SUMMARIZED CONDENSED CONSOLIDATING AND COMBINING INFORMATION

The 5.875% Senior Notes due 2021 issued by the Issuers on May 30, 2014 are jointly and severally, fully and unconditionally, guaranteed by CareTrust REIT, Inc., as the parent guarantor (the “Parent Guarantor”), and certain 100% owned subsidiaries of the Parent Guarantor other than the Issuers (collectively, the “Subsidiary Guarantors” and, together with the Parent Guarantor, the “Guarantors”), subject to automatic release under certain customary circumstances, including if the Subsidiary Guarantor is sold or sells all or substantially all of its assets, the Subsidiary Guarantor is designated “unrestricted” for covenant purposes under the indenture governing the Notes, the Subsidiary Guarantor’s guarantee of other indebtedness which resulted in the creation of the guarantee of the Notes is terminated or released, or the requirements for legal defeasance or covenant defeasance or to discharge the Indenture have been satisfied.

The following provides information regarding the entity structure of the Parent Guarantor, the Issuers and the Subsidiary Guarantors:

CareTrust REIT, Inc. – The Parent Guarantor was formed on October 29, 2013 in anticipation of the Spin-Off and the related transactions and was a wholly owned subsidiary of Ensign prior to the effective date of the Spin-Off on June 1, 2014. The Parent Guarantor did not conduct any operations or have any business prior to the date of issuance of the Notes and the consummation of the Spin-Off related transactions.

CTR Partnership, L.P. and CareTrust Capital Corp. – The Issuers, each of which is a 100% owned subsidiary of the Parent Guarantor, were formed on May 8, 2014 and May 9, 2014, respectively, in anticipation of the Spin-Off and the related transactions. The Issuers did not conduct any operations or have any business prior to the date of issuance of the Notes and the consummation of the Spin-Off related transactions.

Subsidiary Guarantors – Each of the Subsidiary Guarantors is a 100% owned subsidiary of the Parent Guarantor. Prior to the consummation of the Spin-Off, each of the Subsidiary Guarantors was a wholly owned subsidiary of Ensign. The Ensign Properties entities consist of the Subsidiary Guarantors (other than the general partner of the Operating Partnership which was formed on May 8, 2014 in anticipation of the Spin-Off and the related transactions) and the subsidiaries of the Parent Guarantor that are not Subsidiary Guarantors or Issuers (collectively, the “Non-Guarantor Subsidiaries”).

Pursuant to Rule 3-10 of Regulation S-X, the following summarized consolidating information is provided for the Parent Guarantor, the Issuers, the Subsidiary Guarantors and the Non-Guarantor Subsidiaries with respect to the Notes. This summarized financial information has been prepared from the financial statements of the Company and Ensign Properties and the books and records maintained by the Company and Ensign Properties. As described above, the Parent Guarantor and the Issuers did not conduct any operations or have any business during the periods prior to June 1, 2014.

The summarized financial information may not necessarily be indicative of the results of operations or financial position had the Parent Guarantor, the Issuers, the Subsidiary Guarantors or the Non-Guarantor Subsidiaries all been in existence or operated as independent entities during the relevant period or had the Ensign Properties entities been operated as subsidiaries of the Parent Guarantor during such period.

CONDENSED CONSOLIDATING BALANCE SHEETS

SEPTEMBER 30, 2015

(in thousands, except share and per share amounts)



	Parent Guarantor			Issuers			Combined Subsidiary Guarantors		Combined Non- Guarantor Subsidiaries			Elimination			Consolidated
Assets:
Real estate investments, net	$	—		$	257,065		$	352,816	$	41,673		$	—		$	651,554
Other real estate investments	—			—			8,229		—			—			8,229
Cash and cash equivalents	—			12,098			—		—			—			12,098
Accounts receivable	—			217			2,533		211			—			2,961
Prepaid expenses and other assets	—			331			6		—			—			337
Deferred financing costs, net	—			9,384			—		409			—			9,793
Investment in subsidiaries	272,545			357,660			—		—			(630,205		)	—
Intercompany	—			—			47,722		3,464			(51,186		)	—
Total assets	$	272,545		$	636,755		$	411,306	$	45,757		$	(681,391	)	$	684,972
Liabilities and Equity:
Senior unsecured notes payable	$	—		$	260,000		$	—	$	—		$	—		$	260,000
Mortgage notes payable	—			—			—		95,696			—			95,696
Unsecured revolving credit facility	—			45,000			—		—			—			45,000
Accounts payable and accrued liabilities	279			8,024			3,057		650			—			12,010
Dividends payable	7,704			—			—		—			—			7,704
Intercompany	—			51,186			—		—			(51,186		)	—
Total liabilities	7,983			364,210			3,057		96,346			(51,186		)	420,410
Equity:
Common stock, $0.01 par value; 500,000,000 shares authorized, 47,650,952 shares issued and outstanding as of September 30, 2015	477			—			—		—			—			477
Additional paid-in capital	409,790			274,913			374,660		(52,899		)	(596,674		)	409,790
Cumulative distributions in excess of earnings	(145,705		)	(2,368		)	33,589		2,310			(33,531		)	(145,705		)
Total equity	264,562			272,545			408,249		(50,589		)	(630,205		)	264,562
Total liabilities and equity	$	272,545		$	636,755		$	411,306	$	45,757		$	(681,391	)	$	684,972

CONDENSED CONSOLIDATING BALANCE SHEETS

DECEMBER 31, 2014

(in thousands, except share and per share amounts)



	Parent Guarantor			Issuers			Combined Subsidiary Guarantors		Combined Non- Guarantor Subsidiaries			Elimination			Consolidated
Assets:
Real estate investments, net	$	—		$	26,104		$	366,199	$	43,912		$	—		$	436,215
Other real estate investments	—			—			7,532		—			—			7,532
Cash and cash equivalents	—			25,320			—		—			—			25,320
Accounts receivable	—			—			2,170		121			—			2,291
Prepaid expenses and other assets	—			808			1		—			—			809
Deferred financing costs, net	—			9,808			—		597			—			10,405
Investment in subsidiaries	117,408			335,020			—		—			(452,428		)	—
Intercompany	—			—			15,262		1,323			(16,585		)	—
Total assets	$	117,408		$	397,060		$	391,164	$	45,953		$	(469,013	)	$	482,572
Liabilities and Equity:
Senior unsecured notes payable	$	—		$	260,000		$	—	$	—		$	—		$	260,000
Mortgage notes payable	—			—			557		97,648			—			98,205
Accounts payable and accrued liabilities	—			3,067			3,308		584			—			6,959
Dividends payable	3,946			—			—		—			—			3,946
Intercompany	—			16,585			—		—			(16,585		)	—
Total liabilities	3,946			279,652			3,865		98,232			(16,585		)	369,110
Equity:
Common stock, $0.01 par value; 500,000,000 shares authorized, 31,251,157 shares issued and outstanding as of December 31, 2014	313			—			—		—			—			313
Additional paid-in capital	246,041			125,551			374,660		(52,899		)	(447,312		)	246,041
Cumulative distributions in excess of earnings	(132,892		)	(8,143		)	12,639		620			(5,116		)	(132,892		)
Total equity	113,462			117,408			387,299		(52,279		)	(452,428		)	113,462
Total liabilities and equity	$	117,408		$	397,060		$	391,164	$	45,953		$	(469,013	)	$	482,572

CONDENSED CONSOLIDATING STATEMENTS OF OPERATIONS

FOR THE THREE MONTHS ENDED SEPTEMBER 30, 2015

(in thousands)



	Parent Guarantor		Issuers		Combined Subsidiary Guarantors		Combined Non- Guarantor Subsidiaries		Elimination			Consolidated
Revenues:
Rental income	$	—	$	1,778	$	11,275	$	2,725	$	—		$	15,778
Tenant reimbursements	—		91		1,112		117		—			1,320
Independent living facilities	—		—		626		—		—			626
Interest and other income	—		19		242		—		—			261
Total revenues	—		1,888		13,255		2,842		—			17,985
Expenses:
Depreciation and amortization	—		600		4,483		732		—			5,815
Interest expense	—		5,807		2		1,412		—			7,221
Property taxes	—		91		1,112		117		—			1,320
Independent living facilities	—		—		610		—		—			610
General and administrative	435		1,855		2		—		—			2,292
Total expenses	435		8,353		6,209		2,261		—			17,258
Income in Subsidiary	1,162		7,627		—		—		(8,789		)	—
Net income	$	727	$	1,162	$	7,046	$	581	$	(8,789	)	$	727

CONDENSED CONSOLIDATING STATEMENTS OF OPERATIONS

FOR THE THREE MONTHS ENDED SEPTEMBER 30, 2014

(in thousands)



	Parent Guarantor		Issuers		Combined Subsidiary Guarantors		Combined Non- Guarantor Subsidiaries		Elimination			Consolidated
Revenues:
Rental income	$	—	$	—	$	11,275	$	2,725	$	—		$	14,000
Tenant reimbursements	—		—		1,110		118		—			1,228
Independent living facilities	—		—		646		—		—			646
Interest and other income	—		10		—		—		—			10
Total revenues	—		10		13,031		2,843		—			15,884
Expenses:
Depreciation and amortization	—		—		4,592		770		—			5,362
Interest expense	—		4,482		12		1,449		—			5,943
Property taxes	—		—		1,110		118		—			1,228
Independent living facilities	—		—		586		—		—			586
General and administrative	—		798		—		—		—			798
Total expenses	—		5,280		6,300		2,337		—			13,917
Income in Subsidiary	1,967		7,237		—		—		(9,204		)	—
Loss before provision for income taxes	1,967		1,967		6,731		506		(9,204		)	1,967
Provision for income taxes	—		—		—		—		—			—
Net income	$	1,967	$	1,967	$	6,731	$	506	$	(9,204	)	$	1,967

CONDENSED CONSOLIDATING STATEMENTS OF OPERATIONS

FOR THE NINE MONTHS ENDED SEPTEMBER 30, 2015

(in thousands)



	Parent Guarantor		Issuers		Combined Subsidiary Guarantors		Combined Non- Guarantor Subsidiaries		Elimination			Consolidated
Revenues:
Rental income	$	—	$	3,869	$	33,825	$	8,175	$	—		$	45,869
Tenant reimbursements	—		220		3,297		349		—			3,866
Independent living facilities	—		—		1,868		—		—			1,868
Interest and other income	—		19		697		—		—			716
Total revenues	—		4,108		39,687		8,524		—			52,319
Expenses:
Depreciation and amortization	—		1,308		13,546		2,239		—			17,093
Interest expense	—		14,872		18		4,221		—			19,111
Property taxes	—		220		3,297		349		—			3,866
Independent living facilities	—		—		1,778		—		—			1,778
General and administrative	744		4,572		97		27		—			5,440
Total expenses	744		20,972		18,736		6,836		—			47,288
Income in Subsidiary	5,775		22,639		—		—		(28,414		)	—
Net income	$	5,031	$	5,775	$	20,951	$	1,688	$	(28,414	)	$	5,031

CONDENSED CONSOLIDATING AND COMBINING STATEMENTS OF OPERATIONS

FOR THE NINE MONTHS ENDED SEPTEMBER 30, 2014

(in thousands)



	Parent Guarantor			Issuers			Combined Subsidiary Guarantors		Combined Non- Guarantor Subsidiaries		Elimination		Consolidated
Revenues:
Rental income	$	—		$	—		$	31,062	$	6,166	$	—	$	37,228
Tenant reimbursements	—			—			3,355		371		—		3,726
Independent living facilities	—			—			1,856		—		—		1,856
Interest and other income	—			10			—		—		—		10
Total revenues	—			10			36,273		6,537		—		42,820
Expenses:
Depreciation and amortization	—			—			15,008		2,623		—		17,631
Interest expense	—			5,974			6,295		3,453		—		15,722
Loss on extinguishment of debt	—			—			4,067		—		—		4,067
Property taxes	—			—			3,355		371		—		3,726
Independent living facilities	—			—			1,684		—		—		1,684
General and administrative	—			8,710			—		—		—		8,710
Total expenses	—			14,684			30,409		6,447		—		51,540
(Loss) income in Subsidiary	(8,773		)	5,901			—		—		2,872		—
(Loss) income before provision for income taxes	(8,773		)	(8,773		)	5,864		90		2,872		(8,720		)
Provision for income taxes	—			—			53		—		—		53
Net (loss) income	(8,773		)	(8,773		)	5,811		90		2,872		(8,773		)
Other comprehensive income:
Unrealized gain on interest rate swap	—			—			167		—		—		167
Reclassification adjustment on interest rate swap	—			—			1,661		—		—		1,661
Comprehensive (loss) income	$	(8,773	)	$	(8,773	)	$	7,639	$	90	$	2,872	$	(6,945	)

CONDENSED CONSOLIDATING STATEMENTS OF CASH FLOWS

FOR THE NINE MONTHS ENDED SEPTEMBER 30, 2015

(in thousands)



	Parent Guarantor			Issuers			Combined Subsidiary Guarantors			Combined Non-Guarantor Subsidiaries			Elimination			Consolidated
Cash flows from operating activities:
Net cash (used in) provided by operating activities	$	(239	)	$	(7,997	)	$	33,181		$	4,090		$	—		$	29,035
Cash flows from investing activities:
Acquisition of real estate	—			(231,501		)	—			—			—			(231,501		)
Improvements to real estate	—			(20		)	(123		)	—			—			(143		)
Purchases of equipment, furniture, and fixtures	—			(186		)	(70		)	—			—			(256		)
Net proceeds from sale of vacant land	—			—			30			—			—			30
Distribution from subsidiary	14,086			—			—			—			(14,086		)	—
Intercompany financing	(163,082		)	34,599			—			—			128,483			—
Net cash used in investing activities	(148,996		)	(197,108		)	(163		)	—			114,397			(231,870		)
Cash flows from financing activities:
Proceeds from the issuance of common stock, net	163,466			—			—			—			—			163,466
Borrowings under unsecured revolving credit facility	—			45,000			—			—			—			45,000
Borrowings under senior secured revolving credit facility	—			35,000			—			—			—			35,000
Repayments of borrowings under senior secured revolving credit facility	—			(35,000		)	—			—			—			(35,000		)
Payments on the mortgage notes payable	—			—			(558		)	(1,951		)	—			(2,509		)
Net-settle adjustment on restricted stock	(145		)													(145		)
Payments of deferred financing costs	—			(2,113		)	—			—			—			(2,113		)
Dividends paid on common stock	(14,086		)	—			—			—			—			(14,086		)
Distribution to Parent	—			(14,086		)	—			—			14,086			—
Intercompany financing	—			163,082			(32,460		)	(2,139		)	(128,483		)	—
Net cash provided by (used in) financing activities	149,235			191,883			(33,018		)	(4,090		)	(114,397		)	189,613
Net decrease in cash and cash equivalents	—			(13,222		)	—			—			—			(13,222		)
Cash and cash equivalents beginning of period	—			25,320			—			—			—			25,320
Cash and cash equivalents end of period of period	$	—		$	12,098		$	—		$	—		$	—		$	12,098

CONDENSED CONSOLIDATING AND COMBINING STATEMENTS OF CASH FLOWS

FOR THE NINE MONTHS ENDED SEPTEMBER 30, 2014

(in thousands)



	Parent Guarantor		Issuers			Combined Subsidiary Guarantors			Combined Non-Guarantor Subsidiaries			Elimination			Consolidated
Cash flows from operating activities:
Net cash (used in) provided by operating activities	$	—	$	(12,245	)	$	26,839		$	2,757		$	—		$	17,351
Cash flows from investing activities:
Improvements to real estate	—		—			(254		)	—			—			(254		)
Purchases of equipment, furniture, and fixtures	—		—			(14,718		)	(4,361		)	—			(19,079		)
Intercompany financing	—		(146,138		)	—			—			146,138			—
Net cash used in investing activities	—		(146,138		)	(14,972		)	(4,361		)	146,138			(19,333		)
Cash flows from financing activities:
Proceeds from the issuance of senior unsecured notes payable	—		260,000			—			—			—			260,000
Borrowings under the senior secured revolving credit facility	—		—			10,000			—			—			10,000
Proceeds from the issuance of mortgage notes payable	—		—			—			50,676			—			50,676
Repayments of borrowings under the senior secured revolving credit facility	—		—			(88,701		)	—			—			(88,701		)
Payments on the mortgage notes payable	—		—			(66,880		)	(613		)	—			(67,493		)
Payments on senior secured term loan	—		—			(65,624		)	—			—			(65,624		)
Payments of deferred financing costs	—		(12,772		)	—			(510		)	—			(13,282		)
Net contribution from Ensign	—		—			52,385			(48,029		)	—			4,356
Intercompany financing	—		—			146,058			80			(146,138		)	—
Net cash provided by (used in) financing activities	—		247,228			(12,762		)	1,604			(146,138		)	89,932
Net increase (decrease) in cash and cash equivalents	—		88,845			(895		)	—			—			87,950
Cash and cash equivalents beginning of period	—		—			895			—			—			895
Cash and cash equivalents end of period	$	—	$	88,845		$	—		$	—		$	—		$	88,845