Brookdale's Investor Presentation: A Clear Roadmap for Long-Term Shareholder Success

Brookdale Senior Living Inc. Highlights Successful Investor Strategy

Brookdale Senior Living Inc. (NYSE: BKD) has recently filed an investor presentation detailing its strategic approach to creating long-term value for shareholders. With the upcoming 2025 Annual Meeting scheduled for July 11, the company’s Board of Directors and management team are keen to communicate their accomplishments and future goals.

A Refreshing Change at the Helm

In recent years, Brookdale has significantly refreshed its Board, bringing in leaders with strong skillsets and relevant experience critical for the company’s success. The Board is committed to strategic oversight, promoting sustainable growth while balancing the needs of both residents and investors. Notably, the presentation underscores the importance of rejecting attempts by Ortelius to gain control, which the company warns could lead to potential value wreckage and disrupt ongoing operations, including the vital search for a new CEO.

Strengthening Operations and Financial Performance

Brookdale has not only streamlined its operational processes but also reassessed its real estate portfolio. Their efforts include renegotiating leases for around 250 communities and cutting the number of leased units by 19% since Q1 2021. This strategy has yielded impressive results, with Brookdale achieving an Adjusted EBITDA Margin of over 11% in 2023 and 12% in 2024. The operational improvements contributed to positive Adjusted Free Cash Flow in the latter half of 2024, and expectations for 2025 project a range of $30 to $50 million.

The company has seen a remarkable increase in Adjusted EBITDA, rising 27.2% year-over-year in Q1 2025, with a noteworthy reduction in leverage—approximately 10 times lower than 2022 pandemic highs. With a weighted average occupancy of 80.6% and strong demand demographics, Brookdale is well-positioned for scaling its operations efficiently.

A Strategic Blueprint for Future Success

Brookdale has identified five key initiatives to enhance shareholder value further, which include optimizing its real estate holdings, reinvesting in communities, lowering debt levels, improving operational performance, and guaranteeing high-quality living conditions for residents. Each of these areas is vital to ensuring that shareholders see a return on their investments while maintaining the integrity of Brookdale's mission to serve seniors effectively.

Call to Action for Shareholders

As the company prepares for its Annual Meeting, Brookdale strongly urges shareholders to support its current Board nominees by voting “FOR” only those listed on the BLUE proxy card. The current proposal reflects the collective experience and commitment to executing a vision specifically catered to Brookdale's unique market position. Shareholders are reminded that their vote is essential, regardless of the number of shares held, and should disregard any conflicting proxy materials from opposing parties.

In concluding the presentation, Brookdale states the importance of maintaining a cohesive and knowledgeable Board to guide the company effectively during its transition period post-CEO search. Given the recent Board empowerment and its positive strategic outlook, Brookdale remains focused on delivering value while serving the growing senior community.

Looking Ahead with Confidence

Guided by principles of partnership and trust, Brookdale is focused on redefining senior living for a healthier, brighter future. With a portfolio that includes 647 communities across 41 states, the company strives to harmonize operational effectiveness with the enrichment of senior lives. Through strategic governance, Brookdale is committed to continuing its growth trajectory and maximizing shareholder returns in the years to come.

For more information, shareholders can visit Brookdale's dedicated voting page or reach out to their proxy solicitor for assistance in the voting process.

Brookdale Senior Living remains at the forefront of delivering compassionate care and exceptional service, empowering seniors to live meaningful lives.