Ventas renewal positions Brookdale Senior for cash flow growth, says Macquarie

After initially walking away from the lease, Brookdale Senior Living (BKD) has agreed with Ventas (VTR) to extend the lease set to expire on December 31, 2025, on 65 of 120 communities by 10 years, notes Macquarie analyst Tao Qiu, who says recent accretive transactions have enhanced visibility on cash flow and put Brookdale “firmly on track to improve its liquidity and delver the balance sheet.” The firm reiterates an Outperform rating and $8 price target on Brookdale shares.