Brookdale Senior Living (BKD) Barclays 27th Annual Global Healthcare Conference summary

Company overview and market positioning

• Operates approximately 650 senior living communities in 41 states, serving about 58,000 residents, with 70% focused on assisted living and memory care.

• 94% of revenue is private pay, reducing exposure to Medicare/Medicaid changes.

• Known for clinical capabilities and innovative care models, addressing needs of an aging population and loneliness epidemic.

• Improved capital structure and strong fourth quarter move-ins provide momentum for continued growth.

Occupancy trends and outlook

• Recovered nearly 700 basis points of occupancy over three years, with 2025 guidance reflecting continued improvement.

• February saw unprecedented sequential occupancy growth, with year-over-year gains accelerating from 80 to 140 basis points between October and February.

• Confident in achieving at least 100 basis points occupancy growth for the full year.

• Focus on move-ins, improved attrition rates, and internal marketing effectiveness drive gains.

Financial performance and cost structure

• RevPAR is 18% higher and same-store operating income per unit is 8% higher than 2019 levels.

• Incremental occupancy above fixed cost thresholds yields significant cash flow benefits.

• Internal marketing spend is more efficient and delivers better ROI compared to third-party referrals.

• Positive free cash flow expected to improve in 2024 and 2025, with capital focused on associates, communities, and revenue-enhancing CapEx.