On this page of StockholderLetter.com we present the latest annual shareholder letter from Brookdale Senior Living Inc. — ticker symbol BKD. Reading current and past BKD letters to shareholders can bring important insights into the investment thesis.
2024 Annual Report brookdale.com
Our Mission Enriching the lives of those we serve with compassion, respect, excellence and integrity Our Vision To be the nation s first choice in senior living Our Cornerstones More than a job, a passion Have fun and celebrate life every day. Doing the right thing takes courage Provide meaningful rewards for residents, associates and shareholders. We succeed through partnership Work together as one team. Built on a foundation of trust Listen, understand, partner and solve.
FELLOW Shareholders, 2024 was a year of meaningful progress and steady execution for Brookdale Senior Living. We made important headway to simplify our business, stabilize our balance sheet, and position the Company to capitalize on favorable demographic trends to create sustainable shareholder value for the long term. In 2024, we grew profitable occupancy and RevPAR,1 delivered meaningful Adjusted EBITDA2 growth, and materially improved Adjusted Free Cash Flow.2 We improved our financial position by refinancing a significant portion of our long-term debt, pushing the next major maturity dates to 2027, converting 41 properties from leased to owned, disposing of certain below-average-sized and underperforming owned communities, and renegotiating a significant unfavorable lease to one that is profitable and has meaningful growth opportunity. We delivered year-over-year improvement in Executive Director retention and significantly brought down associate turnover. And through it all, we remained steadfast in our commitment to our mission: Enriching the lives of those we serve. 1
Financial Achievements Commitment to Operational Excellence While there is still more work to be done, we made progress on our financial priorities in 2024. We delivered at or above our Adjusted EBITDA guidance ranges during every quarter of 2024 and improved our annual Adjusted Free Cash Flow by nearly 40% compared to 2023. Additionally, Adjusted EBITDA increased by more than 15%, weighted average occupancy grew by 140 basis points, and RevPAR increased 6.1% over the prior year. Notably, when 2024 is compared to 2019, our RevPAR was 18% higher and our operating income was 8% higher on a per-unit basis, illustrating our success in rebuilding profitability and improving cash flow. As we shared before, we are a business of people serving people. Relationships built on trust are at the core of all we do. In 2024, associate turnover declined meaningfully, improving by more than 13 percentage points versus 2023. We also made impressive gains in retaining leaders in the three key roles in our communities Executive Directors, Health and Wellness Directors, and Sales Leaders. In fact, Executive Director retention increased in every quarter of 2024 compared to the prior year quarters. In addition to these workforce accomplishments, we were named by Newsweek as one of the Top 200 America s Most Loved Workplaces. We were pleased that fourth quarter move-ins were at their highest levels since 2016, despite significant disruptions in lead flow from our two largest third-party referral partners beginning in March 2024. Our response to the disruption was swift and effective. We redeployed marketing investments internally, deepened relationships with regional referral sources, and drove strong internal lead generation. We hired a new head chef last year, and we are already executing his strategic road map to further enhance our quality and experiential dining, with the goal of making each meal a memorable experience. Our innovative Brookdale HealthPlus program was honored as a 2024 Argentum Best of the Best Award winner, reflecting its measurable impact on resident outcomes. We introduced the HealthPlus care delivery model to 80 additional communities in 2024 and have plans for further expansion in 2025. 2
Strategic Management of Portfolio and Capital Structure Brookdale s Clare Bridge Alzheimer s and Dementia Care training was certified by the Alzheimer s Association in 2024 for its demonstrated commitment to providing evidence-based training with a person-centered focus. Through our leading expertise in the care of those with Alzheimer s and other related dementias, we expanded our professional referral targeting program to support growth in Memory Care occupancy. In 2024, we successfully executed on our plans to simplify and streamline the business, rationalize our lease portfolio, and address our debt maturities. During the year, we executed a series of accretive transactions and, as a result, by 2025 year-end, we expect 75% of our consolidated portfolio will be owned. In 2024, we: Amended a key lease with Omega Healthcare Investors, Inc., securing $80 million in landlord-funded capital expenditures; Lastly, we once again led the industry in U.S. News and World Report s Best Of Senior Living listings for 2024 and were recognized by WTWH Healthcare with the 2024 Prism Award for our social stewardship in Alzheimer s advocacy. Acquired 41 previously-leased communities that bring meaningful near- and long-term benefits to the Company; and We are honored by these accolades. While we have made significant operational progress, our Board and management team recognizes there is even more to be done in our commitment to achieving operational excellence and to accelerating growth in our communities. We remain committed to driving constant improvement. Amended a 120-community Ventas, Inc. portfolio lease, with plans to exit 55 underperforming communities in 2025 and extend the lease of 65 high-performing communities while securing an additional $35 million in landlord-funded capital expenditures. 3
 • shareholder letter icon 5/14/2025 Letter Continued (Full PDF)
 • stockholder letter icon 5/1/2023 BKD Stockholder Letter
 • stockholder letter icon 4/29/2024 BKD Stockholder Letter
 • stockholder letter icon More "Hospital & Medical Practitioners" Category Stockholder Letters
 • Benford's Law Stocks icon BKD Benford's Law Stock Score = 77


BKD Shareholder/Stockholder Letter Transcript:

2024 Annual Report
brookdale.com

Our Mission
Enriching the lives of those we serve
with compassion, respect, excellence and integrity
Our Vision
To be the nation   s first choice in senior living
Our Cornerstones
More than a job, a passion
Have fun and celebrate life every day.
Doing the right thing takes courage
Provide meaningful rewards for residents,
associates and shareholders.
We succeed through partnership
Work together as one team.
Built on a foundation of trust
Listen, understand, partner and solve.

FELLOW
Shareholders,
2024 was a year of
meaningful progress and
steady execution for
Brookdale Senior Living. We
made important headway to
simplify our business,
stabilize our balance sheet,
and position the Company to
capitalize on favorable
demographic trends to create
sustainable shareholder value
for the long term. In 2024, we
grew profitable occupancy
and RevPAR,1 delivered
meaningful Adjusted EBITDA2
growth, and materially
improved Adjusted Free Cash
Flow.2 We improved our
financial position by
refinancing a significant
portion of our long-term
debt, pushing the next major
maturity dates to 2027,
converting 41 properties from
leased to owned, disposing of
certain below-average-sized
and underperforming owned
communities, and
renegotiating a significant
unfavorable lease to one that is
profitable and has meaningful
growth opportunity. We
delivered year-over-year
improvement in Executive
Director retention and
significantly brought down
associate turnover. And
through it all, we remained
steadfast in our commitment
to our mission: Enriching the
lives of those we serve.
1

Financial Achievements
Commitment to Operational Excellence
While there is still more work to be done, we
made progress on our financial priorities in 2024.
We delivered at or above our Adjusted EBITDA
guidance ranges during every quarter of 2024
and improved our annual Adjusted Free Cash
Flow by nearly 40% compared to 2023.
Additionally, Adjusted EBITDA increased by more
than 15%, weighted average occupancy grew by
140 basis points, and RevPAR increased 6.1% over
the prior year. Notably, when 2024 is compared
to 2019, our RevPAR was 18% higher and our
operating income was 8% higher on a per-unit
basis, illustrating our success in rebuilding
profitability and improving cash flow.
As we shared before, we are a business of people
serving people. Relationships built on trust are at
the core of all we do. In 2024, associate turnover
declined meaningfully, improving by more than
13 percentage points versus 2023. We also made
impressive gains in retaining leaders in the three
key roles in our communities     Executive
Directors, Health and Wellness Directors, and
Sales Leaders. In fact, Executive Director
retention increased in every quarter of 2024
compared to the prior year quarters. In addition
to these workforce accomplishments, we were
named by Newsweek as one of the Top 200
America   s Most Loved Workplaces.
We were pleased that fourth quarter move-ins
were at their highest levels since 2016, despite
significant disruptions in lead flow from our two
largest third-party referral partners beginning in
March 2024. Our response to the disruption was
swift and effective. We redeployed marketing
investments internally, deepened relationships
with regional referral sources, and drove strong
internal lead generation.
We hired a new head chef last year, and we are
already executing his strategic road map to
further enhance our quality and experiential
dining, with the goal of making each meal a
memorable experience.
Our innovative Brookdale HealthPlus   program
was honored as a 2024 Argentum Best of the
Best Award winner, reflecting its measurable
impact on resident outcomes. We introduced the
HealthPlus care delivery model to 80 additional
communities in 2024 and have plans for further
expansion in 2025.
2

Strategic Management of Portfolio
and Capital Structure
Brookdale   s Clare Bridge   Alzheimer   s and
Dementia Care training was certified by the
Alzheimer   s Association   in 2024 for its
demonstrated commitment to providing
evidence-based training with a person-centered
focus. Through our leading expertise in the care
of those with Alzheimer   s and other related
dementias, we expanded our professional referral
targeting program to support growth in Memory
Care occupancy.
In 2024, we successfully executed on our plans to
simplify and streamline the business, rationalize
our lease portfolio, and address our debt
maturities. During the year, we executed a series
of accretive transactions and, as a result, by 2025
year-end, we expect 75% of our consolidated
portfolio will be owned. In 2024, we:
    Amended a key lease with Omega Healthcare
Investors, Inc., securing $80 million in
landlord-funded capital expenditures;
Lastly, we once again led the industry in U.S.
News and World Report   s    Best Of    Senior Living
listings for 2024 and were recognized by WTWH
Healthcare   with the 2024 Prism Award for our
social stewardship in Alzheimer   s advocacy.
    Acquired 41 previously-leased communities
that bring meaningful near- and long-term
benefits to the Company; and
We are honored by these accolades. While we have
made significant operational progress, our Board
and management team recognizes there is even
more to be done in our commitment to achieving
operational excellence and to accelerating
growth in our communities. We remain
committed to driving constant improvement.
    Amended a 120-community Ventas, Inc.
portfolio lease, with plans to exit 55
underperforming communities in 2025 and
extend the lease of 65 high-performing
communities while securing an additional $35
million in landlord-funded capital expenditures.
3



shareholder letter icon 5/14/2025 Letter Continued (Full PDF)
 

BKD Stockholder/Shareholder Letter (Brookdale Senior Living Inc.) | www.StockholderLetter.com
Copyright © 2023 - 2025, All Rights Reserved

Nothing in StockholderLetter.com is intended to be investment advice, nor does it represent the opinion of, counsel from, or recommendations by BNK Invest Inc. or any of its affiliates, subsidiaries or partners. None of the information contained herein constitutes a recommendation that any particular security, portfolio, transaction, or investment strategy is suitable for any specific person. All viewers agree that under no circumstances will BNK Invest, Inc,. its subsidiaries, partners, officers, employees, affiliates, or agents be held liable for any loss or damage caused by your reliance on information obtained. By visiting, using or viewing this site, you agree to the following Full Disclaimer & Terms of Use and Privacy Policy.