Brookdale: BofA Conference Takes: Strong demand and pricing power

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Brookdale: BofA Conference Takes: Strong demand and pricing power

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Brookdale

BofA Conference Takes: Strong demand

and pricing power

Maintain Rating: BUY | PO: 19.50 USD | Price: 12.86 USD

Next chapter: better portfolio, higher asset ownership 14 May 2026

At the BofA Healthcare Conference, we hosted a discussion with the leadership team Equity

from Brookdale (BKD), including Nick Stengle, CEO & Dawn Kussow, CFO. Key takes: 1)

Joanna Gajuk

2026 seasonality similar to prior years. 2) Occupancy to grow 100-300bp per year. 3) Research Analyst

New competition likely 5-7 years away. 3) High occupancy gives pricing power. 4) FCF BofAS +1 646 855 3961

inflected positive; priority to reinvest in communities. We maintain Buy given the early joanna.gajuk@bofa.com

innings of multi-year accelerated growth with limited exposure to government payors. Kevin Fischbeck, CFA

Research Analyst

2026 seasonality similar to prior years BofAS+1 646 855 5948

2025 seasonality was skewed by cost cutting benefits in 1H and dispositions in 2H. kevin.fischbeck@bofa.com

Meanwhile seasonality in 2026 will look similar to prior years. 2H will get a lift from the Craig Jones Research Analyst

occupancy ramping up in line with typical seasonality, operating leverage on the higher BofAS

occupancy, accretion from asset dispositions and the lower G&A as the company adjusts +1craig.jones3@bofa.com646 743 2020

the cost structure to reflect the exit of the management services biz in Q1. Joaquin Arriagada Martinez

Occupancy to grow 100-300bps annually BofAS+1 646 855 1654

The company targets 83% occupancy in 2026 and 89-90% over time, reaching its prior joaquin.arriagadamartinez@bofa.com

peak. The path to get there assumes occupancy growing 100-300bps annually (grew Katie FitzGerald