Brookdale Senior Living Inc. · NYSE:BKD
Brookdale Senior Living — Q1 2024 Earnings Presentation
31 slides from Brookdale Senior Living's earnings presentation, May 8, 2024
Slide 1: Investor Presentation May 7, 2024
Investor Presentation May 7, 2024
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 yf 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 a presence in 41 46 states and the ability to serve approximately 59,000 residents. We offer a broad continuum of services across various sectors of the senior living ind
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 seniors who desire to live in a residential person-centered approach that preserves setting that feels like home, w
Slide 6: Unique and varied community types
Unique and varied community types Expansive Footprint across 41 States Industry Mix(2) Brookdale Mix(1) 51% SNF SNF 9% 2% AL 37% IL IL 24% 40% AL MC 57% 14% MC 74% 17% Brookdale is 23% higher in needs-based AL & MC Brookdale has successfully grown its percentage of owned units Broad Range of Communi
Slide 7: Strategic priorities provide a road map to continued growth
Strategic priorities provide a road map to continued growth Health and Wellbeing of Residents and Associates Earn resident and family Get every available unit in Attract, engage, develop trust and satisfaction by service at the best and retain the best providing valued, profitable rate associates hi
Slide 8: Recent Growth and Expectations
Recent Growth and Expectations
Slide 9: Sustainable positive results continue in 2024
Sustainable positive results continue in 2024 Business Highlights and Recent Performance In 1Q 2024, Brookdale delivered: Consolidated RevPAR growth of 6.7% over 1Q 2023 and 5.1% Same Community over 4Q 2023 1Q 2024 Results Consolidated weighted average occupancy growth of 160 basis points over prior
Slide 10: Intense focus on growing RevPAR through Occupancy and Rate
Intense focus on growing RevPAR through Occupancy and Rate Consolidated RevPAR & Weighted Average Occupancy(1) 850 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 2
Slide 11: Positive Adjusted EBITDA momentum continues
Positive Adjusted EBITDA momentum continues 2Q guidance reflects headwind of partial 2Q Guidance Midpoint (mm) incremental year-over-year impact of Adj. EBITDA $95.5M change in lease classification $125 $100 $75 $50 $25 $0 1Q 2Q 3Q 4Q 2022 2023 2024 Lease Classifications Impact Provider Relief Fund
Slide 12: Guidance delivers meaningful Adjusted EBITDA growth over 2Q 2023
Guidance delivers meaningful Adjusted EBITDA growth over 2Q 2023 2Q 2024 RevPAR YOY Growth 6.25% to 6.75% Adjusted EBITDA $93 million to $98 million Reconciliation of the non-GAAP financial measure included in the foregoing guidance to the most comparable GAAP financial measure is not available with
Slide 13: Proactive management of capital structure
Proactive management of capital structure $0 59% 91% 94% of debt is non-recourse of variable rate debt is mortgage debt of debt is property-level mortgage subject to interest rate maturities in 2024 fixed rate debt financings cap/swap agreements ($mm) Recurring Fixed Rate Variable Rate Principal Wei
Slide 14: Long-Term Organic Growth Opportunity
Long-Term Organic Growth Opportunity
Slide 15: Key Drivers of Long-Term Organic Growth
Key Drivers of Long-Term Organic Growth Rapidly Brookdale’s Limited New Growing Unique Supply Demographic Differentiators Demand
Slide 16: 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 ● Tighter credit conditions Fed funds rate is now in a range
Slide 17: Limited near-term development pipelines
… which has led to limited near-term development pipelines Inventory growth dropped Lower starts and opens enable faster to lowest in a decade(1) occupancy gains for existing communities Inventory Growth New Starts and Opens(2) in NIC Primary Markets(1) (k) In NIC markets nationwide 25 150 55% decli
Slide 18: 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 19: Difficulties experienced by seniors are on the rise
… and difficulties experienced by seniors 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 develop severe need of (mm) High Blood Pressure High Blood Pressure Acuity +39% long-term services and A
Slide 20: 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% increased median Health and Wellness wealth in U.S. is held income for households by Baby Boomer and headed by person aged Silent Generation(2) 65+ from
Slide 21: Brookdale is differentiated within a highly fragmented industry
Brookdale is differentiated within a highly fragmented industry Well Recognized Leadership Position Ranked #1 in Customer Satisfaction Highly fragmented in 2020 and 2022 among competitive landscape Assisted Living/Memory Care(2) with ~2,500 operators, ~90% of which operate Earned most senior living
Slide 22: Industry-leading clinical expertise through 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 23: Sustainable Organic Growth Potential for Years to Come
Sustainable Organic Growth Potential for Years to Come
Slide 24: 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 $250M of of 89.0% would drive at least $420M of incremental revenue(1) incremental revenue(1) Brookdale Quarterly Weighted Average Occu
Slide 25: Excellent operating income growth potential in the coming years
Excellent operating income growth potential in the coming years (billions) Senior Housing Revenue(1) Returning to pre-pandemic occupancy $3.4 and operating margin would deliver $3.2 $2.9 significant Operating Income Growth $2.6 Key Considerations Represents annualized revenue impact of returning to
Slide 26: 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 providing exceptional care and services to seniors and their families Brookdale’s innovative initiatives combined with unprecedented Accelerating Demographic
Slide 27: Appendix & Endnotes
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Slide 28: Appendix: Definitions and Non-GAAP Financial Measures
Appendix: Definitions and Non-GAAP Financial Measures Definitions 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 share of net earnings, changes
Slide 29: Appendix: Non-GAAP Financial Measures
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 30: Endnotes
Endnotes Slide Reference 1. National Investment Center for Seniors Housing & Care (NIC) IL, AL, and MC units, NIC Supply Set 1Q 2024 4 2. Brookdale’s Senior Housing segments’ resident fees for the trailing 12 months ending March 31, 2024 3. “2023 ASHA 50 Operators” American Seniors Housing Associati
Slide 31: Endnotes
Endnotes Normal Seasonality Sequential View 1Q 2Q 3Q 4Q Lower due to increased Historically highest Begins to turn positive Remains flat to slightly Occupancy Sequential Change incidence and severity of sequential growth period of toward end of quarter positive to third quarter flu the year Full-qua
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