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

Leadership and organizational strategy

• CEO brings extensive operational experience from military, hospitality, and senior healthcare sectors, emphasizing a shift to an operating-focused model.

• Recent hires include a COO and SVP of Strategic Operations to centralize pricing, CapEx, and drive operational excellence.

• Regional structure reorganized into six VPO-led teams, with sales and clinical teams now reporting regionally to enhance accountability and execution.

• Executive directors are empowered as key leaders, with increased support, training, and accountability.

• Leadership is actively engaging with communities and executive directors to foster a more offensive, market-driven culture.

Market dynamics and industry outlook

• Demand for senior living is rising as baby boomers age, while new supply remains constrained by high costs and regulatory hurdles.

• New construction faces long lead times and higher price points, creating a competitive moat for existing operators.

• Current supply-demand imbalance is expected to persist for several years, supporting favorable occupancy trends.

• New entrants target higher price segments, reducing direct competition for existing communities.

Operational performance and occupancy trends

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

• Occupancy reached 82.1% in February, up 280 bps year-over-year, with recent sequential declines attributed to seasonality and weather disruptions.

• Centralized pricing and analytics enable targeted rate actions by unit and care type, optimizing occupancy and revenue.

• Rate increases have led to slight upticks in move-outs, but overall economics remain positive.