Brookdale Swings to Profit as Property Sales Offset Fee Decline
The senior-living operator earned $23.3 million after community sales produced a $45.4 million gain.
Brookdale Senior Living (BKD) swung to a second-quarter profit as property sales and lower depreciation outweighed another decline in resident fees.
The senior-living operator’s portfolio continued to shrink, pushing total average units down 15.7% from a year earlier to 42,820, compared with a 14.2% decline in the first quarter. Units fell another 1.9% sequentially.
Resident fees declined 8.7% to $708.5 million, steepening from the first quarter’s 7.1% year-over-year drop, as dispositions reduced fees by $106.4 million. Fees were down 1.9% from the preceding quarter. Brookdale posted net income after losses of $6.9 million in the first quarter and $43.0 million a year earlier.
The remaining portfolio produced higher revenue per available room, though occupancy gains slowed. Consolidated RevPAR rose 8.2% from a year earlier for a second consecutive quarter, while weighted-average occupancy reached 82.4%. The year-over-year occupancy improvement narrowed to 230 basis points from 280 basis points in the first quarter and 310 basis points in the fourth quarter.
Pricing carried more of the same-community growth. RevPAR increased 5.5%, with RevPOR growth accelerating to 4.1% as the occupancy gain slowed to 110 basis points. Same-community resident fees and facility operating expense each rose 5.5%, easing the first quarter’s cost pressure, when expenses grew faster than fees.
Adjusted EBITDA fell 6.9% sequentially to $122.1 million, and year-over-year growth slowed to 4.3% from 5.6% in the first quarter. Brookdale reiterated its full-year outlook for 8% to 9% RevPAR growth and Adjusted EBITDA of $502 million to $516 million.
Brookdale generated $125.3 million from the sale of six communities during the quarter, lifting year-to-date proceeds to about $150 million. It also agreed to acquire 17 leased communities with 735 units for about $157 million after buying a 244-unit Houston property in June.
Liquidity rose by $197.1 million during the quarter to $565.8 million as Brookdale refinanced its remaining 2027 mortgage maturities and expanded its revolving-credit commitment. December 2026 will be its final monthly occupancy disclosure, ending the report in 2027 as pricing takes a larger role in portfolio growth.