Brookdale Senior Living appoints interim CEO, seeks new leader

NASHVILLE - Brookdale Senior Living Inc. (NYSE: BKD), a leading operator of senior living communities with a market capitalization of $1.15 billion and annual revenue exceeding $2.9 billion, has initiated a search for a new Chief Executive Officer (CEO) following the departure of Lucinda ("Cindy") M. Baier, who stepped down on Sunday. According to InvestingPro data, the company currently trades above its Fair Value, suggesting careful consideration for new investors. The company’s Board of Directors has appointed Denise W. Warren as Interim CEO and formed an Office of the CEO to ensure continuity until a permanent CEO is named.

Warren, who is also the Chairman of the Board, will lead the CEO search with the support of Spencer Stuart, an executive search firm. The newly established Office of the CEO includes Warren, Dawn L. Kussow, the Executive Vice President and Chief Financial Officer, and Chad C. White, Executive Vice President, General Counsel and Secretary.

In conjunction with the leadership transition, Brookdale has announced the appointment of Mark Fioravanti, President and CEO of Ryman Hospitality Properties, as a new independent director to its Board. Frank M. Bumstead will not seek reelection and will step down from the Board at the conclusion of the 2025 Annual Meeting of Stockholders.

The company is also reviewing potential enhancements to its corporate governance policies, based on shareholder feedback, particularly regarding director tenure and revisions to the performance-based long-term incentive awards program for executives. This governance review comes as InvestingPro analysis reveals significant financial challenges, including a debt-to-equity ratio of 26.6 and current ratio of 0.88, indicating potential liquidity concerns.

Brookdale’s preliminary results for the first quarter of 2025 have exceeded both the company’s and analysts’ expectations, with Adjusted EBITDA and positive Adjusted Free Cash Flow. The company also expects RevPAR to surpass its internal forecasts. These results reflect the company’s belief in its ability to deliver sustained returns to shareholders and capitalize on demographic trends.

The Board is focused on finding a new CEO to build upon Brookdale’s strong foundation and deliver value for shareholders. Despite recent challenges, the company has shown positive momentum with a 14.3% year-to-date return and revenue growth of 4%. The company plans to announce its first quarter 2025 financial results on May 6, 2025. For deeper insights into Brookdale’s financial health and future prospects, investors can access comprehensive analysis and additional ProTips through InvestingPro’s detailed research reports.

This news article is based on a press release statement from Brookdale Senior Living Inc.

In other recent news, Brookdale Senior Living reported an increase in its consolidated occupancy rates for March 2025, reaching a five-year high. The company achieved a weighted average occupancy of 79.5%, which is a 160 basis point increase from the previous year and a 20 basis point rise from February 2025. The first quarter of 2025 also showed robust growth in occupancy, with a 140 basis point year-over-year increase to 79.3%. Additionally, Brookdale announced the early settlement of its prepaid stock purchase contracts, part of the 7.00% tangible equity units issued in 2022. The settlement will see each contract holder receive 12.9341 shares of Brookdale common stock per contract, with cash in lieu of any fractional shares. This settlement is set for March 31, 2025, based on the average stock price over the preceding 20 trading days. Holders of tangible equity units have until April 23, 2025, to require repurchase of their notes, including any accrued interest, under specific conditions. Brookdale’s recent developments highlight its ongoing efforts to enhance financial strategies and operational performance.

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