Disclaimer Note Regarding Non-GAAP Financial Measures

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2 Disclaimer Certain statements in this supplement contain forward-looking information as that term is defined by the Private Securities Litigation Reform Act of 995. Any statements that do not relate to historical or current facts or matters are forward-looking statements. Examples of forward-looking statements include all statements regarding our proposed merger transaction with Care Capital Properties, Inc. ( CCP ), expected future financial position, results of operations, cash flows, liquidity, business strategy, growth opportunities, potential investments, and plans and objectives for future operations. You can identify some of the forward-looking statements by the use of forward-looking words such as anticipate, believe, plan, estimate, expect, intend, should, may and other similar expressions, although not all forward-looking statements contain these identifying words. Our actual results may differ materially from those projected or contemplated by our forward-looking statements as a result of various factors, including among others, the following: our dependence on Genesis Healthcare, Inc. ( Genesis ) and certain wholly owned subsidiaries of Holiday AL Holdings LP until we are able to further diversify our portfolio; our dependence on the operating success of our tenants; the significant amount of and our ability to service our indebtedness; covenants in our debt agreements that may restrict our ability to pay dividends, make investments, incur additional indebtedness and refinance indebtedness on favorable terms; increases in market interest rates; changes in foreign currency exchange rates; our ability to raise capital through equity and debt financings; the impact of required regulatory approvals of transfers of healthcare properties; the effect of changing healthcare regulation and enforcement on our tenants and the dependence of our tenants on reimbursement from governmental and other third-party payors; the relatively illiquid nature of real estate investments; competitive conditions in our industry; the loss of key management personnel or other employees; the impact of litigation and rising insurance costs on the business of our tenants; the effect of our tenants declaring bankruptcy or becoming insolvent; uninsured or underinsured losses affecting our properties and the possibility of environmental compliance costs and liabilities; the ownership limits and anti-takeover defenses in our governing documents and Maryland law, which may restrict change of control or business combination opportunities; the impact of a failure or security breach of information technology in our operations; our ability to find replacement tenants and the impact of unforeseen costs in acquiring new properties; our ability to maintain our status as a real estate investment trust ( REIT ); changes in tax laws and regulations affecting REITs; and compliance with REIT requirements and certain tax and tax regulatory matters related to our status as a REIT. There are also risks that are inherent in the nature of the transaction with CCP, including the possibility that the parties may be unable to obtain required stockholder approvals or regulatory approvals or that other conditions to closing the transaction may not be satisfied, such that the transaction will not close or that the closing may be delayed; the potential adverse effect on tenant and vendor relationships, operating results and business generally resulting from the proposed transaction; the proposed transaction will require significant time, attention and resources, potentially diverting attention from the conduct of our business; the amount of debt that will need to be refinanced or amended in connection with the proposed merger and the ability to do so on acceptable terms; changes in healthcare regulation and political or economic conditions; the anticipated benefits of the proposed transaction may not be realized; the anticipated and unanticipated costs, fees, expenses and liabilities related to the transaction; the outcome of any legal proceedings related to the transaction; and the occurrence of any event, change or other circumstances that could give rise to the termination of the merger agreement. Additional information concerning risks and uncertainties that could affect our business can be found in our filings with the Securities and Exchange Commission (the SEC ), including Item A of our Annual Report on Form 0-K for the year ended December 3, 206 and Item A of our Quarterly Report on Form 0-Q for the quarter ended June 30, 207. Additional information concerning risks and uncertainties that could affect CCP s business can be found in CCP s filings with the SEC, including Item A of its Annual Report on Form 0-K for the year ended December 3, 206. We do not intend, and we undertake no obligation, to update any forward-looking information to reflect events or circumstances after the date of this supplement or to reflect the occurrence of unanticipated events, unless required by law to do so. Note Regarding Non-GAAP Financial Measures This supplement includes the following financial measures defined as non-gaap financial measures by the SEC: net operating income ( NOI ), Cash NOI, funds from operations attributable to common stockholders ( FFO ), Normalized FFO, Adjusted FFO ( AFFO ), Normalized AFFO, FFO per diluted common share, Normalized FFO per diluted common share, AFFO per diluted common share and Normalized AFFO per diluted common share. These measures may be different than non-gaap financial measures used by other companies, and the presentation of these measures is not intended to be considered in isolation or as a substitute for financial information prepared and presented in accordance with U.S. generally accepted accounting principles. An explanation of these non-gaap financial measures is included under Reporting Definitions in this supplement and reconciliations of these non-gaap financial measures to the GAAP financial measures we consider most

3 comparable are included under Reconciliations of NOI and Cash NOI" and "Reconciliations of FFO, Normalized FFO, AFFO and Normalized AFFO in this supplement. Tenant and Borrower Information This supplement includes information regarding certain of our tenants that lease properties from us and our borrowers, most of which are not subject to SEC reporting requirements. This release also includes certain information regarding tenants who lease properties from CCP and their borrowers, most of which are also not subject to SEC reporting requirements. Genesis is subject to the reporting requirements of the SEC and is required to file with the SEC annual reports containing audited financial information and quarterly reports containing unaudited financial information. The information related to our tenants and borrowers that is provided in this supplement has been provided by, or derived solely from information provided by, such tenants and borrowers; and the information related to CCP s tenants and borrowers that is provided in this release has been provided by CCP based on information it has obtained from its tenants and borrowers. We have not independently verified this information. We have no reason to believe that such information is inaccurate in any material respect. We are providing this data for informational purposes only. Genesis's filings with the SEC can be found at

4 Table of Contents Company Information Company Fact Sheet 2 Financial Highlights 4 Condensed Consolidated Statements of Income 5 Condensed Consolidated Balance Sheets 6 Condensed Consolidated Statements of Cash Flows 7 Capitalization 8 Indebtedness 9 Key Credit Statistics 0 Portfolio Summary Year to Date Investment Activity 5 Portfolio Concentrations 6 Real Estate Portfolio Geographic Concentrations Property Type 7 Distribution of Beds/Units 7 Investment 8 Portfolio Lease Expirations 9 Recent Investment Activity 20 Reconciliations of FFO, Normalized FFO, AFFO and Normalized AFFO 2 Reconciliations of NOI and Same Store Cash NOI 22 Reporting Definitions 24

5 Company Information Board of Directors Richard K. Matros Chairman of the Board, President and Chief Executive Officer Sabra Health Care REIT, Inc. Michael J. Foster Managing Director RFE Management Corp. Milton J. Walters President Tri-River Capital Robert A. Ettl Chief Operating Officer Harvard Management Company Craig A. Barbarosh Partner Katten Muchin Rosenman LLP Senior Management Richard K. Matros Chairman of the Board, President and Chief Executive Officer Harold W. Andrews, Jr. Executive Vice President, Chief Financial Officer and Secretary Talya Nevo-Hacohen Executive Vice President, Chief Investment Officer and Treasurer Other Information Corporate Headquarters 8500 Von Karman Avenue, Suite 550 Irvine, CA 9262 Transfer Agent American Stock Transfer and Trust Company 620 5th Avenue Brooklyn, NY 29 The information in this supplemental information package should be read in conjunction with the Company s Annual Report on Form 0-K, Quarterly Reports on Form 0-Q, Current Reports on Form 8-K and other information filed with the SEC. The Reporting Definitions and Reconciliations of Non-GAAP Measures are an integral part of the information presented herein. On Sabra's website, you can access, free of charge, Sabra s Annual Report on Form 0-K, Quarterly Reports on Form 0-Q, Current Reports on Form 8-K, and amendments to those reports filed or furnished pursuant to Sections 3(a) or 5(d) of the Securities Exchange Act of 934, as amended, as soon as reasonably practicable after such material is filed with, or furnished to, the SEC. The information contained on Sabra s website is not incorporated by reference into, and should not be considered a part of, this supplemental information package. All material filed with the SEC can also be accessed through its website, For more information, contact Harold W. Andrews, Jr., Executive Vice President, Chief Financial Officer and Secretary at (949)

6 COMPANY FACT SHEET Company Profile Sabra Health Care REIT, Inc., a Maryland corporation ( Sabra, the Company or we ), operates as a self-administered, selfmanaged REIT that, through its subsidiaries, owns and invests in real estate serving the healthcare industry. Sabra primarily generates revenues by leasing properties to tenants and operators throughout the United States and Canada. As of June 30, 207, Sabra s investment portfolio included 83 real estate properties held for investment (consisting of (i) 96 Skilled Nursing/Transitional Care facilities, (ii) 75 facilities, (iii) facilities operated by thirdparty property managers pursuant to property management agreements ( Managed Properties ) and (iv) one Acute Care Hospital), eight investments in loans receivable (consisting of (i) four mortgage loans, (ii) two construction loans, (iii) one mezzanine loan, and (iv) one pre-development loan), and 2 preferred equity investments. As of June 30, 207, Sabra s real estate properties held for investment included 8,830 beds/units, spread across the United States and Canada. Objectives and Strategies Our objectives are to grow our investment portfolio while diversifying our portfolio by tenant, asset class and geography within the healthcare sector. We plan to achieve these objectives primarily through making investments directly or indirectly in healthcare real estate. We may also achieve our objective of diversifying our portfolio by tenant and asset class through select asset sales and other arrangements with Genesis and other tenants. We have entered into memoranda of understanding with Genesis to market for sale 35 skilled nursing facilities and we have made certain other lease and corporate guarantee amendments for the remaining 43 facilities leased to Genesis. Upon completion of the sales, these asset sales and amendments will have the benefit of reducing our net operating income concentration in Genesis and skilled nursing facilities, as well as strengthening our remaining Genesis-operated portfolio through the lease term extensions and guarantee enhancements; provided, however, that there can be no assurances that we will successfully complete these sales on the terms or timing contemplated by the memoranda of understanding, or at all, in which event we may not achieve the anticipated benefits from such sales. As of June 30, 207, we completed the sale of one of these facilities and subsequent to June 30, 207, we completed the sale of one additional facility. Marketing of the remaining 33 facilities is ongoing and is expected to be completed in the second half of 207. We expect to continue to grow our portfolio primarily through the acquisition of assisted living, independent living and memory care facilities in the U.S. and Canada and through the acquisition of Skilled Nursing/Transitional Care facilities in the U.S. We have and will continue to opportunistically acquire other types of healthcare real estate, originate financing secured directly or indirectly by healthcare facilities and invest in the development of and Skilled Nursing/Transitional Care facilities. We also expect to expand our portfolio through the development of purpose-built healthcare facilities through pipeline agreements and other arrangements with select developers. We further expect to work with existing operators to identify strategic development opportunities. These opportunities may involve replacing or renovating facilities in our portfolio that may have become less competitive and new development opportunities that present attractive risk-adjusted returns. In addition to pursuing acquisitions with triple-net leases, we expect to continue to pursue other forms of investment, including investments in Managed Properties, mezzanine and secured debt investments, and joint ventures for and Skilled Nursing/Transitional Care facilities. In general, we originate loans and make preferred equity investments when an attractive investment opportunity is presented and either (a) the property is in or near the development phase or (b) the development of the property is completed but the operations of the facility are not yet stabilized. A key component of our strategy related to loan originations and preferred equity investments is our having the option to purchase the underlying real estate that is owned by our borrowers (and that directly or indirectly secures our loan investment) or by the entity in which we have an investment. These options become exercisable upon the occurrence of various criteria, such as the passage of time or the achievement of certain operating goals, and the method to determine the purchase price upon exercise of the option is set in advance based on the same valuation methods we use to value our investments in healthcare real estate. This strategy allows us to diversify our revenue streams and build relationships with operators and developers, and provides us with the option to add new properties to our existing real estate portfolio if we determine that those properties enhance our investment portfolio and stockholder value at the time the options are exercisable. 2

7 COMPANY FACT SHEET (CONTINUED) As of June 30, 207 Market Facts Common Stock Information Closing Price 52-Week range Common Equity Market Capitalization: Outstanding Shares Enterprise Value: Credit Ratings billion 65.4 million 2.9 billion Ticker symbols: Common Stock Preferred Stock Stock Exchange: SBRA SBRAP SDAQ Governance (As of July, 207) ISS Governance QuickScore 4 Moody's Corporate Rating Unsecured Notes Rating Preferred Equity Rating S&P Corporate Rating Unsecured Notes/Unsecured Credit Facility Preferred Equity Rating Fitch Corporate Rating Unsecured Notes/Unsecured Credit Facility Preferred Equity Rating Ba3 (review for upgrade) Ba3 (review for upgrade) B2 (review for upgrade) BB- (CreditWatch positive) BB (CreditWatch positive) B- (CreditWatch positive) BB+ (Rating Watch Positive) BB+ (Rating Watch Positive) BB- (Rating Watch Positive) Portfolio Information Investment in Real Estate Properties Skilled Nursing/Transitional Care Managed Properties Acute Care Hospital Equity Investments Investments in Loans Receivable Preferred Equity Investments Investments (2) () Real Estate Property Bed/Unit Count Skilled Nursing/Transitional Care Managed Properties Acute Care Hospital Beds/Units Countries U.S. States Relationships 0,689 7,070, , () Our investments in Loans Receivable include investments secured directly or indirectly by one Skilled Nursing/Transitional Care facility with 4 beds/units, six developments with 409 beds/units, and land for one future development. (2) Our Preferred Equity Investments include investments in entities owning developments with,62 beds/units and one Skilled Nursing/Transitional Care facility with 40 beds/units. 3

8 FINCIAL HIGHLIGHTS (dollars in thousands, except per share data) Three Months Ended June 30, 207 Six Months Ended June 30, Revenues Net operating income Net income attributable to common stockholders FFO attributable to common stockholders Normalized FFO attributable to common stockholders AFFO attributable to common stockholders Normalized AFFO attributable to common stockholders Per common share data attributable to common Diluted EPS Diluted FFO Diluted Normalized FFO Diluted AFFO Diluted Normalized AFFO 64,736 60,329 7,960 3,48 36,407 36,34 35,244 74,249 72,809 34,95 5,372 39,763 49,423 38,354 27,386 20,559 34,222 66,547 72,768 72,32 70,457 36,808 33,956 6,643 85,279 8,33 84,248 77, Net cash flow from operations 22,433 69,768 53,87 94,494 Investment Portfolio June 30, 207 () Real Estate Properties held for investment Real Estate Properties held for investment, gross () Beds/Units Weighted Average Remaining Lease Term (in months) Investments in Loans Receivable (#) Investments in Loans Receivable, gross () (2) Preferred Equity Investments (#) Preferred Equity Investments, gross () Debt Principal Balance Fixed Rate Debt Variable Rate Debt - Swapped (3) Variable Rate Debt - Floating Debt Cash Net Debt (4) 83 2,309,596 8, , ,345 June 30, ,95 34,287 32,000,235,482 (3,235),222,247 December 3, ,292,345 8, , ,90 December 3, , ,000 26,000,227,638 (25,663),20,975 Weighted Average Effective Interest Rate Fixed Rate Debt Variable Rate Debt - Swapped (3) Variable Rate Debt - Floating Debt 5.6% 2.99% 3.22% 4.5% 5.6% 2.99% 2.77% 4.5% % of Fixed Rate Debt Variable Rate Debt - Swapped (3) Variable Rate Debt - Floating 69.8% 27.6% 2.6% 70.3% 27.5% 2.2% Availability Under Revolving Credit Facility Available Liquidity (5) 468, , , ,547 () Real Estate Properties held for investment include Managed Properties. Investments in Loans Receivable consists of principal plus capitalized origination fees net of loan loss reserves. (3) As of June 30, 207, variable rate debt - swapped includes million subject to swap agreements that fix LIBOR at 0.90%, 69.3 million (CAD 90.0 million) and 27.0 million (CAD 35.0 million) subject to swap agreements that fix the Canadian Offer Dollar Rate ( CDOR ) at.59% and 0.93%, respectively. (4) Net Debt excludes deferred financing costs and discounts. (5) Available liquidity represents unrestricted cash, excluding cash associated with a consolidated joint venture, and availability under the revolving credit facility. (2) 4

9 CONDENSED CONSOLIDATED STATEMENTS OF INCOME (dollars in thousands, except per share data) Three Months Ended June 30, 207 Revenues: Rental income Interest and other income Resident fees and services Six Months Ended June 30, ,904 2,027 6, ,297 6,993, ,28 3,972 0,286 0,609 22,325 3,874 revenues 64,736 74,249 27,386 36,808 Expenses: Depreciation and amortization Interest Operating expenses General and administrative Provision for doubtful accounts and loan losses Impairment of real estate 7,220 5,862 4,407, ,405 6,427,440 4, ,357 3,650 6,827 8,022 2,305 34,7 33,345 2,852 9,350 2,746 29,8 expenses 49,73 39,3 95,6 2,275 Other income (expense): Loss on extinguishment of debt Other income Net gain (loss) on sale of real estate 94 4,032 2,400 (52) 3,070 4,032 (556) 2,400 (4,654) other income (expense) 4,973 2,348 7,02 (2,80) 20,536 37,466 39,327 2, ,520 37,475 39,343 2,764 (2,560) (2,560) (5,2) (5,2) Net income Net (income) loss attributable to noncontrolling interests (6) Net income attributable to Sabra Health Care REIT, Inc. Preferred stock dividends Net income attributable to common stockholders 7,960 34,95 34,222 6,643 Basic common share Diluted common share Net income attributable to common stockholders, per: Weighted-average number of common shares outstanding, basic 65,438,739 65,303,057 65,396,46 65,274,845 Weighted-average number of common shares outstanding, diluted 65,670,853 65,503,383 65,694,09 65,454,337 5

10 CONDENSED CONSOLIDATED BALANCE SHEETS (dollars in thousands, except per share data) June 30, 207 December 3, 206 (unaudited) Assets Real estate investments, net of accumulated depreciation of 34,03 and 282,82 as of June 30, 207 and December 3, 206, respectively Loans receivable and other investments, net Cash and cash equivalents Restricted cash Prepaid expenses, deferred financing costs and other assets, net assets Liabilities Mortgage notes, net Revolving credit facility Term loans, net Senior unsecured notes, net Accounts payable and accrued liabilities liabilities Equity Preferred stock,.0 par value; 0,000,000 shares authorized, 5,750,000 shares issued and outstanding as of June 30, 207 and December 3, 206 Common stock,.0 par value; 25,000,000 shares authorized, 65,425,434 and 65,285,64 shares issued and outstanding as of June 30, 207 and December 3, 206, respectively Additional paid-in capital Cumulative distributions in excess of net income Accumulated other comprehensive loss Sabra Health Care REIT, Inc. stockholders equity Noncontrolling interests equity liabilities and equity,995,9 94,208 3,235 9,43 4,93 2,253,960 59,366 32, , ,508 37,23,257, ,20,895 (24,078) (833) 996, ,75 2,253,960 2,009,939 96,036 25,663 9,002 25,279 2,265,99 60,752 26, , ,246 39,639,250, ,208,862 (92,20) (,798),05,574 35,05,609 2,265,99 6

11 CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (in thousands) Six Months Ended June 30, Cash flows from operating activities: Net income Adjustments to reconcile net income to net cash provided by operating activities: Depreciation and amortization Non-cash interest income adjustments Amortization of deferred financing costs Stock-based compensation expense Amortization of debt discount Loss on extinguishment of debt Straight-line rental income adjustments Provision for doubtful accounts and loan losses Change in fair value of contingent consideration Net (gain) loss on sales of real estate Impairment of real estate Changes in operating assets and liabilities: Prepaid expenses and other assets Accounts payable and accrued liabilities Restricted cash Net cash provided by operating activities Cash flows from investing activities: Acquisition of real estate Origination and fundings of loans receivable Origination and fundings of preferred equity investments Additions to real estate Repayment of loans receivable Repayments of preferred equity investments Net proceeds from the sales of real estate Net cash (used in) provided by investing activities Cash flows from financing activities: Net borrowing (repayments) of revolving credit facility Proceeds from term loans Principal payments on mortgage notes Payments of deferred financing costs Issuance of common stock, net Dividends paid on common and preferred stock Net cash used in financing activities Net (decrease) increase in cash and cash equivalents Effect of foreign currency translation on cash and cash equivalents Cash and cash equivalents, beginning of period Cash and cash equivalents, end of period Supplemental disclosure of cash flow information: Interest paid 39,327 2,723 36, ,558 4,39 57 (9,578) 2,305 (822) (4,032) 34, ,494 3, (,7) 2,746 (50) 4,654 29,8 (5,29) 327 (,869) 3,265 4,324 (2,232) 53,87 94,494 (4,456) (927) (76) (,294),547 2,766 6,099 (6,283) (6,72) (874) 93,893 75,456 (6,34) 256,020 6,000 (2,049) (24) (3,224) (60,69) (255,000) 69,360 (2,060) (5,93) (,289) (59,288) (60,088) (254,208) (2,558) 30 25,663 96, ,434 3,235 03,868 28,944 30,58 7

12 CAPITALIZATION (dollars in thousands, except per share data) Debt Mortgage notes Revolving credit facility Term loans Senior unsecured notes June 30, 207 Principal Balance Deferred financing costs and discounts Debt, net Revolving Credit Facility Credit facility availability Credit facility capacity 62,95 32,000 34, ,000 December 3, 206,235,482 (5,360),220,22 June 30, , ,000 63,638 26, , ,000,227,638 (6,967),20,67 December 3, , ,000 Enterprise Value As of June 30, 207 Shares Outstanding Common stock Preferred stock debt Cash and cash equivalents 65,425,434 5,750,000 Price Value Enterprise Value As of December 3, 206 Shares Outstanding Common stock Preferred stock debt Cash and cash equivalents 65,285,64 5,750,000,576,753 47,43,235,482 (3,235) 2,946,43 Price Value Enterprise Value Common Stock and Equivalents,594,275 44,63,227,638 (25,663) 2,940,863 Weighted Average Common Shares Three Months Ended June 30, 207 EPS, FFO and Normalized FFO AFFO and Normalized AFFO Six Months Ended June 30, 207 EPS, FFO and Normalized FFO EPS, AFFO and Normalized AFFO Common stock Common equivalents 65,42,425 26,34 65,42,425 26,34 65,370,524 25,622 65,370,524 25,622 Basic common and common equivalents Dilutive securities: Restricted stock and units 65,438,739 65,438,739 65,396,46 65,396,46 232,4 547,20 297,873 62,956 Diluted common and common equivalents 65,670,853 65,985,940 65,694,09 66,009,02 8

13 INDEBTEDNESS June 30, 207 (dollars in thousands) Weighted Average Effective Rate () Principal Fixed Rate Debt Secured mortgage debt Unsecured senior notes 62,95 700, % 5.46% 3.% 56.7% fixed rate debt Variable Rate Debt Revolving credit facility (2) 862,95 5.6% 69.8% 32, % 2.6% (2) 34, % 27.6% 373, % 30.2%,235, % 00.0% 62, % 3.% 700,000 32, % 3.22% 56.7% 2.6% 34, % 27.6%,073, % 86.9%,235, % 00.0% Term loans % of variable rate debt Debt Secured Debt Secured mortgage debt Unsecured Debt Unsecured senior notes Revolving credit facility (2) Term loans (2) unsecured debt Debt () Weighted average effective interest rate includes private mortgage insurance and impact of interest rate swap agreements. Includes million subject to swap agreements that fix LIBOR at 0.90%, 69.3 million (CAD 90.0 million) and 27.0 million (CAD 35.0 million) subject to swap agreements that fix CDOR at.59% and 0.93%, respectively. Excluding these amounts, variable rate debt was 2.6% of total debt as of June 30, 207. (2) Maturities Secured Mortgage Debt Principal 7//7-2/3/7 2, , , , , , , , , ,882 Thereafter 03,988 principal balance 62,95 Discount Deferred financing costs (2,829) debt, net 59,366 Wtd. avg. maturity/years 23.9 Wtd. avg. effective interest rate(3) 3.87% () (2) (3) Rate (2) Unsecured Senior Notes Principal 3.45% 3.45% 3.45% 3.46% 3.46% 500, % 3.45% 200, % 3.46% 3.47% 3.60% 700,000 (458) (0,034) 689, % Rate (2) Term Loans Principal 5.50% 34, % 34,287 (2,039) 339, Rate (2) Revolving Credit Facility () Principal 32, % 32,000 32, % 3.22% Rate (2) Principal 2,090 4,283 4, % 36,575 86,228 4, ,427 4,573 4,725 4,882 03,988,235,482 (458) (4,902),220, Rate (2) 3.45% 3.45% 3.45% 3.25% 4.49% 3.44% 5.34% 3.45% 3.46% 3.47% 3.60% 4.5% Revolving Credit Facility is subject to two six-month extension options. Represents actual contractual interest rates excluding private mortgage insurance and impact of interest rate swap agreements. Weighted average effective interest rate includes private mortgage insurance and impact of interest rate swap agreements. 9

14 KEY CREDIT STATISTICS () June 30, 207 December 3, 206 Net Debt to Adjusted EBITDA (2) Interest Coverage Fixed Charge Coverage Ratio Debt/Asset Value Secured Debt/Asset Value Unencumbered Assets/Unsecured Debt 5.35x 3.9x 3.6x 43% 6% 247% 5.22x 4.00x 3.20x 43% 6% 247% Cost of Permanent Debt (3) 4.55% 4.55% Corporate Ratings (Moody's, S&P, Fitch) Ba3 / BB- / BB+ Ba3 / BB- / BB+ () Key credit statistics are calculated in accordance with the credit agreement (excluding net debt to adjusted EBITDA) relating to the revolving credit facility and the indentures relating to our unsecured senior notes. (2) Adjusted EBITDA is calculated as earnings before interest, taxes, depreciation and amortization ("EBITDA") excluding the impact of stock-based compensation expense under the Company's long-term equity award program, asset-specific loan loss reserves, and out of period reserves and is further adjusted to give effect to acquisitions and dispositions completed as of and subsequent to the date reported as though such acquisitions and dispositions occurred at the beginning of the period. Net Debt excludes deferred financing costs and discounts. (3) Excludes revolving credit facility balance, if any, which had an interest rate of 3.22% and 2.77% as of June 30, 207 and December 3, 206, respectively. 0

15 PORTFOLIO SUMMARY June 30, 207 (dollars in thousands) GAAP Rental Income () Property Portfolio Three Months Ended June 30, Number of Properties Facility Type Investment 207 Skilled Nursing/Transitional Care 96,038,958 75,044,664 Managed Properties 64,334 Acute Care Hospital 6, ,309,596 Net Operating Income () Same Store Property Portfolio (2) ,598 34,56 9, ,598 34,56 0,689 9,768 7,070 2,398 59,00,376, ,86 8,830 9,768 9,930,376,373 55,904 55,297 Cash Rent Number of Beds/Units ,302 Cash Net Operating Income Three Months Ended June 30, Number of Properties Facility Type ,43 5,580 5,43 5, ,238, ,86 Tenant Facility Statistics (3) 206 Acute Care Hospital 3, Managed Properties 206 Skilled Nursing/Transitional Care 3,49,256 30,238,28 47,074 48,424,256 47,593 Coverage EBITDAR EBITDARM Occupancy Percentage Skilled Mix Twelve Months Ended June 30, Facility Type Skilled Nursing/Transitional Care.56x.45x.86x.75x 88.4% 86.9% 43.% 4.4%.6x.7x.34x.34x 88.3% 89.7% 89.7% 75.3% Managed Properties Twelve Months Ended June 30, Fixed Charge Coverage Ratio (4) Genesis Healthcare, Inc..8x.27x Tenet Health Care Corporation 2.04x 2.8x Holiday AL Holdings LP.3x.8x Same Store Tenant Facility Statistics (5) Coverage EBITDAR EBITDARM Occupancy Percentage Skilled Mix Twelve Months Ended June 30, Facility Type Skilled Nursing/Transitional Care.33x.3x.67x.64x 87.3% 87.6% 40.5% 4.9%.33x.35x.52x.55x 88.9% 90.2% 6.4% 68.% Managed Properties () (2) (3) (4) (5) GAAP Rental Income and Net Operating Income include 5.0 million and 5.5 million of straight-line rental income adjustments for the three months ended June 30, 207 and 206, respectively. Same store property portfolio includes all facilities owned for the full period in both comparison periods. Occupancy Percentage, Skilled Mix and EBITDARM/EBITDAR coverages (collectively, Facility Statistics ) for each period presented include only Stabilized Facilities owned by the Company as of the end of the respective period. Facility Statistics are only included in periods subsequent to our acquisition. EBITDARM Coverage and EBITDAR Coverage exclude tenants with significant corporate guarantees. Facility Statistics are presented one quarter in arrears, except for Managed Properties which are presented as of the latest quarter. Fixed Charge Coverage Ratio is presented one quarter in arrears for tenants with significant corporate guarantees. See Reporting Definitions for definition of Fixed Charge Coverage Ratio. Same store Facility Statistics are presented for Stabilized Facilities owned for the full period in both comparison periods.

16 PORTFOLIO SUMMARY (CONTINUED) PRO FORMA FOR CCP MERGER June 30, 207 (dollars in thousands) Lease Coverage () Twelve Months Ended June 30, 207 Facility Type Sabra CCP Combined Skilled Nursing/Transitional Care.56x.9x.3x.6x 0.92x.2x 6.43x 6.43x Genesis Healthcare, Inc..8x.8x Tenet Health Care Corporation 2.04x 2.04x Holiday AL Holdings LP.3x.3x.0x.0x Acute Care Hospital Tenants with Significant Corporate Guarantees () CCP (4 Tenants) Pro Forma Top 0 Tenants (2) Twelve Months Ended June 30, 207 Facility Type Number of Facilities (3) Annualized Cash NOI (3) Lease Coverage () Genesis Healthcare, Inc. 77.8x 78,44 3.9% Senior Care Centers 38.08x 56,89 0.% Signature Healthcare x 49, % Avamere Family of Companies 29.35x 40,052 7.% Holiday AL Holdings LP 2.3x 32,78 5.8% 6.57x 30, % Signature Behavioral NMS Healthcare % of Annualized Cash NOI (4) 5.9x 25, % 24.50x 5, % The McGuire Group 7.9x 4,89 2.6% Wingate Healthcare 0.80x 4, % Magnolia Health Systems () Lease Coverage is defined as the EBITDAR coverage for the facilities operated by the applicable tenant unless there is a corporate guaranty and the guarantor level fixed charge coverage is a more meaningful indicator of the tenants ability to make rent payments on stabilized facilities. Tenants with significant corporate guarantees represent 47.0% of the combined pro forma annualized Cash NOI. Lease Coverage is presented one quarter in arrears. (2) Includes all acquisitions through June 30, 207. (3) Includes all stable, non-stable and held for sale facilities. (4) Signature Behavioral was acquired subsequent to the Lease Coverage period presented. Accordingly, the coverage is presented here at the underwritten stabilized Lease Coverage level. 2

17 PORTFOLIO SUMMARY (CONTINUED) June 30, 207 (dollars in thousands) Loans Receivable and Other Investments Loan Type Number of Loans Facility Type Mortgage 4 Skilled Nursing / Construction 2 Mezzanine Pre-development Principal Balance as of June 30, 207 Book Value as of June 30, 207 () 2 7.7% 32.0% 0.8% /3/205/3/22 08/3/7 2, % 8.4% 52 09/09/7 52, 9.4% 9.3%, % 9,640 9,646 2,304 Preferred Equity /07/604/30/8,736 52,06 Facility Type Skilled Nursing / 52,06 36, (3,248) 48,863 Amount Funded as of June 30, 207 Funding Commitments Maturity Date % Number of Investments Interest Income Three Months Ended June 30, 207 () 9.% Loan loss reserve Other Investment Type Weighted Average Annualized Effective Interest Rate 38, ,336 Weighted Average Contractual Interest Rate 36,706 Book Value as of June 30, ,345 Rate of Return Other Income Three Months Ended June 30, %,428 Includes interest income related to loans receivable investments held as of June 30,

18 PORTFOLIO SUMMARY (CONTINUED) June 30, 207 (dollars in thousands) Proprietary Development Pipeline () Investment Type State Colorado Florida Preferred Equity Forward Commitment Skilled Nursing/ Transitional Care 2 Loan Estimated Real Estate Value Upon Completion Investment Amount (2) Facility Type Senior Housing Skilled Nursing/ Transitional Care Skilled Nursing/ Transitional Care Senior Housing 7,252 Senior Housing Weighted Average Initial Cash Lease Yield Certificate of Occupancy Timing(3) Q3 206Q , % 24, % Q4 207 Q 207Q4 207 Indiana 4 4 5,099 6, % Kentucky 5,434 27, % Q4 205 Q4 206Q 208 Ohio Tennessee Texas 2 4,957 59,00 7.4% 4,050 7, % Q2 207 Q4 205Q ,42 3,206 8,00 65, % 4,42 49,998 8,00 364, % New Assets in Real Estate Portfolio (4) Facility Type State Arizona Colorado Illinois Indiana Nevada Texas Virginia Wisconsin Canada Skilled Nursing/ Transitional Care Beds/Units Skilled Nursing/ Transitional Care Gross Book Value % of Real Estate Invested ,22 0,700 5,57 26,587 23,670 55,802 23,000 0,099 26,96 0.4% 0.5% 0.2%.%.0% 2.4%.0% 0.4%.2% , % () Includes projects invested in or committed to as of June 30, 207. Investment amount excludes accrued and unpaid interest receivable. Certificate of occupancy timing represents the period in which the certificate of occupancy has been received for a development project where construction has been completed or when the certificate of occupancy is expected to be received for a development project that is currently under construction. (4) Includes properties built since 200 and included in real estate investments as of June 30, 207. (2) (3) 4

19 YEAR TO DATE INVESTMENT ACTIVITY For the Six Months Ended June 30, 207 (dollars in thousands) Real Estate Investments Poet's Walk of Cedar Park Additions to Real Estate Real Estate Investments Loans Receivable McKinney Construction Loan Initial Investment Date Facility Type 06/0/7 Various Multiple N/A 68 N/A 03/4/6 27 All Investments () Number of Properties Beds/ Units 207 Amounts Invested () Rate of Return/Initial Cash Yield 4,456,0 5, % 8.07% 7.54% % 6, % Real estate investments include capitalized acquisition costs. 5

20 PORTFOLIO CONCENTRATIONS () Relationship Concentration Asset Class Concentration Payor Source Concentration (2) () (2) Concentrations are calculated using Annualized Revenue for real estate investments, investments in loans receivable and other investments while annualized Net Operating Income is used for investments in Managed Properties. Tenant and borrower revenue presented one quarter in arrears. 6

21 REAL ESTATE PORTFOLIO GEOGRAPHIC CONCENTRATIONS June 30, 207 Property Type Location Skilled Nursing/ Transitional Care Managed Properties Acute Care Hospital % of Texas New Hampshire Kentucky Connecticut Canada Florida Michigan Ohio Oklahoma Maryland Other (28 states) % % 52.5% 4.0% 6.0% 0.5% 00.0% % of properties Distribution of Beds/Units Location Texas New Hampshire Connecticut Florida Kentucky Canada Ohio Maryland Nebraska Colorado Other (28 states) % of beds/units Number of Properties Facility Type Skilled Nursing/ Transitional Care Managed Properties Acute Care Hospital % of , , ,655, , ,775,742,490,277, , % ,689 7,070, , % 56.8% 37.5% 5.3% 0.4% 00.0% 7

22 REAL ESTATE PORTFOLIO GEOGRAPHIC CONCENTRATIONS June 30, 207 (dollars in thousands) Investment Location Texas Maryland Canada () Connecticut Florida Delaware Nebraska New Hampshire North Carolina Michigan Other (28 states) % of Properties () Number of Properties Skilled Nursing/ Transitional Care , ,569 5,833 29,48 95,780 63,088 46,839 9,38 345,564 25,435 6,566 29,24 92,843 28,297 40,898 67,272 74,43 489,86 83,038,958,044, % Managed Properties Acute Care Hospital % of 54,957 9,377 6,640 33, ,35 54,957 44,957 22,26 95,780 9,385 87,737 76,590 74,43 844, % ,334 6,640 2,309, % 45.2% 7.% 2.7% 00.0% Investment balance in Canada is based on the exchange rate as of June 30, 207 of per CAD.00. 8

23 PORTFOLIO LEASE EXPIRATIONS () June 30, 207 (dollars in thousands) Thereafter Skilled Nursing/ Transitional Care Properties Beds/Units 963,04 2,457,605 2, ,854 0,689 7,23 34,462 2,860 22,30 2,007 0,578 42,6 38,36 Annualized Revenues Properties Beds/Units ,949 6,938,070 9,285,487 7,087 0, ,89 83,88 Properties Beds/Units Annualized Revenues 5,50 5,50 Properties Beds/Units 963,204 3,369,820 2,74, ,873 7,697 8,283 43,747 4,347 29,397 2,449,206 0,93 227,635 Annualized Revenues Acute Care Hospital Annualized Revenues % of Revenue () 6,275 6, % 3.6% 9.2% 6.3% 2.9% 5.5% 4.9% 44.8% 00.0% Excludes Managed Properties and two facilities transitioned to new operators that are not subject to leases. 9

24 RECENT INVESTMENT ACTIVITY Poet's Walk of Cedar Park Investment Date: June, 207 Investment Amount: 4.5 million Investment Type: Real Estate Number of Properties: Location: Cedar Park, TX Available Beds/Units: 68 Property Type: Annualized GAAP Income:.3 million Initial Cash Yield: 7.5% 20

25 RECONCILIATIONS OF FFO, NORMALIZED FFO, AFFO AND NORMALIZED AFFO (dollars in thousands, except per share data) Three Months Ended June 30, 207 Net income attributable to common stockholders Add: Depreciation of real estate assets Net (gain) loss on sales of real estate Impairment of real estate FFO attributable to common stockholders Additional default interest income Lease termination fee CCP merger costs Loss on extinguishment of debt Provision for doubtful accounts and loan losses, net () Other normalizing items (2) Normalized FFO attributable to common stockholders FFO Expensed acquisition pursuit costs (3) Stock-based compensation expense Straight-line rental income adjustments Amortization of deferred financing costs Non-cash portion of loss on extinguishment of debt Change in fair value of contingent consideration Provision for doubtful straight-line rental income, loan losses and other reserves Other non-cash adjustments (4) AFFO attributable to common stockholders Additional default interest income Lease termination fee Provision for doubtful cash income () Other normalizing items (2) Normalized AFFO attributable to common stockholders Amounts per diluted common share attributable to common stockholders: Net income FFO Normalized FFO AFFO Normalized AFFO Weighted average number of common shares outstanding, diluted: Net income, FFO and Normalized FFO AFFO and Normalized AFFO Six Months Ended June 30, ,960 34,95 7,220 (4,032) 3,48 6, , ,222 6,643 36,357 (4,032) 66,547 34,7 4,654 29,8 85,279 (96) 5, ,407 (8,850) (2,098) (409) (252) 39,763 (2,283) 6,407, ,768 (4,22) (2,098) 556,860 (252) 8,33 3,48 5,888,73 (4,97),28 5,372 82,834 (5,524),273 (50) 66,547 6,45 4,39 (9,578) 2,558 (822) 85, ,652 (,7) 2, (50) ,34 (96) 26 35, ,423 (8,850) (2,098) 3 (252) 38, ,32 (2,283) , ,670,853 65,985,940 65,503,383 65,784,776,924 65,694,09 66,009,02 2, ,248 (4,22) (2,098) (252) 77, ,454,337 65,783,32 () See Reporting Definitions for definition of Normalized FFO and Normalized AFFO for further information. Other normalizing items for FFO includes non-managed Properties operating expenses and ineffectiveness loss related to our LIBOR interest rate swaps. Other normalizing items for AFFO includes non-managed Properties operating expenses. (3) On October, 206 we early adopted Accounting Standards Update 207-0, Business Combinations (Topic 805), which clarifies the definition of a business with the objective of adding guidance to assist entities with evaluating whether transactions should be accounted for as business acquisitions. All real estate acquisitions completed subsequent to October, 206 were considered asset acquisitions and we have capitalized acquisition pursuit costs associated with these acquisitions, including those incurred prior to October, 206. Acquisitions completed prior to October, 206 were deemed business combinations and the related acquisition pursuit costs were expensed as incurred. Acquisition costs incurred during the three and six months ended June 30, 207 primarily relate to the pending Merger transaction. (4) Other non-cash adjustments include amortization of debt premiums/discounts, non-cash interest income adjustments and amortization expense related to our interest rate hedges. (2) 2

26 RECONCILIATIONS OF NOI AND SAME STORE CASH NOI (dollars in thousands) Three Months Ended June 30, 207 Net income (loss) Adjustments: Depreciation and amortization Interest General and administrative Provision for doubtful accounts and loan losses Impairment of real estate Loss on extinguishment of debt Other income Net (gain) loss on sale of real estate net operating income same store net operating income () Straight-line rental income adjustments Same store cash net operating income () Senior Housing Managed Properties Acute Care Hospital 29,477 2,063,259 7,994,59 7,396 47,39 (4,032) 34,598 Net operating income not included in samestore () 206 Skilled Nursing/ Transitional Care (,308) 33,290 (2,4) 3,49 90 Other (23,64) 20,536 Skilled Nursing/ Transitional Care Senior Housing 24,832,78 Managed Properties Acute Care Hospital Other (232) 37, ,232,49 7,220 5,862,49 7,96,363 7, ,565 4,636 6,405 6,427 4, (94) 52 9,930 2,398,376 34,56 9,768 59,373 59,373 (2,439) 7,49 (,835) (2,060) 5, ,027,376 (95),28 (94) (4,032) 60,329 (,630) 32,526 (2,288) 30,238 (,445) 8,323 (2,743) 5, (7),256 Same store includes all real estate facilities owned for the full period in both comparison periods. 22 (2,400) 6,993 (2,400) 52 72,809

27 RECONCILIATIONS OF NOI AND SAME STORE CASH NOI (CONTINUED) (dollars in thousands) Six Months Ended June 30, 207 Net income (loss) Adjustments: Depreciation and amortization Interest General and administrative Provision for doubtful accounts and loan losses Impairment of real estate Loss on extinguishment of debt Other income Net (gain) loss on sale of real estate net operating income 206 Skilled Nursing/ Transitional Care Senior Housing Managed Properties Acute Care Hospital 54,543 23,308,769,799 6,038 2,328 7, ,690 (6) (4,026) 68,883 4,500 Skilled Nursing/ Transitional Care Senior Housing (42,092) 39,327 54,48 23, ,369 8,022 36,357 3,650 8,022 5,940 2,736 4, ,305 2,305 (3,070) (3,070) (4,032) 4,602 3,459 2,75 77,759 39,42,022 Other 3,966 20,559 Managed Properties Acute Care Hospital (29,8) (26,909) 2, Other 2, ,67 9,350 2,746 2,746 29, (2,400) 29,8 556 (2,400) 4,654 2, ,344 34,7 33,345 9,350 33,956

28 REPORTING DEFINITIONS Acute Care Hospital. A facility designed to provide extended medical and rehabilitation care for patients who are clinically complex and have multiple acute or chronic conditions. Annualized Revenues. The annual straight-line rental revenues under leases and interest and other income generated by the Company's loans receivable and other investments based on amounts invested and applicable terms as of the end of the period presented. Annualized Revenues do not include tenant recoveries or additional rents. The Company uses Annualized Revenues for the purpose of determining revenue concentrations and lease expirations. Cash Net Operating Income ( Cash NOI ). The Company believes that net income attributable to common stockholders as defined by GAAP is the most appropriate earnings measure. We consider Cash NOI an important supplemental measure because it allows investors, analysts and our management to evaluate the operating performance of our investments. We define Cash NOI as total revenues less operating expenses and non-cash revenues. Cash NOI excludes all other financial statement amounts included in net income. EBITDAR. Earnings before interest, taxes, depreciation, amortization and rent ( EBITDAR ) for a particular facility accruing to the operator/ tenant of the property (not the Company) for the period presented. The Company uses EBITDAR in determining EBITDAR Coverage. EBITDAR has limitations as an analytical tool. EBITDAR does not reflect historical cash expenditures or future cash requirements for facility capital expenditures or contractual commitments. In addition, EBITDAR does not represent a property's net income or cash flow from operations and should not be considered an alternative to those indicators. The Company utilizes EBITDAR as a supplemental measure of the ability of the Company's operators/tenants and relevant guarantors to generate sufficient liquidity to meet related obligations to the Company. EBITDAR Coverage. Represents the ratio of EBITDAR to contractual rent for owned facilities (excluding Managed Properties). EBITDAR Coverage is a supplemental measure of an operator/tenant's ability to meet their cash rent and other obligations to the Company. However, its usefulness is limited by, among other things, the same factors that limit the usefulness of EBITDAR. EBITDARM. Earnings before interest, taxes, depreciation, amortization, rent and management fees ( EBITDARM ) for a particular facility accruing to the operator/tenant of the property (not the Company), for the period presented. The Company uses EBITDARM in determining EBITDARM Coverage. The usefulness of EBITDARM is limited by the same factors that limit the usefulness of EBITDAR. Together with EBITDAR, the Company utilizes EBITDARM to evaluate the core operations of the properties by eliminating management fees, which vary based on operator/tenant and its operating structure. EBITDARM Coverage. Represents the ratio of EBITDARM to contractual rent for owned facilities (excluding Managed Properties). EBITDARM coverage is a supplemental measure of a property's ability to generate cash flows for the operator/tenant (not the Company) to meet the operator's/tenant's related cash rent and other obligations to the Company. However, its usefulness is limited by, among other things, the same factors that limit the usefulness of EBITDARM. Enterprise Value. The Company believes Enterprise Value is an important measurement as it is a measure of a company s value. We calculate Enterprise Value as market equity capitalization plus debt. Market equity capitalization is calculated as the number of shares of common stock multiplied by the closing price of our common stock on the last day of the period presented. Enterprise Value includes our market equity capitalization and consolidated debt, less cash and cash equivalents. Fixed Charge Coverage Ratio. EBITDAR (including adjustments for one-time and pro forma items) for the period indicated (one quarter in arrears) for all operations of any entities that guarantee the tenants' lease obligations to the Company divided by the same period cash rent expense, interest expense and mandatory principal payments for operations of any entity that guarantees the tenants' lease obligation to the Company. Fixed Charge Coverage is a supplemental measure of a guarantor's ability to meet the operator/tenant's cash rent and other obligations to the Company should the operator/tenant be unable to do so itself. However, its usefulness is limited by, among other things, the same factors that limit the usefulness of EBITDAR. Fixed Charge Coverage is calculated by the Company as described above based on information provided by guarantors without independent verification by the Company and may differ from similar metrics calculated by the guarantors. Funds From Operations Attributable to Common Stockholders ( FFO ) and Adjusted Funds from Operations Attributable to Common Stockholders ( AFFO ). The Company believes that net income attributable to common stockholders as defined by GAAP is the most appropriate earnings measure. The Company also believes that Funds From Operations, or FFO, as defined in accordance with the definition used by the National Association of Real Estate Investment Trusts ( REIT ), and Adjusted Funds from Operations, or AFFO (and related per share amounts) are important non-gaap supplemental measures of the Company's operating performance. Because the historical cost accounting convention used for real estate assets requires straight-line depreciation (except on land), such accounting presentation implies that the value of real estate assets diminishes predictably over time. However, since real estate values have historically risen or fallen with market and other conditions, presentations of operating results for a real estate investment trust that uses historical cost accounting for depreciation could be less informative. Thus, REIT created FFO as a supplemental measure of operating performance for real estate investment trusts that excludes historical cost depreciation and amortization, among other items, from net income attributable to common stockholders, as defined by GAAP. FFO is defined as net income attributable to common stockholders, computed in accordance with GAAP, excluding gains or losses from real estate dispositions, plus real estate depreciation and amortization and real estate impairment charges. AFFO is defined as FFO excluding straight-line rental income adjustments, stock-based compensation expense, amortization of deferred financing costs, acquisition pursuit costs, as well as other non-cash revenue and expense items (including provisions and write-offs related to 24