November 2011 Financial Analysis Summary Package December 31, 2011

Contents of Financial Analysis Package

A. Overview of Operations Financial Overview Marketing Report Occupancy Overview Entrance Fee Analysis Debt Redemption Analysis Cumulative Operating Cash Covenant Requirement Cumulative Operating Cash Covenant Calculation Operating Ratio Operating Reserve Fund Analysis Schedule of Occupancy Targets Schedule of Marketing Targets Summary Statement of Financial Position Statement of Cash Flows FTE Schedule B. Summary Income Statement and Analysis C. Detailed Balance Sheet

The Amsterdam at Harborside Financial Overview of Operations For the Eleven Months Ending November 30, 2011 UNAUDITED November Budget 1,577,469 1,310,865 266,603 61,184 (1,090,956) (763,169) 396,807 (674,660) (1,041,022) Year-To-Date Budget 10,896,815 11,978,052 (1,081,237) 692,735 (12,515,077) (12,903,580) 3,166,441 (6,454,266) (16,191,405)

Total Operating Revenues Total Operating Expenses Net Operating Income (Loss) Investment Income Long-Term Debt Expenses Pre-Opening Expenses Gain/Loss on Disposed Fixed Assets Net Income (Loss) Before Non-Cash Items Non-Cash Items: Unrealized Gain/(Loss) on Swap Earned Resident Entrance Fees Unrealized Gain/(Loss) on Investments Depreciation/Amortization Net Income (Loss) After Non-Cash Items

Actual 665,098 1,173,123 (508,025) 66,583 (1,096,685) 100 (1,538,027) 186,003 (684,113) (2,036,137)

Variance (912,370) 137,742 (774,628) 5,399 (5,729) 100 (774,858) (210,804) (9,453) (995,115)

Actual 5,245,221 10,956,186 (5,710,965) 727,775 (12,367,081) (16,190) 3,800 (17,362,660) 1,484,270 (7,525,245) (23,403,636)

Variance (5,651,593) 1,021,866 (4,629,727) 35,040 147,997 (16,190) 3,800 (4,459,081) (1,682,171) (1,070,979) (7,212,231)

General Overview: Overall, Net Operating Loss has a ($775,000) unfavorable variance from budget in November. Operating Revenues had an unfavorable variance of ($912,000) primarily due to lower Skilled Nursing Room & Board Per Diems resulting from lower average occupancy. Additionally, there were unfavorable variances in IL Monthly Service Fees, Enriched Housing Monthly Service Fees, SN Ancillary & Therapy Revenue, Second Person Fees and Lifecare Credits. Operating Expenses had a favorable variance of $138,000 in November primarily due to positive variances in Administrative Services of $9,000 related to lower employee benefits, payroll taxes, workers compensation and management company travel expenses, Enriched Housing of $30,000 due to lower wage rates and lower staffing, Dining Services of $38,000 related to lower staffing and raw food costs, Housekeeping of $17,000 due to lower staffing, Skilled Nursing of $22,000 due to lower staffing resulting from slower fill, Ancillary & Therapy Expenses of $70,000 due to lower census and Insurance of $8,000 related to lower premiums than budgeted. These positive variances were partially offset by negative variances in Marketing of ($8,000) due to higher marketing costs to spur move-ins in all levels of care, as well as Building Maintenance of ($11,000) related to electrical R&M, HVAC R&M, plumbing R&M and contract services, Grounds Maintenance Services of ($19,000) due to snow removal services and contract services, Emergency System Services of ($9,000) due to alarm and fire safety and security contract services and Utilities of ($11,000) related to higher electricty usage than budgeted. See further explanation in Section B. Investment Income: Investment Income had a favorable variance of $5,000 due to higher than budgeted interest income on the Debt Service Reserve Fund C partially offset by lower than budgeted interest income on the Operating Reserve and Entrance Fee Fund. Long-Term Debt Expenses: Long Term Debt Expense had an unfavorable variance of ($6,000) due to higher than budgeted LOC and remarketing fees.

4
4

The Amsterdam at Harborside Occupancy Overview November 2011 UNAUDITED

Average Occupancy: Average Actual Occupancy Primary Resident Occupancy: Independent Living Enriched Housing Memory Support Skilled Nursing Total Average Budgeted Occupancy Unit Variance

110.1 9.6 5.0 20.3 145.0

151.0 21.8 16.0 44.0 232.8

(40.9) (12.2) (11.0) (23.7) (87.8)

Secondary Resident Occupancy: Independent Living Enriched Housing Total Total Residents

37.9 3.2 41.1 186.0

71.0 1.0 72.0

(33.1) 2.2 (30.9)

Average Skilled Nursing Census by Payor Type: Private Pay Private Pay-IL Permanent Transfer Private Pay-IL Temporary Transfer Medicare Part A Medicaid (pending) Total Actual 2.4 6.8 2.4 7.0 1.8 20.3 Budget 20.5 0.5 0.5 17.0 5.5 44.0

Occupancy Activity for the month: Beginning Occupied Units Occupancy Independent Living Assisted Living Memory Support Skilled Nursing Total Occupied Units 109 10 5 18 142 Current Month Move-ins 4 3 15 22 Current Month Move-Outs & Transfers (2) (1) (12) (15) Ending Occupied Units 111 12 5 21 149 Available Units 229 26 18 56 329 % Occupancy 48% 46% 28% 38% \ 45%

Lifecare Transfers: Avg Permanent Lifecare Avg Temporary Transfers Lifecare Transfers First Person Transfers To: Enriched Housing Memory Support Skilled Nursing Total Budgeted (Over)/Under Lifecare Budget Transfers Variance

3.0 1.0 0.7 4.7

0.9 1.0 2.4 4.3

0.5 0.3 0.3 1.1

(3.4) (1.7) (2.8) (7.9)

Second Person Transfers To: Enriched Housing Memory Support Skilled Nursing Total Total Residents Transferred

3.0 6.0 9.0 13.8

7

0.2 0.2 4.5

0.9 0.5 0.6 2.1 3.2

(2.2) 0.5 (5.4) (7.1) (15.1)

The Amsterdam at Harborside Sales and Occupancy Rollforward

Independent Living - Reservations FYE 2010 and FYE 2011
Aug g 192 0 (2) (7) 183 Sep 183 0 (18) (7) 158 Oct 158 2 (14) (11) 135 Nov v 135 1 (14) (4) 118 Dec 118 3 (18) (3) 100 Jan 100 1 (16) (3) 82 Feb 82 2 (6) 0 78 Mar 78 6 (4) (5) 75 Apr 75 7 (5) (6) 71 May y 71 4 (1) (2) 72 Jun 72 4 (7) (1) 68 Jul 68 1 (3) (3) 63 Aug g 63 4 (8) (1) 58 Sep 58 1 (2) (1) 56 Oct 56 2 0 (5) 53 Nov v 53 4 (4) (6) 47 Dec 47 5 (8) (3) 41

Beginning Reservations New Reservations Move-Ins Cancellations Ending Reservations

Independent Living - Occupancy FYE 2010 and FYE 2011

End of Month IL Occupancy Feasibility (3/10 assumed opening) Budget Actual IL Occupancy Rollforward Beg Occupancy Move-Ins AL Transfers SN Transfers Move Outs Ending Occupancy % Occupied Variance to Budget Bond Covenant Minimum Occupancy Rqmt (QTR) Variance Actual vs. Required Bank Covenant Minimum Occupancy Rqmt (QTR) Variance Actual vs. Required Variance from Budget Aug 75 0 Sep 86 18 Oct 96 35 Nov 106 51 Dec 115 66 Jan 124 76 Feb 133 83 Mar 141 90 Apr 149 98 May 157 106 Jun 164 115 Jul 171 124 Aug 178 132 Sep 184 140 Oct 190 147 Nov 196 154 Dec 202 160

0 2 0 0 0 2 1% 2 -

2 18 0 0 0 20 9% 2 20

20 14 0 0 0 34 15% (1) -

34 14 0 0 0 48 21% (3) -

48 18 0 0 0 66 29% 25 41 39 27

66 16 (1) (1) 0 80 35% 4 -

80 6 0 0 (1) 85 37% 2 -

85 4 (1) 0 0 88 38% (2) 57 31 69 19 (2)

88 5 (1) 0 0 92 40% (6) (6)

92 1 0 0 (1) 92 40% (14) (14)

92 7 (1) 0 0 98 43% (17) 115 (17) 95 3 (17)

98 3 0 0 0 101 44% (23) (23)

101 8 0 0 0 109 48% (23) (23)

109 2 0 0 0 111 48% (29) 149 (38) 120 (9) (29)

111 0 (1) 0 (1) 109 48% (38) (38)

109 4 0 (1) (1) 111 48% (43) (43)

111 8 0 0 0 119 52% (41) 172 (53) 140 (139) (41)

Independent Living - Entrance Fees and 10% Deposit Reservations FYE 2010 and FYE 2011
End of Month Reservations Occupancy Total Occupied and Reserved 1st Person Healthcare Transfers Total Reservations & Entrance Fees Bond Covenant Required Reserved Units (QTR) Variance Actual vs. Required Note: As of December 31, 2011 Aug 183 2 185 0 185 Sep 158 20 178 0 178 175 3 Oct 135 34 169 0 169 Nov 118 48 166 0 166 Dec 100 66 166 0 166 166 (0) Jan 82 80 162 2 164 Feb 78 85 163 2 165 Mar 75 88 163 3 166 164 (1) Apr 71 92 163 4 167 May 72 92 164 4 168 Jun 68 98 166 5 171 166 0 Jul 63 101 164 5 169 Aug 58 109 167 5 172 Sep 56 111 167 5 172 169 (2) Oct 53 109 162 6 168 Nov 47 111 158 6 164 Dec 41 119 160 6 166 186 (26)

5
6

Tuttle Center Amsterdam at Harborside Sales / Occupancy / Move-ins

The Amsterdam at Harborside FYE 2011

Enriched Housing Occupancy (end of month) Budgeted - Non-Memory Support Budgeted - Memory Support Budget - Total Actual - EH Non-Memory Support Actual - EH Memory Support Actual - Total Variance to Budget % Occupied SNF Occupancy (end of month) Budgeted Actual - Private Pay Actual - Private Pay Lifecare Actual - Medicare Actual - Medicaid Actual - Total Variance to Budget % Occupied 5 3 3 (2) 5% 11 6 6 (5) 11% 17 3 3 6 (11) 11% 23 4 3 7 (16) 13% 29 3 4 7 (22) 13% 35 4 6 10 (25) 18% 37 6 6 12 (25) 21% 39 7 5 12 (27) 21% 41 3 8 5 16 (25) 29% 43 2 9 7 18 (25) 32% 45 4 10 6 1 21 (24) 38% 47 3 9 4 5 21 (26) 38% Jan 3 1 4 4 1 5 1 11% Feb 5 2 7 3 1 4 (3) 9% Mar 7 3 10 5 1 6 (4) 14% Apr 9 4 13 7 1 8 (5) 18% May 11 6 17 6 1 7 (10) 16% Jun 13 8 21 9 2 11 (10) 25% Jul 15 10 25 9 2 11 (14) 25% Aug 17 12 29 8 2 10 (19) 23% Sep 19 14 33 9 3 12 (21) 27% Oct 21 16 37 10 5 15 (22) 34% Nov 23 17 39 12 5 17 (22) 39% Dec 25 17 42 13 5 18 (24) 41%

The Amsterdam at Harborside FYE 2011

Jan 4 4 1 1 5 4 (1) 3 3 Feb 4 (1) 3 1 1 4 3 3 6 6 Mar 3 2 5 1 1 6 6 (3) 3 4 (1) 3 6 Apr p 5 2 7 1 1 8 3 1 4 3 2 (2) 3 7 May y 7 (1) 6 1 1 7 4 (1) 3 3 4 (3) 4 7 Jun 6 3 9 1 1 2 11 3 1 4 4 5 (3) 6 10 Jul 9 1 (1) 9 2 2 11 4 2 6 6 6 (6) 6 12 Aug g 9 (1) 8 2 2 10 6 1 7 6 4 (5) 5 12 Sep P 8 2 (1) 9 2 1 3 12 7 4 11 5 4 (4) 5 16 Oct t 9 4 (3) 10 3 2 5 15 11 3 (3) 11 5 9 (7) 7 18 Nov 10 3 (1) 12 5 5 17 11 5 (2) 14 7 9 (10) 6 2 (1) 1 21 Dec 12 2 (1) 13 5 5 18 14 4 (6) 12 6 5 (7) 4 1 4 5 21

Beginning Occupancy EH Move-Ins EH Move-Outs Net AL Occupancy P Y Beginning Occupancy EH MS Move-Ins EH MS Move-Outs Net AL MS Occupancy Total AL Occupancy P Y Beginning Occupancy - Private Pay SNF Move-Ins SNF Move-Outs Net SNF Occupancy - Private Pay Beginning Occupancy - Medicare SNF Move-Ins SNF Move-Outs Net SNF Occupancy - Medicare Beginning Occupany - Medicaid SNF Move-Ins SNF Move-Outs Net SNF Occupancy - Medicaid Net SNF/Medicare Occupancy P Y Note: As of December 31, 2011

6
7

The Amsterdam at Harborside Entrance Fee Analysis As of November 30, 2011 UNAUDITED Current Month Entrance Fees Collected from Move-ins Entrance Fees Due from Move-ins Entrance Fee Refunds Paid (does not include pending refunds) Total Net Entrance Fees Total Net Move-ins (includes transfers and pending refunds) Average Entrance Fee per Move-In 2,421,305 599,995 (495,000) 2,526,300 4 755,325 From Inception 89,474,385 599,995 (1,239,000) 88,835,380 120 740,295

Approx. Uses of Entrance Fees Collected: Bond Paydown - Series C Bond Paydown - Series D Funding of Operating Reserve Amount in Entrance Fee Fund Transfer of Debt Service Reserve Acccounts Reoccupancy Entrance Fees Paid to Operations Pending Transfer to Operations Less: Refunds paid by operations Transfer to Interest Fund of Interest Earnings Interest Income from Entrance Fee Account (net of Inv Mgt Fees) Pending Transfer of Entrance Fee Deposits from Move-ins 10% Deposits and Partial Payments from Move-ins to be Transferred Other Total Collected

937,950 (0) 1,335,020 148,336 0 2,421,305

17,480,000 24,900,000 39,300,000 6,632,817 (1,650,487) 1,089,000 (1) 1,550,750 172,306 1 89,474,385

8
8

The Amsterdam at Harborside Short Term Debt Retirement Projection UNAUDITED Actual Jan-11 Beginning Census Move-Ins Move-Outs/Perm Transfers Ending Census 66 16 (2) 80 Actual Feb-11 80 6 (1) 85 Actual Mar-11 85 4 (1) 88 Actual Apr-11 88 5 (1) 92 Actual May-11 92 1 (1) 92 Actual Jun-11 92 7 (1) 98 Actual Jul-11 98 3 101 Actual Aug-11 101 8 109 Actual Sep-11 109 2 111 Actual Oct-11 111 (2) 109 Actual Nov-11 109 4 (2) 111 From Opening 122 (11) 111 Estimated Dec-11 111 8 119 Forecasted Jan-12 119 1 120 Forecasted Feb-12 120 2 122 Forecasted Mar-12 122 3 125

Avg per Move-In Entrance Fees from Move-ins Adjustment: (Increase) in Entrance Fee from Move-Ins Not Transferred Interest Earned on Entrance Fee Fund Transfer (to) from Operating Reserve (Increase) in Entrance Fees Receivable Reoccupancy Entrance Fees Pending Transfer/Paid to Ops Debt Service Reserve Fund - D Series

663,499 10,615,985 1,607,455 3,000 (379,870) -

712,408 4,274,450 6,365,199 489,966 1,650,487

604,075 2,416,300 (559,300) -

893,000 4,465,000 458,812 (765,512) -

687,000 687,000 100,488 765,512 -

710,885 4,976,195 (1,886,545) (1,089,000) -

609,533 1,828,600 1,342,045 -

821,456 6,571,648 (1,839,012) (78,488) -

584,325 1,168,650 2,383,512 78,488 -

239,700 239,700 (239,700) -

755,325 3,021,300 (1,483,355) (599,995) -

750,620 90,074,378 (1,723,055) (39,300,000) (599,995) (1,089,000) 1,650,487

680,748 5,445,984 1,723,055 (2,243,000) (504,945) -

944,929 944,929 (1,000,000) -

944,929 1,889,857 (1,000,000) -

944,929 2,834,786 (463,000) (1,000,000) -

Approx. Funds Available to Retire Debt Approx Cumulative Funds Available to Retire Debt at month-end Debt retired/estimated to be Retired at beg. of month (1) Series 2007D - Taxable Var. Rate Bonds Series 2007C - Var. Rate Bonds Series 2007B - Adjustable Rate Total Actual/Estimated Short Term Debt Outstanding Budgeted Short Term Debt Outstanding

11,846,570 14,270,370 24,900,000 95,100,000 8,500,000 128,500,000 126,325,484

12,780,102 27,050,472 24,900,000 95,100,000 8,500,000 128,500,000 126,325,484

1,857,000 28,907,472 24,900,000 95,100,000 8,500,000 128,500,000 126,325,484

4,158,300 6,015,772 (27,050,000) 92,950,000 8,500,000 101,450,000 104,302,258

1,553,000 7,568,772 92,950,000 8,500,000 101,450,000 104,302,258

2,000,650 9,569,422 92,950,000 8,500,000 101,450,000 104,302,258

3,170,645 5,175,067 (7,565,000) 85,385,000 8,500,000 93,885,000 91,598,065

4,654,148 9,829,215 85,385,000 8,500,000 93,885,000 91,598,065

3,630,650 13,459,865 85,385,000 8,500,000 93,885,000 91,598,065

5,694,865 (7,765,000) 77,620,000 8,500,000 86,120,000 74,804,194

937,950 6,632,815 77,620,000 8,500,000 86,120,000 74,804,194

49,012,815

4,421,094 11,053,910

(55,071) 4,368,838 (6,630,000) 70,990,000 8,500,000 79,490,000 58,913,226

889,857 5,258,696 70,990,000 8,500,000 79,490,000 58,913,226

1,371,786 6,630,482 70,990,000 8,500,000 79,490,000 58,913,226

(42,380,000)

77,620,000 8,500,000 86,120,000 74,804,194

(1) Based on the funds available to retire debt 47 days prior to the redemption date. The redemption date is the first Wednesday of the first week of January, April, July and October.

9
9

The Amsterdam at Harborside Operating Reserve Fund Activity As of November 30, 2011 UNAUDITED

Current Month Operating Reserve Funding (1) Activity in Operating Reserve Fund: Monthly Operating Draws Interest Income-Transferred to Operations Interest Income & Premium/Discount Amortization Realized Gain/Loss Unrealized Gain/Loss Operating Reserve Balance -

From Inception 39,300,000

(3,350,000) 0 (3,350,000)

(28,051,000) 245 11,249,245

(1) $39,303,000 of entrance fee proceeds were transferred to the Operating Reserve Fund as of 12/31/10. $3,000 was transferred from the Operating Reserve to the Entrance Fee Redemption account in January 2011.

13
10

The Amsterdam at Harborside Cumulative Operating Cash Covenant - LOC Bank Covenant November 30, 2011 UNAUDITED
Actual Cumulative Date Operating Loss September 30, 2010 (952,910) October 31, 2010 (2,561,231) November 30, 2010 (4,221,852) December 31, 2010 (6,568,648) January 31, 2011 (8,283,668) February 28, 2011 (9,963,255) March 31, 2011 ^^ (12,136,775) April 30, 2011 (14,071,337) May 31, 2011 (15,941,869) June 30, 2011 ** (17,531,249) July 31, 2011 (18,793,582) August 31, 2011 (20,676,592) September 30, 2011 (22,269,864) October 31, 2011 (23,880,490) November 30, 2011 (25,962,360) December 31, 2011 January 31, 2012 February 29, 2012 March 31, 2012 April 30, 2012 May 31, 2012 June 30, 2012 July 31, 2012 August 31, 2012 September 30, 2012 October 31, 2012 November 30, 2012 December 31, 2012 January 31, 2013 February 28, 2013 March 31, 2013 April 30, 2013 May 31, 2013 June 30, 2013 July 31, 2013 August 31, 2013 September 30, 2013 October 31, 2013 November 30, 2013 December 31, 2013 January 31, 2014 February 28, 2014 March 31, 2014 April 30, 2014 May 31, 2014 June 30, 2014 and thereafter Covenant Maximum Loss (1) (1,920,000) (4,720,000) (7,650,000) (11,930,000) (15,330,000) (18,610,000) (20,540,000) (21,830,000) (23,540,000) (24,530,000) (25,420,000) (26,320,000) (27,300,000) (28,300,000) (29,290,000) (30,300,000)

Variance 967,090 (1,848,648) (4,486,775) (5,601,249) (6,939,864) -

(1) As required under the Letter of Credit and Reimbursement Agreement. Note: Covenant Maximum Loss assumed six months of funded interest for Operations. However, due to a later opening, approximately one month of interest was funded. ^^ As a result of the second miss of the Cumulative Cash Operating Loss Covenant, a Consultant's report was distributed on June 28, 2011. ** As a result of the third miss of the Cumulative Cash Operating Loss Covenant, an Event of Default was triggered under the LOC Agreement. Amsterdam and Greystone are currently working with Letter of Credit banks to reset the covenants.

10
11

The Amsterdam at Harborside Cumulative Operating Cash Covenant - LOC Bank Covenant November 30, 2011 UNAUDITED

Cumulative Operating Loss Covenant (LOC Bank Covenant): Testing begins the first fiscal quarter ending after the earliest date a resident has taken physical possession of one of the living units if such date is more than 30 days prior to the end of such fiscal quarter or the first full fiscal quarter ending after the Initial Occupancy Date if such Initial Occupancy Date is less than 30 days prior to the end of a fiscal quarter. f Year-to-Date FYE 2011 (23,403,636)

Total Net Income / (Loss) After Non-Cash Items Less: Earned Entrance Fee Revenue Interest Income Funding Development Capex and Deferred Development Fees Cap Mktg Costs paid by ops Entrance Fee Refunds Paid/Pending Refunds Due Add Back: Turnover Entrance Fees Unrealized (Gain)/Loss Depreciation/Amortization Funded Pre-Opening Expenses Funded Bond Interest Expense
N Cash Used Net

FYE 2010 (10,362,323)

(33,765,959)

(1,676,074) (5,139) (1,586,566) (1,084,936) (1,239,000)

(1,484,270) (1,036,521) (844,245) (1,239,000)

(191,804) (5,139) (550,045) (240,690) -

1,089,000 10,224,331 1,143,275 938,708 (25,962,360)

1,089,000 7,525,245 (285) (19,393,712)

2,699,086 1,143,560 938,708 (6,568,648)

Total Cumulative Operating Cash December 31, 2011 Covenant Limit Cumulative Cash Variance

(25,962,360) (18,610,000) (7,352,360)

Nov-11 Net Income / (Loss) After Non-Cash Items Less: Earned Entrance Fee Revenue Interest Income Funding Development Capex and Deferred Development Fees Cap Mktg Costs paid by ops Entrance Fee Refunds Paid/Pending Refunds Due Add Back: Turnover Entrance Fees Unrealized (Gain)/Loss Depreciation/Amortization Funded Pre-Opening Expenses Funded Bond Interest Expense Net Cash Used
11
12

(2,036,137)

(186,003) (47,717) (495,000)

684,113 (2,080,744)

The Amsterdam at Harborside Operating Ratio - Bondholder Covenant November 30, 2011
UNAUDITED

Operating Ratio (Bondholder Covenant): Testing begins with the first full fiscal quarter following the Completion Date and ending at Stabilization.

Operating Ratio Calculation Operating Revenue Investment Income Total Revenue and Investment Income (a) Operating Expenses before Debt Service (b) Operating Ratio (a/b) Actual 665,098 66,583 731,682 1,173,123 0.62

Nov-11 Required (1)

Variance

Actual 1,358,514 133,167 1,491,681 2,393,446

4th Qtr 2011 Required (1)

Variance

0.62

0.93

(0.31)

(1) As required under the Installment Sale Agreement Note: First testing period was December 31, 2010. Note 2: Quarter ending June 30, 2011 represents the first miss of the Operating Ratio and as a result, an internal report of management will be distributed. Note 3: Quarter ending September 30, 2011 represents the second miss of the Operating Ratio and as a result, The Amsterdam has engaged a consultant to prepare a third party consultant's report.

12
13

The Amsterdam at Harborside Independent Living Occupancy Covenant Minimum November 30, 2011 Independent Living Occupancy Covenant - Bond Covenant

Beginning the the first full calendar quarter following the issuance of the Certificate of Occupancy for the Independent Living Units. IL Occupancy Covenant Minimum 25 57 115 149 172 182 193 198 203 206 206 206 206

September 30, 2010 October 31, 2010 November 30, 2010 December 31, 2010 (1) January 31, 2011 February 28, 2011 March 31, 2011 April 30, 2011 May 31, 2011 June 30, 2011 (2) July 31, 2011 August 31, 2011 September 30, 2011 (3) October 31, 2011 November 30, 2011 December 31, 2011 March 31, 2012 June 30, 2012 September 30, 2012 December 31, 2012 March 31, 2013 June 30, 2013 September 30, 2013 December 31, 2013 and thereafter

Actual IL Occupied Units 20 34 48 66 80 85 88 92 92 98 101 109 111 109 111 119

Variance 41 31 (17) (38) (53)

(1) First testing period is quarter ending December 31, 2010 (Installment Sale Agreement) (2) First miss requires an internal management report that was distributed on August 8, 2011. (3) Second miss requires a third party consultant's report. Independent Living Occupancy Covenant - LOC Bank Covenant For the LOC Bank Covenant, the IL Occupancy Covenant is tested beginning September 30, 2010, but requires minimum of 0%. Actual IL Occupied Units 20 34 48 66 80 85 88 92 92 98 101 109 111 109 111 119 Required IL Level I Event 0 39 69 95 120 140 158 174 185 192 199 206 Required IL Level II Event 0 34 60 83 104 123 139 153 163 169 175 180

September 30, 2010 October 31, 2010 November 30, 2010 December 31, 2010 January 31, 2011 February 28, 2011 March 31, 2011 April 30, 2011 May 31, 2011 June 30, 2011 July 31, 2011 August 31, 2011 September 30, 2011 October 31, 2011 November 30, 2011 December 31, 2011 March 31, 2012 June 30, 2012 September 30, 2012 December 31, 2012 March 31, 2013 June 30, 2013 and thereafter

Variance 20 27 19 3 (9) (21)

Variance 20 32 28 15 7 (4)

Note: LOC Bank Covenants are currently being renegotiated and amended as of September 30, 2011.

14
14

The Amsterdam at Harborside Enriched Housing and Skilled Nursing Covenant Minimum November 30, 2011

Enriched Housing and Skilled Nursing Occupancy Covenant - Bond Covenant Beginning the the first full calendar quarter following the issuance of the Certificate of Occupancy for the Residential Units EH Occupancy Covenant Minimum 4 7 13 18 24 28 33 34 36 38 39 40 40 SN Occupancy Covenant Minimum 4 8 15 24 32 37 42 45 48 50 52 52 52

September 30, 2010 October 31, 2010 November 30, 2010 December 31, 2010 (1) January 31, 2011 February 28, 2011 March 31, 2011 (2) April 30, 2011 May 31, 2011 June 30, 2011 (3) July 31, 2011 August 31, 2011 September 30, 2011 (4) October 31, 2011 November 30, 2011 December 31, 2011 March 31, 2012 June 30, 2012 September 30, 2012 December 31, 2012 March 31, 2013 June 30, 2013 September 30, 2013 December 31, 2013 and thereafter

Actual EH Occupied Units 0 0 0 0 5 5 6 8 7 11 11 10 12 15 17 18

Variance (4) (1) (2) (6) (6)

Actual SN Occupied Units 0 0 0 0 3 6 6 7 7 10 12 12 16 18 21 21

Variance (4) (2) (5) (8) (11)

(1) First testing period is quarter ending December 31, 2010 (Installment Sale Agreement). The first miss required a management report that was distributed on 2/2/11. (2) The second miss requires a Consultant's report which was distributed on June 28, 2011. (3) The third miss requires an internal management report that was distributed on August 8, 2011. (4) The fourth miss requires a third party consultant's report. Note: Enriched Housing and Skilled Nursing were not licensed until January 2011.

15
15

The Amsterdam at Harborside Marketing Covenant Minimum As of November 30, 2011 UNAUDITED
Marketing Covenant Requirement:
Commencing with the fiscal quarter ending March 31, 2008 and ending with the quarter in which 92% the Residential Units are occupied, the marketing requirements are set forth below. If substantial completion occurs more than 90 days after the scheduled completion date (March 1, 2010), the Marketing Targets shall be revised, commencing with the first full quarter following such substantial completion date. Bond Covenants LOC Bank Covenants

August 31, 2010 September 30, 2010 October 31, 2010 November 30, 2010 December 31, 2010 January 31, 2011 February 28, 2011 March 31, 2011 (1) April 30, 2011 May 31, 2011 June 30, 2011 (2) July 31, 2011 August 31, 2011 September 30, 2011 (3) October 31, 2011 November 30, 2011 December 31, 2011 January 31, 2012 February 29, 2012 March 31, 2012 April 30, 2012 May 31, 2012 June 30, 2012 July 31, 2012 August 31, 2012 September 30, 2012 October 31, 2012 November 30, 2012 December 31, 2012 January 31, 2013 February 28, 2013 March 31, 2013

Actual Units Reserved and Occupied 185 178 169 166 166 162 163 163 163 164 166 164 167 167 162 158 160

Marketing Target 175 11 -

Marketing Target** 166 164 166 169 186 191 196 202 207 211

Variance 3 0 (1) 0 (2) (26)

Level 1 Marketing Target 175 178 182 186 191 196 202 207 211 -

Variance 3 (12) (19) (20) (24) (36)

Level 2 Marketing Target 162 165 170 175 180 185 188 191 195 -

Variance 16 1 (7) (9) (13) (25)

** Due to completion more than 90 days after scheduled completion date (March 1, 2010), the Marketing Targets are revised beginning with the quarter ending December 31, 2010. (1) The second miss of the LOC Bank Covenants requires a Consultant's report which was distributed on June 28, 2011. (2) The third miss of the LOC Bank Covenant requires and internal management report that was distributed on August 8, 2011. (3) The Amsterdam is in negotiations with the LOC Banks to revise the LOC Bank Covenants beginning September 30, 2011.
16
16

The Amsterdam at Harborside Statement of Financial Position As of November 30, 2011 UNAUDITED
Current Month ASSETS Cash and Cash Equivalents Conversion Deposits Net A/R Residents Other Receivables Inventory Deposits Prepaid Expenses Total Current Assets CIP Fixed Assets Accumulated Depreciation Intangible Assets Accumulated Amortization Restricted Assets TOTAL ASSETS 909,540 5,591,149 906,132 934,305 20,467 399,458 8,761,052 2,150,164 250,040,450 (7,750,010) 27,242,024 (2,449,631) 45,429,449 323,423,498 Prior Month 30,809 4,786,022 784,466 295,113 16,747 374,282 6,287,439 4,011,351 250,040,450 (7,230,852) 27,242,024 (2,286,322) 46,877,967 324,942,058 Variance 878,731 805,127 121,666 639,192 3,720 25,176 2,473,612 (1,861,187) (519,158) (163,309) (1,448,519) (1,518,560)

LIABILITIES Accounts Payable Resident Current Liabilities Payroll Related Current Liabilities Accrued Operating Expenses Accrued Bond Interest Expense Total Current Liabilities Entrance Fee Liability Subordinated Loan Long Term Debt TOTAL LIABILITIES 397,186 3,926,728 280,189 4,883,001 4,817,655 14,304,760 87,159,306 3,000,000 253,775,957 358,240,023 3,539,542 4,605,942 325,765 3,803,752 3,854,124 16,129,126 84,819,009 3,000,000 253,774,311 357,722,446 (3,142,356) (679,214) (45,576) 1,079,250 963,531 (1,824,366) 2,340,297 1,646 517,577

EQUITY Fund Balance (Deficit) Net Income (Loss) TOTAL EQUITY

y TOTAL LIABILITIES & EQUITY

(11,412,889) (23,403,636) (34,816,525) 323,423,498

(11,412,889) (21,367,499) (32,780,388) 324,942,058

(2,036,137) (2,036,137) (1,518,560)

17
17

The Amsterdam at Harborside Consolidated Statement of Cash Flows For the Eleven Months Ending November 30, 2011 UNAUDITED
Current Month Cash flows from Operating Activities Increase (decrease) in net assets Adjustments to reconcile change in net assets to cash provided by operating activities: Depreciation Amortization Amortization OID Amortization of Entrance Fees Turnover entrance Fees Received (net) Changes in operating assets & liabilities: (Increase) decrease in: Accounts receivable Other receivables Other current assets Increase (Decrease) in: Accounts payable Accrued liabilities Pending Entrance Fee Refunds Resident liabilities Net Cash Provided by Operating Activities Cash Flows from Investing Activities Purchase of property & equipment (Increase) decrease in assets limited to use Net Cash Used by Investing Activities Cash Flows from Financing Activities Deferred financing costs Initial Entrance Fee Received Principal payments on debt Net Cash Provided by Financing Activities Change in Cash Cash & Equivalents at Beginning of Period Cash & Equivalents at the end of the Period 2,421,305 2,421,305 878,731 30,809 909,540 38,685,932 (42,380,000) (3,694,068) (1,631,015) 2,540,555 909,540 1,861,187 643,391 2,504,578 (3,522,942) 32,741,727 29,218,785 519,158 163,309 1,646 (186,003) (495,000) 5,710,743 1,796,396 18,106 (1,484,270) (150,000) (2,036,137) (23,403,636) Year-To-Date

(121,666) (39,197) (28,896) (3,142,356) 1,997,204 (679,214) (4,047,152)

(868,921) 68,694 (81,029) (3,512,248) (233,872) (5,015,696) (27,155,732)

18
18

The Amsterdam at Harborside FTE Schedule As of November 30, 2011

Actual FTEs Administration Lifestyles Assisted Living Building Maintenance Dining Services Security* Grounds Housekeeping Marketing Skilled Nursing Transportation Total 5.1 6.6 13.7 6.9 39.5 12.0 6.0 28.5 1.8 120.0

Budgeted FTEs 5.0 6.3 21.7 5.0 44.5 0.5 17.8 4.0 44.5 4.1 153.4

Variance (0.1) (0.3) 8.1 (1.9) 5.1 0.5 5.8 (2.0) 16.0 2.3 33.5

*Security is contracted out and included in Operating Expenses.

19 19

22
20

The Amsterdam at Harborside Actual vs. Budget Consolidated Summary Income Statement For the Eleven Months Ending November 30, 2011 UNAUDITED
Current Period Budget 585,012 301,371 765,259 78,272 (27,979) (78,800) (294,450) 234,789 13,994 1,577,469 Year-To-Date Budget 4,720,989 1,707,299 5,343,769 628,506 (294,162) (1,156,134) (2,007,930) 1,800,549 153,929 10,896,815

Actual Operating Revenue IL Monthly Service Fees EH Monthly Service Fees SN Monthly Room & Board Per Diems Second Person Fees Life Care Credits Monthly Service Fee Credits Contractual Adjustments SN Ancillary & Therapy Revenue Other Revenue Total Operating Revenue Departmental Expenses Administrative Services Resident Services Enriched Housing Building Maintenance Services Dining Services Emergency System Services Grounds Maintenance Services Housekeeping Services Marketing Services Skilled Nursing Ancillary and Therapy Transportation Services Total Departmental Expenses Other Operating Expenses Utilities Insurance Taxes & HOA Fees Management Fees Total Other Operating Expenses Total Operating Expenses Net Operating Income (Loss) Investment Income NI (Loss) Before LT Debt & Noncash Items Long Term Debt Expenses Pre-Opening Expenses Gain/Loss on Disposal of Fixed Assets NI (Loss) Before Noncash Items Noncash Items Unrealized Gain/(loss) on Investments Unrealized Gain/(loss) on Swap Earned Non-refundable Entrance Fees Earned Refundable Fees Depreciation/Amortization Total Noncash Items Net Income (Loss) 391,440 141,931 354,075 40,791 (206,128) (56,952) (103,065) 98,339 4,666 665,098

Variance (193,573) (159,440) (411,184) (37,481) (178,149) 21,849 191,386 (136,449) (9,328) (912,370) (A) (B) (C) (D) (E) (F) (G) (H) (I)

Actual 3,720,902 879,930 2,027,691 354,059 (1,344,492) (459,774) (380,185) 401,542 45,549 5,245,221

Variance (1,000,088) (827,369) (3,316,078) (274,446) (1,050,330) 696,360 1,627,745 (1,399,007) (108,380) (5,651,593)

241,340 31,210 48,964 44,454 185,219 21,195 26,796 38,887 97,624 159,563 36,429 13,667 945,348

250,819 29,440 79,393 33,588 223,656 12,369 7,899 55,649 89,189 182,039 106,157 14,011 1,084,209

9,478 (1,770) 30,429 (10,866) 38,438 (8,826) (18,898) 16,763 (8,435) 22,476 69,728 344 138,861

(J) (K) (L) (M) (N) (O) (P) (Q) (R) (S) (T) (U)

2,160,153 337,153 580,270 538,848 1,897,904 214,565 119,856 424,908 417,206 1,398,716 336,532 141,860 8,567,972

2,494,438 322,952 712,764 336,641 2,098,979 136,058 87,073 487,242 307,117 1,576,666 811,308 138,287 9,509,525

334,285 (14,201) 132,493 (202,208) 201,075 (78,506) (32,783) 62,334 (110,089) 177,950 474,776 (3,573) 941,553

109,501 14,871 42,185 61,218 227,775 1,173,123 (508,025) 66,583 (441,442) (1,096,685) 100 (1,538,027)

98,122 23,016 42,139 63,379 226,657 1,310,865 266,603 61,184 327,787 (1,090,956) (763,169)

(11,379) 8,145 (46) 2,161 (1,119) 137,742 (774,628) 5,399 (769,229)

(V) (W) (X) (Y)

1,093,146 154,148 453,000 687,921 2,388,214 10,956,186 (5,710,965)

1,063,418 244,412 463,524 697,173 2,468,527 11,978,052 (1,081,237) 692,735 (388,503) (12,515,077) (12,903,580)

(29,728) 90,264 10,524 9,253 80,313 1,021,866 (4,629,727) 35,040 (4,594,687) 147,997 (16,190) 3,800 (4,459,081)

(Z)

727,775 (4,983,190) (12,367,081) (16,190) 3,800 (17,362,660)

(5,729) (AA) 100 (BB) (774,858)

186,003 (684,113) (498,110) (2,036,137)

186,003 210,804 (674,660) (277,853) (1,041,022)

(CC) (210,804) (CC) (9,453) (DD) (220,257) (995,115)

1,484,270 (7,525,245) (6,040,975) (23,403,636)

1,484,269 1,682,172 (6,454,266) (3,287,825) (16,191,405)

1 (1,682,172) (1,070,979) (2,753,150) (7,212,231)

23
21

The Amsterdam at Harborside Income Statement Summary Explanations November 2011

OPERATING REVENUE: A. IL Monthly Service Fees had an unfavorable variance of ($193,573) due to average occupancy being 40.9 units under budget and lower weighted average occupancy in the larger units. EH Monthly Service Fees had an unfavorable variance of ($159,440) primarily due to average occupancy being 12.2 units below budget in Enriched Housing and 11.0 units below in Memory Support. SN Monthly Room & Board Per Diems had an unfavorable variance of ($411,184) due to average occupancy being 23.6 units below budget. Second Person Fees had an unfavorable variance of ($37,481) due to average second persons being 30.9 units below budget. Life Care Credits had an unfavorable variance of ($178,149) due to higher first and second person transfers from IL to Skilled Nursing, Enriched Housing and Memory Support. Monthly Service Fee Credits had a favorable variance of $21,849 due to lower than budgeted credits for 50% plans, home carrying cost credits, bridge loan credits and redesign credits. These were partially offset by higher than budgeted free months, Referral Credits, SN Credits, Promotional Credits and AL and MS Monthly Discounts. Contractual Adjustments had a positive variance of $191,386 due to lower than budgeted Medicare census. SN Ancillary & Therapy Revenues had an unfavorable variance of ($136,449) due to lower than budgeted census. Other Revenue had an unfavorable variance of ($9,328) primarily due to lower than budgeted Additional Resident Meal Revenue, Guest Meals Revenue, Housekeeping Services Revenue, Maintenance Services Revenue, and Laundry Services Revenue.

B.

C. D. E.

F.

G. H. I.

DEPARTMENTAL EXPENSES: J. Administrative Services had a favorable variance of $9,478 consisting of $38,202 in Employee Benefits, $11,703 in Payroll Tax, $1,447 in Workers Compensation, $1,710 in Employee Recruitment, $5,704 in Employee Unemployment Insurance and $2,160 in Telephone Service. The variance in Employee Payroll Taxes was due to lower overall staffing than budgeted. The variance in Workers Compensation is due to lower premiums. The variance in Employee Benefits is due to employees waiving medical benefits as they are still covered under their parents and lower staffing than budgeted. The variance in Employee Unemployment Insurance was due to timing. These positive variances were partially offset by negative variances of ($39,777) in Legal & Professional Fees, ($8,899) in Management Company Travel Expense, ($2,045) in Copier/fax/printer Supplies, and ($2,470) in Contract Services. The variance in Copier/fax/printer Supplies was due to Copier Overage, the variance in Contract Services was due to AOD support services, the

24
22

The Amsterdam at Harborside Income Statement Summary Explanations November 2011

variance in Legal & Professional Fees was due to legal work done for a residents case and Medicaid Rate Submission and the variance in Management Company Travel was due to higher than budgeted travel. K. Resident Services had an overall unfavorable variance of ($1,770) due to a negative variance of ($2,317) in Contract Services. This variance in Contract Services was due to expenses being higher than budgeted related to Community Resident activities during the month. This was partially offset by a positive variance of $1,108 in Entertainment related to less than budgeted expenses. Enriched Housing had a favorable variance of $30,429 due to positive variances in Salaries & Wages of $28,197 from lower wage rates and staffing than budgeted as a result of the lower census. Building Maintenance had an unfavorable variance of ($10,866) due to negative variances Electrical R&M of ($5,803), HVAC R&M of ($3,461), Appliance R&M of ($1,379), Floor/carpet R&M of ($1,150), Plumbing R&M of ($2,792) and Contract Services of ($1,816). The variance in Electrical R&M was due to kitchen and Skilled Nursing electrical repairs. The variance in HVAC R&M was due to repairs being higher than budgeted. The variance in Appliance R&M was due to dishwasher and oven warmer repairs. The variance in Floor/Carpet R&M was due to the cleaning of Dining Room carpeting. The variance in Plumbing R&M was due to sewer treatment and boiler repairs. The variance in Contract Services was due to timing of invoices. These negative variances were partially offset by positive variances of $1,030 in Pool Supplies & Maintenance, $2,944 in Salary & Wages, $2,414 in Other R&M, and $1,717 in Elevator R&M. These were all due to lower than budgeted expenses. Dining Services had a favorable variance of $38,438 primarily due to lower than budgeted Salaries & Wages of $26,673 resulting from lower staffing and Raw Food Costs of $14,778 due to lower census. Linens/Laundry had a positive variance of $2,482 partially offset by negative variances in Employee Uniforms & Allowance of ($2,790) which was budgeted in Linens/Laundry as well as higher than budgeted Decorations of ($1,162) related to the purchase of flowers for the Dining Room. Emergency System Services had an unfavorable variance of ($8,826) due to Alarm/Fire Safety System R&M of ($7,081) resulting from a higher than budgeted fire sprinkler inspection agreement and fire alarm system maintenance agreement as well as repairs to the card access system for the employee entrance. There was also a negative variance in Contract Security Services of ($1,814) due to higher than budgeted security costs. Grounds Maintenance Services had a negative variance of ($18,898) due to a negative variance in Snow Removal Services of ($16,417) due to a higher than budgeted snow removal contract as well as Contract Services of ($3,511) which resulted from maintaining grounds outside the scope of the agreement and fall plantings. These negative variances were partially offset by a positive variance in Salaries & Wages of $1,392 resulting from a vacant position.

L.

M.

N.

O.

P.

25
23

The Amsterdam at Harborside Income Statement Summary Explanations November 2011

Q.

Housekeeping Services had a favorable variance of $16,763 primarily due to Salaries & Wages of $15,378 due to lower staffing than budgeted resulting from lower occupancy, $1,030 in Paper & Plastic Supplies and $1,717 in Contract Services. Marketing Services had an unfavorable variance of ($8,435) primarily due to higher marketing costs to spur move-ins in all levels of care. Skilled Nursing had a favorable variance of $22,476 primarily due to Salaries & Wages of $45,670 due to lower staffing resulting from a slower fill, and a favorable variance in Medicare Consulting of $1,030 due to timing. This was partially offset by an unfavorable variance in Contract Labor of ($22,138) for additional staffing and Linens/Laundry of ($1,762) which was higher than budgeted. Ancillary and Therapy had a favorable variance of $69,728 primarily due to lower than budgeted Skilled Nursing census as well as timing of invoice payment. Transportation Services had a favorable variance of $344 resulting from Salaries and Wages of $7,463 which was offset by Contract Services of ($7,504) related to valet parking for the Community.

R. S.

T. U.

OTHER OPERATING EXPENSES: V. Utilities had a negative variance of ($11,379) primarily due to a negative variance in Electricity of ($14,259) due to higher than budgeted electricity expenses. This was partially offset by a positive variance of $1,787 in Waste Management Contract. Insurance had a favorable variance of $8,145 due to actual premiums being less than budget primarily with the Directors/Officers Liability Insurance as well as the General and Professional Liability Insurance. Taxes & HOA Fees were consistent with budget. Management Fees had a positive variance of $2,161 primarily due to lower than budgeted Management Fees. Investment Income had a favorable variance of $5,399 due to higher than budgeted interest income on the Debt Service Reserve Funds B and C partially offset by lower than budgeted interest income on the Operating Reserve and Entrance Fee Fund.

W.

X. Y. Z.

AA. Long Term Debt Expenses had an unfavorable variance of ($5,729) due to higher than budgeted LOC and Remarketing Fees. BB. Gain/Loss on Disposal of Fixed Assets were consistent with budget. CC. Earned Entrance Fees had a negative variance of ($210,804). Based on discussions between Management, the Sponsor and Amsterdams auditors, Amsterdam determined that it cannot record entrance fee amortization on the refundable portion of the entrance fees. This variance will continue. DD. Depreciation/Amortization had a negative variance of ($9,453) due to recording Capitalized Marketing amortization for January and February. Based on discussions

26
24

The Amsterdam at Harborside Income Statement Summary Explanations November 2011

between Management, the Sponsor and Amsterdams auditors, Amsterdam determined Capitalized Marketing amortization should be recorded from the date of opening, however, the budget planned for amortization to begin in September 2011. This variance will continue.

27
25

28
26

The Amsterdam at Harborside Comparative Balance Sheet

As of November 30, 2011

UNAUDITED
Current __ h Month Cash Petty Cash Operating Account - Roslyn Operating Account - Employee Appreciatio Cash Development Cash - Priority Deposits Cash - Conversion Deposits Cash - Security Deposits Cash - Wait List Deposits Cash - Control Acct Resident Upgrade Acct Total Cash and Cash Deposits A/R Residents Accounts Receivable Allowance for Doubtful Accounts Accounts Receivable - Med A Accounts Receivable - Med B Accounts Receivable - HMO/Insurance Accounts Receivable - CoInsurance Net A/R Residents Other Receivables Accounts Receivable - Intercompany Accounts Receivable - Other Accounts Receivable - Entrance Fee Due F Accounts Receivable Coinsurance Clearing Accrued Int. - Interest Fund Accrued Int. - Spec Int Fund Accrued Int. - DSR A Accrued Int. - DSR B Accrued Int. - DSR C Accrued Int. - DSR D Accrued Int. - Project Fund Accrued Int. - COI Fund Accrd Int Inc - Entrance Fees Accrd Int Inc - Working Capital Fund Accrd Int Inc - Operating Reserve Accrued Int. Rec. - Optional Redemp Fund Accrued Int. Rec. - Leasehold Accrued Int. Rec - Other Total Other Receivables Total Receivables Inventory Inventory Total Inventory Deposits Deposit - Utilities Total Deposits Prepaid Expenses Security Deposits Prepaid Expense - Development Prepaid Expense Prepaid - Insurance Prepaid Payroll Prepaid Taxes Total Prepaid Expenses Total Current Assets 750 811,159 124,810 5,591,149 54,100 (81,279) 6,500,689 Prior
__ h Month

Variance 908,955 40,405 805,127 54,100 (124,729) 1,683,858 46,033 50,986 9,035 15,612 121,666

750 (97,796) 84,405 4,786,022 43,450 4,816,831

93,822 668,106 29,682 114,522 906,132

47,789 617,120 20,647 98,911 784,466

599,995 1,415 0 233,629 8,532 90,734 934,305 1,840,437

27,382 1,415 0 186,904 6,826 72,587 295,113 1,079,579

(27,382) 599,995 46,726 1,706 18,147 639,192 760,858

20,467 20,467

16,747 16,747

3,720 3,720

228,126 90,455 80,877 399,458 8,761,052

298,887 28,751 46,645 374,282 6,287,439

(70,761) 61,704 34,233 25,176 2,473,612

29 27

The Amsterdam at Harborside Comparative Balance Sheet

As of November 30, 2011

UNAUDITED
Current __ h Month Fixed Assets Total CIP Land Land - EH Land - SN Land Improvements Land Improvements - EH Land Improvements - SN Buildings Buildings - EH Buildings - SN Building Improvements Building Improvements - EH Builiding Improvments - SN Equipment - Fixed Equipment - Fixed - EH Equipment - Fixed - SN Equipment - Movable Equipment - Movable - EH Equipment - Movable - SN Computers - Hardware & Software Computers - Hardware & Software #N/A Furniture & Fixtures Furniture & Fixtures - EH Furniture & Fixtures - SN Vehicles Vehicles - EH Vehicles - SN Total Fixed Assets Accumulated Depreciation Accum Depr - Land Improvements Accum Depr - Land Improvements EH Accum Depr - Land Improvements SN Accum Depr - Buildings Accum Depr - Buildings EH Accum Depr - Buildings - SN Accum Depr - Bldg. Improvements Accum Depr - Bldg. Improvements - EH Accum Depr - Bldg. Improvements - SN Accum Depr - Equipment Fixed Accum Depr - Equipment Fixed - EH Accum Depr - Equipment Fixed - SN Accum Depr - Equipment Movable Accum Depr - Equipment Movable - EH Accum Depr - Equipment Movable - SN Accum Depr - Computers Accum Depr - Computers - EH Accum Depr - Computers - SN Accum Depr - Furn & Fixtures Accum Depr - Furn & Fixtures - EH Accum Depr - Furn & Fixtures - SN Accum Depr - Vehicles Accum Depr - Vehicles - EH Accum Depr - Vehicles - SN Total Accumulated Depreciation Net Fixed Assets 2,150,164 19,058,908 1,767,825 1,527,162 7,178,262 665,826 575,184 190,671,104 13,445,402 11,630,407 31,225 53,003 9,934 12,643 645,471 52,732 91,006 285,963 34,588 51,651 1,471,044 278,959 355,039 102,397 19,675 25,040 250,040,450 (119,047) (11,042) (9,539) (6,840,221) (111,435) (96,369) (1,143) (220) (280) (66,168) (1,749) (2,801) (62,322) (2,295) (2,920) (364,171) (9,253) (11,776) (34,293) (1,305) (1,661) (7,750,010) 242,290,440 Prior
__ h Month

Variance (1,861,187) (478,358) (5,071) (4,500) (28,729) (2,500) (519,158) (519,158)

4,011,351 19,058,908 1,767,825 1,527,162 7,178,262 665,826 575,184 190,671,104 13,445,402 11,630,407 31,225 53,003 9,934 12,643 645,471 52,732 91,006 285,963 34,588 51,651 1,471,044 278,959 355,039 102,397 19,675 25,040 250,040,450 (119,047) (11,042) (9,539) (6,361,863) (111,435) (96,369) (1,143) (220) (280) (61,097) (1,749) (2,801) (57,822) (2,295) (2,920) (335,442) (9,253) (11,776) (31,793) (1,305) (1,661) (7,230,852) 242,809,598

30 28

The Amsterdam at Harborside Comparative Balance Sheet

As of November 30, 2011

UNAUDITED
Current __ h Month Intangible Assets Deferred Financing Costs Deferred Financing Costs - EH Deferred Financing Costs - SN Capitalized Marketing Total Intangible Assets Accum Depreciation - DFC Accum Depreciation - DFC - EH Accum Depreciation - DFC - SN Accum Amort - Captzld Marketing Total Accumulated Amortization Net Intangible Assets Restricted Assets Cap Int Acquisition Loan Cap Int Building Loan Cap Int Project Loan Building Loan Fund Project Loan Fund Debt Service Reserve A Debt Service Reserve B Debt Service Reserve C Debt Service Reserve D Cost of Issuance Fund Acquisition Loan REIM 2007C REIM 2007D Project Fund Debt Serv 2007C Debt Serv 2007D Debt Serv 2007A Debt Serv 2007B Purchase 2007 Pledge Collateral/MMA Acct Entrance Fee Fund Operating Reserve Series C Redemption Fund Series D Redemption Fund Total Restricted Assets Total Assets 13,451,384 1,019,893 888,015 11,882,733 27,242,024 (709,083) (12,986) (11,307) (1,716,255) (2,449,631) 24,792,393 Prior
__ h Month

Variance (48,892) (114,417) (163,309) (163,309)

13,451,384 1,019,893 888,015 11,882,733 27,242,024 (660,191) (12,986) (11,307) (1,601,838) (2,286,322) 24,955,702

1,896 0 13,696,385 467,499 4,872,594 460,602 56 80 24 3,230,324 4,817,799 48 79 11,249,245 6,632,817 45,429,449 323,423,498

1,896 0 13,696,385 467,499 4,872,594 460,602 56 80 24 3,230,324 3,854,268 48 79 14,599,244 5,694,867 46,877,967 324,942,058

963,531 (3,350,000) 937,950 (1,448,519) (1,518,560)

31
29

The Amsterdam at Harborside Comparative Balance Sheet

As of November 30, 2011

UNAUDITED
Current __ h Month Accounts Payable Accounts Payable - Development Accounts Payable - Trade Accounts Payable - Other Due to/from Amsterdam Nursing Employee Appreciation Fund Pay Due to/from Operations Due to/from Development Retainage Payable State Sales Tax Swap Asset/Liability Total Accounts Payable Resident Current Liabilities Priority Deposits Refundable Pending Refunds Liability Resident Refunds Due Conversion Deposits Refundable Security Deposits AL & SN Wait List Deposit Liability Wait List Deposit Interest Accrual Conversion Deposit Interest Accrual Refundable EH Deposit Liability Total Resident Current Liabilities Payroll Related Current Liabilities Accrued Payroll Costs Accrued Employer Payroll Taxes Accrued Employee Deductions Employee Federal Withholding Tax Liab Employee State Withholding Tax Liab Employee Local Withholding Tax Liab FICA Tax Liability Accrued PTO Total Payroll Related Current Liabilities Accrued Expenses Accrued Expenses - Development Accrued Bond Interest Expense Accrued Bond Interest Expense - Variable Accrued Subordinated Loan Int Accrued Operating Expenses Accrued Audit Fees Accrued Amsterdam Mgmt Fee Accrued Bonuses Accrued Remarketing Fees Accrued LOC Fees Total Accrued Expenses Total Current Liabilities Entrance Fee Liability Refundable Resident Deposit Liability Non-refundable Entrance Fees Accum Amort - Refundable Residency Fee Acc. Amort. Non-refundable Ent. Fees Total Entrance Fee Liability 62,351 210,023 124,810 182 (182) 1 397,186 Prior
__ h Month

Variance (29,892) (51,724) 40,405 (3,101,145) (3,142,356)

92,243 261,748 84,405 182 (182) 3,101,145 1 3,539,542

100 3,650,836 6,495 196,942 72,355 3,926,728

100 4,265,554 6,495 260,938 72,855 4,605,942

(614,718) (63,996) (500) (679,214)

149,163 10,746 4,022 1,135 0 115,122 280,189

137,953 10,250 4,373 24,364 9,431 2,046 27,767 109,582 325,765

11,210 496 (350) (24,364) (8,295) (2,046) (27,766) 5,540 (45,576)

2,370,871 4,817,655 1,757,092 288,144 71,508 365,750 29,637 9,700,657 14,304,760

1,273,585 3,854,124 1,757,092 329,038 91,670 332,500 19,867 7,657,876 16,129,126

1,097,286 963,531 (40,895) (20,162) 33,250 9,771 2,042,781 (1,824,366)

72,319,590 16,515,790 (1,676,074) 87,159,306

70,172,235 16,136,845 (1,490,071) 84,819,009

2,147,355 378,945 (186,003) 2,340,297

Long Term Debt Long Term Debt - Subordinated Note Bonds Payable Original Issue Discount Accum Amort - Original Issue Discount Total Long Term Debt Total Liabilities Equity Equity - Cash Net Assets Net Income Total Equity Total Liabilities & Equity

3,000,000 254,015,000 (263,733) 24,690 256,775,957 358,240,023

3,000,000 254,015,000 (263,733) 23,044 256,774,311 357,722,446

1,646 1,646 517,577 (2,036,137) (2,036,137) (1,518,560) -

2,500 (11,415,389) (23,403,636) (34,816,525) 323,423,498

2,500 (11,415,389) (21,367,499) (32,780,388) 324,942,058

32
30