#1✓ Alerislife Never stop advancing Investor Presentation February 2022 Nasdaq: ALR#2Warning Concerning Forward-Looking Statements This presentation contains statements that constitute forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995 and other securities laws. Whenever we use words such as "believe", "expect", "anticipate", “intend”, “plan”, “estimate”, “will", "may" and negatives or derivatives of these or similar expressions, we are making forward-looking statements. These forward-looking statements are based upon our present intent, beliefs or expectations, but forward-looking statements are not guaranteed to occur and our actual results may differ materially from those contained in, or implied by, our forward- looking statements. Forward-looking statements in this presentation relate to various aspects of our business, including the implementation and anticipated effects of our strategic plan, our targets for certain earnings, expense, operating and other financial metrics following implementation of our strategic plan, our ability to operate our senior living communities profitably, our anticipated uses of cash liquidity, our ability to grow revenues at the senior living communities we manage and to increase the fees we earn from managing senior living communities, our normalized targeted occupancy, revenue composition and certain financial metrics, our expectation that we will continue to provide an exception resident experience to resident while offering lifestyle and concierge services, our ability to increase the number of senior living communities we operate and residents we serve and to grow our other sources of revenues, including rehabilitation and wellness services and other services we may provide, our expectation that we will enter into new strategic relationships, whether the aging U.S. population and increasing life spans of older adults will increase the demand for senior living communities, health and wellness centers and other healthcare related properties and services, and the impact of COVID-19 on our business. Forward-looking statements involve known and unknown risks, uncertainties and other factors, some of which are beyond our control, such as the impact of conditions in the economy and the capital markets on us and our residents and other customers, competition within the senior living and other health and wellness related services businesses, older adults delaying or forgoing moving into senior living communities or purchasing health and wellness services from us, increases in our labor costs or in costs we pay for goods and services, increases in tort and insurance liability costs, our operating and debt leverage, actual and potential conflicts of interest with our related parties, changes in Medicare or Medicaid policies and regulations, which could result in reduced Medicare or Medicaid rates or a failure of such rates to cover our costs or limit the scope or funding of either or both programs, or reductions in private insurance utilization and coverage, delays or non-payments of government payments to us, compliance with, and changes to, federal, state and local laws and regulations that could affect our services or impose requirements, costs and administrative burdens that may reduce our ability to operate our business profitably, our exposure to litigation and regulatory and government proceedings, continued efforts by third party payers to reduce costs, and acts of terrorism, outbreaks of pandemics, including COVID-19, wars or other military actions climate change, weather events or other human made or natural disasters. For example: (a) challenging conditions in the senior living industry continue to exist and our business and our operations remain subject to substantial risks, many of which are beyond our control; as a result, our operations may not be profitable in the future and we may realize losses; (b) we may not successfully execute our strategic growth initiatives; (c) we may not successfully integrate, operate and profitably manage our senior living communities and rehabilitation and wellness services clinics; (d) we cannot be sure that we will enter additional management arrangements with Diversified Healthcare Trust (DHC) or other owners of senior living communities; (e) our belief that the aging of the U.S. population and increasing life spans of older adults will increase demand for senior living communities and services may not be realized or may not result in increased demand for our services; (f) our investments in our workforce and continued focus on reducing our employee turnover level may not be successful and may not result in the benefits we expect to achieve through such investments; (g) we may not be able to implement each aspect of our strategic plan within the timeframe we expect, or at all, due to a variety of factors; (h) the cost of implementing the strategic plan may be more than we expect and we may not realize the anticipated benefits of such plan; (i) our expectation that our lifestyles services segment will grow may not be realized; (j) our marketing initiatives may not succeed in increasing our occupancy and revenues, and they may cost more than any increased revenues they may generate; (k) our strategic investments to enhance efficiencies in and benefits from our purchasing of services may not be successful or generate the returns or savings we expect; (1) circumstances that adversely affect the ability of older adults or their families to pay for our services, such as economic downturns, weakening housing market conditions, higher levels of unemployment among our residents' or potential residents' family members, lower levels of consumer confidence, stock market volatility and/or changes in demographics generally, could affect the revenues and profitability of our senior living communities; (m) customers who pay for our services with their private resources may become unable to afford our services, resulting in decreased revenues; (n) the various federal and state government agencies that pay us for the services we provide to some of our residents and other customers are experiencing budgetary constraints and may lower the Medicare, Medicaid and other rates they pay us; (o) we may be unable to repay or refinance our debt obligations when they become due; (p) certain aspects of our operations and future growth we may pursue in our business may require significant amounts of working capital and require us to make significant capital expenditures; accordingly, we may not have sufficient cash liquidity; (q) the amount of available borrowings under our term loan is subject to our having qualified collateral, which is primarily based on the value of the assets securing our obligations under our credit facility; (r) insurance costs may continue to rise and our actions and approach to managing our insurance costs may not be successful and could result in our incurring significant costs and liabilities that we will be responsible for funding; (s) contingencies in any applicable acquisition or sale agreements we or DHC have entered into, or may enter into, may not be satisfied and our and DHC's applicable acquisitions or sales, and any related management arrangements we may expect to enter into, may not occur, may be delayed or the terms may change; (t) we and DHC may not be able to sell communities that we or DHC may seek to sell on acceptable terms; (u) the advantages we believe we may realize from our relationships with related parties may not materialize; (v) operating deficiencies or a license revocation at one or more of our senior living communities may have an adverse impact on our ability to operate, obtain licenses for, or attract residents to, our other communities; (w) we may be unable to meet collateral requirements related to our workers' compensation insurance program, which may result in higher costs; and (x) the COVID-19 pandemic may continue to adversely affect our business, operating results and financial condition for an indefinite period of time. Our Annual Report on Form 10-K for the years ended December 31, 2021 and 2020, our Quarterly Reports on Form 10-Q for the periods ended March 31, 2021, June 30, 2021 and September 30, 2021, and our other filings with the Securities and Exchange Commission (SEC) identify other important factors that could cause differences from our forward-looking statements. The filings with the SEC of AlerisLife (ALR), formerly known as Five Star Senior Living Inc., are available on the SEC's website at www.sec.gov. You should not place undue reliance upon our forward-looking statements. Except as required by law, we do not intend to update or change any forward-looking statements as a result of new information, future events or otherwise. Non-GAAP Financial Measures This presentation contains non-GAAP financial measures, including earnings before interest, income tax, depreciation and amortization (EBITDA) and Adjusted EBITDA, adjusted net income and adjusted earnings per diluted share. Reconciliations for these metrics to the closest U.S. generally accepted accounting principles (GAAP) metrics are included later in this investor presentation. We believe the non-GAAP financial measures included in this investor presentation are meaningful supplemental disclosures because they may help investors better understand changes in our operating results and ability to meet financial obligations or service debt, make capital expenditures and expand our business. We believe that these non-GAAP financial measures are meaningful financial measures that may help investors better understand our financial performance, including by allowing investors to compare our performance between periods and to the performance of other companies. Our management uses these non-GAAP financial measures to evaluate our financial performance and compare it over time and against competitors. These measures should not be considered as alternatives to net income (loss), net income (loss) per share or operating (loss) income, as indicators of our operating performance or as measures of our liquidity. Also, EBITDA and Adjusted EBITDA as presented may not be comparable to similarly titled amounts calculated by other companies. 2 Note: Data throughout this presentation is unaudited and as of and for the year ended December 31, 2021, unless otherwise noted. Also, statements about the industry and demographics relate to the United States. Throughout this presentation we show financial results of the senior living communities that we manage on behalf of DHC. Managed senior living communities' financial results do not represent our financial results, and are included to provide supplemental information regarding the operating results and the financial conditions of the communities from which we earn management fees.#3RE-BRANDING TO ALERISLIFE 3#4THE NEXT STEP IN ONGOING STRATEGIC PLAN Q2 2019 Q1 2021 Alerislife Announced plan to change 184 communities from triple net lease structure to managed-only structure. Reduced 2019 rent by approximately 34%. Significantly reduced senior living operating risk by converting to management contracts. Increased cash balance by approximately $125M via agreement. No longer expressed doubt to continue as a going concern. Announced new strategic plan to focus operations on larger, lower acuity senior living communities. Formal exit of the skilled nursing business. Renewed focus on operational strengths within senior living. Repositioning the company to grow and diversify revenue streams through lifestyle services. On January 26, changed the company name to AlerisLife. Continue delivery of an exceptional resident experience to senior living and active adult residents, while also offering lifestyle services to the younger "choice- based" consumer, building an earlier trusted partnership. Continue lifestyle services growth through new ventures and existing businesses, such as Ageility rehabilitation. Announce strategic relationships to further enrich the customer experience and position Aleris Life as a provider of a wide range of services that its current and future customers desire. 4#5BUSINESS AT A GLANCE AS OF DECEMBER 31, 2021 Top 10 States Other States Ageility RESIDENTIAL CUSTOMERS: APPROX. 16,000 LIFESTYLE SERVICES CUSTOMERS: APPROX. 17,000 (1) (1) TOTAL COMMUNITIES 140 TOTAL LIVING UNITS 19,999 TOTAL CLINICS 215 TOTAL TEAM MEMBERS: APPROX. 10,700 Pursuant to the repositioning phase of the Strategic Plan, we closed 27 of the 37 Ageility inpatient rehabilitation clinics originally planned to be closed and 107 senior living communities managed for DHC were transitioned to new operators in 2021 and one senior living community was closed in February 2022. These transitioned communities had 45 Ageility outpatient rehabilitation clinics. As of December 31, 2021 we continue to operate 28 of these outpatient rehabilitation clinics. The remaining 17 outpatient rehabilitation clinics were closed in December 2021 in senior living communities that were transitioned to a new operator in 2021 or closed in February 2022. (1) Excludes one senior living community with ~100 living units that we closed in February 2022. LO 5#6RESIDENTIAL SEGMENT Residential Unit Mix at December 31, 2021 — Strategically Focused on Choice Based Product (1) Independent Living (IL) and Assisted Living Memory Care (MC) Total Units % of Total Units Active Adult (AA) (AL) Managed Owned (2) (3) 9,857 55% 6,451 36% 1,591 9% 17,899 89% 566 27% 1,264 60% 270 13% 2,100 11% Total Units 10,423 7,715 1,861 % of Total Units 52% 39% 9% 19,999 100% 100% Average Occupancy Month End Occupancy 85.0% 80.0% 75.0% 70.0% 65.0% Dec'20 Jan'21 Feb'21 Mar'21 Apr'21 May'21 Jun'21 Jul'21 Aug'21 Sept'21 Oct'21 Nov'21 Dec'21 Average Occupancy 74.1% Month End Occupancy 73.7% 72.7% 72.5% 72.0% 72.7% 72.1% 72.5% 72.2% 73.0% 72.7% 72.6% 72.4% 72.8% 72.5% 73.2% 73.0% 74.4% 73.7% 74.7% 73.6% 74.0% 73.9% 74.7% 74.4% 74.8% (1) Includes retained portfolio we managed as of December 31, 2021. Excludes one senior living community that we manage for DHC which has 49 AL living units, 46 skilled nursing facility units and 11 MC living units, that was closed in February 2022. (2) Managed on behalf of DHC. (3) Includes one active adult (AA) community with 167 units.#7RESIDENTIAL OPERATIONS UPDATE Our sales lead volume for the month of January 2022 was 6,654, a decrease of 362 basis points (bps) from January 2021 as we focus on targeting qualified leads. . Our tour volume was 1,741 for the month of January 2022, an increase of 1,748 bps from January 2021. • • • Our year-to-date conversion rate as of February 18, 2022 has increased 138 bps to 663 bps from a low in January 2021. Capex deployed for upgrades and reinvestment of communities of $11.7 million and $103.4 million in the owned and managed communities, respectively. Increased our average room rate by approximately 8%, effective February 2022. 2,400 2,200 2,000 1,800 1,600 1,400 1,200 1,000 Tour Volume 800 600 Dec Jan Feb Mar Apr May Jun Jul Aug Sept Oct Nov Dec Jan '20 '21 '21 '21 '21 '21 '21 '21 '21 '21 '21 '21 '21 '22 Tours Dec. 2021 YoY Change: +70% Move-Ins 120% 100% 500 400 300 200 800 700 600 .... 80% 60% 40% 20% -% Dec Jan Feb Mar Apr May Jun Jul Aug Sept Oct Nov Dec Jan- '20 '21 '21 '21 '21 '21 '21 '21 '21 '21 '21 '21 '21 22 Move-Ins Dec. 2021 YoY Change: +76% 2021 Move Outs as a % of 2019 Move Outs Jan Feb Mar Apr May Jun Jul Aug Sept Oct Nov Dec Jan '21 '21 '21 '21 '21 '21 '21 '21 '21 '21 '21 '21 '22 7#8RESIDENTIAL RATE AND OCCUPANCY DETAILS Retained Community RevPAR and Avg. Occupancy (1)(3)(4) Retained Community RevPOR (2)(3)(4) 4,500 4,000 3,500 3,000 2,500 $2,000 1,500 1,000 500 85.0% 4,500 80.0% 75.0% 70.0% Average Occupancy 4,000 3,500 3,000 Rate ($) 2,500 2,000 1,500 1,000 500 65.0% Q4 2020 Q1 2021 Q2 2021 Q3 2021 Q4 2021 Owned RevPAR Owned Avg. Occupancy Managed RevPAR Managed Avg. Occupancy Retained Community Data by Community Type (3) Q4 2020 Q1 2021 Q2 2021 Q3 2021 Q4 2021 Owned RevPOR Managed RevPOR Owned 4Q20 1Q21 2Q21 3Q21 4Q21 Managed IL/AL Month End Occupancy 70.2% 69.0% 70.1% 72.9% 72.7% RevPAR RevPOR $2,549 $2,421 $2,357 $2,354 $2,349 $3,445 $3,515 $3,413 $3,270 $3,192 IL/AL Month End Occupancy RevPAR RevPOR 4Q20 1Q21 2Q21 3Q21 4Q21 74.2% 73.2% 73.3% 74.6% 75.2% $3,054 $2,946 $2,961 $2,941 $2,900 $3,954 $4,051 $4,018 $3,922 $3,831 (1) RevPAR is defined by us as resident fee revenues for the retained portfolio total units for the period divided by the average number of available units for the period, divided by the number of months in the period. Average number of available units for the period includes only living units categorized as in service. Amounts for Q4 2020 and Q1-Q4 2021 exclude income received by communities under the CARES Act and other government grants. (2) RevPOR is defined by us as resident fee revenues for the portfolio total units divided by the average number of occupied units for the period, divided by the number of months in the period. Amounts for Q4 2020, Q1 2021 and Q2 2021 exclude income received under the CARES Act and other government grants. (3) Retained community data represents data for 20 owned senior living communities and 120 managed senior living communities that we continuously owned or managed since January 1, 2020. Retained communities are exclusive of 107 senior living communities previously managed for DHC that transitioned to new operators in 2021 and one senior living community managed for DHC that was closed in February of 2022 and 1,532 SNF units in 27 CCRCs that were closed during the year ended December 31, 2021. These SNF units are in the process of being repositioned and ALR will continue to manage them for DHC. Retained communities are also exclusive of four leased communities with approximately 200 living units where the lease was terminated on September 30, 2021. (4) The 2021 and 2020 quarterly metrics reflect the impact COVID-19 has had on the operations of retained communities. 8#9COVID-19 Impact • Trailing two-week resident case counts have • increased recently, though few hospitalizations have been reported due to high vaccination rates and efficacy of vaccines. • 69% of communities have zero reported resident COVID-19 Cases on a trailing two-week basis through December 31, 2021. • 100% of communities are accepting new residents. Operations Update 500 450 400 • • Booster vaccines have been administered to a majority of residents. All communities require staff to be vaccinated. 350 300 250 200 • • • Nearly all communities continue to allow visitors, in- person tours, and communal dining while maintaining strict adherence to state, local, and/or Five Star- imposed guidelines. • Previous requirement to self-quarantine post move in has been removed at most properties if new resident is fully vaccinated and tests negative for COVID-19. As of February 18, 2022, there were less than 75 confirmed COVID-19 cases among our residents. 150 100 50 COVID-19 TRENDS Trailing 2 Week Resident Confirmed Cases 0 3/22/2020 4/22/2020 5/22/2020 6/22/2020 7/22/2020 8/22/2020 9/22/2020 10/22/2020 11/22/2020 12/22/2020 1/22/2021 2/22/2021 3/22/2021 4/22/2021 5/22/2021 7/22/2021 6/22/2021 8/22/2021 9/22/2021 10/22/2021 11/22/2021 12/22/2021 9 1/22/2022#10Revenues LIFESTYLE SERVICES SEGMENT Vageility Number of Outpatient Clinics and Affiliation Comparable Outpatient Visits (1) (amounts in thousands) 250 203 206 209 215 218 223 (5) 200 207 205 200 144 146 141 140 137 136 150 25% 26% 27% 28% 30% 31% 127 128 150 45% 48% 100 100 75% 74% 73% 72% 70% 69% 55% 52% 50 50 Q1 '20 220 Q2 '20 '20 20 Q3 20 Q4 Q1 Q2 Q3 Q4 '20 '21 '21 '21 '21 Q1 '20 '20 22 Q2 Q3 Q4 Q1 '20 '20 '21 ཁྱཊ Q2 Q3 Q4 '21 '21 '21 Outpatient Visits Five Star Communities Non-Five Star Communities Outpatient clinic openings have a 5-year CAGR (²) of 22.0% Comparable Outpatient Revenues Per Clinic (1)(3)(4) (dollars in thousands) Fitness Revenue Growth (dollars in thousands) $100 $1,000 $890 $827 $853 $80 $69 $67 $70 $65 $65 $800 $733 $681 $633 $60 $600 $547 $530 $40 $400 $20 $200 $- 20 Q1 Q4 Q1 '20 '21 8ཊ Q2 Q3 Q4 '20 '21 '21 '21 820 1720 Q2 '20 '20 20 Q3 Q4 20 Q1 '20 '21 ཁྱཊ Q2 Q3 '21 '21 ཙཊ Q4 '21 (1) The metrics reflect the impact of COVID-19 on the operations of Ageility outpatient rehabilitation clinics. (2) Compound annual growth rate, or CAGR, represents the annualized growth rate of the number of Ageility outpatient rehabilitation clinics determined by net new outpatient rehabilitation clinics for the period from January 1, 2016 through December 31, 2021. (3) The metrics reflect the impact of COVID-19 on the operations of Ageility outpatient rehabilitation clinics. (4) Revenues exclude the results of Ageility's home healthcare operations, which are part of AlerisLife's lifestyle services offering but not a part of Ageility's rehabilitation services. (5) The decrease in Q4 2021 in outpatient rehabilitation clinics was due primarily to the closure of 17 Ageility outpatient rehabilitation clinics that were in senior living communities that were transitioned to a new operator in 2021 or closed in February 2022. 10#11Liquidity As of December 31, 2021 FINANCIAL OVERVIEW • $67.0 million of unrestricted cash and cash equivalents on hand. • $6.8 million of outstanding mortgage debt maturing 2032. Subsequent to year end Closed on a $95.0 million senior secured term loan, or the Loan on January 27, 2022. о $63.0 million of which was funded, including $3.2 million in closing costs. о The Loan is secured by real estate mortgages on 14 senior living communities owned by the borrower with 1,478 living units with a net book value of $96.3 million. о Uses of Cash 1. 2. 3. Upon closing this Loan, our revolving credit facility, which had no borrowings outstanding, was terminated. Maintenance CAPEX The current average investment for our owned portfolio in Q4 2021 was approximately $2,500 per unit. Expansion of Ageility Rehabilitation & Fitness Offerings Opened 20 new clinics in 2021, with up front initial investment averaging $9k per clinic. Investment in Growth & Operating Improvements Reserving capital to pursue external growth opportunities and internal strategic initiatives. (1) See slide 17 for calculation of adjusted Net Income and adjusted EPS. Adjusted Net Income and Adjusted EPS (1) In thousands, except per share amounts 4Q20 1Q21 2Q21 3Q21 4Q21 Net (Loss) Income $2,903 $3,315 $(12,302) $(10,201) $(10,737) Adj. Net (Loss) Income $2,931 $3,507 $(9,335) $(7,368) $(9,708) Diluted EPS $0.09 $0.10 $(0.39) $(0.32) $(0.34) Adj. Diluted EPS $0.09 $0.10 $(0.30) $(0.23) $(0.31) 11#12APPENDIX GEILITY R JEFFERY, DPT ITATION DIRECTOR 12#13CORPORATE STRUCTURE OVERVIEW Service Capabilities Owned FIVE STAR SENIOR LIVING Managed AlerisLife Residential Lifestyle Services Rehabilitation Services Fitness Windsong Home Health Vageility by Five Star Senior Living a TM Windsong Home Health Agency Home Services/ Concierge 13#14CONDENSED CONSOLIDATED STATEMENT OF OPERATIONS (in thousands) (unaudited) Appendix Three Months Ended December 31, 2021 December 31, 2020 Revenues Lifestyle services Residential Residential management fees 15,626 20,256 14,883 17,903 9,482 14,822 Total management and operating revenues 39,991 52,981 Reimbursed community-level costs incurred on behalf of managed communities 137,195 226,264 Other reimbursed expenses 3,855 6,645 Total revenues 181,041 285,890 Other operating income Operating expenses 1,936 Lifestyle services expenses 13,908 16,492 Residential wages and benefits 8,514 11,186 Other residential operating expenses 7,893 7,870 Community-level costs incurred on behalf of managed communities 137,195 226,264 General and administrative 18,762 20,784 Restructuring expenses 2,337 Depreciation and amortization 2,961 36 2,913 Total operating expenses 191,570 285,545 Other income (expense) 9 314 Income (loss) before income taxes and equity in losses of an investee (10,520) 2,595 (Provision) benefit for income taxes (40) 308 Equity in losses of an investee (177) Net (loss) income $ (10,737) $ 2,903 14#15GROSS VS. NET GENERAL AND ADMINISTRATIVE EXPENSES (in thousands) (unaudited) General and administrative expenses Q4'20 Q1'21 Q2'21 Q3'21 Q4'21 20,784 22,391 22,748 21,817 18,762 Less: other reimbursements (1) 6,645 5,480 5,061 4,865 2,889 Net general and administrative expenses $ 14,139 16,911 17,687 16,952 15,873 Sequential Change 7.2 % 19.6 % 4.6 % (4.2)% (6.4)% Total management and operating revenues $ 52,981 $ 50,460 46,758 42,922 39,991 Sequential Change (3.6)% (4.8)% (7.3)% (8.2)% (6.8)% Net G&A as a % of management and operating 26.7 % 33.5 % 37.8 % 39.5 % 39.7% revenues (1) Other reimbursements represent reimbursements that arise from certain centralized services we provide pursuant to our management agreements with DHC and are presented exclusive of restructuring related reimbursements in connection with the Repositioning phase of the Strategic Plan. Specifically for Q2 2021, Q3 2021 and Q4 2021 reimbursements exclude $11,531, $813 and $966, respectively, of restructuring related expenses which were reimbursed by DHC. Appendix 15#16CAPEX SPEND BY SEGMENT (1) (dollars in thousands, except per unit and clinic data) (unaudited) Residential: Development, redevelopment and other activities Building improvements Total residential Lifestyle services: New clinic openings Recurring clinic investments Total lifestyle services Corporate and other Total CapEx spend Three Months Ended December 31, 2021 December 31, 2020 440 30 5,334 1,142 5,774 1,172 11 35 11 37 22 72 4 51 5,800 $ 1,295 Residential: Number of units 2,100 2,302 Development, redevelopment and other activities spend per unit $ 209 $ 13 Building improvements spend per unit $ 2,540 $ 496 Lifestyle services: Number of clinics 215 244 Number of new clinics opened 2 3 Number of clinics closed (2) 20 8 Number of net new clinics (18) (5) New clinic opening spend per clinic $ 5,276 $ 11,667 Recurring investment per clinic $ 51 $ 154 (1) CapEx spend by segment represents amounts paid related to the acquisition of property and equipment of ALR and does not reflect amounts paid for the acquisition of property and equipment on behalf of and reimbursed by DHC. (2) 17 Ageility outpatient rehabilitation clinics were closed in December 2021 in connection with senior living communities that were transitioned to new operators in 2021 or closed in February 2022. - Appendix 16#17NET (LOSS) INCOME AND ADJUSTED NET (LOSS) INCOME (in thousands, except per share amounts) (unaudited) Net (loss) income, (loss) earnings per diluted share (3). Adjustments, net of tax Loss on termination of leases December 31, 2 (1) Three Months Ended 2021 December 31, 2020 (1) (10,737) $ (0.34) $ 2,903 $ 0.09 1 Net restructuring expenses (2) 1,028 28 Adjusted net (loss) income, adjusted (loss) earnings per diluted share $ (9,708) $ (0.31) $ 2,931 $ 0.09 (1) Includes funds received under the CARES Act and other government grants. (2) Costs incurred implementing the Reposition phase of the Strategic Plan recognized in the three months ended December 31, 2021, net of amounts to be reimbursements from DHC of $966. (3) The above non-GAAP adjustments are shown net of tax calculated at a statutory tax rate of 25.0% (combined federal of 21.0% and state of 4.0%) for the three months ended December 31, 2021 and 2020. The company is currently in a net tax loss carry forward position. The company's effective rate was 0.4% and (13.1)% for the three months ended December 31, 2021 and 2020, respectively. The statutory rate was used to provide a more effective comparison to other reporting companies. Appendix 17#18CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOW (in thousands) (unaudited) CASH FLOW FROM OPERATING ACTIVITIES: Net loss Adjustments to reconcile net loss to cash (used in) provided by operating activities Non-cash income and expense adjustments, net Changes in assets and liabilities (1) Net cash (used in) provided by operating activities CASH FLOW FROM INVESTING ACTIVITIES: Acquisition of property and equipment (1) Year Ended December 31, 2021 December 31, 2020 (29,925) $ (7,589) 16,149 35,587 6,203 23,383 (7,573) 51,381 (9,439) (5,427) Purchases of debt and equity investments (3,156) (5,750) Proceeds from sale of property and equipment 2,725 Distributions in excess of earnings from Affiliates Insurance Company 11 287 Proceeds from sale of debt and equity investments 4,934 10,408 Net cash (used in) provided by investing activities (7,650) 2,243 CASH FLOW FROM FINANCING ACTIVITIES: Costs related to issuance of common stock Repayments of mortgage note payable Repayments of finance lease principal Payment of employee tax obligations on withheld shares Net cash used in financing activities (559) (414) (387) (807) (214) (60) (1,435) (1,006) (Decrease) increase in cash and cash equivalents and restricted cash and restricted cash equivalents Cash and cash equivalents and restricted cash and restricted cash equivalents at beginning of period Cash and cash equivalents and restricted cash and restricted cash equivalents at end of period (16,658) 52,618 109,597 56,979 $ 92,939 $ 109,597 Reconciliation of cash and cash equivalents and restricted cash and cash equivalents: Cash and cash equivalents Current restricted cash and cash equivalents Other restricted cash and cash equivalents 66,987 24,970 982 $ 84,351 23,877 1,369 Cash and cash equivalents and restricted cash and cash equivalents at end of period $ 92,939 $ 109,597 (1) Changes in assets and liabilities and acquisition of property and equipment for the year ended December 31, 2020. reflect reclassification adjustments of certain DHC reimbursements from the prior period to conform to the current period presentation. Appendix 18#19Revenues Owned and leased (1) Managed (2) Total Other operating income Owned and leased (1) Managed (2) Total RESIDENTIAL PORTFOLIO (in thousands) (unaudited) Q4 2020 Q1 2021 Q2 2021 Q3 2021 Q4 2021 $ 17,903 $ 17,057 16,378 $ 278,637 259,966 243,947 16,320 210,160 14,883 161,907 296,540 277,023 260,325 226,480 176,790 1,715 7,774 2 12,520 1,617 16,564 786 602 14,235 9,391 16,566 786 602 Operating costs Residential wages and benefits Owned and leased (1) 11,186 12,013 9,896 8,547 8,513 Managed (2) 160,248 148,799 139,016 113,417 88,139 Subtotal 171,434 160,812 148,912 121,964 96,652 Other residential operating expenses Owned and leased (1) 7,493 5,890 8,595 6,842 7,658 Managed (2) 92,443 88,545 76,610 79,298 62,434 Subtotal 99,936 94,435 85,205 86,140 70,092 General and administrative expenses Owned and leased (1) 376 376 374 342 236 Managed (2) 5,758 5,759 5,735 4,970 2,434 Subtotal Other expenses 6,134 6,135 6,109 5,312 2,670 Owned and leased (1) Managed (2) Subtotal 2,126 2,135 2,147 2,164 2,167 3,229 4,069 16,100 6,071 6,321 5,355 6,204 18,247 8,235 8,488 Total operating costs Owned and leased (1) 21,181 20,414 21,012 17,895 18,574 Managed (2) 261,678 247,172 237,461 203,756 159,328 Subtotal 282,859 267,586 258,473 221,651 177,902 Operating income Owned and leased (1) Managed (2) Subtotal Operating margin (1,563) 4,417 (4,632) (1,575) (3,691) 29,479 14,411 23,050 7,190 3,181 $ 27,916 $ 18,828 $ 18,418 $ 5,615 $ (510) Owned and leased (1) Managed (2) (8.0)% 10.1 % 9.0 % 17.8 % 5.5 % (28.3)% 8.8 % (9.7)% 3.4 % (24.8)% 2.0% 6.6 % 6.7 % 2.5 % (0.3)% Subtotal (1) The leases for the four communities leased from HealthPeak Properties, Inc. (PEAK) were terminated as of September 30, 2021. (2) Financial results are community level and are not included in ALR's consolidated results of operations. ALR earns 5% management fee on revenues recognized by community based on U.S. GAAP. Appendix 19#20RESIDENTIAL PORTFOLIO CONTINUED (in thousands) (unaudited) Q4 2020 Q1 2021 Q2 2021 Q3 2021 Q4 2021 Operating margin Owned and leased (1) Managed (2) (8.0)% 10.1 % 17.8 % (28.3)% 5.5 % 8.8 % (9.7)% 3.4 % (24.8)% 2.0% Subtotal 9.0 % 6.6 % 6.7 % 2.5 % (0.3)% Depreciation Owned and leased (1) 2,126 2,135 $ 2,147 2,164 $ 2,167 Managed (2) 3,229 4,069 4,568 5,258 5,353 Subtotal 5,355 6,204 6,715 7,422 7,520 EBITDA Owned and leased (1) Managed (2) Subtotal EBITDA margin Owned and leased (1) Managed (2) Total 563 6,552 (2,485) 589 (1,524) $ 32,708 33,271 18,480 27,618 12,448 8,534 $ 25,032 $ 25,133 $ 13,037 $ 7,010 2.9 % 11.2 % 10.7 % 26.4 % 7.1 % 8.7 % (15.2)% 10.6 % 9.1 % 3.6 % (10.2)% 5.9 % 5.3% 5.7 % 4.0% (1) The leases for the four communities leased from PEAK were terminated as of September 30, 2021. (2) Financial results are community level and are not included in ALR's consolidated results of operations. ALR earns 5% management fee on revenues recognized by community based on U.S. GAAP. Appendix 20 20#21RESIDENTIAL PORTFOLIO - COMPARABLE(3) (in thousands) (unaudited) Revenues Owned (1) Managed (2) Total Operating costs Q4 2020 (3) Q1 2021 (3) Q2 2021 (3) Q3 2021 (3) Q4 2021 (3) $ 16,068 $ 15,243 14,846 14,829 14,797 192,654 208,722 185,317 200,560 168,655 158,508 155,798 183,501 173,337 170,595 Residential wages and benefits Owned (1) 11,020 10,905 9,026 7,768 $ 8,529 Managed (2) 102,242 99,674 90,358 80,289 83,662 Subtotal 113,262 110,579 99,384 88,057 92,191 Other residential operating expenses Owned (1) 5,564 4,676 6,090 5,460 7,598 Managed (2) 62,240 61,950 53,533 58,579 59,175 Subtotal 67,804 66,626 59,623 64,039 66,773 General and administrative expenses Owned (1) 333 333 332 303 $ 230 Managed (2) 4,071 4,072 4,055 3,946 2,164 Subtotal 4,404 4,405 4,387 4,249 2,394 Other expenses Owned (1) 1,968 1,987 2,024 2,053 2,166 2,622 3,256 3,678 4,408 5,276 4,590 5,243 5,702 6,461 7,442 Managed (2) Subtotal Total operating costs Owned (1) 18,885 17,901 17,472 15,584 18,523 Managed (2) 171,175 168,952 151,624 147,222 150,277 Subtotal 190,060 186,853 169,096 162,806 168,800 Operating income Owned (1) Managed (2) Subtotal Operating margin Owned (1) (2,817) (2,658) (2,626) (755) (3,726) 21,479 16,365 17,031 11,286 5,521 18,662 13,707 $ 14,405 10,531 1,795 Managed (2) Subtotal (17.5)% 11.1 % 8.9 % (17.4)% 8.8% 6.8 % (17.7)% 10.1 % 7.9 % (5.1)% 7.1 % 6.1% (25.2)% 3.5% 1.1 % (1) Financial results for senior living communities that we have continuously owned since October 1, 2020, and excludes four communities leased from PEAK with approximately 200 living units where the leases were terminated on September 30, 2021. (2) Financial results are community level and are not included in ALR's consolidated results of operations. ALR earns 5% management fee on revenues recognized by community based on U.S. GAAP. Financial results for senior living communities continuously managed since October 1, 2020, and excludes (i) 107 senior living communities previously managed for DHC that were transitioned to new operators in 2021 and one senior living community managed for DHC that was closed in February 2022 and (ii) 1,532 SNF units in 27 CCRCs that were closed during the year ended December 31, 2021 and are in the process of being repositioned that we will continue to manage for DHC. (3) Exclusive of the Provider Relief Funds under the CARES Act, and other government grants recognized as other income. In addition, exclusive of restructuring expenses of $10.2 million, $0.2 million and $0.3 million for Q2, Q3 and Q4 of 2021, respectively, for the retained managed portfolio. Appendix 21#22RESIDENTIAL PORTFOLIO - COMPARABLE CONTINUED (3) (in thousands) (unaudited) Operating margin Owned (1) Managed (2) Subtotal Depreciation Q4 2020 (3) Q1 2021 (3) Q2 2021 (3) Q3 2021 (3) Q4 2021 (3) (17.5)% 11.1 % (17.4)% (17.7)% (5.1)% (25.2)% 8.8 % 10.1 % 7.1 % 3.5% 8.9 % 6.8 % 7.9 % 6.1 % 1.1 % Owned (1) 1,968 1,987 2,024 2,053 2,166 Managed (2) 2,622 3,256 3,678 4,408 5,276 Subtotal 4,590 5,243 5,702 6,461 7,442 Management Fee Managed (2) 9,643 9,281 8,449 7,941 7,805 EBITDA Owned (1) Managed (2) Subtotal EBITDA margin Owned (1) Managed (2) Total (849) (671) (602) 1,298 (1,560) 14,458 10,340 12,260 7,753 2,992 13,609 $ 9,669 $ 11,658 $ 9,051 $ 1,432 (5.3)% (4.4)% (4.1)% 8.8 % 7.5 % 5.6 % 7.3 % 4.9 % (10.5)% 1.9% 6.5 % 4.8 % 6.4 % 5.2 % 0.8% (1) Financial results for senior living communities that we have continuously owned since October 1, 2020, and excludes four communities leased from PEAK with approximately 200 living units where the leases were terminated on September 30, 2021. (2) Financial results are community level and are not included in ALR's consolidated results of operations. ALR earns 5% management fee on revenues recognized by community based on U.S. GAAP. Financial results for senior living communities continuously managed since October 1, 2020, and excludes (i) 107 senior living communities previously managed for DHC that were transitioned to new operators in 2021 and one senior living community managed for DHC that was closed in February 2022 and (ii) 1,532 SNF units in 27 CCRCs that were closed during the year ended December 31, 2021 and are in the process of being repositioned that we will continue to manage for DHC. (3) Exclusive of the Provider Relief Funds under the CARES Act, and other government grants recognized as other income. In addition, exclusive of restructuring expenses of $10.2 million, $0.2 million and $0.3 million for Q2, Q3 and Q4, respectively, for the retained managed portfolio. Appendix 22#23Appendix AGEILITY OUTPATIENT FINANCIAL DATA (in thousands, except clinics) (unaudited) Outpatient Total clinics Total clinic visits Operating Revenue Cares Act Revenue Total Revenue Operating costs Lifestyle services expenses Depreciation Expense Q4 2020 Q1 2021 Q2 2021 Q3 2021 Q4 2021 207 215 218 223 205 150 149 156 147 148 14,130 13,831 14,515 13,600 $ 13,738 262 14,392 13,831 14,515 13,600 13,738 $ 12,171 $ 107 11,839 104 $ 12,727 $ 12,288 $ 107 109 12,596 102 Restructuring Expense - 8 Total Operating Expenses 12,278 11,943 12,834 12,397 12,706 Operating Income (Excludes Cares Act) 1,852 1,888 1,681 Depreciation 107 104 107 1,203 109 1,032 102 EBITDA (Excludes Cares Act) 1,959 1,992 $ 1,788 $ 1,312 1,134 Operating margin (Excludes Cares Act) EBITDA margin (Excludes Cares Act) 13.1 % 13.7 % 11.6 % 8.8 % 7.5% 13.9 % 14.4 % 12.3 % 9.6 % 8.3 % 23#24AGEILITY OUTPATIENT FINANCIAL DATA - COMPARABLE (1) (in thousands, except clinics) (unaudited) Outpatient Total clinics Total clinic visits Operating Revenue Cares Act Revenue Total Revenue Operating costs Lifestyle services expenses Q4 2020 Q1 2021 Q2 2021 Q3 2021 Q4 2021 183 183 183 141 140 146 183 137 183 136 13,197 $ 12,919 $ 13,579 $ 12,678 $ 12,657 (82) 13,115 12,919 13,579 12,678 12,657 $ 11,358 $ 10,937 $ 11,791 $ 11,297 $ 11,414 Depreciation Expense 94 91 90 89 78 Restructuring Expense — — — ― 8 Total Operating Expenses 11,452 11,028 11,881 11,386 11,500 Operating Income (Excludes Cares Act) Depreciation 1,745 1,891 1,698 1,292 1,157 94 91 90 89 78 EBITDA 1,839 $ 1,982 $ 1,788 1,381 1,235 Operating margin (Excludes Cares Act) EBITDA margin 13.2 % 14.6 % 12.5 % 10.2 % 9.1% 13.9 % 15.3 % 13.2 % 10.9 % 9.8% (1) Comparable clinics includes data for 183 Ageility outpatient clinics that ALR has continuously owned and operated since October 1, 2020. - Appendix 24#25Nasdaq: ALR alerislife.com [email protected] THANK YOU ▲ AlerisLife Never stop advancing