Brookdale Senior Living (BKD) Stephens 26th Annual Investment Conference | NASH2024 summary

State of the business and recent actions

• Consistent occupancy and RevPAR growth are driving improved cash flow and recovery from the pandemic.

• Recent acquisitions of leased portfolios provide flexibility and attractive returns.

• Demographic tailwinds and constrained supply are expected to propel future growth.

• Advocacy efforts focus on affordability and healthcare worker availability, including potential policy changes for FSAs/HSAs.

• Studies show residents in senior living have better health outcomes and lower healthcare utilization.

Strategic planning and financial outlook

• 2024 saw 15% adjusted EBITDA growth and 31% adjusted free cash flow growth through Q3.

• 2025 is expected to continue this growth, with a focus on sustainable RevPAR and occupancy.

• Headwinds include insurance and health costs; tailwinds include demographic trends and improved associate retention.

• Interest rate changes have a significant impact, with 1% change equating to $13 million on variable debt.

• Majority of debt is fixed or hedged, with recent refinancing lowering average rates.

Workforce and retention

• Key leadership retention rates are around 70%, with hourly turnover better than comparable industries.

• Nurse turnover remains a challenge due to industry-wide shortages.

• Focus on onboarding, development, and hiring for cultural fit to improve retention.

• Advancement programs and support for citizenship applications help attract and retain talent.