Ortelius pushes for board overhaul at Brookdale Senior Living

Published 20/05/2025, 13:30
Ortelius pushes for board overhaul at Brookdale Senior Living

NEW YORK - Ortelius Advisors, L.P. has officially filed proxy materials advocating for the election of its six director nominees at the forthcoming Brookdale Senior Living Inc. (NYSE: BKD) annual meeting on July 11, 2025. The activist investor group seeks to address what it perceives as longstanding issues within the company’s governance. According to InvestingPro data, Brookdale operates with a significant debt burden, with a debt-to-equity ratio of 38.15 and current ratio of 0.82, indicating potential liquidity concerns.

The move comes as Ortelius voices concerns over Brookdale’s performance and valuation, suggesting that the current board’s strategies have not maximized shareholder value. Despite generating $3.02 billion in revenue and showing strong recent momentum with a 29.31% price return over the past six months, InvestingPro analysis indicates the company is quickly burning through cash and analysts don’t anticipate profitability this year. Peter DeSorcy, Managing Member of Ortelius, emphasized the potential of Brookdale given its assets and industry position, but pointed to a history of missteps that necessitate a change in leadership to realize the company’s value.

Ortelius has launched a campaign website and urges shareholders to support their nominees by voting with the WHITE proxy card provided. According to Ortelius, their nominees offer the expertise and objectivity required to realign Brookdale’s decision-making with shareholder interests and establish a sustainable path for long-term value creation.

The definitive proxy statement and related materials are available to shareholders and have been filed with the Securities and Exchange Commission (SEC). These documents provide detailed information about Ortelius’s solicitation and the proposed director nominees.

Ortelius Advisors is known for its research-intensive, fundamental-based approach to investment, often engaging in activist roles to drive event-driven opportunities in the companies it invests in. The firm’s push for board changes at Brookdale underscores its strategy to influence operational and strategic directions in its portfolio companies.

As the annual meeting date approaches, Brookdale shareholders are faced with a decision that could reshape the company’s governance structure. For deeper insights into Brookdale’s financial health and valuation metrics, investors can access the comprehensive Pro Research Report available on InvestingPro, which provides detailed analysis of the company’s performance indicators and growth potential. This article is based on a press release statement from Ortelius Advisors, L.P.

In other recent news, Brookdale Senior Living Inc. reported its first-quarter 2025 earnings, which revealed a larger-than-expected loss per share and a slight miss on revenue forecasts. The company recorded an EPS of -$0.28, falling short of the anticipated -$0.13, and revenue reached $813.86 million, just below the forecast of $814.73 million. Despite these misses, Brookdale raised its adjusted EBITDA guidance for 2025 to $440-$450 million, reflecting confidence in its operational strategy. RBC Capital Markets recently adjusted its outlook on Brookdale, increasing the price target from $8.00 to $9.00 while maintaining an Outperform rating. This adjustment follows Brookdale’s strong first-quarter report and an upward revision of their guidance. Brookdale is currently undergoing a CEO transition, which typically introduces uncertainty, but analysts remain positive about the company’s future, citing demographic trends favoring the senior living industry. The company is also focused on strategic divestments and community exits to optimize its portfolio. Brookdale’s operational performance is showing signs of recovery, with occupancy rates and RevPAR indicating positive growth.

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

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers
© 2007-2025 - Fusion Media Limited. All Rights Reserved.