Brookdale Reports September 2024 Occupancy

Rhea-AI Summary

Brookdale Senior Living Inc. (NYSE: BKD) has reported its consolidated occupancy for September 2024, showing positive trends in the senior living sector. Key highlights include:

- September weighted average occupancy increased by 30 basis points to 79.2%, with month-end occupancy reaching 80.5%.
- The company achieved its 35th consecutive month of year-over-year weighted average occupancy growth.
- Third quarter weighted average occupancy improved by 130 basis points compared to Q3 2023 and 80 basis points compared to Q2 2024.
- Third quarter move-ins and move-outs were favorable compared to the second quarter.

Brookdale operates 648 communities across 41 states, serving approximately 58,000 residents through independent living, assisted living, memory care, and continuing care retirement communities.

Positive

• September weighted average occupancy increased 30 basis points to 79.2%
• Month-end occupancy grew to 80.5%
• 35 consecutive months of year-over-year weighted average occupancy growth
• Q3 weighted average occupancy up 130 basis points vs Q3 2023
• Q3 weighted average occupancy up 80 basis points vs Q2 2024
• Favorable Q3 move-ins and move-outs compared to Q2

Negative

• None.

Insights

Senior Living Industry Analyst

Brookdale's September occupancy report shows positive momentum in the senior living sector. The 30 basis point increase in weighted average occupancy to 79.2% and month-end occupancy of 80.5% indicate steady recovery. The 35 consecutive months of year-over-year growth demonstrate consistent improvement post-pandemic.

The 130 basis point increase in Q3 occupancy compared to Q3 2023 suggests stronger demand for senior living services. Favorable move-ins and move-outs in Q3 versus Q2 point to effective marketing and resident retention strategies. With 648 communities and capacity for 58,000 residents, Brookdale's scale positions it well to capitalize on the aging demographic trend.

However, occupancy still lags pre-pandemic levels, indicating room for further recovery. Investors should monitor ongoing occupancy trends, pricing power and cost management to assess Brookdale's profitability potential as occupancy improves.

Financial Analyst

Brookdale's occupancy improvements are encouraging for its financial outlook. The sequential and year-over-year gains suggest potential for revenue growth and improved operational leverage. With each percentage point of occupancy typically translating to significant revenue, the 130 basis point year-over-year increase in Q3 could materially impact top-line performance.

The consistent occupancy growth trend is likely to positively affect cash flow and EBITDA margins. However, investors should consider potential offsetting factors such as wage pressures and inflationary impacts on operating costs. The company's ability to increase rates in line with occupancy gains will be important for profitability.

With a market cap of $1.16 billion, Brookdale's stock performance may be sensitive to these occupancy trends. The sustained improvement could attract investor interest, potentially supporting valuation multiples. However, broader economic factors and interest rates remain important considerations for the capital-intensive senior living sector.

NASHVILLE, Tenn., Oct. 8, 2024 /PRNewswire/ -- Brookdale Senior Living Inc. (NYSE: BKD) reported today its consolidated occupancy for September 2024.

September 2024 Observations:

• September weighted average occupancy increased 30 basis points sequentially to 79.2%, while month end occupancy grew to 80.5%.
• September represents the Company's thirty-fifth consecutive month of year-over-year weighted average occupancy growth.
• Third quarter weighted average occupancy increased 130 basis points when compared to the third quarter of 2023, and 80 basis points when compared to the second quarter of 2024.
• Third quarter move-ins and move-outs were favorable sequentially to the second quarter.

About Brookdale Senior Living

Brookdale Senior Living Inc. is the nation's premier operator of senior living communities. The Company is committed to its mission of enriching the lives of the people it serves with compassion, respect, excellence, and integrity. The Company, through its affiliates, operates independent living, assisted living, memory care, and continuing care retirement communities. Through its comprehensive network, Brookdale helps to provide seniors with care, connection, and services in an environment that feels like home. The Company's expertise in healthcare, hospitality, and real estate provides residents with opportunities to improve wellness, pursue passions, make new friends, and stay connected with loved ones. Brookdale, through its affiliates, operates and manages 648 communities in 41 states as of September 30, 2024, with the ability to serve approximately 58,000 residents. Brookdale's stock trades on the New York Stock Exchange under the ticker symbol BKD. For more information, visit brookdale.com or connect with Brookdale on Facebook or YouTube.

 

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SOURCE Brookdale Senior Living Inc.

FAQ

What was Brookdale's (BKD) weighted average occupancy for September 2024?

Brookdale's weighted average occupancy for September 2024 was 79.2%, an increase of 30 basis points from the previous month.

How many consecutive months of year-over-year occupancy growth has Brookdale (BKD) achieved as of September 2024?

As of September 2024, Brookdale has achieved 35 consecutive months of year-over-year weighted average occupancy growth.

How did Brookdale's (BKD) third quarter 2024 occupancy compare to the previous year and quarter?

Brookdale's third quarter 2024 weighted average occupancy increased by 130 basis points compared to Q3 2023 and by 80 basis points compared to Q2 2024.

How many senior living communities does Brookdale (BKD) operate as of September 30, 2024?

As of September 30, 2024, Brookdale operates 648 senior living communities across 41 states.