Brookdale Senior Living (BKD) Barclays 28th Annual Global Healthcare Conference summary

Leadership and organizational strategy

• New CEO with extensive operations background has prioritized operational excellence and direct community engagement.

• Hired first COO in nearly a decade and an SVP of Strategic Operations to centralize pricing and CapEx deployment.

• Implemented a regional structure with six VPOs, each overseeing sales and clinical teams to drive accountability and performance.

• Emphasis on empowering executive directors at the community level through training, resources, and accountability.

• Management team actively visits communities and holds town halls to reinforce cultural and operational shifts.

Market dynamics and growth outlook

• Secular demand tailwinds from aging baby boomers and limited new supply are expected to drive occupancy growth.

• High construction costs, labor shortages, and zoning challenges have constrained new senior housing supply.

• New developments face higher price points, targeting a different customer segment than existing communities.

• Supply-demand imbalance is expected to persist for several years, supporting favorable industry dynamics.

Operational performance and occupancy trends

• Multi-year guidance targets mid-teens adjusted EBITDA growth, leveraging market-level strategies and operational excellence.

• Focus on cross-selling within markets and prioritizing operational excellence to capture demand.

• February occupancy at 82.1%, up 280 bps year-over-year, with seasonality and weather events impacting short-term trends.

• Recent rate increases led to slight move-out upticks, but are expected to benefit long-term economics.