Ortelius nominees seek board seats at Brookdale to drive turnaround

Published 03/07/2025, 13:06
Ortelius nominees seek board seats at Brookdale to drive turnaround

NEW YORK - Ortelius Advisors, L.P. has announced that its six nominees for election to Brookdale Senior Living Inc.’s (NYSE:BKD) Board of Directors have released a joint letter to stockholders ahead of the company’s 2025 Annual Meeting scheduled for July 11. The company, currently valued at $775.24 million, has seen its stock climb 22.77% year-to-date.

The nominees are urging shareholders to vote for them on the WHITE proxy card, arguing that Brookdale requires significant board changes to address years of underperformance. According to their letter, Brookdale’s share price has declined 85% over the past decade, while tangible book value per share has dropped 83% since fiscal year 2017. Despite these challenges, InvestingPro data shows the stock is currently trading near its 52-week high of $63, with a 20.86% return over the past year.

The Ortelius nominees—Steven J. Insoft, Paula Poskon, Frank Small, Ivona Smith, Steven Vick, and Lori Wittman—have outlined a three-part strategic plan focusing on restoring board accountability and recruiting a new CEO, rationalizing the company’s property portfolio, and rightsizing the balance sheet.

Their plan includes monetizing underperforming assets, improving operating efficiencies, rationalizing the leased portfolio, and engaging with lenders to reduce mortgage debt. The nominees emphasized they have no plans to explore an outright sale of the business.

The nominees collectively bring experience in senior housing, real estate, operations, capital markets, and corporate turnarounds. They noted that Ortelius’ 1% ownership stake exceeds the combined holdings of the incumbent board members.

Brookdale faces significant debt maturities, with $426 million due in 2026 and $860 million in 2027, according to the letter. While these debt levels are concerning, InvestingPro analysis indicates a GREAT financial health score of 3.66, suggesting some stability. The company also maintains a 3.56% dividend yield. The nominees have committed to holding an investor day within 120 days of appointing a new CEO if elected.

The information is based on a press release statement from Ortelius Advisors, which has filed a definitive proxy statement with the SEC for the upcoming annual meeting.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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