30, 2026, we recognized an aggregate net gain of $29.7 million related to the disposition of 14 facilities, including a $55.6 million net gain on sale related to the disposition of six facilities, partially offset by a $25.9 million net loss on sale from the disposition of eight facilities. During the nine months ended September 30, 2025, we recognized an aggregate net gain of $5.5 million related to the disposition of eight facilities.

Previous wording

During the six months ended June 30, 2026 and 2025, we recognized $4.1 million and $1.1 million of income from our unconsolidated joint ventures, respectively. The $3.1 million net increase is primarily related toa $1.9 million increase in revenues net of operating expenses primarily due to increased occupancy and rates and a $1.2 million decrease in depreciation expense primarily due to assets that have been fully depreciated.

Current wording

During the nine months ended September 30, 2026 and 2025, we recognized $6.4 million and $2.3 million of income from our unconsolidated joint ventures, respectively. The $4.1 million net increase is primarily related toa $2.4 million increase in revenues net of operating expenses primarily due to increased occupancy and rates and a $1.5 million decrease in depreciation expense primarily due to assets that have been fully depreciated.

Previous wording

As of June 30, 2026, we had approximately $1.3 billion in liquidity, consisting of unrestricted cash and cash equivalents of $231.6 million, available borrowings under our Revolving Credit Facility (as defined below) of $682.5 million and $411.8 million related to shares outstanding under forward sale agreements under our ATM Program (as defined below). The Credit Agreement and Term Loan Credit Agreement (as defined below) each contain an accordion feature that can increase the total available borrowings to $2.75 billion (from U.S. $1.4 billion plus CAD $150.0 million) and to $1.0 billion (from $500.0 million), respectively, subject to terms and conditions.

Current wording

As of September 30, 2026, we had approximately $1.2 billion in liquidity, consisting of unrestricted cash and cash equivalents of $36.2 million, available borrowings under our Revolving Credit Facility (as defined below) of $873.5 million and $292.5 million related to shares outstanding under forward sale agreements under our ATM Program (as defined below). The Credit Agreement and Term Loan Credit Agreement (as defined below) each contain an accordion feature that can increase the total available borrowings to $2.75 billion (from U.S. $1.4 billion plus CAD $150.0 million) and to $1.0 billion (from $500.0 million), respectively, subject to terms and conditions.

Previous wording

During each of the three and six months ended June 30, 2026, we issued 3.2 million shares in settlement of the remaining outstanding forward sale agreements under the Prior ATM Program, at a weighted average net price of $17.50 per share, after commissions and fees, resulting in net proceeds of $56.3 million.

Current wording

During the six months ended June 30, 2026, we issued 3.2 million shares in settlement of all then outstanding forward sale agreements under the Prior ATM Program, at a weighted average net price of $17.50 per share, after commissions and fees, resulting in net proceeds of $56.3 million.

Previous wording

During the three and six months ended June 30, 2026, we utilized the forward feature of the ATM Program to allow for the sale of up to 0.9 million and 7.3 million shares of our common stock, respectively, at an initial weighted average price of $20.72 and $20.26 per share, net of commissions, respectively.

Current wording

During the three and nine months ended September 30, 2026, we utilized the forward feature of the ATM Program to allow for the sale of up to 0.1 million and 7.3 million shares of our common stock, respectively, at an initial weighted average price of $19.94 and $20.26 per share, net of commissions, respectively. During each of the three and nine months ended September 30, 2026, we issued 6.5 million shares in settlement of certain outstanding forward sale agreements, at a weighted average net price of $17.89 per share, after commissions and fees, resulting in net proceeds of $116.2 million.

Previous wording

As of June 30, 2026, 21.4 million shares (which amount includes the 7.3 million shares referenced in the prior paragraph) remained outstanding under the ATM Program’s forward sale agreements, with an initial weighted average price of $19.24 per share, net of commissions.

Current wording

As of September 30, 2026, 15.0 million shares remained outstanding under the ATM Program’s forward sale agreements, with an initial weighted average price of $19.53 per share, net of commissions.