The Street Agrees:
Brookdale Is Well-Positioned to Enhance Value for ALL Shareholders

“With BKD undertaking a CEO transition, we remain optimistic around the  company’s positioning amid demographic tailwinds and upside from operating leverage as occupancy returns to pre-pandemic levels.”

“We were pleased to see BKD report strong 1Q results on strong occupancy momentum and operational cost controls, prompting management to raise its 2025 EBITDA guidance range by $7.5MM at the midpoint. Brookdale’s first quarter results came in comfortably ahead of our estimate, consensus, and management’s internal expectations, driven by solid occupancy momentum, as previewed in early April, and impressive cost containment.”

“Deerfield has been a long-term shareholder of Brookdale Senior Living and is one of Brookdale's largest capital partners. Our enthusiasm about Brookdale's future has never been greater and we support the Board's efforts to extend Brookdale's leadership in patient care and financial performance.

We believe demand for Brookdale's services will well outstrip supply in a few short years due to demographics alone. Revitalizing existing communities and executing a growth strategy made possible through rising operating cash flows can allow the company to close the growth and valuation gap with peers. In our view, this can comfortably yield a significantly higher equity value.

Articulating a clear vision and establishing an incentive system to align stakeholders is foundational for the company to reach its potential. We look forward to supporting Brookdale as it brings new talent and energy to the Board and executive team.”

“BKD's CEO change underscores the Board's focus on positioning the company to take advantage of these secular tailwinds, which we view positively.”

“We believe Brookdale is on the right path to improve cash flow and shareholder returns. We think Brookdale is a relatively high-risk, high-reward play on the private-pay senior housing industry benefiting from favorable supply and demand.”