Brookdale Senior Living Inc. · NYSE:BKD

Brookdale Senior Living — Q4 2023 Earnings Presentation

21 slides from Brookdale Senior Living's earnings presentation, Feb 20, 2024

1. Slide 1: Supplemental Information 4th Quarter 2023

   Supplemental Information 4th Quarter 2023 Exhibit 99.2

2. Slide 2: Table of Contents

   2 Overview 3 Segment Overview 6 Senior Housing 7 General and Administrative ("G&A") Expense 12 Capital Expenditures 13 Cash Facility Lease Payments 14 Capital Structure 15 Definitions 16 Appendix: Non-GAAP Financial Measures 18 Table of Contents

3. Slide 3: Overview

   3 Managed 4,579 Owned 31,205 Leased 19,844 Managed 30 Owned 345 Leased 277 652 communities 55,628 units (1) Adjusted EBITDA includes government grants and credits recognized during the respective periods as presented in other operating income, including for the three months ended September 30, 2022,

4. Slide 4: Segment Overview

   4 2022 2023 4Q23 vs 4Q22 Full Year 23 vs 22 ($ in 000s) 1Q 2Q 3Q 4Q Full Year 1Q 2Q 3Q 4Q Full Year B(W) B(W) Resident fee revenue $ 636,974 $ 640,388 $ 650,248 $ 657,919 $ 2,585,529 $ 713,404 $ 710,161 $ 717,123 $ 716,582 $ 2,857,270 8.9 % 10.5 % Management fee revenue 3,329 3,329 2,967 2,395 12,02

5. Slide 5: Segment Overview by Portfolio

   5 (1) Resident fee revenue excluded from definitions of RevPAR and RevPOR is $0.6 million and $3.2 million, for the fourth quarter of 2023 and the full year 2023, respectively. (2) All Other primarily includes communities operated by the Company pursuant to management agreements. (3) Excluding non-c

6. Slide 6: Senior Housing

   6 2022 2023 4Q23 vs 4Q22 Full Year 23 vs 22 ($ in 000s, except RevPAR and RevPOR) 1Q 2Q 3Q 4Q Full Year 1Q 2Q 3Q 4Q Full Year B(W) B(W) Total Senior Housing and All Other Revenue (1) $ 640,303 $ 643,717 $ 653,215 $ 660,314 $ 2,597,549 $ 715,981 $ 712,671 $ 719,689 $ 719,090 $ 2,867,431 8.9 % 10.4 %

7. Slide 7: Independent Living

   7 2022 2023 4Q23 vs 4Q22 Full Year 23 vs 22 ($ in 000s, except RevPAR and RevPOR) 1Q 2Q 3Q 4Q Full Year 1Q 2Q 3Q 4Q Full Year B(W) B(W) Independent Living Revenue $ 124,404 $ 125,578 $ 128,106 $ 129,705 $ 507,793 $ 140,602 $ 140,670 $ 141,234 $ 141,506 $ 564,012 9.1 % 11.1 % Other operating income $

8. Slide 8: Senior Housing Same Community Results

   8 2022 2023 4Q23 vs 4Q22 Full Year 23 vs 22 ($ in 000s, except RevPAR and RevPOR) 1Q 2Q 3Q 4Q Full Year 1Q 2Q 3Q 4Q Full Year B(W) B(W) Revenue $ 606,632 $ 612,480 $ 624,871 $ 632,636 $ 2,476,619 $ 686,132 $ 685,306 $ 692,169 $ 695,011 $ 2,758,618 9.9 % 11.4 % Other operating income 358 8,027 63,140

9. Slide 9: Independent Living Same Community Results

   9 2022 2023 4Q23 vs 4Q22 Full Year 23 vs 22 ($ in 000s, except RevPAR and RevPOR) 1Q 2Q 3Q 4Q Full Year 1Q 2Q 3Q 4Q Full Year B(W) B(W) Independent Living Revenue $ 124,404 $ 125,578 $ 128,106 $ 129,705 $ 507,793 $ 140,602 $ 140,670 $ 141,234 $ 141,506 $ 564,012 9.1 % 11.1 % Other operating income 2

10. Slide 10: Senior Housing Owned Portfolio

    10 2022 2023 4Q23 vs 4Q22 Full Year 23 vs 22 ($ in 000s, except RevPAR and RevPOR) 1Q 2Q 3Q 4Q Full Year 1Q 2Q 3Q 4Q Full Year B(W) B(W) Revenue $ 370,337 $ 374,231 $ 379,913 $ 386,244 $ 1,510,725 $ 418,624 $ 416,298 $ 420,351 $ 419,830 $ 1,675,103 8.7 % 10.9 % Other operating income 300 5,240 38,37

11. Slide 11: Senior Housing Leased Portfolio

    11 2022 2023 4Q23 vs 4Q22 Full Year 23 vs 22 ($ in 000s, except RevPAR and RevPOR) 1Q 2Q 3Q 4Q Full Year 1Q 2Q 3Q 4Q Full Year B(W) B(W) Revenue $ 266,637 $ 266,157 $ 270,335 $ 271,675 $ 1,074,804 $ 294,780 $ 293,863 $ 296,772 $ 296,752 $ 1,182,167 9.2 % 10.0 % Other operating income 76 3,171 28,387

12. Slide 12: General and Administrative Expense

    12 (1) G&A allocations are calculated based on the proportional amount of resident fee revenue (consolidated and under management) attributable to the segment or portfolio. G&A allocations presented herein exclude non-cash stock-based compensation expense and Transaction and Organizational Restructu

13. Slide 13: Capital Expenditures

    13 ($ in 000s, except for community level capital expenditures, per average unit) 2022 2023 4Q23 vs 4Q22 Full Year 23 vs 22 1Q 2Q 3Q 4Q Full Year 1Q 2Q 3Q 4Q Full Year B(W) B(W) Community level capital expenditures, including allocations (1) Senior Housing Owned Portfolio $ 20,907 $ 25,934 $ 24,568

14. Slide 14: Cash Facility Lease Payments

    14 (1) Classification of amounts prospectively impacted by lease amendments in the fourth quarter of 2022 and second quarter of 2023 with no impact to total cash facility lease payments. See page 4. (2) Includes cash lease payments for leases of corporate offices and information technology systems a

15. Slide 15: Capital Structure

    15 (1) Amount excludes $29 million in deferred financing costs, net. (2) Reflects rates as of December 31, 2023. (3) Variable rate maturities include $320 million of mortgage debt with extension options to 2027. (4) Fixed rate maturities include $230 million of 2.00% convertible senior notes. (5) Ex

16. Slide 16: Definitions

    16 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; and further adjusted to exclude income/expense associated with non-cash, non-opera

17. Slide 17: Definitions (continued)

    17 RevPOR, or average monthly senior housing resident fee revenue per occupied unit, is defined by the Company as resident fee revenue for the corresponding portfolio for the period (excluding revenue for private duty services provided to seniors living outside of the Company's communities and entra

18. Slide 18: Appendix: Non-GAAP Financial Measures

    18 Appendix: Non-GAAP Financial Measures This Supplemental Information contains the financial measures Adjusted EBITDA, Adjusted EBITDA after cash financing lease payments, Adjusted Free Cash Flow, Net Debt, and Adjusted Net Debt (each as defined in the "Definitions" section), which are not calculat

19. Slide 19: Adjusted EBITDA Reconciliation

    19 2022 2023 ($ in 000s) 1Q 2Q 3Q 4Q Full Year 1Q 2Q 3Q 4Q Full Year Net income (loss) $ (100,032) $ (84,283) $ (28,374) $ (25,651) $ (238,340) $ (44,563) $ (4,526) $ (48,811) $ (91,170) $ (189,070) Provision (benefit) for income taxes (1,976) 1,190 (300) (473) (1,559) 572 275 (1,876) 9,813 8,784 Eq

20. Slide 20: Net Debt and Adjusted Net Debt Reconciliations

    20 Net Debt and Adjusted Net Debt Reconciliations ($ in 000s) As of December 31, 2023 Long-term debt (including current portion) $ 3,697,313 Cash and cash equivalents (277,971) Marketable securities (29,755) Cash held as collateral against existing debt (3,825) Net Debt 3,385,762 Operating and finan

21. Slide 21: Adjusted Free Cash Flow Reconciliation

    21 2022 2023 ($ in 000s) 1Q 2Q 3Q 4Q Full Year 1Q 2Q 3Q 4Q Full Year Net cash provided by (used in) operating activities $ (23,255) $ 11,577 $ 63,521 $ (48,562) $ 3,281 $ 24,042 $ 63,824 $ 45,763 $ 29,294 $ 162,923 Net cash provided by (used in) investing activities (36,163) (43,838) 22,508 (9,936)

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