Schedule of concentration of credit risk


	Percentage of Total		Percentage of
	Company Gross Assets		Total Company Revenues
	December 31,		Year Ended December 31,
Operators	2015	2014	2015	2014	2013
HCRMC	23	31	23	26	28
Brookdale (1)	12	13	10	14	17

(1)

On July 31, 2014, Brookdale completed its acquisition of Emeritus. These percentages of segment gross assets, total gross assets, segment revenues and total revenues, for all periods presented are prepared on a pro forma basis to reflect the combined concentration for Brookdale and Emeritus, as if the merger had occurred as of the beginning of the periods presented. On August 29, 2014, the Company and Brookdale amended or terminated all former leases with Emeritus and entered into two RIDEA joint ventures (see Note 3). Percentages do not include senior housing facilities that Brookdale manages (is not a tenant) under a RIDEA structure.

Schedule of concentration of credit risk


	Percentage of		Percentage of
	Senior Housing Gross Assets		Senior Housing Revenues
	December 31,		Year Ended December 31,
Operators	2015	2014	2015	2014	2013
Brookdale(1)	28	36	23	37	46
HCRMC	12	11	7	8	10

(1)

On July 31, 2014, Brookdale completed its acquisition of Emeritus. These percentages of segment gross assets, total gross assets, segment revenues and total revenues, for all periods presented are prepared on a pro forma basis to reflect the combined concentration for Brookdale and Emeritus, as if the merger had occurred as of the beginning of the periods presented. On August 29, 2014, the Company and Brookdale amended or terminated all former leases with Emeritus and entered into two RIDEA joint ventures (see Note 3). Percentages do not include senior housing facilities that Brookdale manages (is not a tenant) under a RIDEA structure.

FN17

The following is a summary of the quantitative information about fair value measurements for the impairment related to the Company’s equity ownership interest in HCRMC using a discounted cash flow valuation model


Description of Input(s) to the Valuation		Valuation Inputs
Range of revenue growth rates(1)		(1.8%)-3.0%
Range of occupancy growth rates(1)		(0.8%)-0.2%
Range of operating expense growth rates(1)		(1.1%)-3.1%
Discount rate		15.20%
Range of earnings multiples		6.0x-7.0x

(1)

For growth rates, the value ranges provided represent the highest and lowest input utilized in the valuation model for any forecasted period.


Description of Input(s) to the Valuation		Valuation Inputs
Range of revenue growth rates(1)		(0.2%)-3.5%
Range of occupancy growth rates(1)		(0.3%)-0.2%
Range of operating expense growth rates(1)		0.6%-2.8%
Discount rate		13.7%
Range of earnings multiples		6.0x-7.0x

(1)

For growth rates, the value ranges provided represent the highest and lowest input utilized in the valuation model for any forecasted period.

Schedule of concentration of credit risk


	Percentage of Post-Acute/		Percentage of Post-Acute/
	Skilled Nursing Gross Assets		Skilled Nursing Revenues
	December 31,		Year Ended December 31,
Operators	2015	2014	2015	2014	2013
HCRMC	64	82	80	85	83