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Citi Investment Banking Pitch Book

Selected Precedent Transactions Analysis Healthcare Operator Transactions ($ in millions) Acquiror Cogir Management U.S. Physical Therapy, Inc. Lee Equity Partners / Coastwood Senior Discovery Senior Living Housing Partners Conversant Capital LLC(¹) Sonida Senior Living Atria Senior Living (3) Holiday Retirement RCCH HealthCare Partners KKR ProMedica / Welltower Humana, Inc.; TPG Capital and Welsh, Carson, Anderson & Stowe Kindred Healthcare, Inc. Genesis Healthcare, LLC Brookdale Gentiva Health Services, Inc. High Mean Median Low Target Cadence Living 14-Clinic Physical Therapy Practice 12 LifePoint Health, Inc. Envision Healthcare Corporation HCR ManorCare Kindred Healthcare, Inc. Gentiva Health Services, Inc. Skilled Healthcare Group, Inc. Emeritus Corporation Harden Healthcare Holdings, Inc. Primary Business Senior Living Physical Therapy Senior Living Senior Living Senior Living Inpatient / Outpatient/ Post-Acute Services Post-Acute Care Post-Acute Services / Long-Term Care Post-Acute & Rehabilitation Services Post-Acute & Rehabilitation Services Skilled Nursing Senior Living Post-Acute & Rehabilitation Services Ale risLife 2023E EBITDA $6.3(5) Announcement Date Nov-22 Nov-22 Oct-22 Oct-21 Jun-21 Jul-18 Jun-18 Apr-18 Dec-17 Feb-15 Aug-14 Jul-14 Sep-13 Low (6) 9.2x Deal Value ($mm) ΝΑ EV / NTM EBITDA $32 ΝΑ $155(2) ΝΑ $5,600 $9,9004) $5,749 $4,100 $1,800 High (6) 11.2x ΝΑ $1,400 $409 EV / NTM EBITDA NA ΝΑ ΝΑ 10.3x(2) ΝΑ ΝΑ $58.0 (24.4) $33.6 33.5 $1.00 10.1x4 NA ΝΑ ΝΑ ΝΑ ΝΑ ΝΑ (4) 10.3x 10.2 10.2 10.1 For informational purposes: EV / LTM EBITDA NA ΝΑ NA 6.5x(2) Implied Equity Value Per Share Low High ΝΑ 8.5x 10.9x (4) 16.8x $70.9 (24.4) $46.5 33.5 $1.39 10.0x 9.3x 14.1x 9.8x 11.1x AlerisLife Implied Firm Value (-) Net Debt Implied Equity Value FDSO AlerisLife Implied Equity Value Per Share Source: AlerisLife Management, press releases, public filings, Wall Street research and S&P Capital IQ as of 02/02/2023. Note: "NA" denotes not publicly available. Metrics other than EV/NTM EBITDA shown for informational purposes. (1) (2) In October 2021, Sonida Senior Living (f/k/a Capital Senior Living) announced that it had entered into an Amended and Restated Investment Agreement with affiliates of Conversant Capital LLC whereby it would raise a total of $154.8mm through various financing transactions with Conversant. Represents NTM EBITDA based on actual Q4 2021-Q3 2022 Adj. EBITDA of $15.1mm, as reported by Sonida Senior Living. Adj. EBITDA not burdened by Stock-Based Compensation expense. No EBITDA projections available for Sonida since 2019, NTM EBITDA multiple calculated as transaction value of $155mm divided by NTM EBITDA of $15.1mm. LTM EBITDA multiple calculated as $155mm divided by Q4 2020-Q3 2021 reported Adj. EBITDA of $24mm. In June 2022, Atria Senior Living acquired the management services business of Holiday Retirement for an undisclosed price, while Welltower purchased the 86 properties that Holiday owned and self-managed for $1.58bn. Represents NTM EBITDA based on transaction value of $9.9bn and NTM EBITDA multiple of 10.1x, as disclosed in public filings. LTM EBITDA multiple of 10.9x as disclosed in public filings. (3) (4) (5) Represents ALR Adj. EBITDA not burdened by $2.0mm annual Stock-Based Compensation expense. cíti (6) EV/NTM EBITDA range based on +/-10% of median NTM EBITDA multiple of 10.2x.
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