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ENTRANCE FEE AND RENTAL OCCUPANCY GAPTRENDING LOWER BUT REMAINS HIGH32Source: NIC MAP Data Service (12/31/17)

REDEFINING THE LIFE PLAN COMMUNITY Branding, name changes- staying relevant for the future consumer Preparing for the Baby Boomers– They want choice (dining options; contract types; types of units)– Self-directed living and care– Transparency (pricing), involvement Focus on wellness, active and purposeful living Need to understand the impact of “Aging in Place” in IL/AL– Better aligns with consumer expectations for receiving services and aging intheir unit .but impacts business model of the continuum– Can also present challenges when marketing to a younger, vibrant Boomer (ifIL resembles AL in many ways)33

SECTION 2Disruptors Defining the “New Normal”

KEY DISRUPTORS & CATALYSTS Workforce pressures– Overall shortages of staff– Wage pressures (minimum wage increases)– Growth in for-profit sector pulling more staff Continued growth in HCBS– Impacting the continuum business model– Enabling consumers to age-in-place more easily Skilled Nursing Pressures, Particularly Post-Acute– Labor pressures creating additional challenges– Occupancy at record lows Technology is a game-changer– Consumer-oriented– Staffing Solutions– Operational efficiencies35

TOP CONCERNS AMONG SENIOR LIVING CFOSTop 5 Areas of Concern for 2018Staff Recruitment & Retention79%Labor Costs (wages, benefits)75%Skilled Nursing/Post-Acute Pressures47%Financial Performance46%Declining Reimbursement36%Capital Needs31%Affordability of product/services29%Regulatory Changes28%Technology Costs & Adoption27%Competition26%Changing Consumer26%IL Occupancy23%Succession Planning8%Emergency Preparedness4%0%Source: Ziegler CFO HotlineSM: 2018 Key Issues10%20%30%40%50%60%70%80%90%36

STAFFING CHALLENGEWAGE PRESSURE California transitioning minimum wage to 15/hour by 2022 if 26 employees; insome cases sooner; Berkeley will transition to 15/hour by 2018, San Jose by2019 Chicago going to 13/hour by 2019 New York approved 15/hour for fast food workers Colorado passed Amendment 70 increasing minimum wage to 12/hour by 2020 Florida minimum wage is 8.25/hour (current Federal Minimum Wage rate) Prompting senior living providers to assess their own entry-level rates.Source: On Shift, Jan. 6, ent/state-minimum-wage-chart.aspx#Table37

DEMAND FOR LABOROccupationNumber of New Jobs (Projected)2014-20242016 MedianPayPersonal Care Aides458,100 21,920Registered Nurses439,300 68,450Home health aides348,400 22,600Combined food prep andserving workers343,500 19,440Retail salespersons314,200 22,680Nursing Assistants262,000 26,590In a number of markets, staff earned income is insufficient to secure quality housing in a reasonableproximity to the community.38Source: US Bureau of Labor Statistics, 2016

WORKFORCE STATISTICS 74% of CNAsleave for jobsoutside of thehealth care sector Manufacturing Retail Pressures beingfelt outside ofhealthcarepositions as wellSource: 2017 Survey by Indiana Health Care Association/Indiana Center for Assisted Living39

FLORIDA UNEMPLOYMENT FIGURES391K3.9%40Source: Bureau of Labor Statistics, May 2018

MARCH CFO HOTLINE -CEO RETIREMENT TRENDSHow many years do you estimate that your CEO has until retirement?9.0%More than 15 years16.9%18.9%18.1%15.5%19.0%11-15 years40.3%41.5%5-10 years28.5%32.6%Less than 5 years26.1%33.6%0%5%10%15%2018Source: Ziegler CFO HotlineSM, March 201820%201525%30%35%40%45%201341

POST-ACUTE PRESSURES The nature of care for short-term rehabilitation is changing– Skipping skilled care, discharge to home– Higher acuity patient– Shorter lengths of stay– Narrowing of networks are you in or out? Changing payment models impacting providers– Medicare Advantage– Bundles– ACOs42

ZIEGLER CFO HOTLINE: POST-ACUTE ACTIVITIESIs your organization experiencing any of the followingregarding your healthcare setting?83.5%Decreased length of stays in skilled care74.3%82.1%Patients with a higher level of acuity than inyears' past61.0%56.6%Narrowing of networks from area hospitals,physicians groups33.3%53.8%An increase in consumers with treatmentplans that skip skilled care altogether29.5%0%201720%40%60%80%100%201643Source: Ziegler CFO Hotline, August 2016 & August 2017

COST OF CARE – INCREASES FROM 2016 Between 2016 and 2017,the cost for – a private skilled nursing roomincreased by 5.5%– Home health aide servicesincreased by 6.2% Genworth attributed the dramaticrising rates to – Increased labor costs– Increased acuity of short-staypatients (higher cost of care)2017 U.S.MedianMonthly Cost2017 FloridaMedianMonthly CostAssisted Living(private room) 3,750 3,100Skilled Nursing(private room) 8,121 8,882Skilled Nursing(semi-privateroom) 7,148 7,908Home Health Aide 4,099 3,813Adult Day 1,517 1,40844Source: 2017 Genworth Cost of Care Survey

MEDICARE, PRIVATE PATIENT DAY MIX DECLINING45Source: National Investment Center for Seniors Housing; Skilled Nursing Data Report (March 2018)

MEDICAID, PRIVATE RPPD INCREASING SLOWLYManaged MedicareMedicaidMedicarePrivate46Source: National Investment Center for Seniors Housing; Skilled Nursing Data Report (March 2018)

NATIONAL SKILLED NURSING OCCUPANCY CONTINUINGTO SET RECORD LOWS 5-Year occupancy low in 2017 Reduced average length of stay– Managed care– Medicare bundles– ACA81.7% Increased reliance on home care andassisted living Dallas average skilled nursing stabilizedoccupancy for Q2-2018 was below thenational average at 72.6%47Source: National Investment Center for Seniors Housing; Skilled Nursing Data Report (Oct 2012-Sept 2017)

SKILLED NURSING BEDS- FUTURE PLANSRegarding the number of skilled nursing beds throughout yourcommunity/system, which of the following best applies:61.0%We are not looking to make anychanges to the number of skillednursing beds we have62.2%60.0%11.7%We are planning/considering addingto the number of skilled nursing bedswe haveAllSingle SiteMulti Site14.3%7.3%27.3%We are planning/considering areduction in the number of skillednursing beds we have23.5%32.7%0%20%40%60%80%48Source: Ziegler CFO Hotline, August 2017

PRESSURE POINTS FOR LIFE PLAN COMMUNITIES Various states have had proposed legislation to require entrance fees to berapid within a certain period of time– California (90 day refund requirement)– Maryland (30 days proposed; did not get passed)– New Jersey (1 year; first-in/first-out policy; passed several weeks ago)– Florida (120 day refund requirement, 90 days after 1/1/2016) These are often triggered by a default or financially distressed Life PlanCommunity– Florida falls into this category Increased voice of the resident groups; increasingly driving regulation– Here come Baby Boomers! It is anticipated that this increased scrutiny will only increase49

CHANGING FACE OF SENIOR CARE TECHNOLOGYZiegler white paper50

ZIEGLER LINK AGE FUND (ZLF)Aging in PlaceCoordination of CareChronic DiseaseManagementReduction ofHospitalizations andReadmissionsPrevention and WellnessStrategiesGovernment FundedPrograms / PublicHealth Related MattersRepresentative Business ModelsHealthcare Services Behavioral Change ManagementCapitated Physician ModelsConcierge MedicineHomecare 2.0Hospice and Palliative CareHealthcare IT Clinical Decision SupportMedication ManagementPopulation AnalyticsRemote MonitoringTelehealthOther Institutional Pharmacy Medicare Advantage / Dual EligiblePlans Post-acute Care Diagnostics andTherapeuticsZLF Fund(RECENTLYACQUIRED BYAFAM)51Source: Ziegler Link.age Longevity Fund

ZIEGLER LINK AGE FUNDSDEMO THURSDAY PROGRAMSA key goal of our Funds is to foster collaboration between our limited partners and our portfoliocompanies, and introduce limited partners to new technologies and services. Since launching our firstfund, Ziegler Link Age Longevity Fund, the Investment Managers have Sponsored over 40 demonstrations of new technologies and services for senior care providersHelped arrange over 25 pilot programs/customer relationships between our limited partners and portfoliocompanies or companies conducting demonstrations52

ZIEGLER LINK AGE FUNDSDEMO THURSDAY PROGRAMS53

GROWTH AREAS IN TECHNOLOGY-ENABLED SOLUTIONSFOR AGING AND HEALTHCARE54Source: Ziegler Link.Age Funds

SECTION 3The Financing Environment For Life Plan Communities

TAX-EXEMPT MARKETPLACE FOR SENIORLIVING MARKET CONTINUES TO GAIN MOMENTUM Market now expects consistent value; needs to be fed This includes all types of “quality” situations for rated existing organizations tonew campuses Senior Living sector is one of the last areas where investors can get any “yield”– Supply/demand imbalance favors borrowers as “fund inflows” exceed newissues– Despite this, remain “conservative” in your capital assumptions for futureprojects Certain investors are willing to stretch their “credit tolerance” for more“unconventional projects”Source: Ziegler Investment Banking56

CAPITAL MARKETS SNAPSHOT Long-term interest rates remain low with significant demand from institutional investors Low volume in Q1 – Q2 2018 Long-term rates have been range bound with the 30yr MMD Index between 2.50% –3.00% over the past 6 months, currently hanging around the high end of that rangeduring Q3 2018 Short-term variable rates are rising with the expectation of continued Fed increases –leading to an overall flattening of the yield curve–––Fed increased their target rate by another 0.25% in December, March and JuneMarket expectations are for one or two additional Fed increases in 20181-Month LIBOR now at 2.07% With the passage of the Tax and Jobs Act on December 22, 2017 both the fixed ratebond market and direct bank placements were impacted––Advance refundings are no longer allowed so fixed rate bonds can only be refunded on a currentbasis (within 90 days of the call date)21% corporate tax rate, many borrowers with bank debt will see an increased cost of 0.35% 0.85% passed through to them as the tax-exempt conversion is less advantageous at the lowertax rateSource: Ziegler Investment Banking57

NOT-FOR-PROFIT SENIOR LIVING FINANCINGSVOLUME BY CREDIT STRUCTURE 8,000 7,000 6,000 5,000 4,000 3,000 2,000 1,000 02000200120022003Public Fixed Rate20042005200620072008Public Bank (Letters of Credit)Source: Thomson Financial Securities Data, as of 12/31/2017, Ziegler Investment Banking,Volume & Other Bank Credit Estimates thru 12/31/2017200920102011201220132014Estimated Private Bank Direct Purchase201520162017Other58

NON-PROFIT SENIOR LIVINGCREDIT RATING TRENDS Compared with one year ago, the sector experienced a net loss of one rating;there are also two less organizations rated by multiple rating 0**15*5 organizations have debtrated by more than one ratingagency. Therefore, there are atotal of 133 organizations withfixed rate rated debt. All of these agencies publish guidelinesfor their ratingsCCAC, Fitch & S&P publish ratingcategory medians for key ratiosNON-PROFIT SENIOR LIVING CREDIT RATING TRENDSCUMULATIVE SENIOR LIVING 201620172018Rated Bond IssuesThrough 7/20/18**S&P ICR Issuer Credit Rating / Fitch IGR Implied General Revenue Rating & IDR Issuer Default RatingRatings assigned at the provider’s request after fixed rate debt has been paid.Source: Ziegler Investment Banking, as of 7/20/1859

NON-PROFIT SENIOR LIVING CREDIT RATING TRENDS Ratings Distribution by CategoryRoughly 20% of LPCsare ratedS&PFitchMoody's60Rating 50402930272010012100A CategoryRatingsSOURCE: Ziegler Investment Banking, as of 4/20/180BBB CategoryRatings00BB CategoryRatings60

FLORIDA SENIOR LIVING BOND RATINGSFacility NameSingle/MultiCurrent RatingThe MooringsSingleAMayflower Retirement CommunitySingleA-MultiA-John Knox Village of FloridaSingleA-Shell Point VillageSingleBBB Sunnyside VillageSingleBBBMiami Jewish Health SystemSingleBBBFleet Landing aka Naval Continuing CareSingleBBBVillage on the IsleSingleBBB-Carpenter’s Home EstatesSingleBBB-Cypress CoveSingleBB East Ridge Retirement VillageSingleBB-Presbyterian Retirement Communities61

NON-PROFIT SENIOR LIVING CREDIT RATING TRENDSINCREMENTAL UPGRADES AND DOWNGRADES (1995 YTD) Upgrades have lagged strong financial performance ofmany Life Plan CommunitiesGrowth with debt has resulted in downgrades ormaintenance of a rating that might have been upgraded Recent Downgrades––Underperformance on new projectsDecline in investment performance Indicates change in rating for an organizationSource: Ziegler Investment Banking, as of 7/20/1862

LIFESPACE COMMUNITIES LZ150 #11 and “A” rated (Fitch) since creation of the Obligated Group (11 communities)in 2010 ILU expansion opportunities, SNF replacements, and need to add ALU/MS to severalcampuses led to identified “Project Needs” of over 400 million– Close to 500 million in capital requirements for 6 communities to be completed over4 /- years– Structured in 3 separate bond issues, each 12-18 months apart to minimize negativearbitrage on Trustee held project funds, etc. Board was fully informed starting in 2015 that this plan would lead to a reduction in the“A” rating– “A” rating had been highly valued and extensively marketed to potential residents– “Rating fixation” can lead to repositioning delays– Rating would have been reduced had they “done nothing” as avg. age of the plantwas climbing and occupancy declining Several rated Ziegler clients find/have found themselves in the same position withrespect to the need to “reinvent” their campuses– Village on the Isle – ILU Expansion/SNF Replacement– Fleet Landing – major expansion of several levels of care– The Mayflower – developing plans for major/multi-level expansion63

CHANGES IN MUNICIPAL BOND FUND CASH FLOWSMunicipal Bond Fund Cash Flows vs. 30-Year 0(8,000)(10,000)2.00(12,000)1.00Municpal Bond Cash Flows ( '000)30-Year 'AAA' MMD Index Rate (%)7.00Source: LipperFMI Data Service, as of 7/18/18, and Thomson Financial MMD as of ,000)64

HISTORICAL SENIOR LIVING INTEREST RATES30-Year NR Institutional vs 30-Year “BBB” vs MMD 30-Year “AAA”(1990 YTD - Weekly)Current Market Max Averages:12.00MMD 30-YR “AAA”30-YR “BBB”30-YR NR Institutional NR11.0010.009.139.5010.759.0030-YR NRInstitutional8.007.006.0030-YR "BBB"5.004.003.0030-Yr 013201420152016201720181.00Source: Ziegler Investment Banking, as of 7/20/18NR Non-Rated65

CURRENT INTEREST RATES (SENIOR LIVING)Senior Living Interest Rate RangesTax-Exempt Revenue Bonds (1)SENIOR LIVINGFINANCING STRUCTURES (1)(Insurers Ratings: Fitch/S&P/Moody's)Unrated - Start-Up CommunitiesUnrated - Existing Stable CommunitiesUnrated - General Market Retail"BBB" Rated (Fitch, S&P or Moody's)"A" Rated (Fitch, S&P or Moody's)"AA" Rated (FHA)"AA" Rated (Fitch, S&P, Moody's)"AAA" Rated (FHA)1)2)AVERAGE LONGTERM INTEREST RATERANGES CREDITENHANCEMENT-----0.50%-0.65%AVERAGE RATESPREAD TO"AAA" MARKET 334 to 359 169 to 199 169 to 199 94 to 109 74 to 84 99 to 109 49 to 59 94 to 114SPREAD TOREVENUE BONDINDEX 192 to 27 to 27 to -48 to -68 to -43 to -93 to -48 to 2175757-33-58-33-83-28Non-state specificLong-term (25-30 Yr), fixed rateSOURCE: Ziegler Investment Banking, as of 7/20/1866

RETAIL PARTICIPATION IN MUNI’S HAS DECLINED Retail holding of municipal bonds has fallen from 1.9 trillion in 2010 to 1.6trillion in 2017– Declined by 103 billion in 2017– Still represents about 41% of the total municipal market– Those who are buying are staying within a 10 year maturity Reasons for the retail holders change in investment perspective– Somewhat “spooked” since the financial crisis– Wary of “chaotic economic policy” from WDC and concerned aboutconsequences of a trade war, etc .– Tax reform lowered the top tax bracket from 39.6% to 37.0%– FA’s more focused on separately managed accounts (“SMA”) rather thanrecommending individual bonds– Strong equity market performanceSource: The Bond Buyer, April 2, 201867

BOND DISTRIBUTION CHANNELSZIEGLER’S SENIOR LIVING VOLUME 118.34.0% 40.31.4% 49.01.7% 2,658.990.7% 65.82.6% 12.20.5% 2,471.896.9%2017Total Par Amount 2,549,780,0002016Total Par Amount 2,866,420,000In

Sources: Ziegler National CCRC Listing & Profile, LeadingAge, NIC MAP Data and Analysis Service, 7 The National Center for Health Statistics, Centers for Medicare and Medicaid Services, Ziegler population estimates TODAY’S RETIREMEN