Brookdale Senior Living Inc (BKD) Reports 10.3% Increase in Resident Fee Revenue in Q3 2023
Brookdale Senior Living Inc (NYSE:BKD) reports a 10.3% increase in resident fee revenue year-over-year in Q3 2023.
Weighted average occupancy grew 110 basis points sequentially and increased for seven consecutive months between March and October.
Net loss increased by 72.0% year-over-year, primarily due to a decrease in other operating income and an increase in facility operating expense.
Adjusted EBITDA decreased by 24.9% year-over-year.
Brookdale Senior Living Inc (NYSE:BKD) announced its third quarter 2023 results on November 6, 2023. The company reported significant growth in resident fee revenue and occupancy, reflecting the successful execution of key strategic initiatives. However, the company also reported an increase in net loss and a decrease in Adjusted EBITDA.
Financial Performance
Brookdale's resident fee revenue increased by 10.3% year-over-year to $717.1 million in Q3 2023, primarily due to increases in RevPOR and occupancy. The company's weighted average occupancy grew 110 basis points sequentially and has been increasing for seven consecutive months from March to October. However, the company's net loss increased by 72.0% year-over-year, primarily due to a decrease in other operating income and an increase in facility operating expense. Adjusted EBITDA decreased by 24.9% year-over-year.
Operational Highlights
Brookdale's CEO, Lucinda ("Cindy") Baier, commented on the company's performance, stating,
The incredible progress we are making on our key strategic priorities is evidenced by our strong year-to-date results and another quarter of consistently delivering against our commitments. Our favorable results, both in the third quarter and year-to-date, are an outcome of the strong execution of intentional, experience-driven plans, and the dedication to our mission by our more than 36,000 associates."
Financial Outlook
For the fourth quarter of 2023, Brookdale expects RevPAR year-over-year growth of 9.5% - 10.0% and Adjusted EBITDA of $77 million to $82 million. The company anticipates its full-year 2023 non-development capital expenditures, net of anticipated lessor reimbursements, to be approximately $195.0 million.
Recent Transactions
In August 2023, Brookdale entered into a new lease agreement to continue leasing 10 communities from affiliates of LTC Properties, Inc. The lease will expire on December 31, 2029. On November 1, 2023, the company completed the sale of a continuing care retirement community, receiving net cash proceeds of $12.7 million.
About Brookdale Senior Living Inc (NYSE:BKD)
Brookdale Senior Living Inc is the nations premier operator of senior living communities. The company operates independent living, assisted living, memory care, and continuing care retirement communities. As of September 30, 2023, Brookdale operates and manages 672 communities in 41 states, with the ability to serve more than 60,000 residents.
Explore the complete 8-K earnings release (here) from Brookdale Senior Living Inc for further details.
This article first appeared on GuruFocus.
