Brookdale Senior Living Inc. · NYSE:BKD
Brookdale Senior Living — Q4 2024 Earnings Presentation
38 slides from Brookdale Senior Living's earnings presentation, Feb 19, 2025
Slide 1: Investor Presentation February 18, 2025
Investor Presentation February 18, 2025
Slide 2: Forward-Looking Statements – Safe Harbor
Forward-Looking Statements – Safe Harbor Certain statements in this Investor Presentation may constitute forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. These forward-looking statements are subject to various risks and uncertainties and include
Slide 3: About Brookdale
About Brookdale v BROOKDALE a4 SENIOR LIVING
Slide 4: Leading senior living operator in the United States
Leading senior living operator in the United States Brookdale is the nation‘s premier operator of senior living communities, with communities in 41 47 states and the ability to serve approximately 58,000 residents. We offer a broad continuum of services across various sectors of the senior living in
Slide 5: Tailored product lines support a diverse range of needs
Tailored product lines support a diverse range of needs Independent Living (IL) Memory Care (MC) Our independent living communities are ideal Our memory care program is rooted in a for older adults who desire to live in a person-centered approach that preserves residential setting that feels like ho
Slide 6: Varied community types in markets with rapidly growing senior population
Varied community types in markets with rapidly growing senior population 647 Communities across 41 States Industry Mix(2) Brookdale Mix(1) 51% SNF SNF 9% 2% AL 37% IL IL 25% 40% AL MC 56% 14% MC 73% 17% Brookdale is 22% higher in needs-based AL & MC Consolidated Portfolio: Units Broad Range of Commu
Slide 7: Commitment to growth and excellence through 2025 strategic priorities
Commitment to growth and excellence through 2025 strategic priorities Health and Well-Being of Residents and Associates Get every available unit in Attract, engage, develop and Earn resident and family trust service at the best profitable retain the best associates and satisfaction by providing rate
Slide 8: 4Q 2024 Results & 2025 Guidance
4Q 2024 Results & 2025 Guidance
Slide 9: Achieved significant 2024 progress against key strategic priorities
Achieved significant 2024 progress against key strategic priorities Get every available unit Attract, engage, develop and Earn resident and family trust in service at the best retain the best associates and satisfaction by providing profitable rate valued, high-quality care and personalized service
Slide 10: Intense focus on profitable occupancy growth
Intense focus on profitable occupancy growth Consolidated RevPAR & Weighted Average Occupancy(1) 980 bps growth since inflection point in March 2021 85% $5,000 $4,600 80% March 2021 – Pandemic recovery inflection point $4,200 75% $3,800 70% $3,400 65% $3,000 Mar21 2Q21 3Q21 4Q21 1Q22 2Q22 3Q22 4Q22
Slide 11: Positive Adjusted EBITDA growth momentum continues into 2025
Positive Adjusted EBITDA growth momentum continues into 2025 Execution of Strategic Priorities is Delivering Solid Adjusted EBITDA Growth Expectations Meaningful Adjusted EBITDA Growth for 2025 (mm) (mm) YoY Growth $430 - $445 $120 2023 2024 $450 2024 +15% 2025 +11% - 15% +10% +20% +15% +15% $400 $3
Slide 12: Capital structure anchored in attractive fixed-rate, non-recourse mortgages
Capital structure anchored in attractive fixed-rate, non-recourse mortgages $0M 73% 88% 91% mortgage debt maturities of debt is non-recourse of variable rate debt is of debt is fixed rate debt without extension options property-level mortgage subject to interest rate with 27% variable through June 2
Slide 13: Meaningful leverage reduction on significant Adjusted EBITDA growth
Meaningful leverage reduction on significant Adjusted EBITDA growth As Adjusted EBITDA has grown, Annualized Leverage has improved (mm) (mm) Pandemic Impact $450 Begins $4,500 91.4x $400 $4,000 $350 $3,500 70.0x $300 $3,000 $250 $2,500 45.8x 46.1x $200 38.4x 9.9x $2,000 adjusted(1) $150 23.5x $1,500
Slide 14: Recently Announced Transactions
Recently Announced Transactions
Slide 15: Summary of previously announced planned acquisition transactions
Summary of previously announced planned acquisition transactions Brookdale continues to successfully grow percentage of owned units • 41 communities (2,789 units) • Improves Brookdale’s Adjusted EBITDA and Adjusted Free Cash Flow • Enables Brookdale to fully capitalize on powerful multi-year industr
Slide 16: Summary of Ventas master lease amendment, executed December 2024
Summary of Ventas master lease amendment, executed December 2024 Amended lease expected to generate significant benefits to Brookdale in the near- and long-term Key Terms Benefits of Amended Lease Renewal Portfolio Improves Company’s 2025 cash flows with • 65 high-performing communities (4,055 uni
Slide 17: Long-Term Organic Growth Opportunity
Long-Term Organic Growth Opportunity
Slide 18: Key Drivers of Long-Term Organic Growth
Key Drivers of Long-Term Organic Growth Limited Rapidly Brookdale’s New Growing Unique Supply Demographic Differentiators Less New Greater Competitive Competition Demand Advantage
Slide 19: Macroeconomic factors have influenced pace of industry development
Macroeconomic factors have influenced pace of industry development … ●Higher cost materials ● Labor shortage ● Elevated interest rates ● Tighter credit conditions ● Higher cost materials ● Labor market challenges ● Elevated interest rates ● Tight credit conditions Fed funds rate is now in a range of
Slide 20: Extremely few competitive communities under construction
… which has led to extremely few competitive communities under construction Inventory growth currently Lower starts and opens reflect the continued at near record lows(1) deceleration in construction activity Inventory Growth New Starts and Opens(2) in NIC Primary Markets(1) (k) In NIC markets natio
Slide 21: Age-driven demand for senior living is growing
Age-driven demand for senior living is growing … ● Higher cost materials ● Labor shortage ● Elevated interest rates ● Tighter credit conditions Demographic Trends Target Population(3) >1 million new seniors enter 30% of Brookdale move-ins are (mm) +58% (5 yrs.) target market age cohort every under a
Slide 22: Difficulties experienced by older adults are on the rise
… and difficulties experienced by older adults are on the rise Higher Acuity Needs: Higher Acuity Needs: Alzheimer's in the US(3) Chronic conditions in residential care(2) 70% of adults age 65+ Higher High Blood Pressure develop severe need of (mm) +39% High Blood Pressure Acuity long-term services
Slide 23: Senior living improves affordability of support for an aging population
Senior living improves affordability of support for an aging population Brookdale Senior Living is a strong value proposition 66% of total net 93% increase in median Health and Wellness wealth in U.S. is held income for households by Baby Boomer and headed by person aged Silent generations(2) 65+ fr
Slide 24: Brookdale is differentiated within a highly fragmented industry
Brookdale is differentiated within a highly fragmented industry Well Recognized Leadership Position Highly fragmented (3) competitive landscape with ~2,500 operators, ~90% of which operate five or fewer communities(1) Earned most senior living community recognitions in 2022, 2023 and 2024 Strong Cli
Slide 25: Industry-leading clinical expertise through programs like Brookdale HealthPlus
Industry-leading clinical expertise through programs like Brookdale HealthPlus® Benefits Community-Based, Care Coordination Proactive Care Coordination – Proactive assistance with and management of preventive healthcare That’s Brookdale HealthPlus® services, like annual wellness visits, immunization
Slide 26: Sustainable Organic Growth Potential for Years to Come
Sustainable Organic Growth Potential for Years to Come
Slide 27: Robust revenue opportunity from continued occupancy recovery
Robust revenue opportunity from continued occupancy recovery Returning to pre-pandemic occupancy Achieving our historic occupancy high of 84.5% would drive at least $190M of of 89.0% would drive at least $360M of incremental revenue(1) incremental revenue(1) Brookdale Quarterly Weighted Average Occu
Slide 28: On a clear path to achieving operating income growth potential
On a clear path to achieving operating income growth potential (billions) Senior Housing Revenue(1) Returning to pre-pandemic occupancy and operating margin would deliver $3.4 $3.2 $3.0 significant Operating Income Growth $2.9 $2.6 Key Considerations Represents annualized revenue impact of returning
Slide 29: Brookdale is a solid long-term investment option
Brookdale is a solid long-term investment option Nation’s premier operator of senior living communities known for Strong Brand and Leadership clinical expertise and for providing exceptional care and services to older adults and their families Brookdale’s innovative initiatives combined with unprece
Slide 30: Appendix & Endnotes
—— & Endnotes t as BROOKDALE SENIOR LIVING
Slide 31: Appendix: Definitions and Non-GAAP Financial Measures
Appendix: Definitions and Non-GAAP Financial Measures Definitions Operating Income is defined by the Company as resident fee revenue and other operating income less facility operating expense. Operating Income does not include general and administrative expense or depreciation and amortization. Oper
Slide 32: Appendix: Non-GAAP Financial Measures – Adjusted EBITDA
Appendix: Non-GAAP Financial Measures Adjusted EBITDA — Definition and Reconciliation Adjusted EBITDA is a non-GAAP performance measure that the Company defines as net income (loss) excluding: benefit/provision for income taxes, non- operating income/expense items, and depreciation and amortization;
Slide 33: Appendix: Non-GAAP Financial Measures – Adjusted Free Cash Flow
Appendix: Non-GAAP Financial Measures Adjusted Free Cash Flow — Definition and Reconciliation Adjusted Free Cash Flow is a non-GAAP liquidity measure that the Company defines as net cash provided by (used in) operating activities before: distributions from unconsolidated ventures from cumulative sha
Slide 34: Appendix: Adjusted EBITDA after cash financing lease payments and Net Debt
Appendix: Non-GAAP Financial Measures Adjusted EBITDA after cash financing lease payments and Net Debt — Definition and Reconciliations Net Debt is a non-GAAP financial measure that the Company defines as the total of its debt and the outstanding balance on the line of credit, less unrestricted cash
Slide 35: Appendix: Reconciliations (continued)
Appendix: Non-GAAP Financial Measures Adjusted EBITDA after cash financing lease payments and Net Debt — Reconciliations (continued) For the twelve months ended: 2022 2023 2024 (i n mi l l i ons ) Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Net income (loss) $ (91.1) $ (91.8) $ (294.4) $ (238.3) $ (182.9) $
Slide 36: Endnotes
Endnotes Slide Reference 1. National Investment Center for Seniors Housing & Care (NIC) IL, AL, and MC units, NIC Supply Set 4Q 2024 4 2. Brookdale’s Senior Housing segments’ resident fees for the trailing 12 months ending December 31, 2024 3. “2024 Largest 150 Providers Report” Argentum, June 2024,
Slide 37: Endnotes
Endnotes Slide Reference 1. For Assisted Living, Brookdale average monthly RevPOR for AL and MC units in 2023; for Nursing Home and Home Health Aide, 2023 median national costs for nursing home private room and home health aide calculated per month and rounded to nearest hundred, from "Cost of Care
Slide 38: Endnotes: Normal Seasonality Sequential View
Endnotes Normal Seasonality Sequential View 1Q 2Q 3Q 4Q Lower due to increased Historically highest Generally remains flat to Begins to turn positive Occupancy Sequential Change incidence and severity of sequential growth period of slightly positive to third toward end of quarter flu the year quarte
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