8-K

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, D.C. 20549

FORM 8-K

CURRENT REPORT PURSUANT

TO SECTION 13 OR 15(d) OF THE

SECURITIES EXCHANGE ACT OF 1934

Date of Report (Date of earliest event reported):  November 2, 2022

ALERISLIFE INC.

(Exact Name of Registrant as Specified in Its Charter)

Maryland

(State or Other Jurisdiction of Incorporation)

 

1-16817	04-3516029
(Commission File Number)	(IRS Employer Identification No.)
255 Washington Street, Suite 230, Newton, Massachusetts	02458
(Address of Principal Executive Offices)	(Zip Code)

617-796-8387

(Registrant’s Telephone Number, Including Area Code)

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:
☐	Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
☐	Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
☐	Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
☐	Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

Securities registered pursuant to Section 12(b) of the Act:

Title of Each Class	Trading Symbol(s)	Name of Each Exchange on Which Registered
Common Stock	ALR	The Nasdaq Stock Market LLC

Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).

Emerging growth company  ☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act.  ☐

Item 2.02.  Results of Operations and Financial Condition.

On November 2, 2022, AlerisLife Inc., or the Company, issued a press release regarding the Company’s results of operations and financial condition for the quarter ended September 30, 2022. A copy of the Company’s press release is furnished as Exhibit 99.1 hereto. Supplemental information related to the third quarter 2022 results is included in the September 2022 supplemental presentation and is furnished herewith as Exhibit 99.2.

Item 9.01.  Financial Statements and Exhibits.

(d)     Exhibits.

The Company hereby furnishes the following exhibit:

99.1Press Release dated November 2, 2022

99.2November 2022 Supplemental Presentation

104Cover Page Interactive Data File (embedded within the Inline XBRL document)

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

 

ALERISLIFE INC.

 

By:	/s/ Heather C. Pereira
	Heather C. Pereira
	Senior Vice President, Chief Financial Officer and Treasurer

Dated:  November 2, 2022

EX-99.1

Exhibit 99.1

	Two Newton Place 255 Washington Street, Suite 230 Newton, Massachusetts 02458
	617-796-8387
	www.alerislife.com

FOR IMMEDIATE RELEASE

AlerisLife Inc. Announces Third Quarter 2022 Results

Combined Sequential Quarter End Occupancy Growth of 180 Basis Points

Sequential Quarter Management and Operating Revenues Growth of $1.8 Million, or 4.6%

Restructuring Plan on Track as Adjusted EBITDA Improvements Continue

Newton, MA (November 2, 2022): AlerisLife Inc. (Nasdaq: ALR) today announced its financial results for the three months ended September 30, 2022.

“We continued to make steady progress implementing our plan to improve our operating results and drive efficiencies in our organization throughout the third quarter,” said Jeff Leer, President and Chief Executive Officer. “Owned and managed community occupancy increased 290 basis points and 160 basis points, respectively, or 180 basis points across all residential senior living communities, as we continue to enhance our sales and marketing strategies. We also rounded out our executive team with the addition of Heather Pereira as our new Chief Financial Officer and Philip Benjamson as our new Chief Operating Officer. We ended the quarter with sufficient liquidity to execute on our restructuring plan and, following approximately $3.8 million of capital improvements invested in our owned senior living communities in the third quarter, we had $79.1 million of cash at quarter-end and no debt maturities until 2025."

Third Quarter Summary of Financial Results:

•Quarter-end occupancy in ALR's owned senior living communities grew 290 basis points, or bps, relative to the end of the second quarter.

•Quarter-end occupancy for the managed portfolio increased 160 bps relative to the end of the second quarter.

•Net loss for the third quarter of 2022 was $8.5 million, or $0.27 per diluted share, which included $1.6 million of costs related to the restructuring plan implemented as a result of Alvarez & Marsal's, or A&M's, operational review, compared to a net loss of $8.8 million, or $0.28 per diluted share, for the second quarter of 2022, and a net loss of $10.2 million, or $0.32 per diluted share, for the third quarter of 2021, which included a $3.3 million loss from a termination of a lease and $1.2 million of restructuring expenses related to the repositioning of ALR's residential service offerings, partially offset by $0.8 million which was reimbursed by Diversified Healthcare Trust, or DHC.

•Earnings before interest, taxes, depreciation and amortization, or EBITDA, for the third quarter of 2022 was $(4.1) million compared to $(4.4) million for the second quarter of 2022 and $(7.0) million for the third quarter of 2021. Adjusted EBITDA, as described further below, was $(0.5) million for the third quarter of 2022 compared to $(1.3) million for the second quarter of 2022 and $(3.3) million for the third quarter of 2021. EBITDA and Adjusted EBITDA are

non-GAAP financial measures. Reconciliations of net loss determined in accordance with U.S. generally accepted accounting principles, or GAAP, to EBITDA and Adjusted EBITDA for the third quarter of 2022 and 2021 are presented later in this press release. The reconciliation of net loss to EBITDA and Adjusted EBITDA for the second quarter of 2022 is presented in the Form 8-K that ALR furnished on August 3, 2022.

•RevPAR (resident fee revenues for the corresponding portfolio for the period divided by the average number of available units for the corresponding portfolio for the period, divided by the number of months in the period) for the comparable managed communities for the third quarter of 2022 was $3,200 compared to $3,077 for the second quarter of 2022 and $2,941 for the third quarter of 2021, an increase of 4.0% and 8.8%, respectively.

•RevPAR for the comparable owned communities for the third quarter of 2022 was $2,801 compared to $2,560 for the second quarter of 2022 and $2,354 for the third quarter of 2021, an increase of 9.4% and 19.0%, respectively.

Substantially all of ALR's business is conducted by its two segments: (i) its residential segment through its Five Star Senior Living, or Five Star, brand and (ii) its lifestyle services segment primarily through its brands Ageility Physical Therapy Solutions and Ageility Fitness, or collectively Ageility, and Windsong Home Health. The following tables present data on the owned and leased and managed senior living communities that ALR operates through its Five Star brand, including comparable community data, as well as data on the rehabilitation locations that ALR operates through its Ageility brand, including comparable outpatient location data.

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Summary of Operational Results

	As of and for the Three Months Ended
	September 30, 2022			June 30, 2022			September 30, 2021
Residential Segment:
Five Star:
Number of living units (end of period)
Independent living	10,422			10,460			10,628
Assisted living	7,734			7,696			9,402
Memory care	1,817			1,817			2,454
Skilled nursing	—			—			284
Total living units	19,973			19,973			22,768
RevPAR
Owned and Leased (1)	$	2,801		$	2,560		$	2,411
Managed	$	3,200		$	3,077		$	3,046
Quarter End Occupancy
Owned and Leased	78.4		%	75.5		%	72.9		%
Managed	77.0		%	75.4		%	73.8		%
Comparable Communities (2):
RevPAR
Owned	$	2,801		$	2,560		$	2,354
Managed	$	3,200		$	3,077		$	2,941
Quarter End Occupancy
Owned	78.4		%	75.5		%	72.9		%
Managed	77.0		%	75.4		%	74.6		%
Operating Margin (3):
Owned	(15.9)		%	(20.1)		%	(24.4)		%
Managed	4.7		%	8.4		%	7.1		%

	As of and for the Three Months Ended
	September 30, 2022		June 30, 2022		September 30, 2021
Lifestyle Services Segment:
Ageility:
Number of Clinics and Locations (4)
Inpatient clinics	8		10		10
Outpatient locations	203		202		223
Number of Visits (in thousands)
Inpatient clinics	21		23		20
Outpatient locations	156		153		147
Comparable Outpatient Locations (5):
Caseload as a % of occupancy (6)	24.6	%	24.3	%	24.6	%
Operating margin (3)	(1.2)	%	(0.6)	%	10.0	%

___________________________

(1)    The three months ended September 30, 2021 includes four leased communities with approximately 200 living units previously leased from HealthPeak Properties, Inc., or HealthPeak. The lease with HealthPeak was terminated on September 30, 2021.

(2)    Comparable Communities includes financial data for 20 owned senior living communities and 120 managed senior living communities that ALR continuously owned or managed and operated through its Five Star brand since July 1, 2021, exclusive of 59 skilled nursing facility, or SNF, living units that have been closed in one former Continuing Care Retirement Community, or CCRC.

(3)    Operating margin is defined as operating revenue less operating expenses divided by operating revenue in each case for the business segment. For the Residential segment, it is inclusive of 59 SNF living units, which have been closed in one former CCRC. It is exclusive of Provider Relief Funds from the Coronavirus Aid, Relief, and Economic Security Act, or the CARES Act, and other government grants recognized as other operating income. In addition, it excludes restructuring expenses for the three months ended September 30, 2021 of $0.2 million for the comparable managed communities. Managed operating margin does not represent ALR's operating margin and

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is included to provide supplemental information regarding the operating results of the Five Star senior living communities from which ALR earns residential management fees.

(4)    During the three months ended September 30, 2022, ALR opened six outpatient locations, closed five outpatient locations and closed two inpatient clinics.

(5)    Comparable outpatient locations includes financial data for 185 outpatient rehabilitation locations that ALR continuously operated since July 1, 2021.

(6)    Represents the average number of Ageility customers divided by average total occupancy at each of the senior living communities where ALR operates Ageility outpatient rehabilitation locations. Occupancy is defined as the average total number of residents residing at the senior living communities.

Operational Review

During the quarter ended June 30, 2022, ALRengaged the healthcare consulting arm of A&M to provide a comprehensive operational review of ALR's business and make recommendations to ALR's Board of Directors. The recommendations made by A&M included general and administrative cost reductions, a corporate reorganization that is designed to enhance accountability and certain operational changes to support team members to ensure the delivery of high-quality experiences to residents and customers and to increase occupancy at ALR's senior living communities, as further described below:

•Reduce costs annually by a target of approximately $2.0 million, net of investments to be made of approximately $3.3 million as described below, by:

◦Streamlining redundant business processes and reducing investments in non-core functions,

◦rationalizing information technology systems to those that directly support core business functions, ensuring their optimal utilization, and

◦continually assessing general and administrative expenses to identify cost savings opportunities.

•Invest approximately $3.3 million to refocus on ALR's core business and invest strategically in projects, processes and systems that will enhance ALR's ability to successfully operate ALR's residential and lifestyle services businesses, including:

◦Enhancing the executive leadership team with a Chief Operating Officer to oversee field and national operations and a Chief Financial Officer,

◦investing in a scalable and agile national operations infrastructure to drive operational excellence and results, and

◦establishing a centralized sales function with reinstituted regional sales support to focus on both sales and marketing efforts.

Based on A&M's operational review, on August 3, 2022, ALR announced a restructuring plan which includes the elimination of certain positions in its corporate team. ALR expects to complete this restructuring by the middle of 2023. As of the date of this press release, ALR made the following progress with respect to the restructuring plan:

•Aligned several functions, including sales, marketing, clinical and resident programming, under the national operations support function;

•Deployed sales support functions to directly support community level sales directors to focus on improved tour to move-in conversion rate;

•Appointed a Chief Financial Officer, effective September 19, 2022, and a Chief Operating Officer, effective October 17, 2022. In addition, ALR continues to invest in the sales and marketing function, including hiring a Vice President of Marketing, effective October 3, 2022, and five sales directors; and

•Implemented approximately $2.6 million of labor and non-labor annual cost savings, net of approximately $1.8 million in labor investments.

4

In addition to the restructuring plan, ALR achieved further cost savings of $4.9 million from the elimination of certain unfilled positions.

In connection with implementing its restructuring plan, ALR expects to incur non-recurring cash expenses of up to $3.0 million. These expenses are expected to include up to $0.4 million of retention payments, up to $2.0 million of severance, benefits and transition expenses and up to $0.6 million of other restructuring expenses. For the three months ended September 30, 2022, ALR recognized $1.6 million of expenses related to the restructuring plan, including $0.1 million of retention payments, $1.4 million of severance, benefits and transition expenses, and $0.1 million of other restructuring expenses, which was recorded in restructuring expenses in ALR's condensed consolidated statements of operations. Additionally, ALR recognized costs of $0.6 million related to the implementation of the A&M operational review for the three months ended September 30, 2022, which are recorded in general and administrative expenses in ALR's condensed consolidated statements of operations.

Summary of Senior Living Communities and Outpatient Rehabilitation Locations

Presented below is a summary of the communities, units, average occupancy, quarter end occupancy, revenues and residential management fees for the Five Star senior living communities ALR manages for DHC, as of and for the three months ended September 30, 2022 (dollars in thousands):

	Total
	Communities	Units	Average Occupancy	Quarter End Occupancy	Community Revenues (1)		Management Fees
Independent and assisted living communities	120	17,889	75.3%	77.0%	$	171,684	$	9,477

_______________________________________

(1)    Managed senior living communities' revenues do not represent ALR's revenues and are included to provide supplemental information regarding the operating results of the Five Star senior living communities from which ALR earns residential management fees.

Presented below is a summary of the Ageility outpatient rehabilitation locations ALR operated as of and for the three months ended September 30, 2022 (dollars in thousands):

	As of and for the Three Months Ended September 30, 2022
	Number of Locations	Total Revenue (1)(2)		Caseload as a % of occupancy (3)	EBITDA Margin (4)
Outpatient Locations in DHC Owned Communities Managed by Five Star	94	$	7,789	25.9%	(0.2)	%
Outpatient Locations at ALR Owned Communities	15	868		29.9%	4.6	%
Outpatient Locations at Other Communities (5)	94	4,124		21.7%	(8.3)	%
Total Outpatient Locations	203	$	12,781	24.3%	(2.5)	%

_______________________________________

(1)    Excludes revenue of $1,590 earned during the three months ended September 30, 2022 for ten Ageility inpatient rehabilitation clinics (inclusive of two inpatient rehabilitation clinics that were closed during the three months ended September 30, 2022).

(2)    Total Ageility revenue includes fitness revenue. Total Ageility revenue excludes home health care services, which is part of the lifestyle services segment.

(3)    Represents the average number of Ageility customers divided by average total occupancy at each of the senior living communities where ALR operates Ageility outpatient rehabilitation locations. Occupancy is defined as the average total number of residents residing at the senior living communities.

(4)    EBITDA Margin is a non-GAAP financial measure and represents rehabilitation locations that are in service as of September 30, 2022. A reconciliation of EBITDA Margin is presented later in this press release.

(5)    Other communities includes outpatient rehabilitation locations at senior living communities not owned or managed by ALR.

Conference Call Information:

At 1:00 p.m. Eastern Time on November 3, 2022, ALR's President and Chief Executive Officer, Jeffrey Leer, and Senior Vice President, Chief Financial Officer and Treasurer, Heather Pereira, will host a conference call to discuss ALR's third quarter 2022 financial results.

The conference call telephone number is (877) 329-4332. Participants calling from outside the United States and Canada should dial (412) 317-5436. No pass code is necessary to access the call from either number. Participants should dial in

5

about 15 minutes prior to the scheduled start of the call. A replay of the conference call will be available through 11:59 p.m. Eastern Time on November 10, 2022. To hear the replay, dial (412) 317-0088. The replay pass code is 3979235.

A live audio webcast of the conference call will also be available in a listen-only mode on ALR’s website, www.alerislife.com. Participants wanting to access the webcast should visit ALR’s website about five minutes before the call. The archived webcast will be available for replay on ALR’s website following the call for about a week. The transcription, recording and retransmission in any way of ALR'sthird quarter endedSeptember 30, 2022financial results conference callarestrictly prohibited without the prior written consent of ALR. ALR’s website is not incorporated as part of this press release.

About AlerisLife:

AlerisLife enriches and inspires the lives of its older adult customers across the United States by delivering an exceptional and enhanced resident experience to senior living residents, while also offering lifestyle services to the younger choice-based consumer. The Company is headquartered in Newton, Massachusetts. For more information, visit www.alerislife.com.

6

AlerisLife Inc.

Condensed Consolidated Statements of Operations

(amounts in thousands, except per share amounts)

(unaudited)

	Three Months Ended September 30,				Nine Months Ended September 30,
	2022		2021		2022		2021
REVENUES
Lifestyle services	$	14,546	$	15,382	$	43,330	$	52,388
Residential	17,514		16,320		48,994		49,755
Residential management fees	9,477		11,220		27,380		37,997
Total management and operating revenues	41,537		42,922		119,704		140,140
Reimbursed community-level costs incurred on behalf of managed communities	137,768		177,231		396,352		585,662
Other reimbursed expenses	3,354		5,678		10,869		27,750
Total revenues	182,659		225,831		526,925		753,552
Other operating income	2		—		44		7,795
OPERATING EXPENSES
Lifestyle services expenses	14,562		13,536		42,112		45,414
Residential wages and benefits	10,156		8,547		27,942		30,456
Other residential operating expenses	5,804		7,184		18,126		22,418
Community-level costs incurred on behalf of managed communities	137,768		177,231		396,352		585,662
General and administrative	17,015		21,817		53,205		66,956
Restructuring expenses	1,570		1,220		1,944		16,859
Depreciation and amortization	3,088		2,983		9,535		8,912
Total operating expenses	189,963		232,518		549,216		776,677
Operating loss	(7,302)		(6,687)		(22,247)		(15,330)
Interest, dividend and other income	225		84		434		244
Interest and other expense	(1,474)		(507)		(3,757)		(1,379)
Unrealized (loss) gain on equity investments	(1,997)		22		(3,679)		555
Realized gain on sale of debt and equity investments	1,573		—		1,528		193
Gain (loss) on termination of lease	498		(3,277)		777		(3,277)
Loss before income taxes	(8,477)		(10,365)		(26,944)		(18,994)
(Provision) benefit for income taxes	(31)		164		(99)		(194)
Net loss	$	(8,508)	$	(10,201)	$	(27,043)	$	(19,188)
Weighted average shares outstanding—basic and diluted	31,875		31,618		31,825		31,567
Net loss per share—basic and diluted	$	(0.27)	$	(0.32)	$	(0.85)	$	(0.61)

7

AlerisLife Inc.

Reconciliation of Non-GAAP Financial Measures

(dollars in thousands)

(unaudited)

Non-GAAP financial measures are financial measures that are not determined in accordance with GAAP. ALR believes the non-GAAP financial measures presented in the tables below are meaningful supplemental disclosures because they may help investors better understand changes in ALR’s operating results and its ability to meet financial obligations or service debt, make capital expenditures and expand its business. ALR believes that EBITDA, Adjusted EBITDA, EBITDA Margin and Net Income (Loss) Margin also may help investors better understand its financial performance, including by allowing investors to compare ALR's performance between periods and against the performance of other companies on both a GAAP and non-GAAP basis. ALR management uses EBITDA, Adjusted EBITDA, EBITDA Margin and Net Income (Loss) Margin to evaluate ALR’s financial performance and compare ALR’s performance over time and to the performance of other companies. ALR calculates EBITDA, Adjusted EBITDA, EBITDA Margin and Net Income (Loss) Margin as shown below or later in this press release. These measures should not be considered as alternatives to net income (loss) or operating income (loss), as indicators of ALR’s operating performance or as measures of ALR’s liquidity. Also, EBITDA, Adjusted EBITDA, EBITDA Margin and Net Income (Loss) Margin as presented may not be comparable to similarly titled amounts calculated by other companies.

ALR believes that net income (loss) is the most directly comparable financial measure, determined according to GAAP, to ALR’s presentation of EBITDA and Adjusted EBITDA. The following table presents the reconciliation of these non-GAAP financial measures to net income (loss) for the three and nine months ended September 30, 2022 and 2021.

	Three Months Ended September 30,				Nine Months Ended September 30,
	2022		2021		2022		2021
Net loss	$	(8,508)	$	(10,201)	$	(27,043)	$	(19,188)
Add (less):
Interest and other expense	1,474		507		3,757		1,379
Interest, dividend and other income	(225)		(84)		(434)		(244)
Provision (benefit) for income taxes	31		(164)		99		194
Depreciation and amortization	3,088		2,983		9,535		8,912
EBITDA	(4,140)		(6,959)		(14,086)		(8,947)
Add (less):
Separation costs (1)	—		—		1,319		—
Unrealized loss (gain) on equity investments	1,997		(22)		3,679		(555)
(Gain) loss on termination of leases	(498)		3,277		(777)		3,277
Transaction costs (2)	574		—		1,278		—
Net restructuring expenses (3)	1,568		407		1,468		4,515
Long-lived asset impairment (4)	—		—		—		890
Adjusted EBITDA	$	(499)	$	(3,297)	$	(7,119)	$	(820)

_______________________________________

(1)    Costs incurred for the nine months ended September 30, 2022 represent those related to the separation of our former President and Chief Executive Officer during the second quarter of 2022.

(2)    The three and nine months ended September 30, 2022 includes costs incurred related to the comprehensive operational review by A&M and are included in general and administrative expenses in the condensed consolidated statements of operations.

(3)    The three and nine months ended September 30, 2022 and 2021 includes (i) costs incurred related to the repositioning of ALR's residential service offerings, which are reported net of reimbursed expenses received from DHC of $2 and $476, respectively, for the three and nine months ended September 30, 2022, and $813 and $12,344, respectively, for the three and nine months ended September 30, 2021, and (ii) costs incurred related to the restructuring plan executed as a part of A&M's operational review. All of these costs are included in restructuring expenses in the condensed consolidated statements of operations.

(4)    The nine months ended September 30, 2021 represents one previously leased community that had a fire on April 4, 2021.

8

AlerisLife Inc.

Reconciliation of Non-GAAP Financial Measures

(dollars in thousands)

(unaudited)

ALR believes that net income (loss) is the most directly comparable financial measure, determined according to GAAP, to ALR’s presentation of EBITDA, Net Income (Loss) Margin and EBITDA Margin. The following table presents the reconciliation of these non-GAAP financial measures to net income (loss) for the three months ended September 30, 2022 for Ageility.

	Three Months Ended September 30, 2022
Lifestyle services:
Revenue	$	14,546
Less: Home health services	175
Less: Inpatient rehabilitation clinics (1)	1,590
Total Ageility revenue (2)	$	12,781
Ageility:
Net loss	$	(413)
Add: Depreciation	98
EBITDA	$	(315)
Net Loss Margin (3)	(3.2)		%
EBITDA Margin (4)	(2.5)		%

_______________________________________

(1)    Revenue for ten Ageility inpatient rehabilitation clinics that were operated by Ageility during the three months ended September 30, 2022 (inclusive of two inpatient rehabilitation clinics that were closed during the three months ended September 30, 2022).

(2)    Total Ageility revenue includes revenue from outpatient rehabilitation locations and fitness.

(3)    Net Loss Margin is defined by ALR as net loss for the period divided by total revenue for the period.

(4)    EBITDA Margin is defined by ALR as EBITDA for the period divided by total revenue for the period.

9

AlerisLife Inc.

Condensed Consolidated Balance Sheets

(dollars in thousands, except per share amounts)

(unaudited)

	September 30,		December 31,
	2022		2021
ASSETS
Current assets:
Cash and cash equivalents	$	79,126	$	66,987
Restricted cash and cash equivalents	21,317		24,970
Accounts receivable, net	9,676		9,244
Due from related person	56,497		41,664
Debt and equity investments, of which $7,100 and $7,609 are restricted, respectively	10,890		19,535
Prepaid expenses and other current assets	21,817		24,433
Total current assets	199,323		186,833
Property and equipment, net	162,785		159,843
Operating lease right-of-use assets	5,796		9,197
Finance lease right-of-use assets	2,773		3,467
Restricted cash and cash equivalents	991		982
Restricted debt and equity investments	2,715		3,873
Other long-term assets	8,155		12,082
Total assets	$	382,538	$	376,277
LIABILITIES AND SHAREHOLDERS’ EQUITY
Current liabilities:
Accounts payable	$	16,367	$	37,516
Accrued expenses and other current liabilities	44,861		31,488
Accrued compensation and benefits	33,413		34,295
Accrued self-insurance obligations	26,701		31,739
Operating lease liabilities	501		699
Finance lease liabilities	1,351		872
Due to related persons	2,500		3,879
Current portion of debt	437		419
Total current liabilities	126,131		140,907
Long-term liabilities:
Accrued self-insurance obligations	27,007		34,744
Operating lease liabilities	5,331		9,366
Finance lease liabilities	2,351		3,050
Long-term debt	67,161		6,364
Other long-term liabilities	227		256
Total long-term liabilities	102,077		53,780
Commitments and contingencies
Shareholders’ equity:
Common stock, par value $0.01: 75,000,000 shares authorized, 32,609,009 and 32,662,649 shares issued and outstanding, respectively	326		327
Additional paid-in-capital	462,144		461,298
Accumulated deficit	(308,107)		(281,064)
Accumulated other comprehensive (loss) income	(33)		1,029
Total shareholders’ equity	154,330		181,590
Total liabilities and shareholders' equity	$	382,538	$	376,277

10

AlerisLife Inc.

Residential Segment Data

(dollars in thousands, except per unit amounts)

(unaudited)

	Three Months Ended
	September 30,			June 30,			March 31,			December 31,			September 30,
	2022			2022			2022			2021			2021
Owned and Leased Senior Living Communities
Revenues	$	17,514		$	16,094		$	15,386		$	14,883		$	16,320
Other operating income (1)	2			—			42			—			—
Operating expenses	20,182			18,861			19,371			18,574			17,895
Operating loss	(2,666)			(2,767)			(3,943)			(3,691)			(1,575)
Operating margin	(15.2)		%	(17.2)		%	(25.6)		%	(24.8)		%	(9.7)		%
Number of communities (end of period)	20			20			20			20			20
Number of living units (end of period) (2)	2,084			2,087			2,100			2,100			2,099
Average occupancy	76.0		%	72.5		%	71.0		%	72.0		%	69.9		%
Quarter end occupancy	78.4		%	75.5		%	72.1		%	72.7		%	72.9		%
RevPAR (3)	$	2,801		$	2,560		$	2,443		$	2,349		$	2,411
RevPOR (4)	$	3,604		$	3,492		$	3,444		$	3,192		$	3,375
Managed Senior Living Communities(5):
Residential management fees	$	9,477		$	8,971		$	8,932		$	9,482		$	11,220
Community-level revenues	171,684			165,179			162,552			161,907			210,160
Other operating income (1)	125			75			199			602			786
Community-level expenses (6)	164,044			151,906			152,892			159,329			203,756
Community operating income	7,765			13,348			9,859			3,180			7,190
Community operating margin	4.5		%	8.1		%	6.1		%	2.0		%	3.4		%
Number of communities (end of period)	120			120			120			121			159
Number of living units (end of period) (2)	17,889			17,886			17,899			18,005			20,669
Average occupancy	75.3		%	74.1		%	74.1		%	73.7		%	72.2		%
Quarter end occupancy	77.0		%	75.4		%	74.6		%	74.8		%	73.8		%
RevPAR (3)	$	3,200		$	3,077		$	3,027		$	2,919		$	3,046
RevPOR (4)	$	4,158		$	4,109		$	4,084		$	3,875		$	4,129

_______________________________________

(1)    Other operating income represents income recognized for funds received under the CARES Act and other government grants.

(2)    Includes living units categorized as in service. As a result, the number of living units may vary from period to period for reasons other than the acquisition or disposition of senior living communities.

(3)    RevPAR is defined by ALR as resident fee revenues for the corresponding portfolio for the period divided by the average number of available units for the corresponding portfolio for the period, divided by the number of months in the period. Data for the three months ended September 30, 2022, June 30, 2022, March 31, 2022, December 31, 2021 and September 30, 2021 exclude income received by senior living communities under the CARES Act and other government grants.

(4)    RevPOR is defined by ALR as resident fee revenues for the corresponding portfolio for the period divided by the average number of occupied units for the corresponding portfolio for the period, divided by the number of months in the period. Data for the three months ended September 30, 2022, June 30, 2022, March 31, 2022, December 31, 2021 and September 30, 2021 exclude income received by senior living communities under the CARES Act and other government grants.

(5)    Managed senior living communities, other than ALR's residential management fees, represents financial data of senior living communities managed for DHC and does not represent financial results of ALR. Managed senior living communities' data is included to provide supplemental information regarding the operating results of the senior living communities from which ALR earns residential management fees.

(6)    The three months ended September 30, 2022, June 30, 2022, December 31, 2021 and September 30, 2021 includes restructuring expense of $2, $474, $966, and $813, respectively.

11

AlerisLife Inc.

Comparable Communities Residential Segment Data

(dollars in thousands, except per unit amounts)

(unaudited)

	Three Months Ended
	September 30,			June 30,			March 31,			December 31,			September 30,
	2022			2022			2022			2021			2021
Owned Senior Living Communities(1):
Number of communities (end of period)	20			20			20			20			20
Number of living units (end of period) (2)	2,084			2,087			2,100			2,100			2,099
Average occupancy	76.0		%	72.5		%	71.0		%	72.0		%	70.4		%
Quarter end occupancy	78.4		%	75.5		%	72.1		%	72.7		%	72.9		%
RevPAR (3)	$	2,801		$	2,560		$	2,443		$	2,349		$	2,354
RevPOR (4)	$	3,604		$	3,492		$	3,444		$	3,192		$	3,270
Managed Senior Living Communities(1)(5):
Number of communities (end of period)	120			120			120			120			120
Number of living units (end of period) (2)	17,889			17,886			17,899			17,899			17,899
Average occupancy	75.3		%	74.1		%	74.1		%	74.1		%	73.4		%
Quarter end occupancy	77.0		%	75.4		%	74.6		%	75.2		%	74.6		%
RevPAR (3)	$	3,200		$	3,077		$	3,027		$	2,900		$	2,941
RevPOR (4)	$	4,158		$	4,109		$	4,084		$	3,831		$	3,922

_______________________________________

(1)    Includes data for Five Star senior living communities that ALR has continuously owned or managed since July 1, 2021. The summary of operations for comparable communities excludes 59 SNF living units that have been closed in one former CCRC that Five Star presently manages as an assisted living community.

(2)    Includes living units categorized as in service. As a result, the number of living units may vary from period to period for reasons other than the acquisition or disposition of senior living communities.

(3)    RevPAR is defined by ALR as resident fee revenues for the corresponding portfolio for the period divided by the average number of available units for the corresponding portfolio for the period, divided by the number of months in the period. Data for the three months ended September 30, 2022, June 30, 2022, March 31, 2022, December 31, 2021 and September 30, 2021 exclude income received by senior living communities under the CARES Act and other government grants.

(4)    RevPOR is defined by ALR as resident fee revenues for the corresponding portfolio for the period divided by the average number of occupied units for the corresponding portfolio for the period, divided by the number of months in the period. Data for the three months ended September 30, 2022, June 30, 2022, March 31, 2022, December 31, 2021 and September 30, 2021 exclude income received by senior living communities under the CARES Act and other government grants.

(5)    Residential segment data for comparable managed senior living communities represents financial data of senior living communities managed for DHC and does not represent financial results of ALR. Managed senior living communities' data is included to provide supplemental information regarding the operating results of the senior living communities from which ALR earns residential management fees.

12

AlerisLife Inc.

Lifestyle Services Segment Data

(dollars in thousands)

(unaudited)

	Three Months Ended
	September 30,			June 30,			March 31,			December 31,			September 30,
	2022			2022			2022			2021			2021
Lifestyle Services(1):
Revenues	$	14,546		$	14,645		$	14,139		$	15,626		$	15,382
Outpatient	11,837			11,753			11,165			12,848			12,747
Fitness	944			941			881			890			853
Other	1,765			1,951			2,093			1,888			1,782
Operating expenses (2)	14,672			14,438			13,334			14,045			13,348
Operating (loss) income	(126)			207			805			1,581			2,034
Operating margin (3)	(0.9)		%	1.4		%	5.7		%	10.1		%	13.2		%
Number of inpatient clinics (end of period)	8			10			10			10			10
Number of outpatient locations (end of period)	203			202			201			205			223
Number of fitness locations (end of period)	67			76			73			60			61

_______________________________________

(1)    Includes Ageility rehabilitation locations and fitness operations as well as home healthcare operations.

(2)    The three months ended December 31, 2021 and September 30, 2021 includes restructuring expenses of $23 and $(310), respectively.

(3)    Operating margin is defined as operating revenue less operating expenses divided by operating revenue in each period.

AlerisLife Inc.

Comparable Lifestyle Services Segment Data

(dollars in thousands)

(unaudited)

	Three Months Ended
	September 30,			June 30,			March 31,			December 31,			September 30,
	2022			2022			2022			2021			2021
Lifestyle Services(1)(2):
Revenues	$	12,183		$	12,057		$	11,533		$	12,892		$	12,823
Outpatient	11,091			10,944			10,520			11,825			11,754
Fitness	917			898			835			832			795
Other	175			215			178			235			274
Operating expenses	12,291			12,095			11,251			11,621			11,563
Operating (loss) income	(108)			(38)			282			1,271			1,260
Operating margin (3)	(0.9)		%	(0.3)		%	2.4		%	9.9		%	9.8		%
Number of outpatient locations (end of period)	185			185			185			185			185
Number of fitness locations (end of period)	62			73			73			51			57

_______________________________________

(1)    Includes Ageility outpatient rehabilitation locations and fitness operations as well as home healthcare operations that ALR has continuously operated since July 1, 2021.

(2)    Excludes eight Ageility inpatient rehabilitation clinics.

(3)    Operating margin is defined as operating revenue less operating expenses divided by operating revenue in each period.

13

AlerisLife Inc.

Owned Senior Living Communities as of and for the Three Months Ended September 30, 2022

(dollars in thousands)

(unaudited)

No.	Community Name	State	Property Type (1)	Living Units	Residential Revenues (4)		Gross Carrying Value		Net Carrying Value		Date Acquired	Most Recent Renovation
1	Morningside of Decatur (2)	Alabama	AL	49	$	414	$	7,805	$	4,232	11/19/2004	2021
2	Morningside of Auburn (2)	Alabama	AL	42	415		2,339		1,119		11/19/2004	1997
3	The Palms of Fort Myers (2)	Florida	IL	218	1,965		7,452		3,912		4/1/2002	1988
4	Five Star Residences of Banta Pointe (3)	Indiana	AL	121	859		12,052		7,235		9/29/2011	2006
5	Five Star Residences of Fort Wayne (2)	Indiana	AL	154	1,000		9,355		5,726		9/29/2011	1998
6	Five Star Residences of Clearwater	Indiana	AL	88	400		15,259		9,780		6/1/2011	1999
7	Five Star Residences of Lafayette	Indiana	AL	109	665		12,406		7,961		6/1/2011	2000
8	Five Star Residences of Noblesville (2)	Indiana	AL	151	1,232		14,005		8,588		7/1/2011	2005
9	The Villa at Riverwood (2)	Missouri	IL	112	754		5,056		3,231		4/1/2002	1986
10	Voorhees Senior Living (2)	New Jersey	AL	91	909		20,591		13,883		7/1/2008	1999
11	Washington Township Senior Living	New Jersey	AL	93	994		26,586		17,178		7/1/2008	1998
12	Carriage House Senior Living (2)	North Carolina	AL	98	1,075		10,065		5,319		12/1/2008	1997
13	Forest Heights Senior Living (2)	North Carolina	AL	111	875		16,328		10,457		12/1/2008	1998
14	Fox Hollow Senior Living (2)	North Carolina	AL	74	1,253		26,639		17,816		7/1/2000	1999
15	Legacy Heights Senior Living (2)	North Carolina	AL	116	895		7,845		3,641		12/1/2008	1997
16	Morningside at Irving Park (2)	North Carolina	AL	91	869		3,848		1,565		11/19/2004	1997
17	The Devon Senior Living	Pennsylvania	AL	84	566		33,437		14,686		7/1/2008	1985
18	The Legacy of Anderson (2)	South Carolina	IL	101	662		11,840		6,994		12/1/2008	2003
19	Morningside of Springfield (2)	Tennessee	AL	54	565		19,114		11,633		11/19/2004	1984
20	Huntington Place	Wisconsin	AL	127	1,152		2,499		1,502		7/15/2010	1999
	Total			2,084	$	17,519	$	264,521	$	156,458

_______________________________________

(1)    AL is primarily an assisted living community and IL is primarily an independent living community.

(2)    Encumbered property under ALR's $95,000 Loan.

(3)    Encumbered property under ALR's mortgage note having an aggregate principal amount outstanding of $6,659 as of September 30, 2022.

(4)    Excludes funds received under the CARES Act recognized as other operating income.

14

Warning Concerning Forward-Looking Statements

This press release contains statements that constitute forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995 and other securities laws. Also, whenever ALR uses words such as “believe”, “expect”, “anticipate”, “intend”, “plan”, “estimate”, "will", “may” and negatives or derivatives of these or similar expressions, ALR is making forward-looking statements. These forward-looking statements are based upon ALR’s present intent, beliefs or expectations, but forward-looking statements are not guaranteed to occur and may not occur. Actual results may differ materially from those contained in or implied by ALR’s forward-looking statements. Forward-looking statements involve known and unknown risks, uncertainties and other factors, some of which are beyond ALR's control. For example:

•This press release includes statements regarding the comprehensive operational review performed by A&M and the restructuring plan ALR has implemented as a result and has begun to execute. In addition, Mr. Leer notes the recent additions of ALR's Chief Financial Officer and Chief Operating Officer. ALR may not be able to successfully execute the restructuring plan on the timing it expects or at all, the costs to implement the restructuring plan may be more than it expects and it may not realize the benefits it anticipates from the restructuring plan.

•Mr. Leer refers to the steady progress ALR has made in implementing its plan to improve its operating results and drive efficiencies in its organization throughout the third quarter of 2022, noting improvements in occupancy in both ALR's owned and managed senior living communities. However, this progress may not continue and its operating results may not improve and occupancy could decline as a result of current economic conditions, including inflation, high interest rates, geopolitical risks and possible economic recession.

•Mr. Leer states that ALR ended the quarter with sufficient liquidity to execute on the restructuring plan and that it has no debt maturities until 2025. However, the costs to implement the restructuring plan may be more than it anticipates, it may not generate sufficient cash flow from its operations, and its current liquidity may prove to be insufficient.

The information contained in ALR’s filings with the Securities and Exchange Commission, or SEC, including under “Risk Factors” in ALR’s periodic reports, or incorporated therein, identifies other important factors that could cause ALR’s actual results to differ materially from those stated in or implied by ALR’s forward-looking statements. ALR’s filings with the SEC are available on the SEC’s website at www.sec.gov.

You should not place undue reliance upon forward-looking statements.

Except as required by law, ALR does not intend to update or change any forward-looking statements as a result of new information, future events or otherwise.

Contact:

Michael Kodesch, Director, Investor Relations

(617) 796-8245

15

EX-99.2

Supplemental Presentation November 2022 Nasdaq: ALR

Warning Concerning Forward-Looking Statements Note: Data throughout this presentation is unaudited and as of and for the three months ended September 30, 2022, 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. 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 the restructuring steps recommended by Alvarez & Marsal (A&M), our ability to operate our senior living communities profitably, our anticipated uses of cash, funding available under our secured term loan facility, our ability to grow revenues at the senior living communities we manage and to increase the fees we earn from managing senior living communities, revenue composition and certain financial metrics, and the impact of labor shortages, inflation and supply chain challenges 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 customers, competition for older adult customers within the residential and lifestyle services businesses, older adults delaying or forgoing moving into senior living communities or purchasing lifestyle services from us, increases in our labor costs or in costs we pay for goods and services, delays in supply chain and price inflation, 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, 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-payment 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 profitably operate our business, our exposure to litigation and regulatory and government proceedings, ongoing healthcare reform efforts, including continued efforts by third-party payers to reduce costs, acts of terrorism, outbreaks of pandemics or other human-made or natural disasters, and the effects of the implementation of the repositioning of our residential management business and restructuring of our business based on the recommendations of A&M on our business and operations. For example: (a) challenging conditions continue to exist including inflation, high interest rates and geopolitical risks, and some forecasts expect worsening economic and market conditions, including a possible economic recession, and our business and operations is 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 growth initiatives; (c) we may not be able to successfully integrate, operate and profitably manage our senior living communities and deliver lifestyle services; (d) we cannot be sure that the terms of our management arrangements with Diversified Healthcare Trust (DHC) will achieve the anticipated benefit on our operating results and we may not enter into management arrangements with DHC or other owners for additional 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 lifestyle 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 team member turnover may not be successful and may not result in the benefits we expect to achieve through such investments; (g) the costs of executing the repositioning of our residential management business may be more than we expect and we may not realize the benefits we anticipate from the repositioning of our residential management business; (h) we may not be able to achieve the objectives of the restructuring plan recommended by A&M, and it may take longer and cost more to complete the restructuring than we expect; (i) current inflationary pressures may continue or increase, which may significantly harm our business and results of operations; (j) our strategic arrangements or collaborations with third party service providers may not be successful and we may not realize the benefits we expect from these arrangements; (k) our sales and marketing initiatives may not succeed in increasing our revenues, and they may cost more than any increased revenues they may generate; (l) 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 customers or their family members, lower levels of consumer confidence, stock market volatility and/or changes in demographics generally could affect the revenues and profitability of our business; (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 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) we believe that we have adequate financial resources to fund our business for at least the next 12 months, however, we have incurred in recent periods, and we may continue to incur in future periods, operating losses and we have a large accumulated deficit; (q) the amount of available borrowings under our term loan is subject to our having qualified collateral, accordingly, the available borrowings under our term loan at any time may be less than $95.0 million, as it was as of September 30, 2022, and the availability of borrowings under our term loan is subject to our satisfying certain financial covenants and other conditions that we may be unable to satisfy; (r) certain aspects of our operations and future growth opportunities that we may pursue in our business may require significant amounts of cash and require us to make significant capital expenditures, as a result, we may not have sufficient cash liquidity; (s) our actions and approach to managing our insurance costs, including our operating an offshore captive insurance company and self-insuring with respect to certain liability matters, may not be successful and could result in our incurring significant costs and liabilities that we will be responsible for funding; (t) contingencies in any applicable acquisition or sale agreements we have entered into, or may enter into, may not be satisfied and our applicable acquisitions or sales, and any related management arrangements we may expect to enter into or exit may not occur, may be delayed or the terms of such transactions or arrangements may change; and (u) the advantages we believe we may realize from our relationships with related parties may not materialize. Our Annual Report on Form 10-K for the year ended December 31, 2021, our Quarterly Reports on Form 10-Q for the periods ended March 31, 2022, June 30, 2022 and September 30, 2022, 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 Inc. (ALR) 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 adjusted net loss, adjusted loss per diluted share or EPS and net general and administrative expenses. Reconciliations for these metrics to the most directly comparable U.S. generally accepted accounting principles (GAAP) metrics are included later in this presentation. We believe the non-GAAP financial measures included in this 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 also believe that these non-GAAP financial measures may help investors better understand our financial performance, including by allowing investors to compare our performance between periods and against the performance of other companies on both a GAAP and non-GAAP basis. 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, these non-GAAP measures as presented may not be comparable to similarly titled amounts calculated by other companies. 2

ALR Q3 2022 OBSERVATIONS • Residential quarter-end occupancy at our 140 comparable owned and managed communities at September 30, 2022 increased 270 basis points (bps) to 77.2% year over year and 180 bps sequentially. • September net move in volume of 91 increased by approximately 40.0% when compared to December 2021. • RevPAR at our comparable owned communities for the quarter increased 9.4% sequentially and 19.0% year over year to $2,801. • RevPAR at our comparable managed communities for the quarter increased 4.0% sequentially and 8.8% year over year to $3,200. • Labor costs ◦ Base labor costs continue to increase at our senior living communities on a sequential basis and year over year basis as a result of the combination of filling positions that were previously vacant and the investments made in wages to remain market competitive. As a result of this effort to fill previously vacant positions, we have experienced a slight decline in overall temporary agency usage at our senior living communities ◦ Both inflation and supply chain challenges continue to result in increased costs primarily related to food, utilities and repair and maintenance on a year over year basis in addition to labor costs. Revenue Cost 3 • Based on A&M's operational review, on August 3, 2022, ALR announced a restructuring plan in which it intends to reduce costs annually by approximately $2.0 million, net of investments to be made of approximately $3.3 million. ALR expects to complete this restructuring by the middle of 2023. As of the date of this presentation, ALR made the following progress with respect to the restructuring plan: ◦ Aligned several functions, including sales, marketing, clinical and resident programming, under the national operations support function; ◦ Deployed sales support functions to directly support community level sales directors to focus on improved tour to move-in conversion rate; ◦ Appointed a Chief Financial Officer, effective September 19, 2022, and a Chief Operating Officer, effective October 17, 2022. In addition, we continue to invest in the sales and marketing function, including hiring a Vice President of Marketing, effective October 3, 2022, and five sales directors; and ◦ Implemented approximately $2.6 million of labor and non-labor annual cost savings, net of approximately $1.8 million in labor investments. • In addition to the restructuring plan, management achieved further cost savings of $4.9 million from the elimination of certain unfilled positions. Alvarez & Marsal Project Status

BUSINESS AT A GLANCE AS OF SEPTEMBER 30, 2022 4

(1) Managed on behalf of DHC. (2) Includes one active adult (AA) community with 169 units. Effective October 31, 2022, we ceased managing this AA community. (3) Comparable results includes financial data for 20 owned senior living communities and 120 managed senior living communities that ALR has continuously owned or managed and operated through its Five Star brand since July 1, 2021, exclusive of 1,532 skilled nursing facility, or SNF, living units that have been closed in 27 Continuing Care Retirement Communities, or CCRCs. (4) Managed revenue represents financial data of senior living communities managed for DHC and does not represent revenues of ALR. Managed revenue is included to provide supplemental information regarding the operating results of the senior living communities from which ALR earns residential management fees. Independent Living (IL) and Active Adult (AA) Assisted Living (AL) Memory Care (MC) Total Units % of Total Units Managed (1) 9,856 55% 6,486 36% 1,547 9% 17,889 90% Owned 566 27% 1,248 60% 270 13% 2,084 10% Total Units 10,422 7,734 1,817 19,973 100% % of Total Units 52% 39% 9% 100% Comparable Results (3) Owned Revenue (in 000's) $4,913 $4,983 $4,980 $4,834 $5,085 $5,215 $5,094 $5,239 $5,311 $5,515 $5,753 $5,780 $5,986 Owned RevPar $2,341 $2,374 $2,371 $2,302 $2,421 $2,483 $2,426 $2,495 $2,544 $2,643 $2,757 $2,774 $2,872 Managed Revenue (4) (in 000's) $52,513 $52,090 $51,796 $51,843 $53,266 $54,685 $54,589 $54,269 $55,183 $55,730 $56,530 $57,095 $58,074 Managed RevPar $2,934 $2,909 $2,893 $2,897 $2,976 $3,055 $3,050 $3,032 $3,084 $3,115 $3,160 $3,192 $3,246 RESIDENTIAL SEGMENT Residential Unit Mix at September 30, 2022 — Strategically Focused on Choice Based Product (2) A ve ra ge O cc up an cy Comparable Owned Comparable Managed Sep '21 Oct '21 Nov '21 Dec '21 Jan '22 Feb '22 Mar '22 Apr '22 May '22 Jun '22 Jul '22 Aug '22 Sep '22 60.0% 70.0% 80.0% 5 (3)(3)

• Our sales lead volume for the month of October 2022 was 7,892, an increase of 170 bps from September 2022. • Our tour volume was 2,242 for the month of October 2022, an increase of 380 bps from September 2022. • Our year-to-date conversion rate as of October 31, 2022 has increased 90 bps to 26.9% from October 2021. • As of September 30, 2022, the average length of stay is 3.9 years per resident. # o f To ur s C onversion R ate Tours Conversion Sep '21 Oct '21 Nov '21 Dec '21 Jan '22 Feb '22 Mar '22 Apr '22 May '22 Jun '22 Jul '22 Aug '22 Sep '22 — 500 1,000 1,500 2,000 2,500 0.0% 10.0% 20.0% 30.0% 40.0% Move-Ins Sept. 2022 YoY Change: +38.6% Conversions Sept. 2022 YoY Change: 24.0% RESIDENTIAL OPERATIONS UPDATE 6 Move-In Count Move-Out Count Sep '21 Oct '21 Nov '21 Dec '21 Jan- 22 Feb '22 Mar '22 Apr '22 May '22 Jun '22 Jul '22 Aug '22 Sep '22 -600 -400 -200 0 200 400 600 800 Move-Outs Sept. 2022 YoY Change: -6.8% Tour Volume and Conversion Move-Ins and Move-Outs

C ap ex C apex as a % of R evenue 11.4% 29.0% 15.8% 14.5% 17.1% Capex Spend per Revenue Sep '21 Dec '21 Mar '22 Jun '22 Sep '22 $— $10,000 $20,000 $30,000 $40,000 $50,000 —% 10.0% 20.0% 30.0% • $3.8 million and $29.3 million of capex deployed for the three months ended September 30, 2022 primarily for upgrades and reinvestment in the owned and managed communities, respectively. DHC funds capex for the managed communities. S pe nd C apex as a % of R evenue 18.2% 38.9% 14.8% 17.9% 21.5% Capex (in 000's) Spend per Unit Spend per Revenue Sep '21 Dec '21 Mar '22 Jun '22 Sep '22 $0 $1,000 $2,000 $3,000 $4,000 $5,000 $6,000 —% 10.0% 20.0% 30.0% 40.0% 50.0% 7 INVESTMENT IN RESIDENTIAL SEGMENT Owned Quarterly Capex Spend & Spend per Revenue Dollars Managed Quarterly Capex Spend & Spend per Revenue Dollars (in thousands) S pe nd p er u ni t Spend per Unit Construction Mgmt. Fee (in 000's) Sep '21 Dec '21 Mar '22 Jun '22 Sep '22 $— $1,000 $2,000 $3,000 $4,000 Managed Quarterly Capex Spend per Unit & Construction Management Fees

(1) The decrease in Q4 2021 in outpatient rehabilitation locations was due primarily to the closure of 17 Ageility outpatient rehabilitation locations in senior living communities that were transitioned to new operators or closed. (2) CAGR represents the annualized growth rate of the number of Ageility outpatient rehabilitation locations determined by net new outpatient rehabilitation locations for the period from September 30, 2017 through September 30, 2022. (3) Represents the average number of Ageility customers divided by average total occupancy at each of the senior living communities where we operate Ageility outpatient rehabilitation locations. Occupancy is defined as the average total number of residents residing at the senior living communities. N um be r of L oc at io ns 223 205 201 202 203 Five Star Communities Non-Five Star Communities Q3 '21 Q4 '21 Q1 '22 Q2 '22 Q3 '22 0 50 100 150 200 250 Number of Outpatient Locations and Affiliation 135 136 136 142 146 Outpatient Visits Q3 '21 Q4 '21 Q1 '22 Q2 '22 Q3 '22 0 50 100 150 200 Comparable Outpatient Visits (amounts in thousands) O cc up an cy C aseload % Caseload % Occupancy Q3 '21 Q4 '21 Q1 '22 Q2 '22 Q3 '22 0 50 100 150 20.0% 22.0% 24.0% 26.0% 28.0% 30.0% Caseload as a % of Occupancy(3) LIFESTYLE SERVICES SEGMENT (1) 45% 48% 55% 52% 8 47% 53%53% 47% Outpatient rehabilitation location openings have a 5-year CAGR(2) of 18.2% 46% 54%

LIFESTYLE SERVICES SEGMENT CONTINUED 9 Lo ca tio ns O pe ne d Total C ost Cost to open per location Locations Opened Q3 '21 Q4 '21 Q1 '22 Q2 '22 Q3 '22 0 2 4 6 8 $0 $5,000 $10,000 $15,000 Total Average Cost to Open per Location Ef fic ie nc y Q3 '21 Q4 '21 Q1 '22 Q2 '22 Q3 '22 60.0% 65.0% 70.0% 75.0% 80.0% Labor Efficiency • Labor efficiency is calculated by dividing billable labor hours by total labor hours. • The labor efficiency is an important metric as it shows the percentage of labor time that is billable. • The total cost per location measures the total average cost to open a new location. • With the new therapist in private practice (TPP) model, Ageility is able to provide therapy services in patients' homes, both within and outside of senior living communities, further reducing our up front costs for new locations.

Liquidity Uses of Cash (amounts in ones) (1) See slide 15 for calculation of adjusted Net Loss and adjusted EPS and reconciliations of these amounts to net loss and net loss EPS determined in accordance with GAAP, respectively. Adjusted Net Loss and Adjusted EPS (1) In thousands, except per share amounts As of September 30, 2022: • $83.7 million of available liquidity ◦ $79.1 million of unrestricted cash and cash equivalents on hand. ◦ Of the $12.0 million available on the Loan (defined below) for capital improvements for senior living communities we own, $4.6 million is currently available. • $67.6 million of outstanding debt. ◦ $61.1 million related to the senior secured term loan, or the Loan. • Subject to achieving certain financial targets, we may receive an incremental $10.0 million of debt proceeds pursuant to the Loan agreement in 2023 and 2024. ◦ $6.5 million related to a mortgage note, maturing in 2032. 3Q '21 4Q '21 1Q '22 2Q '22 3Q '22 Net Loss $(10,201) $(10,737) $(9,730) $(8,805) $(8,508) Adj. Net Loss $(7,368) $(9,708) $(10,050) $(7,266) $(7,290) Diluted EPS $(0.32) $(0.34) $(0.31) $(0.28) $(0.27) Adj. Diluted EPS $(0.23) $(0.31) $(0.32) $(0.23) $(0.23) FINANCIAL OVERVIEW 1. Reinvestment in Owned Communities ◦ The average investment for our owned portfolio was approximately $1,808 per unit for Q3 2022 and $4,252 per unit for the year. 2. Expansion of Ageility Rehabilitation and Locations ◦ Opened 6 new clinics in Q3 2022, with an average cost of $22. 10 Restructuring Project 1. Aligned several functions, including sales, marketing, clinical and resident programming, under the national operations support function, 2. Deployed sales support functions to directly support community level sales directors to focus on improved tour to move-in conversion rate, 3. Appointed a Chief Financial Officer, effective September 19, 2022, and a Chief Operating Officer, effective October 17, 2022. In addition, we continue to invest in the sales and marketing function, including hiring a Vice President of Marketing, effective October 3, 2022, and five sales directors; and 4. Implemented approximately $2.6 million of labor and non-labor annual cost savings, net of approximately $1.8 million in labor investments. 5. In addition to the restructuring plan, management achieved further cost savings of $4.9 million from the elimination of certain unfilled positions.

APPENDIX 11

Appendix Three Months Ended September 30, 2022 September 30, 2021 Revenues Lifestyle services $ 14,546 $ 15,382 Residential 17,514 16,320 Residential management fees 9,477 11,220 Total management and operating revenues 41,537 42,922 Reimbursed community-level costs incurred on behalf of managed communities 137,768 177,231 Other reimbursed expenses 3,354 5,678 Total revenues 182,659 225,831 Other operating income 2 — Operating Expenses Lifestyle services expenses 14,562 13,536 Residential wages and benefits 10,156 8,547 Other residential operating expenses 5,804 7,184 Community-level costs incurred on behalf of managed communities 137,768 177,231 General and administrative 17,015 21,817 Restructuring expenses 1,570 1,220 Depreciation and amortization 3,088 2,983 Total operating expenses 189,963 232,518 Other expense (1,175) (3,678) Loss before income taxes (8,477) (10,365) (Provision) benefit for income taxes (31) 164 Net loss $ (8,508) $ (10,201) CONDENSED CONSOLIDATED STATEMENT OF OPERATIONS (in thousands) (unaudited) 12

Q3 '21 Q4 '21 Q1 '22 Q2 '22(3) Q3 '22(3) General and administrative expenses (1) $ 21,817 $ 18,762 $ 18,192 $ 17,844 $ 17,015 Less: other reimbursements (2) 4,865 2,889 3,750 3,291 3,352 Net general and administrative expenses $ 16,952 $ 15,873 $ 14,442 $ 14,553 $ 13,663 Sequential Change (4.2) % (6.4) % (9.0) % 0.8 % (6.1) % Total management and operating revenues $ 42,922 $ 39,991 $ 38,457 $ 39,710 $ 41,537 Sequential Change (8.2) % (6.8) % (3.8) % 3.3 % 4.6 % Gross G&A as a % of total management and operating revenue 50.8 % 46.9 % 47.3 % 44.9 % 41.0 % Net G&A as a % of total management and operating revenues 39.5 % 39.7 % 37.6 % 36.6 % 32.9 % (1) Reflects gross general and administrative expenses as presented on our Condensed Consolidated Statements of Operations, inclusive of other reimbursements as defined in the footnote below. These other reimbursements are presented as revenue on our Condensed Consolidated Statements of Operations. (2) 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 of our residential management business. Specifically for Q3 2021, Q4 2021, Q2 2022, and Q3 2022, reimbursements exclude $813, $966, $474 and $2, respectively, of restructuring related expenses which were reimbursed by DHC and those amounts are included in general and administrative expenses and net general and administrative expenses. (3) Includes $1,319 of separation costs related to the separation of our former President and Chief Executive Officer during the second quarter of 2022, and $704 and $574 related to the operational review by A&M, both of which are included in general and administrative expenses in the condensed consolidated statements of operations for Q2 2022 and Q3 2022, respectively. Appendix 13 GROSS VS. NET GENERAL AND ADMINISTRATIVE EXPENSES (dollars in thousands) (unaudited) U ni ts G ross G & A Expense Managed Owned and Leased G&A Q1 '20 Q2 '20 Q3 '20 Q4 '20 Q1 '21 Q2 '21 Q3 '21 Q4 '21 Q1 '22 Q2 '22 Q3 '22 — 5,000 10,000 15,000 20,000 25,000 30,000 — 10,000 20,000 30,000 G&A Expense per Senior Living Unit (1) $ $ $

(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. Three Months Ended September 30, 2022 September 30, 2021 Residential (owned communities): Development, redevelopment and other activities $ 1,920 $ 508 Building improvements 1,849 2,251 Total residential 3,769 2,759 Lifestyle services: New location openings — 36 Recurring location investments 44 42 Total lifestyle services 44 78 Corporate and other 86 38 Total CapEx spend $ 3,899 $ 2,874 Residential (owned communities): Number of units 2,084 2,099 Development, redevelopment and other activities spend per unit $ 921 $ 242 Building improvements spend per unit $ 887 $ 1,073 Lifestyle services: Number of clinics and locations, beginning of period 212 228 Number of new locations opened 6 5 Number of locations closed 7 — Number of net new locations (1) 5 Number of clinics and locations, end of period 211 233 New location opening spend per location $ — $ 7,233 Recurring investment per location $ 215 $ 183 Appendix CAPEX SPEND BY SEGMENT (1) (dollars in thousands, except per unit and location data) (unaudited) 14

(1) Includes funds received under the CARES Act and other government grants. (2) The above non-GAAP adjustments are shown net of tax calculated at a statutory tax rate of 25.9% (combined federal of 21.0% and state of 4.9%) and 23.7% (combined federal of 21.0% and state of 2.7%) for the three months ended September 30, 2022 and 2021, respectively. The company is currently in a net tax loss carry forward position. The company’s effective rate was 1.7% and (1.6)% for the three months ended September 30, 2022 and 2021, respectively. The statutory rate was used to provide a more effective comparison to other reporting companies. (3) Costs incurred related to the comprehensive operational review by A&M which are included in general and administrative expenses in the condensed consolidated statements of operations. (4) Costs incurred implementing the repositioning of our residential management business recognized in the three months ended September 30, 2022 and 2021, net of amounts reimbursed from DHC of $2 and $813, respectively, and costs incurred related to the restructuring plan implemented as a result of the A&M operational review in the three months ended September 30, 2022. Three Months Ended September 30, 2022 (1) September 30, 2021 Net loss, loss per diluted share $ (8,508) $ (0.27) $ (10,201) $ (0.32) Adjustments, net of tax (2): (Gain) loss on termination of leases (369) 2,520 Transaction costs(3) 425 — Restructuring expenses (4) 1,162 313 Adjusted loss, adjusted loss per diluted share $ (7,290) $ (0.23) $ (7,368) $ (0.23) Appendix NET LOSS AND ADJUSTED NET LOSS (in thousands, except per share amounts) (unaudited) 15

Nine Months Ended September 30, 2022 September 30, 2021 CASH FLOW FROM OPERATING ACTIVITIES: Net loss $ (27,043) $ (19,188) Adjustments to reconcile net loss to net cash (used in) provided by operating activities: Other non-cash expense adjustments, net 12,787 11,491 Changes in assets and liabilities (1) (30,387) 9,497 Net cash (used in) provided by operating activities (44,643) 1,800 CASH FLOW FROM INVESTING ACTIVITIES: Acquisition of property and equipment (1) (13,201) (7,350) Purchases of debt and equity investments (1,334) (231) Proceeds from sale of debt and equity investments 7,824 2,035 Net cash used in investing activities (6,711) (5,546) CASH FLOW FROM FINANCING ACTIVITIES: Net proceeds from borrowings 60,563 — Repayments of borrowings (327) (308) Repayments of finance lease principal (387) (600) Payment of employee tax obligations on withheld shares — (3) Net cash provided by (used in) financing activities 59,849 (911) Increase (decrease) in cash and cash equivalents and restricted cash and restricted cash equivalents 8,495 (4,657) Cash and cash equivalents and restricted cash and restricted cash equivalents at beginning of period 92,939 109,597 Cash and cash equivalents and restricted cash and restricted cash equivalents at end of period $ 101,434 $ 104,940 Reconciliation of cash and cash equivalents and restricted cash and cash equivalents: Cash and cash equivalents $ 79,126 $ 80,188 Current restricted cash and cash equivalents 21,317 23,615 Other restricted cash and cash equivalents 991 1,137 Cash and cash equivalents and restricted cash and cash equivalents at end of period $ 101,434 $ 104,940 Appendix CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOW (in thousands) (unaudited) 16 (1) Changes in assets and liabilities and acquisition of property and equipment for the three months ended September 30, 2021 reflect reclassification adjustments of certain DHC reimbursements from the prior period to conform to the current period presentation.

(1) Financial results includes data for 20 owned senior living communities, 120 managed senior living communities and 185 outpatient rehabilitation locations that we have continuously owned or managed since July 1, 2021. The summary of operations for comparable communities and locations excludes (i) 1,532 skilled nursing facility, or SNF, living units that were closed in 27 continuing care retirement communities, or CCRCs and (ii) eight Ageility inpatient rehabilitation clinics. Excludes Provider Relief Funds under the CARES Act, and other government grants recognized as other income. (2) Includes depreciation expense and the elimination of benefits or expenses received from our captive insurance company. Q3 2021 Q4 2021 Q1 2022 Q2 2022 Q3 2022 Lifestyle Services Ageility outpatient locations 185 185 185 185 185 Lifestyle services revenues $ 12,823 $ 12,892 $ 11,533 $ 12,057 $ 12,183 Lifestyle services expenses 11,563 11,621 11,251 12,095 12,291 Operating income (loss) 1,260 1,271 282 (38) (108) Operating margin 9.8 % 9.9 % 2.4 % (0.3) % (0.9) % Residential - owned Number of communities 20 20 20 20 20 Number of units 2,099 2,100 2,100 2,087 2,084 Average occupancy 70.4 % 72.0 % 71.0 % 72.5 % 76.0 % RevPAR $ 2,354 $ 2,349 $ 2,443 $ 2,560 $ 2,801 Residential revenue 14,829 14,797 15,393 16,066 17,519 Residential wages and benefits 7,760 8,524 8,640 9,158 10,149 Other residential operating expenses 5,763 7,828 7,088 5,416 5,939 Other expenses and adjustments (2) 4,917 2,946 3,394 4,728 4,221 Operating loss (3,611) (4,501) (3,729) (3,236) (2,790) Operating margin (24.4) % (30.4) % (24.2) % (20.1) % (15.9) % Appendix 17 COMPARABLE COMMUNITIES AND OUTPATIENT LOCATIONS (1) (in thousands) (unaudited)

Q3 2021 Q4 2021 Q1 2022 Q2 2022 Q3 2022 Residential - Managed Number of communities 120 120 120 120 120 Number of units 17,899 17,899 17,899 17,886 17,889 Average occupancy 73.4 % 74.1 % 74.1 % 74.1 % 75.3 % RevPAR $ 2,941 $ 2,900 $ 3,027 $ 3,077 $ 3,200 Community Revenues (2) $ 158,508 $ 155,798 $ 162,540 $ 165,182 $ 171,700 Residential management fees 8,510 9,124 8,930 8,970 9,478 Appendix 18 (1) Financial results includes data for 20 owned senior living communities, 120 managed senior living communities and 185 outpatient rehabilitation locations that we have continuously owned or managed since July 1, 2021. The summary of operations for comparable communities and locations excludes (i) 1,532 SNF living units that were closed in 27 CCRCs and (ii) eight Ageility inpatient rehabilitation clinics. Excludes Provider Relief Funds under the CARES Act, and other government grants recognized as other income. (2) Community revenues represent financial data of senior living communities managed for DHC and does not represent financial results of ALR. Managed senior living communities' data is included to provide supplemental information regarding the operating results of the senior living communities from which ALR earns residential management fees. COMPARABLE COMMUNITIES AND OUTPATIENT LOCATIONS (1) - CONTINUED (in thousands) (unaudited)

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Cover Page	Nov. 02, 2022
Cover [Abstract]
Document Type	8-K
Amendment Flag	false
Document Period End Date	Nov. 02, 2022
Entity Registrant Name	ALERISLIFE INC.
Entity Central Index Key	0001159281
Entity Emerging Growth Company	false
Title of 12(b) Security	Common Stock
Trading Symbol	ALR
Security Exchange Name	NASDAQ
Entity File Number	1-16817
Entity Incorporation, State or Country Code	MD
Entity Tax Identification Number	04-3516029
Entity Address, Address Line One	255 Washington Street, Suite 230
Entity Address, City or Town	Newton
Entity Address, State or Province	MA
Entity Address, Postal Zip Code	02458
City Area Code	617
Local Phone Number	796-8387
Written Communications	false
Soliciting Material	false
Pre-commencement Tender Offer	false
Pre-commencement Issuer Tender Offer	false