After a seven-year tenure as CEO of Brookdale Senior Living (NYSE: BKD), Cindy Baier is stepping down from her post.

On Monday, the Brentwood, Tennessee-based company announced she had entered into a separation agreement to step down from her position as of April 13. She also resigned from the company’s board of directors.

Brookdale Chairman of the Board Denise W. Warren will serve as interim CEO and is joined by three independent directors on a CEO search committee, supported by executive search firm Spencer Stuart, according to an announcement.

Brookdale is now “poised to deliver sustained and compelling returns to our shareholders,” as the company successfully “executed on our strategy to simplify and streamline the business, rationalize our lease portfolio and address our debt maturities,” Warren said in a press release.

“With the completion of these actions, the board determined that now is the right time to identify the company’s next leader. We are appreciative of the care and services our teams provide for our residents and their families,” Warren said. “We are grateful for Cindy’s leadership over the past seven years, and for the role she played leading the company through the many challenges posed by Covid. On behalf of the Board, I want to thank Cindy for her dedication to and leadership of Brookdale.”

Baier stated, “It has been an honor and a privilege to lead Brookdale and to work alongside the Company’s incredible team. I take pride in what we have accomplished through the resourcefulness and hard work of Brookdale’s associates. I know that Brookdale will continue to be a leader in the industry and a place that senior residents feel at home.”

Brookdale also appointed Mark Fioravanti, president and CEO of Ryman Hospitality Properties, to the board. Frank M. Bumstead will not stand for reelection at the 2025 annual shareholder meeting.

Also, Brookdale is “reviewing potential governance enhancements related to director tenure” and is considering revising executives’ performance-based incentives, according to the release.

The leadership change at Brookdale is taking place after activist shareholder Ortelius Advisors last month nominated six new members to the Brookdale board.

Capitalizing on the value of Brookdale’s owned real estate will be among the areas of focus for the next CEO, the company stated in its press release announcing the C-suite change. Unlocking the value of this real estate has been a persistent issue with the company over the years, with past activist shareholders pushing for a sale or spin-off of the owned portfolio.

Also on Monday, Brookdale announced that Q1 2025 adjusted EBITDA will exceed internal expectations as well as analysts’ consensus expectations, based on preliminary results. The company also touted that adjusted free cash flow is likely to be positive for 1Q25, with revenue per available room (RevPAR) also exceeding internal projections.

“These preliminary first quarter results give the board even more confidence in the robust opportunity that lies ahead for Brookdale,” Warren stated. “Achieving positive adjusted free cash flow in the first quarter, which has historically been a negative adjusted free cash flow quarter, is a key milestone and a reflection of the cash flow generation power of the business as weighted average occupancy approaches and exceeds 80%.”

One of Brookdale’s largest capital partners, health care and biotechnology investment firm Deerfield, applauded the change Monday and said its “enthusiasm about Brookdale’s future has never been greater.”

“We believe demand for Brookdale’s services will well outstrip supply in a few short years due to demographics alone,” the company noted in a press release. “Revitalizing existing communities and executing a growth strategy made possible through rising operating cash flows can allow the company to close the growth and valuation gap with peers. In our view, this can comfortably yield a significantly higher equity value.”

Brookdale declined to comment beyond its announcement when reached by Senior Housing News Monday. The company’s stock price gained more than 8.5%, ending the day at $6.24 per share.

Baier era comes to a close

Baier’s exit from Brookdale marks the end of a specific chapter in the company’s history.

She joined Brookdale in 2015 as CFO and ascended to CEO in 2018 upon the exit of then-CEO Andy Smith. Brookdale had more than 1,100 communities at the time thanks to its Emeritus merger – and was “bleeding cash,” Baier later told SHN.

Under Baier’s direction as CEO, the company shed almost half of its total portfolio in the years that followed. Baier also navigated through several large lease negotiations with landlords, most recently including Ventas (NYSE: VTR) and LTC Properties (NYSE: LTC).

“We spent several years renegotiating leases and converting leased assets to owned assets really to get to a portfolio where we have the ability to win,” Baier told SHN in 2022.

That effort and philosophy continued last year as Brookdale acquired 41 communities previously managed under triple-net leases for $610 million, increasing to two-thirds its share of owned and managed senior living units.

Brookdale also during Baier’s tenure rolled out two programs aimed at helping residents stay healthy and engaged, HealthPlus and EngagementPlus.

Brookdale and Baier were the subject of several proxy fights over the years, with its most recent one stemming from Brookdale investor Ortelius Advisors, which owns 1.3% of Brookdale’s stock. Activist investor Land & Buildings also engaged in a proxy battle with Brookdale in 2018.

Senior Housing News Senior Editor Tim Regan contributed writing and reporting for this story