Brookdale Senior Living (BKD) investor relations material

Strategic vision, direction, and future plans

• Portfolio rationalization to stabilize at 517 communities by mid-2026, focusing on core markets, targeted acquisitions, and increasing the proportion of owned assets while selling non-core communities.

• Emphasis on operational excellence through a new regional structure, empowering local leaders, and aligning resources for market-level wins.

• New executive leadership team, including a new CEO and COO, with a regional operations model to improve responsiveness and accountability.

• Brand leadership supported by industry-leading awareness, digital engagement, and a broad product offering across the continuum of care.

• Continued focus on needs-based senior living, with 94% private pay revenue and limited exposure to government reimbursement risk.

Financial guidance and performance

• 2025 adjusted EBITDA reached $458 million, a 19% increase over 2024, with occupancy at 80.9%–83.5%, marking four consecutive years of improvement.

• 2026 guidance projects adjusted EBITDA of $502–$516 million and RevPAR growth of 8–9%, with mid-teen annualized EBITDA growth expected through 2028.

• Leverage ratio improved to 8.9x in 2025, with a target of below 6x by 2028, driven by EBITDA growth and stable net debt.

• Every 1% increase in occupancy or RevPOR above expense inflation yields $23–$27 million in annual operating income.

• Dispositions of non-core assets expected to generate ~$200 million in gross proceeds in 2026, further improving portfolio quality and financial flexibility.

Business developments and operational initiatives

• Regional operations model divides the company into six regions, each led by experienced VPs, enhancing local accountability and execution.

• Enhanced associate recruitment, retention, and development programs, including leadership pipelines and a 390 basis point increase in retention of key community leaders over two years.

• Signature programs like Optimum Life and Clare Bridge memory care, and the Brookdale HealthPlus® platform expanded to over 180 communities, supporting value-based care and higher resident satisfaction.

• High Opportunity Response Teams (HORT) and First Impressions programs drive occupancy improvements in underperforming communities.

• Enhanced resident experience through personalized care, clinical expertise, and continuous feedback, resulting in significant year-over-year NPS improvement.