Brookdale Urges Shareholders to Support Qualified Directors
Brookdale Encourages Shareholders to Vote Blue
Brookdale Senior Living Inc. (NYSE: BKD) is enthusiastically urging all shareholders to utilize the BLUE proxy card to cast their votes in favor of the company's eight highly qualified director nominees. This reminder comes just ahead of the important Annual Meeting of Stockholders. Brookdale is dedicated to maintaining its impressive progress and growth trajectory while navigating the increasingly competitive senior living landscape.
Positive Momentum Evident in June Occupancy Rates
The latest occupancy results from June undeniably highlight the effectiveness of Brookdale's strategic efforts. The company achieved an outstanding 81.1% weighted average occupancy rate within its same community sector and an impressive month-end occupancy figure of 82.8%. This uptick signifies a robust and steady demand for the services provided by Brookdale, showcasing the positive response to its operational initiatives. Throughout the second quarter, Brookdale reached a notable milestone with a weighted average consolidated occupancy of 80.1% that paves the way towards desired cash flow growth.
A Call to Reject Disruptive Influences
As shareholders assess their voting options, Brookdale stresses that it is crucial not to allow Ortelius Advisors, L.P. to disrupt the company’s promising momentum. Ortelius currently holds a modest 1% of Brookdale’s shares but lacks the necessary understanding of the senior living business. Their flawed approach and unqualified director candidates could endanger the company’s strategic goals and endanger shareholder value.
Brookdale's Board Composition and Expertise
The Board of Brookdale comprises members with diverse and extensive backgrounds essential for guiding the company's future. This includes experts from senior living, hospitality, healthcare, operations, finance, and mergers and acquisitions. This blend of skills ensures informed and effective oversight as Brookdale continues evolving its services and addressing shareholder expectations.
Strategic Refreshment of Brookdale’s Leadership
Brookdale has actively embraced leadership refreshment, appointing four new directors since last year. If Brookdale's nominees succeed, the Board will benefit from a combination of established leaders and fresh perspectives, with an average tenure of below four years. This configuration aims to preserve valuable institutional knowledge within the leadership team and facilitate a smoother transition for any incoming CEO.
CEO Search Committee and Future Objectives
The Board has placed significant emphasis on accountability and has already initiated a CEO search process that includes input from shareholders. The search committee, composed of key directors, is tasked with finding a candidate who aligns with Brookdale’s strategic direction in senior living and healthcare. Utilizing a top independent search firm, they are evaluating a reliable pool of potential candidates. The continuity of board members integral to this process is vital to realizing optimal results.
Streamlining Operations to Boost Growth
Over recent years, Brookdale has taken decisive steps to optimize its operations, reducing leverage, and refining its lease portfolio. With active board oversight, Brookdale renegotiated leases for approximately 250 communities acquired in previous years and decreased its leased units by 19% since early 2021. The company is on the path to minimizing its community portfolio to below 600 units by 2025, demonstrating its commitment to strategic growth.
Rejection of Misguided initiatives
Brookdale is unequivocally aware of Ortelius’ lack of appreciation for its unique business model, which does not function like a real estate investment trust. Ortelius does not possess the requisite knowledge to make informed decisions regarding Brookdale's transformation in senior living. Their candidate slate lacks significant expertise in critical operational fields.
A Firm Reminder to Shareholders
As time quickly approaches the Annual Meeting, it is critical for Brookdale's shareholders to reject any distractions that could impede the essential progress the company is creating. Each vote is immensely important, regardless of the number of shares held. Brookdale encourages all shareholders to vote promptly using the directives provided on the BLUE proxy card, ensuring that they disregard any contradictory materials received.
Contact Information for Shareholders
Should shareholders need assistance with their voting process, they can reach out to Brookdale's proxy solicitor, Innisfree M&A Incorporated, at +1 (877) 750-5838 (toll-free in the U.S. and Canada) or by calling +1 (412) 232-3651 from international locales.
Frequently Asked Questions
What is the purpose of the BLUE proxy card?
The BLUE proxy card allows shareholders to vote for Brookdale's highly qualified director nominees and support the company's strategic direction.
How has Brookdale's occupancy rate changed recently?
In June, Brookdale saw a weighted average occupancy rate of 81.1%, indicating strong demand and operational success.
Who are Ortelius Advisors?
Ortelius Advisors is a shareholder of Brookdale who holds only 1% of shares and has proposed director candidates considered unqualified by Brookdale.
What are the consequences of electing Ortelius nominees?
Electing any Ortelius nominees could hamper Brookdale's momentum and disrupt the ongoing CEO search and strategic growth efforts.
How can shareholders get help in the voting process?
Shareholders can contact Brookdale's proxy solicitor for assistance with the voting process using the provided contact numbers.
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