Financial Analysis

Indebtedness At December 31, 2025 and 2024, our outstanding indebtedness consisted of the following: Senior Unsecured Notes: Principal Balance as of December 31, Coupon Rate Maturity 2025 2024 Senior unsecured notes (1) 9.750% June 2025 $ $ 380,000 Senior unsecured notes 4.750% February 2028 500,000 500,000 Senior unsecured notes (1) 4.375% March 2031 500,000 500,000 Senior unsecured notes 5.625% August 2042 350,000 350,000 Senior unsecured notes 6.250% February 2046 250,000 250,000 Total 1,600,000 1,980,000 Unamortized discount (1,796) (2,639) Unamortized debt issuance costs (17,478) (20,042) Senior unsecured notes, net $ 1,580,726 $ 1,957,319 (1) These notes are or were fully and unconditionally guaranteed, on a joint, several and unsecured basis, by all of our subsidiaries except certain excluded subsidiaries. The notes and related guarantees are effectively subordinated to all of our and the subsidiary guarantors' secured indebtedness, respectively, to the extent of the value of the applicable collateral, and are structurally subordinated to all indebtedness and other liabilities and any preferred equity of any of our subsidiaries that do not guarantee the notes. Secured and Other Debt: Number of Properties Securing Principal Balance as of December 31, (1) Net Book Value of Collateral as of December 31, At December 31, 2025 At December 31, 2024 2025 2024 Interest Rate Maturity 2025 2024 Secured revolving credit facility 14 $ $ 6.47 % June 2029 $ 326,565 $ Senior secured n …

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The following table presents residents fees and services revenue from all of our managed senior living communities disaggregated by the type of contract and payer: Year Ended December 31, Revenue from contracts with customers: 2025 2024 2023 Basic housing and support services $ 1,040,322 $ 972,307 $ 915,528 Private pay and other third party payer SNF services 167,709 171,741 146,767 Medicare and Medicaid programs 104,624 100,341 89,613 Total residents fees and services $ 1,312,655 $ 1,244,389 $ 1,151,908

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Fair Value of Assets and Liabilities The following table presents certain of our assets that are measured at fair value at December 31, 2025 and 2024, categorized by the level of inputs as defined in the fair value hierarchy under GAAP, used in the valuation of each asset. As of December 31, 2025 As of December 31, 2024 Description Carrying Value Estimated Fair Value Carrying Value Estimated Fair Value Recurring Fair Value Measurements Assets: Investment in unconsolidated joint venture (Level 3) (1) $ 73,471 $ 73,471 $ 81,949 $ 81,949 Investment in unconsolidated joint venture (Level 3) (2) $ 46,655 $ 46,655 $ 44,910 $ 44,910 Interest rate cap (Level 2) (3) $ $ $ $ Non-Recurring Fair Value Measurements Assets: Real estate properties held for sale (Level 2) (4) $ 22,048 $ 22,048 $ $ (1) The 10% equity interest we own in the Seaport JV is included in investments in unconsolidated joint ventures in our consolidated balance sheet, and is reported at fair value, which is based on significant unobservable inputs (Level 3 inputs). The assumptions made in the fair value analysis are based on the location, type and nature of the property, and current and anticipated market conditions. See Note 3 for further information regarding this joint venture. (2) The 20% equity interest we own in the LSMD JV is included in investments in unconsolidated joint ventures in our consolidated balance sheet, and is reported at fair value, which is based on significant unobservable inputs (Level 3 input …

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Income Taxes Our provision for income taxes consists of the following: For the Year Ended December 31, 2025 2024 2023 Current: Federal $ 1,147 $ $ (168) State 596 467 613 1,743 467 445 Deferred: Federal State Income tax provision $ 1,743 $ 467 $ 445 The table below is a reconciliation of the statutory income tax rate to the effective tax rate for 2025, in accordance with the updated requirements of ASU 2023-09. See Note 2 for further information on the adoption of ASU 2023-09: For the Year Ended December 31, 2025 Amount Percent Taxes at statutory U.S. federal income tax rate $ (59,407) 21 % Nontaxable income 60,554 (21.4) % State and local income taxes, net of federal tax benefit (1) 596 (0.2) % Effective tax rate $ 1,743 (0.6) % (1) States taxes in Texas make up a majority (greater than 50%) of the tax effect in this category. Income taxes paid (net of refunds) for the year ended December 31, 2025 were $1,776, with the majority of payments attributable to Texas state and federal taxes, in the amount of $626 and $1,150, respectively. As previously disclosed, for the years ended December 31, 2024 and 2023, the following table reconciles the statutory income tax rate to the effective tax rate prior to the adoption of ASU 2023-09: For the Year Ended December 31, 2024 2023 Taxes at statutory U.S. federal income tax rate 21.0 % 21.0 % Nontaxable income (21.0) % (21.0) % Federal excise tax % 0.1 % State and local income taxes, net of federal tax benefit (0.1) % (0.2) % Effective ta …

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RECENT ACCOUNTING PRONOUNCEMENTS. On December 14, 2023, the Financial Accounting Standards Board, or FASB, issued Accounting Standards Update, or ASU, No. 2023-09, Income Taxes (Topic 740): Improvements to Income Tax Disclosures , or ASU No. 2023-09, which requires public entities to enhance their annual income tax disclosures by requiring: (i) consistent categories and greater disaggregation of information in the rate reconciliation, and (ii) income taxes paid disaggregated by jurisdiction. ASU No. 2023-09 should be applied prospectively but entities have the option to apply it retrospectively to all prior periods presented in the consolidated financial statements. ASU No. 2023-09 is effective for annual periods beginning after December 15, 2024, with early adoption permitted. We included additional disclosures in the notes to our consolidated financial statements as a result of the implementation of ASU No. 2023-09; however, these changes did not have a material effect on our consolidated financial statements. In November 2024, the FASB issued ASU No. 2024-03, Income Statement - Reporting Comprehensive Income - Expense Disaggregation Disclosures (Subtopic 220-40): Disaggregation of Income Statements Expenses, or ASU No. 2024-03, which requires public entities to disclose specific expense categories such as employee compensation, depreciation and intangible asset amortization. These details must be presented in a tabular format in the notes to consolidated financial statemen …

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Related Person Transactions We have relationships and historical and continuing transactions with RMR, RMR Inc., AlerisLife (including Five Star) and others related to them, including other companies to which RMR or its subsidiaries provide management services and some of which have trustees, directors or officers who are also our Trustees or officers. RMR is a majority owned subsidiary of RMR Inc. The Chair of our Board of Trustees and one of our Managing Trustees, Adam D. Portnoy, is the sole trustee, an officer and the controlling shareholder of ABP Trust, which is the controlling shareholder of RMR Inc., chair of the board of directors, a managing director and the president and chief executive officer of RMR Inc., an officer and employee of RMR and, until the acquisition of AlerisLife by ABP Trust on March 20, 2023, the chair of the board of directors and a managing director of AlerisLife, and currently the sole director of AlerisLife. Christopher J. Bilotto, our other Managing Trustee and President and Chief Executive Officer is also an executive of RMR Inc., Matthew C. Brown, our Chief Financial Officer and Treasurer, is also an executive vice president and the chief financial officer and treasurer of RMR Inc. and an officer of ABP Trust, and each of our officers is also an officer and employee of RMR. Jeffrey C. Leer, the president and chief executive officer of AlerisLife, is an executive officer of RMR. Some of our Independent Trustees also serve as independent trust …

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Segment Reporting Our operating segments are based on our internal reporting structure and property type and are aligned with how our Chief Operating Decision Maker, or the CODM, reviews the operating results to allocate resources and assess segment performance. The CODM is our President and Chief Executive Officer. Our two reportable segments are SHOP and Medical Office and Life Science Portfolio. Our SHOP segment consists of managed senior living communities that provide short term and long term residential living and, in some instances, care and other services for residents where we pay fees to managers to operate the communities on our behalf. Our Medical Office and Life Science Portfolio segment primarily consists of medical office properties leased to medical providers and other medical related businesses, as well as life science properties primarily leased to biotech laboratories and other similar tenants. The significant expense categories and amounts presented below align with the segment-level information that is regularly provided to our CODM. The CODM reviews operating and financial results, including net income (loss) and its components, to assess performance, allocate resources and guide strategic decisions. The accounting policies of our reportable segments are the same as those described in Note 2. The tables below present information about our segments. For the Year Ended December 31, 2025 SHOP Medical Office and Life Science Portfolio Total Revenues: Rental …

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Shareholders' Equity We have common shares available for issuance under the terms of our equity compensation plan adopted in 2012, as amended, or the 2012 Plan. During the years ended December 31, 2025, 2024 and 2023, we awarded to our officers and certain other employees of The RMR Group LLC, or RMR, and certain current and former employees of AlerisLife annual share awards of 950,895, 881,767 and 800,000 of our common shares, respectively, valued at $4,070, $2,954 and $1,864, in aggregate, respectively. In accordance with our Trustee compensation arrangements, we also awarded each of our then Trustees 29,141 common shares with an aggregate value of $665 ($95 per Trustee), 37,037 common shares with an aggregate value of $630 ($90 per Trustee) and 20,000 common shares with an aggregate value of $244 ($35 per Trustee) in 2025, 2024 and 2023, respectively. In March 2025, in connection with the election of one of our Trustees, we awarded 33,582 of our common shares to this Trustee with a value of $90. In September 2023, in connection with the election of another one of our Trustees, we awarded 20,000 of our common shares to this Trustee with a value of $45. The values or numbers, as applicable, of the share awards were based upon the closing price of our common shares trading on The Nasdaq Stock Market LLC, or Nasdaq, on the dates of awards. The common shares awarded to our Trustees vested immediately. The common shares awarded to our officers and certain other employees of RMR …

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