SUMMARIZED CONDENSED CONSOLIDATING INFORMATION

The 5.875% Senior Notes due 2021 issued by the CTR Partnership, L.P. and CareTrust Capital Corp. 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 the books and records maintained by the Company.

CONDENSED CONSOLIDATING BALANCE SHEETS

JUNE 30, 2016

(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	$	—		$	396,908	$	339,787	$	39,532		$	—		$	776,227
Other real estate investments	—			—		8,992		—			—			8,992
Cash and cash equivalents	—			9,644		—		—			—			9,644
Accounts receivable	—			2,219		1,710		156			—			4,085
Prepaid expenses and other assets	147			1,044		6		—			—			1,197
Deferred financing costs, net	—			3,333		—		—			—			3,333
Investment in subsidiaries	372,287			382,968		—		—			(755,255		)	—
Intercompany	—			4,597		81,724		—			(86,321		)	—
Total assets	$	372,434		$	800,713	$	432,219	$	39,688		$	(841,576	)	$	803,478
Liabilities and Equity:
Senior unsecured notes payable, net	$	—		$	254,762	$	—	$	—		$	—		$	254,762
Senior unsecured term loan, net	—			99,382		—		—			—			99,382
Unsecured revolving credit facility	—			68,000		—		—			—			68,000
Accounts payable and accrued liabilities	733			6,282		2,462		156			—			9,633
Dividends payable	9,847			—		—		—			—			9,847
Intercompany	—			—		—		86,321			(86,321		)	—
Total liabilities	10,580			428,426		2,462		86,477			(86,321		)	441,624
Equity:
Common stock, $0.01 par value; 500,000,000 shares authorized, 57,548,876 shares issued and outstanding as of June 30, 2016	575			—		—		—			—			575
Additional paid-in capital	516,243			355,221		374,660		(52,899		)	(676,982		)	516,243
Cumulative distributions in excess of earnings	(154,964		)	17,066		55,097		6,110			(78,273		)	(154,964		)
Total equity	361,854			372,287		429,757		(46,789		)	(755,255		)	361,854
Total liabilities and equity	$	372,434		$	800,713	$	432,219	$	39,688		$	(841,576	)	$	803,478

CONDENSED CONSOLIDATING BALANCE SHEETS

DECEMBER 31, 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	$	—		$	256,209	$	348,454	$	40,951		$	—		$	645,614
Other real estate investments	—			—		8,477		—			—			8,477
Cash and cash equivalents	—			11,467		—		—			—			11,467
Accounts receivable	—			519		1,695		128			—			2,342
Prepaid expenses and other assets	—			2,079		4		—			—			2,083
Deferred financing costs, net	—			3,183		—		—			—			3,183
Investment in subsidiaries	269,992			365,368		—		—			(635,360		)	—
Intercompany	—			—		59,160		4,186			(63,346		)	—
Total assets	$	269,992		$	638,825	$	417,790	$	45,265		$	(698,706	)	$	673,166
Liabilities and Equity:
Senior unsecured notes payable, net	$	—		$	254,229	$	—	$	—		$	—		$	254,229
Unsecured revolving credit facility	—			45,000		—		—			—			45,000
Mortgage notes payable, net	—			—		—		94,676			—			94,676
Accounts payable and accrued liabilities	—			6,258		2,433		578			—			9,269
Dividends payable	7,704			—		—		—			—			7,704
Intercompany	—			63,346		—		—			(63,346		)	—
Total liabilities	7,704			368,833		2,433		95,254			(63,346		)	410,878
Equity:
Common stock, $0.01 par value; 500,000,000 shares authorized, 47,664,742 shares issued and outstanding as of December 31, 2015	477			—		—		—			—			477
Additional paid-in capital	410,217			266,929		374,660		(52,899		)	(588,690		)	410,217
Cumulative distributions in excess of earnings	(148,406		)	3,063		40,697		2,910			(46,670		)	(148,406		)
Total equity	262,288			269,992		415,357		(49,989		)	(635,360		)	262,288
Total liabilities and equity	$	269,992		$	638,825	$	417,790	$	45,265		$	(698,706	)	$	673,166

CONDENSED CONSOLIDATING INCOME STATEMENTS

FOR THE THREE MONTHS ENDED JUNE 30, 2016

(in thousands)



	Parent Guarantor		Issuers		Combined Subsidiary Guarantors		Combined Non- Guarantor Subsidiaries		Elimination			Consolidated
Revenues:
Rental income	$	—	$	8,742	$	11,306	$	2,733	$	—		$	22,781
Tenant reimbursements	—		697		1,100		132		—			1,929
Independent living facilities	—		—		730		—		—			730
Interest and other income	—		—		261		—		—			261
Total revenues	—		9,439		13,397		2,865		—			25,701
Expenses:
Depreciation and amortization	—		2,778		4,408		706		—			7,892
Interest expense	—		5,434		—		6		—			5,440
Property taxes	—		697		1,100		132		—			1,929
Independent living facilities	—		—		598		—		—			598
General and administrative	438		1,773		—		—		—			2,211
Total expenses	438		10,682		6,106		844		—			18,070
Income in Subsidiary	8,069		9,312		—		—		(17,381		)	—
Net income	$	7,631	$	8,069	$	7,291	$	2,021	$	(17,381	)	$	7,631

CONDENSED CONSOLIDATING INCOME STATEMENTS

FOR THE THREE MONTHS ENDED JUNE 30, 2015

(in thousands)



	Parent Guarantor		Issuers		Combined Subsidiary Guarantors		Combined Non- Guarantor Subsidiaries		Elimination			Consolidated
Revenues:
Rental income	$	—	$	1,249	$	11,275	$	2,725	$	—		$	15,249
Tenant reimbursements	—		77		1,095		116		—			1,288
Independent living facilities	—		—		607		—		—			607
Interest and other income	—		—		232		—		—			232
Total revenues	—		1,326		13,209		2,841		—			17,376
Expenses:
Depreciation and amortization	—		413		4,519		747		—			5,679
Interest expense	—		4,573		8		1,408		—			5,989
Property taxes	—		77		1,095		116		—			1,288
Independent living facilities	—		—		566		—		—			566
General and administrative	309		1,157		95		27		—			1,588
Total expenses	309		6,220		6,283		2,298		—			15,110
Income in Subsidiary	2,575		7,469		—		—		(10,044		)	—
Net income	$	2,266	$	2,575	$	6,926	$	543	$	(10,044	)	$	2,266

CONDENSED CONSOLIDATING INCOME STATEMENTS

FOR THE SIX MONTHS ENDED JUNE 30, 2016

(in thousands)



	Parent Guarantor		Issuers		Combined Subsidiary Guarantors		Combined Non- Guarantor Subsidiaries		Elimination			Consolidated
Revenues:
Rental income	$	—	$	15,639	$	22,581	$	5,458	$	—		$	43,678
Tenant reimbursements	—		1,263		2,199		264		—			3,726
Independent living facilities	—		—		1,411		—		—			1,411
Interest and other income	—		—		515		—		—			515
Total revenues	—		16,902		26,706		5,722		—			49,330
Expenses:
Depreciation and amortization	—		4,924		8,841		1,420		—			15,185
Interest expense	—		10,806		—		821		—			11,627
Property taxes	—		1,263		2,199		264		—			3,726
Independent living facilities	—		—		1,218		—		—			1,218
General and administrative	871		3,504		49		17		—			4,441
Total expenses	871		20,497		12,307		2,522		—			36,197
Income in Subsidiary	14,004		17,599		—		—		(31,603		)	—
Net income	$	13,133	$	14,004	$	14,399	$	3,200	$	(31,603	)	$	13,133

CONDENSED CONSOLIDATING INCOME STATEMENTS

FOR THE SIX MONTHS ENDED JUNE 30, 2015

(in thousands)



	Parent Guarantor		Issuers		Combined Subsidiary Guarantors		Combined Non- Guarantor Subsidiaries		Elimination			Consolidated
Revenues:
Rental income	$	—	$	2,091	$	22,550	$	5,450	$	—		$	30,091
Tenant reimbursements	—		129		2,185		232		—			2,546
Independent living facilities	—		—		1,242		—		—			1,242
Interest and other income	—		—		455		—		—			455
Total revenues	—		2,220		26,432		5,682		—			34,334
Expenses:
Depreciation and amortization	—		708		9,063		1,507		—			11,278
Interest expense	—		9,065		16		2,809		—			11,890
Property taxes	—		129		2,185		232		—			2,546
Independent living facilities	—		—		1,168		—		—			1,168
General and administrative	309		2,717		95		27		—			3,148
Total expenses	309		12,619		12,527		4,575		—			30,030
Income in Subsidiary	4,613		15,012		—		—		(19,625		)	—
Net income	$	4,304	$	4,613	$	13,905	$	1,107	$	(19,625	)	$	4,304

CONDENSED CONSOLIDATING STATEMENTS OF CASH FLOWS

FOR THE SIX MONTHS ENDED JUNE 30, 2016

(in thousands)



	Parent Guarantor			Issuers			Combined Subsidiary Guarantors			Combined Non-Guarantor Subsidiaries			Elimination			Consolidated
Cash flows from operating activities:
Net cash provided by operating activities	$	466		$	396		$	22,734		$	4,517		$	—		$	28,113
Cash flows from investing activities:
Acquisitions of real estate	—			(144,149		)	—			—			—			(144,149		)
Improvements to real estate	—			(56		)	(114		)	—			—			(170		)
Purchases of equipment, furniture and fixtures	—			(31		)	(58		)	—			—			(89		)
Distribution from subsidiary	17,548			—			—			—			(17,548		)	—
Intercompany financing	(105,840		)	(67,943		)	—			—			173,783			—
Net cash used in investing activities	(88,292		)	(212,179		)	(172		)	—			156,235			(144,408		)
Cash flows from financing activities:
Proceeds from the issuance of common stock, net	105,889			—			—			—			—			105,889
Proceeds from the issuance of senior unsecured term loan	—			100,000			—			—			—			100,000
Borrowings under unsecured credit facility	—			115,000			—			—			—			115,000
Payments on unsecured credit facility	—			(92,000		)	—			—			—			(92,000		)
Payments on the mortgage notes payable	—			—			—			(95,022		)	—			(95,022		)
Payments of deferred financing costs	—			(1,332		)	—			—			—			(1,332		)
Net-settle adjustment on restricted stock	(515		)	—			—			—			—			(515		)
Dividends paid on common stock	(17,548		)	—			—			—			—			(17,548		)
Distribution to Parent	—			(17,548		)	—			—			17,548			—
Intercompany financing	—			105,840			(22,562		)	90,505			(173,783		)	—
Net cash provided by (used in) financing activities	87,826			209,960			(22,562		)	(4,517		)	(156,235		)	114,472
Net decrease in cash and cash equivalents	—			(1,823		)	—			—			—			(1,823		)
Cash and cash equivalents beginning of period	—			11,467			—			—			—			11,467
Cash and cash equivalents end of period	$	—		$	9,644		$	—		$	—		$	—		$	9,644

CONDENSED CONSOLIDATING STATEMENTS OF CASH FLOWS

FOR THE SIX MONTHS ENDED JUNE 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	$	(149	)	$	(8,782	)	$	21,801		$	2,716		$	—		$	15,586
Cash flows from investing activities:
Acquisition of real estate	—			(33,646		)	—			—			—			(33,646		)
Improvements to real estate	—			(20		)	(123		)	—			—			(143		)
Purchases of equipment, furniture and fixtures	—			(167		)	(60		)	—			—			(227		)
Escrow deposit for acquisition of real estate	—			(1,500		)	—			—			—			(1,500		)
Distribution from subsidiary	8,996			—			—			—			(8,996		)	—
Intercompany financing	149			22,983			—			—			(23,132		)	—
Net cash provided by (used in) investing activities	9,145			(12,350		)	(183		)	—			(32,128		)	(35,516		)
Cash flows from financing activities:
Borrowings under senior secured revolving credit facility	—			35,000			—			—			—			35,000
Payments on the mortgage notes payable	—			—			(50		)	(1,301		)	—			(1,351		)
Payments of deferred financing costs	—			(139		)	—			—			—			(139		)
Dividends paid on common stock	(8,996		)	—			—			—			—			(8,996		)
Distribution to Parent	—			(8,996		)	—			—			8,996			—
Intercompany financing	—			(149		)	(21,568		)	(1,415		)	23,132			—
Net cash (used in) provided by financing activities	(8,996		)	25,716			(21,618		)	(2,716		)	32,128			24,514
Net increase in cash and cash equivalents	—			4,584			—			—			—			4,584
Cash and cash equivalents beginning of period	—			25,320			—			—			—			25,320
Cash and cash equivalents end of period	$	—		$	29,904		$	—		$	—		$	—		$	29,904