Brookdale Senior Living (BKD) RBC Capital Markets Global Healthcare Conference 2025 summary

Occupancy and operational performance

• Achieved flat sequential occupancy at 80% in Q1 2025, surpassing typical seasonal declines and marking a key milestone for covering fixed costs.

• Year-over-year move-ins increased by 3%, with move-outs down 3%, and high-performing communities contributed to portfolio gains.

• Internal marketing spend replaced disrupted third-party lead sources, driving improved occupancy trends into April.

• Strategic pricing adjustments and targeted efforts are underway to lift underperforming communities above 70% occupancy.

• Expectation for continued occupancy momentum through 2025.

Portfolio optimization and real estate strategy

• Ongoing exit from 55 Ventas communities and 14 additional non-core assets by end of 2025 to streamline operations.

• Recent acquisitions of 41 leased properties refinanced to lower fixed mortgage costs, enhancing flexibility for future dispositions.

• Majority-owned portfolio expected to reach 75% by year-end, with further modest asset dispositions anticipated.

• Lease portfolio improvements include landlord-funded CapEx exceeding $140 million and favorable lease terms.

• Most leases have fixed escalators, with minimal near-term maturities before 2028.

Health Plus initiative and value creation

• Health Plus program, focused on holistic, technology-enabled care, rolled out to 80 communities with 58 more planned in 2025.

• Health Plus communities show higher occupancy growth and 20 percentage points lower healthcare staff turnover.

• Program reduces unnecessary urgent care visits and supports rent growth through payer reimbursement sharing.

• Health Plus communities demonstrate stronger NOI growth and lower turnover than non-participating sites.