Brookdale Senior Living (BKD) investor relations material

Business performance and strategy

• Achieved 80% average occupancy in Q2, marking a key inflection point for covering fixed costs and driving higher revenue flow-through.

• Improved leverage and cash flow, with no debt maturities until June 2026 and a shift to 70% owned assets by mid-next year.

• Portfolio rationalization ongoing, reducing from 645 to about 550 communities by mid-next year, focusing on higher-performing assets.

• Cash flow positive in Q1 and Q2, supported by favorable supply-demand dynamics as new senior housing supply remains low and demand rises.

• NOI per unit is ahead of pre-pandemic levels, with expectations to return to pre-pandemic margins as occupancy grows.

Occupancy, pricing, and margin management

• Targeting a return to pre-pandemic occupancy highs of 89%, with current same-community occupancy at 82.2%, up 260 basis points year-over-year.

• Dynamic pricing strategies are used, with more aggressive incentives for communities below 70% occupancy and focus on rate growth in higher-occupied communities.

• RevPOR growth year-to-date is 2.6%, outpacing expense growth of 2%; annual price increases are implemented company-wide each January.

• Social Security COLA, occupancy, NPS scores, and local competition all factor into individualized resident-level pricing decisions.

• Discounting and promotions are used strategically to drive move-ins, especially in underperforming communities, with a focus on profitable occupancy.

Innovation and resident care

• Brookdale HealthPlus, a proactive care coordination program, is being rolled out to 190 communities by year-end, showing 80% fewer urgent care visits and 66% fewer hospitalizations.

• HealthPlus communities see higher move-ins, better associate retention, and are expected to drive longer resident stays.

• Value-based care agreements with payors are being pursued, aiming for PMPM and incentive payments to offset HealthPlus costs.

• HealthPlus is delivered by existing staff with added RN care managers, enhancing care coordination and outcomes.