Investor Presentation May 6, 2025 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 all statements that are not historical statements of fact and those regarding the Company's intent, belief, or expectations. Forward-looking statements are generally identifiable ...

Core Insights - Brookdale Senior Living Inc. reported solid first quarter results for 2025, indicating significant momentum in meeting the needs of the aging population and positioning for accelerated growth [3][4][6] - The company raised its annual guidance for RevPAR and Adjusted EBITDA, reflecting an improved outlook for 2025 [14][18] Financial Performance - Resident fees increased to $777.5 million in Q1 2025 from $744.2 million in Q1 2024, a rise of 4.5% [4][9] - Adjusted EBITDA rose to $124.1 million, up 27.2% from $97.6 million in the prior year [4][36] - Net loss for Q1 2025 was $65.0 million, compared to a loss of $29.6 million in Q1 2024, marking a 119.7% increase in loss [4][9] Operational Metrics - Weighted average occupancy improved to 79.3% in Q1 2025 from 77.9% in Q1 2024, an increase of 140 basis points [4][5] - RevPAR increased to $5,090, up 4.9% from $4,854 in the previous year [4][5] - Same community operating income increased by 7.6% year-over-year [6] Liquidity and Cash Flow - Total liquidity as of March 31, 2025, was $306.0 million, down $83.3 million from December 31, 2024, primarily due to cash used for acquisitions [11] - Net cash provided by operating activities improved to $23.4 million from a negative $1.1 million in the prior year [8][10] - Adjusted Free Cash Flow for Q1 2025 was $3.8 million, a significant improvement from a negative $26.3 million in Q1 2024 [8][41] Strategic Transactions - In February 2025, the company acquired 30 previously leased communities for $310.0 million, funded through mortgage debt and cash [12] - The company settled its remaining outstanding prepaid stock purchase contracts in March 2025, delivering over 29 million shares of common stock [13] 2025 Guidance - The company revised its full-year 2025 guidance for RevPAR growth to a range of 5.00% to 5.75% and Adjusted EBITDA to $440 million to $450 million [18]

Core Viewpoint - Brookdale Senior Living Inc. is set to release its first quarter 2025 financial results on May 6, 2025, followed by a conference call on May 7, 2025, to discuss these results [1][2]. Company Overview - Brookdale Senior Living Inc. operates 647 senior living communities across 41 states, serving approximately 58,000 residents as of March 31, 2025 [4]. - The company focuses on enriching the lives of seniors through compassionate care, clinical expertise, and exceptional service, offering independent living, assisted living, memory care, and continuing care retirement communities [4]. - Brookdale aims to create opportunities for wellness, personal growth, and meaningful relationships in environments that feel like home, guided by its core values of passion, courage, partnership, and trust [4].

Market Overview - The three major U.S. indexes, Nasdaq Composite, S&P 500, and Dow Jones Industrial Average, experienced declines of 3.24%, 2.3%, and 3.41% respectively in the holiday-shortened trading week, driven by fears of economic slowdown and rising inflation due to trade tensions between the U.S. and China [1] - Consumer sentiment in April dropped to 50.8, the lowest since June 2022, primarily due to inflation concerns [2] - The core Producer Price Index (PPI) rose by 0.3%, indicating persistent price pressures, while the PPI for final demand decreased by 0.4% in March [2] Federal Reserve Insights - Federal Reserve Chair Jerome Powell indicated a need for more clarity before making policy adjustments, suggesting a delay in interest rate cuts, with market expectations leaning towards a rate decrease in December [3] - The ongoing trade war and potential inflation increases are expected to negatively impact job creation and business confidence [3] Zacks Performance and Recommendations - Brookdale Senior Living Inc. (BKD) shares increased by 14.7% since being upgraded to Zacks Rank 2 (Buy) on February 20, contrasting with a 14.2% decrease in the S&P 500 [4] - The Bank of East Asia, Limited (BKEAY) also saw a 3.9% return since its upgrade to Zacks Rank 2 on February 20 [5] - A hypothetical portfolio of Zacks Rank 1 (Strong Buy) stocks returned -3.48% in January 2025, compared to -0.60% for the S&P 500 [5] Zacks Model Portfolio Performance - The Zacks Model Portfolio, consisting of Zacks Rank 1 stocks, has outperformed the S&P 500 index by nearly 13 percentage points since 1988, with an annualized average return of +23.9% compared to +11.3% for the S&P 500 [7] - The Zacks Focus List portfolio returned -2.96% in Q1 2025, outperforming the S&P 500's -4.30% decline [12] - The Earnings Certain Admiral Portfolio (ECAP) returned +3.20% in Q1 2025, significantly better than the S&P 500's -4.30% decline [16] Stock Highlights - Pro-Dex, Inc. (PDEX) shares surged by 68.6% since its Zacks Recommendation upgrade to Outperform on March 4 [8] - Coca-Cola Company (KO) returned 17% over the past 12 weeks, while J. M. Smucker Company (SJM) increased by 12.6% during the same period [18] - Primo Brands Corporation (PRMB) rose by 9% year-to-date, outperforming the S&P 500 index's 10.2% decrease [22]

Group 1 - Brookdale Senior Living (BKD) has shown a year-to-date return of approximately 25.5%, outperforming the average loss of 5.4% in the Medical sector [4] - The Zacks Consensus Estimate for BKD's full-year earnings has increased by 9.8% over the past quarter, indicating improved analyst sentiment and a more positive earnings outlook [3] - Brookdale Senior Living is part of the Medical - Nursing Homes industry, which has an average loss of 0.3% this year, further highlighting BKD's strong performance within its specific industry [5] Group 2 - The Medical sector includes 1003 individual stocks and currently holds a Zacks Sector Rank of 3, indicating its relative performance compared to other sectors [2] - Claritev Corporation (CTEV), another stock in the Medical sector, has returned 37.5% year-to-date, showcasing that there are other outperformers in the sector [4] - The Medical - Nursing Homes industry, which includes only 2 companies, is currently ranked 4 in the Zacks Industry Rank, reflecting its competitive positioning [5][6]

Group 1: CEO Transition and Governance Changes - The Board of Directors of Brookdale Senior Living Inc. has initiated a search for a new Chief Executive Officer to drive operational and financial improvements and enhance shareholder value [2][3] - Lucinda M. Baier has stepped down as President and CEO effective April 13, 2025, and has also resigned from the Board of Directors [2][3] - Mark Fioravanti has been appointed as a new independent director, while Frank M. Bumstead will not stand for reelection at the 2025 Annual Meeting [5][6] Group 2: Interim Leadership and Operational Continuity - Denise W. Warren has been appointed as Interim CEO and will oversee day-to-day operations until a permanent CEO is named [3] - An Office of the CEO has been established, consisting of Ms. Warren, Dawn L. Kussow (CFO), and Chad C. White (General Counsel) to ensure business continuity [3] Group 3: Financial Performance and Outlook - Preliminary results for the first quarter of 2025 indicate that Brookdale's Adjusted EBITDA is expected to exceed both the company's and analysts' consensus expectations, with positive Adjusted Free Cash Flow anticipated [8][9] - The company expects RevPAR to exceed internal expectations, with a return to pre-pandemic occupancy rates projected to deliver approximately $170 million in incremental revenue and $125 million in incremental operating income [9] Group 4: Strategic Focus and Future Growth - The Board believes that Brookdale is well-positioned to deliver sustained returns to shareholders, capitalizing on the aging baby boomer demographic and improving occupancy rates [4][9] - The company aims to leverage its fixed cost model to return to pre-pandemic margins while focusing on profitable occupancy growth and Adjusted EBITDA enhancement [4][9]

Financial Performance - The financial results for the quarter ended March 31, 2025, will include key performance metrics that reflect the company's operational efficiency[8] - The company is committed to transparency in its financial disclosures, ensuring stakeholders are informed of its performance[9] Occupancy and Market Trends - Brookdale Senior Living Inc. announced its consolidated occupancy for March 2025, with specific figures to be detailed in the press release[8] - The press release dated April 8, 2025, will provide insights into user data and occupancy trends, which are critical for assessing market demand[8] Strategic Outlook - Future outlook and performance guidance will be discussed, indicating the company's strategic direction and expected growth[8] - Market expansion strategies are likely to be outlined, focusing on increasing the company's footprint in key regions[8] - Potential mergers and acquisitions may be explored as part of the company's growth strategy, aiming to enhance market position[8] - Other new strategies will be highlighted, reflecting the company's adaptability to changing market conditions[8] Product and Technology Development - New product and technology developments are anticipated, which may enhance service offerings and operational capabilities[8] Leadership Insights - The executive team, led by CFO Dawn L. Kussow, will provide further insights during the earnings call[14]

Company Overview - Brookdale Senior Living Inc. is the leading operator of senior living communities in the United States, with 647 communities across 41 states, serving approximately 58,000 residents as of March 31, 2025 [1] - The company offers various living options including independent living, assisted living, memory care, and continuing care retirement communities, focusing on empowering seniors to live with dignity and purpose [1] - Brookdale emphasizes its commitment to exceptional service and care, guided by its core values of passion, courage, partnership, and trust [1] Occupancy Performance - In March, the weighted average occupancy increased by 160 basis points year-over-year to 79.5% and grew by 20 basis points sequentially from February, indicating counter-seasonal strength [3] - The month-end occupancy for March improved sequentially to 80.9%, marking the highest month-end occupancy in five years [3] - For the first quarter of 2025, the weighted average occupancy growth accelerated to 140 basis points year-over-year, reaching 79.3% [3] - The first quarter's occupancy performance was significantly better than normal seasonality, with move-in volume exceeding historical averages by 12% and move-out volume being 3% better than historical averages [3]

Core Viewpoint - Momentum investing focuses on "buying high and selling higher" rather than traditional strategies of "buying low and selling high" [1][2] Group 1: Momentum Investing Strategy - Momentum investors often face challenges in determining the right entry point, as stocks may lose momentum when their valuations exceed future growth potential [2] - A safer approach involves investing in bargain stocks that exhibit recent price momentum, utilizing tools like the Zacks Momentum Style Score to identify such opportunities [3] Group 2: Brookdale Senior Living (BKD) Analysis - Brookdale Senior Living (BKD) has shown a four-week price change of 7.9%, indicating growing investor interest [4] - Over the past 12 weeks, BKD's stock has gained 19.9%, with a beta of 1.31, suggesting it moves 31% more than the market [5] - BKD has a Momentum Score of A, indicating a favorable time to invest based on momentum [6] - The stock has a Zacks Rank 2 (Buy) due to upward revisions in earnings estimates, which attract more investors [7] - BKD is trading at a Price-to-Sales ratio of 0.39, suggesting it is undervalued at 39 cents for each dollar of sales [7] Group 3: Additional Investment Opportunities - Besides BKD, there are other stocks that meet the criteria of the 'Fast-Paced Momentum at a Bargain' screen, presenting further investment opportunities [8] - The Zacks Premium Screens offer over 45 different strategies tailored to various investing styles, aiding in stock selection [9]

Core Viewpoint - Brookdale Senior Living (BKD) shows potential for upside with a mean price target of $7.38, indicating a 25.3% increase from the current price of $5.89 [1] Price Targets and Estimates - The mean estimate consists of four short-term price targets with a standard deviation of $1.25, suggesting variability in analyst predictions [2] - The lowest estimate is $5.50, indicating a 6.6% decline, while the highest estimate suggests a 35.8% increase to $8 [2] - Analysts' price targets can often mislead investors, as empirical research indicates they rarely reflect actual stock price movements [7] Analyst Sentiment and Earnings Estimates - Strong agreement among analysts regarding BKD's earnings prospects supports the view of potential upside, as indicated by positive revisions in earnings estimates [4][11] - The Zacks Consensus Estimate for the current year has increased by 0.9% over the past month, with one estimate rising and no negative revisions [12] - BKD holds a Zacks Rank 2 (Buy), placing it in the top 20% of over 4,000 ranked stocks based on earnings estimates [13] Conclusion on Price Movement - While the consensus price target may not be a reliable indicator of the extent of BKD's potential gains, it does provide a useful guide for the direction of price movement [13]