Brookdale Announces Fourth Quarter and Full Year 2024 Results
Brookdale Senior Living (BKD) reported its Q4 and full-year 2024 results, showing significant improvements in key metrics. Fourth quarter consolidated revenue per available unit (RevPAR) increased 5.5% year-over-year, while weighted average occupancy grew 100 basis points. The company's net loss improved by 8% and Adjusted EBITDA increased by 16% compared to the previous year.
Notable achievements include a 54% increase in net cash from operations and a 46% improvement in Adjusted Free Cash Flow for Q4. The company completed several strategic transactions, including refinancing over $300 million of 2027 debt at lower interest rates, acquiring 11 previously leased communities, and amending its lease agreement with Ventas, involving non-renewal of 55 communities.
For 2025, Brookdale projects RevPAR growth of 4.75% to 5.75% and Adjusted EBITDA between $430.0-445.0 million. The company ended 2024 with total liquidity of $389.3 million, including $308.9 million in unrestricted cash.
Brookdale Senior Living (BKD) ha riportato i risultati del quarto trimestre e dell'intero anno 2024, mostrando miglioramenti significativi nei principali indicatori. Il fatturato consolidato per unità disponibile (RevPAR) del quarto trimestre è aumentato del 5,5% rispetto all'anno precedente, mentre l'occupazione media ponderata è cresciuta di 100 punti base. La perdita netta dell'azienda è migliorata dell'8% e l'EBITDA rettificato è aumentato del 16% rispetto all'anno precedente.
Tra i risultati notevoli vi è un incremento del 54% del cash flow netto dalle operazioni e un miglioramento del 46% nel flusso di cassa libero rettificato per il quarto trimestre. L'azienda ha completato diverse operazioni strategiche, tra cui il rifinanziamento di oltre 300 milioni di dollari di debito del 2027 a tassi d'interesse più bassi, l'acquisizione di 11 comunità precedentemente in leasing e la modifica del contratto di locazione con Ventas, che prevede la non rinnovazione di 55 comunità.
Per il 2025, Brookdale prevede una crescita del RevPAR tra il 4,75% e il 5,75% e un EBITDA rettificato compreso tra 430,0 e 445,0 milioni di dollari. L'azienda ha chiuso il 2024 con una liquidità totale di 389,3 milioni di dollari, di cui 308,9 milioni in contante non vincolato.
Brookdale Senior Living (BKD) informó sus resultados del cuarto trimestre y del año completo 2024, mostrando mejoras significativas en métricas clave. Los ingresos consolidados por unidad disponible (RevPAR) del cuarto trimestre aumentaron un 5,5% interanual, mientras que la ocupación promedio ponderada creció 100 puntos básicos. La pérdida neta de la empresa mejoró en un 8% y el EBITDA ajustado aumentó un 16% en comparación con el año anterior.
Logros notables incluyen un aumento del 54% en el efectivo neto de las operaciones y una mejora del 46% en el flujo de caja libre ajustado para el cuarto trimestre. La empresa completó varias transacciones estratégicas, incluyendo el refinanciamiento de más de 300 millones de dólares de deuda de 2027 a tasas de interés más bajas, la adquisición de 11 comunidades anteriormente arrendadas y la enmienda de su contrato de arrendamiento con Ventas, que implica la no renovación de 55 comunidades.
Para 2025, Brookdale proyecta un crecimiento del RevPAR del 4,75% al 5,75% y un EBITDA ajustado entre 430,0 y 445,0 millones de dólares. La empresa finalizó 2024 con una liquidez total de 389,3 millones de dólares, de los cuales 308,9 millones son en efectivo no restringido.
브룩데일 시니어 리빙 (BKD)은 2024년 4분기 및 연간 실적을 발표하며 주요 지표에서 상당한 개선을 보여주었습니다. 4분기 가용 유닛당 수익(RevPAR)은 전년 대비 5.5% 증가했으며, 가중 평균 점유율은 100베이시스 포인트 상승했습니다. 회사의 순손실은 8% 개선되었고, 조정 EBITDA는 전년 대비 16% 증가했습니다.
주요 성과로는 운영에서 발생한 순현금이 54% 증가하고, 4분기 조정 자유 현금 흐름이 46% 개선되었습니다. 회사는 2027년 부채 3억 달러 이상을 낮은 이자율로 재융자하고, 이전에 임대했던 11개의 커뮤니티를 인수하며, 55개의 커뮤니티 비갱신을 포함하여 Ventas와의 임대 계약을 수정하는 등의 여러 전략적 거래를 완료했습니다.
2025년을 위해 브룩데일은 RevPAR이 4.75%에서 5.75% 성장할 것으로 예상하며, 조정 EBITDA는 4억 3천만에서 4억 4천 5백만 달러 사이로 예상하고 있습니다. 회사는 2024년을 총 유동성 3억 8천 9백 30만 달러로 마감했으며, 그 중 3억 8백 90만 달러는 제한 없는 현금입니다.
Brookdale Senior Living (BKD) a publié ses résultats du quatrième trimestre et de l'année entière 2024, montrant des améliorations significatives dans les indicateurs clés. Le revenu consolidé par unité disponible (RevPAR) du quatrième trimestre a augmenté de 5,5% par rapport à l'année précédente, tandis que le taux d'occupation moyen pondéré a progressé de 100 points de base. La perte nette de l'entreprise s'est améliorée de 8% et l'EBITDA ajusté a augmenté de 16% par rapport à l'année précédente.
Parmi les réalisations notables, on note une augmentation de 54% des flux de trésorerie nets provenant des opérations et une amélioration de 46% du flux de trésorerie libre ajusté pour le quatrième trimestre. L'entreprise a conclu plusieurs transactions stratégiques, y compris le refinancement de plus de 300 millions de dollars de dettes de 2027 à des taux d'intérêt plus bas, l'acquisition de 11 communautés précédemment louées et la modification de son contrat de location avec Ventas, impliquant la non-renouvellement de 55 communautés.
Pour 2025, Brookdale prévoit une croissance du RevPAR de 4,75% à 5,75% et un EBITDA ajusté entre 430,0 et 445,0 millions de dollars. L'entreprise a terminé 2024 avec une liquidité totale de 389,3 millions de dollars, dont 308,9 millions de dollars en liquidités non restreintes.
Brookdale Senior Living (BKD) hat seine Ergebnisse für das vierte Quartal und das gesamte Jahr 2024 veröffentlicht und dabei signifikante Verbesserungen in den Schlüsselkennzahlen aufgezeigt. Der konsolidierte Umsatz pro verfügbarem Zimmer (RevPAR) im vierten Quartal stieg im Jahresvergleich um 5,5%, während die gewichtete durchschnittliche Auslastung um 100 Basispunkte zunahm. Der Nettoverlust des Unternehmens verbesserte sich um 8% und das bereinigte EBITDA stieg im Vergleich zum Vorjahr um 16%.
Zu den bemerkenswerten Errungenschaften gehört ein Anstieg des Nettocashflows aus dem operativen Geschäft um 54% und eine Verbesserung des bereinigten freien Cashflows für das vierte Quartal um 46%. Das Unternehmen hat mehrere strategische Transaktionen abgeschlossen, darunter die Refinanzierung von über 300 Millionen Dollar an Schulden aus 2027 zu niedrigeren Zinssätzen, den Erwerb von 11 zuvor gepachteten Gemeinschaften und die Änderung des Mietvertrags mit Ventas, die die Nichtverlängerung von 55 Gemeinschaften umfasst.
Für 2025 prognostiziert Brookdale ein RevPAR-Wachstum von 4,75% bis 5,75% und ein bereinigtes EBITDA zwischen 430,0 und 445,0 Millionen Dollar. Das Unternehmen schloss das Jahr 2024 mit einer Gesamtliquidität von 389,3 Millionen Dollar ab, darunter 308,9 Millionen Dollar in ungebundenem Bargeld.
- RevPAR increased 5.5% year-over-year in Q4 2024
- Weighted average occupancy improved 100 basis points year-over-year
- Net cash from operations increased 54% in Q4
- Adjusted EBITDA improved 16% year-over-year
- Successfully refinanced $300M+ of debt at lower interest rates
- Total liquidity increased to $389.3M as of December 31, 2024
- Q4 2024 net loss of $83.9M
- Facility operating expenses increased 4.6% year-over-year in Q4
- General and administrative expenses rose 15.9% year-over-year in Q4
- $15.5M loss on debt extinguishment in Q4 2024
Insights
The Q4 2024 results reveal Brookdale's successful execution of a multi-faceted transformation strategy, with several notable achievements that position the company for stronger financial performance in 2025 and beyond.
The operational metrics show robust improvement, with RevPAR growing 5.5% year-over-year, driven by both occupancy gains and rate increases. The 100 basis point occupancy improvement to 79.4% demonstrates successful recovery from pandemic-era lows, while the 4.2% RevPOR increase indicates strong pricing power in the current market environment.
Perhaps most significant is Brookdale's strategic portfolio restructuring:
- The acquisition of 11 previously leased Welltower communities eliminates
$22.3 million in annual lease payments, replacing them with more favorable debt financing at 4.92% fixed rate - The Ventas lease amendment reduces the portfolio from 120 to 65 communities, with a new annual rent of
$64 million starting 2026, optimizing the property mix - Pending acquisitions of 30 additional communities from Welltower and Diversified Healthcare Trust will further reduce lease exposure
The company's improved financial position is evident in the 15.5% increase in Adjusted EBITDA and 54% growth in operating cash flow. The refinancing of over
Looking ahead, the 2025 guidance of 4.75-5.75% RevPAR growth and Adjusted EBITDA of
HIGHLIGHTS
- Fourth quarter consolidated revenue per available unit (RevPAR) increased
5.5% over the prior year quarter and was at the top end of the previously provided guidance range. - Fourth quarter consolidated weighted average occupancy grew 100 basis points over the prior year quarter on strong move-in volume which also supported January's sequential occupancy outperformance versus pre-pandemic normal seasonality.
- Through consistent execution of strategic priorities and commitment to growth, fourth quarter net income (loss) improved nearly
8% and Adjusted EBITDA(1) improved nearly16% year-over-year and exceeded the previously provided guidance range. - Net cash provided by operating activities increased
54% and Adjusted Free Cash Flow(1) improved46% for the fourth quarter compared to the prior year quarter. - Entered into a lease amendment with Ventas, Inc., including non-renewal of 55 communities, which is expected to generate a considerable increase to the Company's near- and long-term cash flows.
- Beneficially refinanced more than
$300 million - Completed the acquisition of 11 previously leased communities, increasing portfolio ownership and replacing lease payments with a lower cost of capital.
"In 2024, Brookdale made significant progress to achieving its long-term potential. We are proud of the meaningful improvements across many financial, operational, and resident satisfaction metrics. We are grateful for being recognized externally for our workplace culture, leading clinical programming, and being a 'best of' in hundreds of our local markets. Importantly, we delivered positive Adjusted Free Cash Flow in the back half of the year and have positioned the business to generate meaningful Adjusted Free Cash Flow in 2025 through continued focus on profitable occupancy growth and appropriate expense management, completed and pending acquisitions of leased portfolios, and beneficial negotiation of recent lease amendments," said Lucinda ("Cindy") Baier, Brookdale's President and CEO. "As we look to 2025 and beyond, we remain committed to enriching the lives of even more seniors who choose Brookdale to call home, to ensuring that we remain an attractive place for associates to work and to grow their careers, and to creating additional value for our shareholders in the near and long term."
SUMMARY OF FOURTH QUARTER FINANCIAL RESULTS
Consolidated summary of operating results and metrics:
Year-Over-Year Increase / | Sequential Increase / | |||||||
($ in millions, except RevPAR and RevPOR) | 4Q 2024 | 4Q 2023 | Amount | Percent | 3Q 2024 | Amount | Percent | |
Resident fees | $ 744.4 | $ 716.6 | $ 27.8 | 3.9 % | $ 743.7 | $ 0.7 | 0.1 % | |
Facility operating expense | 554.9 | 530.5 | 24.4 | 4.6 % | 548.3 | 6.6 | 1.2 % | |
General and administrative expense | 48.5 | 41.9 | 6.6 | 15.9 % | 44.9 | 3.6 | 8.0 % | |
Cash facility operating lease payments | 55.9 | 64.5 | (8.6) | (13.4) % | 64.4 | (8.5) | (13.2) % | |
Net income (loss) | (83.9) | (91.2) | (7.3) | (7.9) % | (50.7) | 33.2 | 65.4 % | |
Adjusted EBITDA (1) | 98.5 | 85.3 | 13.2 | 15.5 % | 92.2 | 6.3 | 6.8 % | |
RevPAR | $ 4,873 | $ 4,619 | $ 254 | 5.5 % | $ 4,869 | $ 4 | 0.1 % | |
Weighted average occupancy | 79.4 % | 78.4 % | 100 bps | n/a | 78.9 % | 50 bps | n/a | |
RevPOR | $ 6,136 | $ 5,889 | $ 247 | 4.2 % | $ 6,171 | $ (35) | (0.6) % | |
(1) | Adjusted EBITDA and Adjusted Free Cash Flow are financial measures not calculated in accordance with GAAP. See "Non-GAAP Financial Measures" for the Company's definition of such measures, reconciliations to the most comparable GAAP financial measures, and other important information regarding the use of the Company's non-GAAP financial measures. |
Same community(2) summary of operating results and metrics:
Year-Over-Year Increase / | Sequential | |||||||
($ in millions, except RevPAR and RevPOR) | 4Q 2024 | 4Q 2023 | Amount | Percent | 3Q 2024 | Amount | Percent | |
Resident fees | $ 729.4 | $ 693.0 | $ 36.4 | 5.2 % | $ 729.1 | $ 0.3 | — % | |
Facility operating expense | $ 539.3 | $ 511.0 | $ 28.3 | 5.5 % | $ 535.4 | $ 3.9 | 0.7 % | |
RevPAR | $ 4,866 | $ 4,625 | $ 241 | 5.2 % | $ 4,864 | $ 2 | — % | |
Weighted average occupancy | 79.5 % | 78.6 % | 90 bps | n/a | 79.0 % | 50 bps | n/a | |
RevPOR | $ 6,121 | $ 5,888 | $ 233 | 4.0 % | $ 6,159 | $ (38) | (0.6) % | |
(2) | The same community senior housing portfolio includes operating results and data for 610 communities consolidated and operational for the full period in both comparison years. Consolidated communities excluded from the same community portfolio include communities acquired or disposed of since the beginning of the prior year, communities classified as assets held for sale, certain communities planned for disposition, certain communities that have undergone or are undergoing expansion, redevelopment, and repositioning projects, and certain communities that have experienced a casualty event that significantly impacts their operations. To aid in comparability, same community operating results exclude natural disaster expense. |
Recent consolidated occupancy trend:
2023 | ||||||||||||||
Jan | Feb | Mar | Apr | May | Jun | Jul | Aug | Sep | Oct | Nov | Dec | |||
Weighted average | 76.6 % | 76.3 % | 76.1 % | 76.2 % | 76.6 % | 76.8 % | 77.1 % | 77.6 % | 78.2 % | 78.6 % | 78.4 % | 78.3 % | ||
Month end | 77.6 % | 77.4 % | 77.6 % | 77.6 % | 78.1 % | 78.2 % | 78.5 % | 79.3 % | 79.7 % | 79.5 % | 79.6 % | 79.3 % | ||
2024 | 2025 | |||||||||||||
Jan | Feb | Mar | Apr | May | Jun | Jul | Aug | Sep | Oct | Nov | Dec | Jan | ||
Weighted average | 78.0 % | 77.9 % | 77.9 % | 77.9 % | 78.1 % | 78.2 % | 78.6 % | 78.9 % | 79.2 % | 79.4 % | 79.5 % | 79.3 % | 79.2 % | |
Month end | 79.3 % | 79.2 % | 79.1 % | 79.2 % | 79.5 % | 79.7 % | 79.9 % | 80.4 % | 80.5 % | 80.8 % | 80.4 % | 80.5 % | 80.6 % | |
OVERVIEW OF FOURTH QUARTER RESULTS
- Resident fees.
- 4Q 2024 vs 4Q 2023:
- Resident fees increased primarily due to the increases in RevPOR and weighted average occupancy, partially offset by the disposition of communities, primarily through lease terminations, since the beginning of the prior year period, which resulted in
$10.5 million - The increase in RevPOR was primarily the result of the current year rate increases.
- The increase in weighted average occupancy primarily reflects the impact of the Company's execution on key initiatives to rebuild occupancy lost due to the pandemic.
- Resident fees increased primarily due to the increases in RevPOR and weighted average occupancy, partially offset by the disposition of communities, primarily through lease terminations, since the beginning of the prior year period, which resulted in
- 4Q 2024 vs 3Q 2024: Resident fees increased primarily due to the 50 basis point increase in weighted average occupancy, an improvement from normal pre-pandemic seasonality trends, partially offset by the decrease in RevPOR.
- 4Q 2024 vs 4Q 2023:
- Facility operating expense.
- 4Q 2024 vs 4Q 2023:
- The increase in facility operating expense was primarily due to broad inflationary pressure and increases in insurance expense, natural disaster expense as a result of expenses incurred for hurricanes, and marketing expense.
- These increases were partially offset by the disposition of communities since the beginning of the prior year period, which resulted in
$8.8 million
- 4Q 2024 vs 3Q 2024: The increase in facility operating expense was primarily due to increases in insurance expense and natural disaster expense as a result of expenses incurred for hurricanes, partially offset by decreases in marketing expense and seasonal utility expense.
- 4Q 2024 vs 4Q 2023:
- General and administrative expense: The increase compared to the fourth quarter of 2023 and the third quarter of 2024 was primarily due to
$7.0 million - Cash facility operating lease payments: The decrease compared to the fourth quarter of 2023 and the third quarter of 2024 was primarily due to the change in lease classification from operating leases to financing leases for communities subject to acquisition agreements.
- Net income (loss).
- 4Q 2024 vs 4Q 2023: The decrease in net loss was primarily due to the increase in resident fees and a decrease in asset impairment expense, partially offset by the increase in facility operating expense and a
$15.5 million - 4Q 2024 vs 3Q 2024: The increase in net loss was primarily due to the
$15.5 million
- 4Q 2024 vs 4Q 2023: The decrease in net loss was primarily due to the increase in resident fees and a decrease in asset impairment expense, partially offset by the increase in facility operating expense and a
- Adjusted EBITDA.
- 4Q 2024 vs 4Q 2023: The increase was primarily due to the increase in resident fees and the change in the classification of lease payments for communities subject to acquisition agreements, partially offset by the increase in facility operating expense.
- 4Q 2024 vs 3Q 2024: The increase was primarily due to the change in the classification of lease payments for communities subject to acquisition agreements and lower general and administrative expenses, partially offset by the increase in facility operating expense.
FULL YEAR RESULTS
Consolidated summary of operating results and metrics:
Year-Over-Year Increase / | ||||
($ in millions, except RevPAR and RevPOR) | 2024 | 2023 | Amount | Percent |
Resident fee revenue | $ 2,972.1 | $ 2,857.3 | $ 114.8 | 4.0 % |
Facility operating expense | 2,183.3 | 2,129.8 | 53.5 | 2.5 % |
General and administrative expense | 185.9 | 178.9 | 7.0 | 3.9 % |
Cash facility operating lease payments | 249.4 | 248.1 | 1.3 | 0.5 % |
Net income (loss) | (202.0) | (189.1) | 12.9 | 6.8 % |
Adjusted EBITDA (1) | 386.2 | 335.5 | 50.7 | 15.1 % |
RevPAR | $ 4,858 | $ 4,577 | $ 281 | 6.1 % |
Weighted average occupancy | 78.6 % | 77.2 % | 140 bps | n/a |
RevPOR | $ 6,182 | $ 5,927 | $ 255 | 4.3 % |
Same community(2) summary of operating results and metrics:
Year-Over-Year Increase / | ||||
($ in millions, except RevPAR and RevPOR) | 2024 | 2023 | Amount | Percent |
Resident fee revenue | $ 2,910.0 | $ 2,751.2 | $ 158.8 | 5.8 % |
Facility operating expense | $ 2,126.6 | $ 2,037.5 | $ 89.1 | 4.4 % |
RevPAR | $ 4,854 | $ 4,590 | $ 264 | 5.8 % |
Weighted average occupancy | 78.7 % | 77.5 % | 120 bps | n/a |
RevPOR | $ 6,170 | $ 5,925 | $ 245 | 4.1 % |
LIQUIDITY
Consolidated summary of liquidity metrics for comparable quarters:
Year-Over-Year Increase / | Sequential Increase / | ||||
($ in millions) | 4Q 2024 | 4Q 2023 | Amount | 3Q 2024 | Amount |
Net cash provided by operating activities | $ 45.2 | $ 29.3 | $ 15.9 | $ 66.5 | $ (21.3) |
Non-development capital expenditures, net | 42.1 | 41.5 | 0.6 | 41.7 | 0.4 |
Adjusted Free Cash Flow (1) | (11.5) | (21.5) | 10.0 | 13.9 | (25.4) |
- Net cash provided by operating activities.
- 4Q 2024 vs 4Q 2023: The increase in net cash provided by operating activities was primarily due to the increase in resident fees, partially offset by the increase in facility operating expense.
- 4Q 2024 vs 3Q 2024: The decrease in net cash provided by operating activities was primarily due to timing of payments of real estate taxes and trade payables, and the increase in facility operating expense.
- Adjusted Free Cash Flow.
- 4Q 2024 vs 4Q 2023: The change in Adjusted Free Cash Flow was primarily due to an increase in net cash provided by operating activities, partially offset by a decrease in property insurance proceeds.
- 4Q 2024 vs 3Q 2024: The change in Adjusted Free Cash Flow was primarily due to decreases in net cash provided by operating activities and property insurance proceeds.
- Total liquidity. Total liquidity of
$389.3 million $308.9 million $60.5 million $19.9 million $65.2 million $19.0 million
Consolidated summary of liquidity metrics for the full year:
Year-Over-Year Increase / (Decrease) | |||
($ in millions) | 2024 | 2023 | Amount |
Net cash provided by operating activities | $ 166.2 | $ 162.9 | $ 3.3 |
Non-development capital expenditures, net | 186.8 | 216.5 | (29.7) |
Adjusted Free Cash Flow (1) | (29.5) | (47.6) | 18.1 |
TRANSACTION AND FINANCING UPDATE
Convertible Senior Notes
On September 30, 2024, the Company entered into privately negotiated exchange and subscription agreements with certain of the holders of its outstanding
Mortgage Debt
In November 2024, the Company entered into an amendment to extend the maturity date of
In December 2024, the Company obtained
Ventas Lease Amendment
In December 2024, the Company amended its lease arrangement with Ventas, Inc. ("Ventas"). Beginning January 1, 2026, the Company will continue to lease 65 communities ("Renewal Communities"). The remaining 55 communities ("Non-renewal Communities") that are not renewed will either be sold by Ventas or transitioned, with such transitions commencing on or after September 1, 2025. The aggregate annual minimum rent for the Renewal Communities will be
International JV / Welltower Portfolio Acquisition
In September 2024, the Company entered into a definitive agreement to acquire 11 senior living communities that were leased by the Company from a joint venture between Welltower Inc. ("Welltower") and its joint venture partners for a purchase price of
Diversified Healthcare Trust Portfolio Acquisition
In September 2024, the Company entered into a definitive agreement to acquire 25 senior living communities from Diversified Healthcare Trust for a purchase price of
Welltower Portfolio Acquisition
In September 2024, the Company entered into a definitive agreement to acquire five senior living communities that are currently leased by the Company from Welltower for a purchase price of
2025 OUTLOOK
For the full year 2025, the Company is providing the following guidance:
Full Year 2025 Guidance | |
RevPAR year-over-year growth | |
Adjusted EBITDA |
In the aggregate, the Company expects its full year 2025 non-development capital expenditures, net of anticipated lessor reimbursements and property and casualty insurance proceeds, to be
Full year 2025 guidance includes only previously announced acquisition and disposition activity and, for purposes of providing guidance only, assumes an October 1, 2025 disposition date for all 55 Ventas non-renewal communities to be transitioned or sold. Reconciliation of the non-GAAP financial measure included in the foregoing guidance to the most comparable GAAP financial measure is not available without unreasonable effort due to the inherent difficulty in forecasting the timing or amounts of items required to reconcile Adjusted EBITDA from the Company's net income (loss). Variability in the timing or amounts of items required to reconcile the measure may have a significant impact on the Company's future GAAP results.
SUPPLEMENTAL INFORMATION
The Company will post on its website at brookdaleinvestors.com supplemental information relating to the Company's fourth quarter and full year 2024 results, an updated investor presentation, and a copy of this earnings release. The supplemental information and a copy of this earnings release will also be furnished in a Form 8-K to be filed with the SEC.
EARNINGS CONFERENCE CALL
Brookdale's management will conduct a conference call to discuss the financial results for the fourth quarter on February 19, 2025 at 9:00 AM ET. The conference call can be accessed by dialing (800) 715-9871 (from within the
A webcast of the conference call will be available to the public on a listen-only basis at brookdaleinvestors.com. Please allow extra time before the call to download the necessary software required to listen to the internet broadcast. A replay of the webcast will be available through the website following the call.
For those who cannot listen to the live call, a replay of the webcast will be available until 11:59 PM ET on February 26, 2025 by dialing (800) 770-2030 (from within the
ABOUT BROOKDALE SENIOR LIVING
Brookdale Senior Living Inc. is the nation's premier operator of senior living communities. With 647 communities across 41 states and the ability to serve approximately 58,000 residents as of December 31, 2024, Brookdale is committed to its mission of enriching the lives of seniors through compassionate care, clinical expertise, and exceptional service. The Company, through its affiliates, operates independent living, assisted living, memory care, and continuing care retirement communities, offering tailored solutions that help empower seniors to live with dignity, connection, and purpose. Leveraging deep expertise in healthcare, hospitality, and real estate, Brookdale creates opportunities for wellness, personal growth, and meaningful relationships in settings that feel like home. Guided by its four cornerstones of passion, courage, partnership, and trust, Brookdale is committed to delivering exceptional value and redefining senior living for a brighter, healthier future. 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.
DEFINITIONS OF REVPAR AND REVPOR
RevPAR, or average monthly senior housing resident fee revenue per available unit, is defined by the Company as resident fee revenue for the corresponding portfolio for the period (excluding revenue for private duty services provided to seniors living outside of the Company's communities and entrance fee amortization), divided by the weighted average number of available units in the corresponding portfolio for the period, divided by the number of months in the period.
RevPOR, or average monthly senior housing resident fee revenue per occupied unit, is defined by the Company as resident fee revenue for the corresponding portfolio for the period (excluding revenue for private duty services provided to seniors living outside of the Company's communities and entrance fee amortization), divided by the weighted average number of occupied units in the corresponding portfolio for the period, divided by the number of months in the period.
SAFE HARBOR
Certain statements in this press release and the associated earnings call may constitute forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. These forward-looking statements are subject to various risks and uncertainties and include all statements that are not historical statements of fact and those regarding the Company's intent, belief, or expectations. Forward-looking statements are generally identifiable by use of forward-looking terminology such as "may," "will," "should," "could," "would," "potential," "intend," "expect," "endeavor," "seek," "anticipate," "estimate," "believe," "project," "predict," "continue," "plan," "target," or other similar words or expressions, and include statements regarding the Company's expected financial and operational results. These forward-looking statements are based on certain assumptions and expectations, and the Company's ability to predict results or the actual effect of future plans or strategies is inherently uncertain. Although the Company believes that expectations reflected in any forward-looking statements are based on reasonable assumptions, it can give no assurance that its assumptions or expectations will be attained and actual results and performance could differ materially from those projected. Factors which could have a material adverse effect on the Company's operations and future prospects or which could cause events or circumstances to differ from the forward-looking statements include, but are not limited to, events which adversely affect the ability of seniors to afford resident fees, including downturns in the economy, housing market, consumer confidence, or the equity markets and unemployment among resident family members; the effects of senior housing construction and development, lower industry occupancy, and increased competition; conditions of housing markets, regulatory changes, acts of nature, and the effects of climate change in geographic areas where the Company is concentrated; terminations of the Company's resident agreements and vacancies in the living spaces it leases; changes in reimbursement rates, methods, or timing under governmental reimbursement programs including the Medicare and Medicaid programs; failure to maintain the security and functionality of the Company's information systems, to prevent a cybersecurity attack or breach, or to comply with applicable privacy and consumer protection laws, including HIPAA; the Company's ability to complete its capital expenditures in accordance with its plans; the Company's ability to identify and pursue development, investment, and acquisition opportunities and its ability to successfully integrate acquisitions; competition for the acquisition of assets; the Company's ability to complete pending or expected disposition, acquisition, or other transactions on agreed upon terms or at all, including in respect of the satisfaction of closing conditions, the risk that regulatory approvals are not obtained or are subject to unanticipated conditions, and uncertainties as to the timing of closing, and the Company's ability to identify and pursue any such opportunities in the future; risks related to the implementation of the Company's strategy, including initiatives undertaken to execute on the Company's strategic priorities and their effect on its results; the impacts of the COVID-19 pandemic, including the pace and consistency of recovery from the pandemic and any resurgence or variants of the disease; limits on the Company's ability to use net operating loss carryovers to reduce future tax payments; delays in obtaining regulatory approvals; disruptions in the financial markets or decreases in the appraised values or performance of the Company's communities that affect the Company's ability to obtain financing or extend or refinance debt as it matures and the Company's financing costs; the Company's ability to generate sufficient cash flow to cover required interest, principal, and long-term lease payments and to fund its planned capital projects; the effect of any non-compliance with any of the Company's debt or lease agreements (including the financial or other covenants contained therein), including the risk of lenders or lessors declaring a cross default in the event of the Company's non-compliance with any such agreements and the risk of loss of the Company's property securing leases and indebtedness due to any resulting lease terminations and foreclosure actions; the inability to renew, restructure, or extend leases, or exercise purchase options at or prior to the end of any existing lease term; the effect of the Company's indebtedness and long-term leases on the Company's liquidity and its ability to operate its business; increases in market interest rates that increase the costs of the Company's debt obligations; the Company's ability to obtain additional capital on terms acceptable to it; departures of key officers and potential disruption caused by changes in management; increased competition for, or a shortage of, associates, wage pressures resulting from increased competition, low unemployment levels, minimum wage increases and changes in overtime laws, and union activity; environmental contamination at any of the Company's communities; failure to comply with existing environmental laws; an adverse determination or resolution of complaints filed against the Company, including putative class action complaints; negative publicity with respect to any lawsuits, claims, or other legal or regulatory proceedings; costs to respond to, and adverse determinations resulting from, government inquiries, reviews, audits, and investigations; the cost and difficulty of complying with increasing and evolving regulation, including new disclosure obligations; changes in, or its failure to comply with, employment-related laws and regulations; the risks associated with current global economic conditions and general economic factors on the Company and the Company's business partners such as inflation, commodity costs, fuel and other energy costs, competition in the labor market, costs of salaries, wages, benefits, and insurance, interest rates, tax rates, geopolitical tensions or conflicts, and uncertainty surrounding a new presidential administration, the impact of seasonal contagious illness or other contagious disease in the markets in which the Company operates; actions of activist stockholders, including a proxy contest; as well as other risks detailed from time to time in the Company's filings with the Securities and Exchange Commission ("SEC"), including those set forth in the Company's Annual Report on Form 10-K and Quarterly Reports on Form 10-Q. When considering forward-looking statements, you should keep in mind the risk factors and other cautionary statements in such SEC filings. Readers are cautioned not to place undue reliance on any of these forward-looking statements, which reflect management's views as of the date of this press release and/or associated earnings call. The Company cannot guarantee future results, levels of activity, performance or achievements, and, except as required by law, it expressly disclaims any obligation to release publicly any updates or revisions to any forward-looking statements contained in this press release and/or associated earnings call to reflect any change in the Company's expectations with regard thereto or change in events, conditions, or circumstances on which any statement is based.
Condensed Consolidated Statements of Operations
| |||||||
Three Months Ended December 31, | Years Ended December 31, | ||||||
(in thousands, except per share data) | 2024 | 2023 | 2024 | 2023 | |||
Resident fees | $ 744,371 | $ 716,582 | $ 2,972,050 | $ 2,857,270 | |||
Management fees | 2,611 | 2,508 | 10,521 | 10,161 | |||
Reimbursed costs incurred on behalf of managed communities | 33,966 | 35,393 | 142,916 | 139,325 | |||
Other operating income | — | — | — | 9,073 | |||
Total revenue and other operating income | 780,948 | 754,483 | 3,125,487 | 3,015,829 | |||
Facility operating expense (excluding facility depreciation and amortization of | 554,922 | 530,464 | 2,183,261 | 2,129,800 | |||
General and administrative expense (including non-cash stock-based compensation expense of | 48,525 | 41,873 | 185,850 | 178,894 | |||
Facility operating lease expense | 46,190 | 52,626 | 200,587 | 202,410 | |||
Depreciation and amortization | 93,569 | 87,398 | 357,788 | 342,712 | |||
Asset impairment | 5,915 | 30,966 | 8,557 | 40,572 | |||
Loss (gain) on sale of communities, net | — | — | — | (36,296) | |||
Costs incurred on behalf of managed communities | 33,966 | 35,393 | 142,916 | 139,325 | |||
Income (loss) from operations | (2,139) | (24,237) | 46,528 | 18,412 | |||
Interest income | 5,007 | 5,382 | 19,162 | 23,146 | |||
Interest expense: | |||||||
Debt | (54,120) | (53,788) | (215,525) | (209,772) | |||
Financing lease obligations | (12,528) | (4,995) | (27,761) | (21,950) | |||
Amortization of deferred financing costs | (2,795) | (1,947) | (9,723) | (7,696) | |||
Change in fair value of derivatives | 2,438 | (3,986) | 434 | 1,144 | |||
Gain (loss) on debt modification and extinguishment, net | (18,495) | (2,702) | (20,762) | (2,702) | |||
Equity in earnings (loss) of unconsolidated ventures | — | (840) | — | (3,996) | |||
Non-operating gain (loss) on sale of assets, net | — | 581 | 923 | 1,441 | |||
Other non-operating income (loss) | 2,255 | 5,175 | 9,376 | 21,687 | |||
Income (loss) before income taxes | (80,377) | (81,357) | (197,348) | (180,286) | |||
Benefit (provision) for income taxes | (3,560) | (9,813) | (4,646) | (8,784) | |||
Net income (loss) | (83,937) | (91,170) | (201,994) | (189,070) | |||
Net (income) loss attributable to noncontrolling interest | 15 | 14 | 59 | 59 | |||
Net income (loss) attributable to Brookdale Senior Living Inc. common stockholders | $ (83,922) | $ (91,156) | $ (201,935) | $ (189,011) | |||
Basic and diluted net income (loss) per share attributable to Brookdale Senior Living Inc. common stockholders | $ (0.37) | $ (0.40) | $ (0.89) | $ (0.84) | |||
Weighted average shares used in computing basic and diluted net income (loss) per share | 229,272 | 225,427 | 227,525 | 225,209 | |||
Condensed Consolidated Balance Sheets
| |||
(in thousands) | December 31, 2024 | December 31, 2023 | |
Cash and cash equivalents | $ 308,925 | $ 277,971 | |
Marketable securities | 19,879 | 29,755 | |
Restricted cash | 39,871 | 41,341 | |
Accounts receivable, net | 51,891 | 48,393 | |
Prepaid expenses and other current assets, net | 92,371 | 80,908 | |
Total current assets | 512,937 | 478,368 | |
Property, plant and equipment and leasehold intangibles, net | 4,594,401 | 4,330,629 | |
Operating lease right-of-use assets | 1,133,837 | 670,907 | |
Other assets, net | 94,387 | 93,531 | |
Total assets | $ 6,335,562 | $ 5,573,435 | |
Current portion of long-term debt | $ 40,779 | $ 41,463 | |
Current portion of financing lease obligations | 37,007 | 1,075 | |
Current portion of operating lease obligations | 111,104 | 192,631 | |
Other current liabilities | 390,873 | 364,947 | |
Total current liabilities | 579,763 | 600,116 | |
Long-term debt, less current portion | 4,022,008 | 3,655,850 | |
Financing lease obligations, less current portion | 266,895 | 150,774 | |
Operating lease obligations, less current portion | 1,174,204 | 683,876 | |
Other liabilities | 78,787 | 77,666 | |
Total liabilities | 6,121,657 | 5,168,282 | |
Total Brookdale Senior Living Inc. stockholders' equity | 212,475 | 403,664 | |
Noncontrolling interest | 1,430 | 1,489 | |
Total equity | 213,905 | 405,153 | |
Total liabilities and equity | $ 6,335,562 | $ 5,573,435 | |
Condensed Consolidated Statements of Cash Flows
| |||
Years Ended December 31, | |||
(in thousands) | 2024 | 2023 | |
Cash Flows from Operating Activities | |||
Net income (loss) | $ (201,994) | $ (189,070) | |
Adjustments to reconcile net income (loss) to net cash provided by (used in) operating activities: | |||
Loss (gain) on debt modification and extinguishment, net | 20,762 | 2,702 | |
Depreciation and amortization, net | 367,511 | 350,408 | |
Asset impairment | 8,557 | 40,572 | |
Equity in (earnings) loss of unconsolidated ventures | — | 3,996 | |
Distributions from unconsolidated ventures from cumulative share of net earnings | — | 430 | |
Amortization of entrance fees | — | (732) | |
Proceeds from deferred entrance fee revenue | — | 477 | |
Deferred income tax (benefit) provision | 3,617 | 7,590 | |
Operating lease expense adjustment | (48,793) | (45,739) | |
Change in fair value of derivatives | (434) | (1,144) | |
Loss (gain) on sale of assets, net | (923) | (37,737) | |
Non-cash stock-based compensation expense | 14,184 | 11,985 | |
Property and casualty insurance income | (8,532) | (18,920) | |
Other non-operating (income) loss | — | (2,542) | |
Changes in operating assets and liabilities: | |||
Accounts receivable, net | (3,498) | 7,380 | |
Prepaid expenses and other assets, net | (21,560) | 21,629 | |
Trade accounts payable and accrued expenses | 15,697 | 2,448 | |
Refundable fees and deferred revenue | 5,221 | (654) | |
Operating lease assets and liabilities for lessor capital expenditure reimbursements | 16,362 | 9,844 | |
Net cash provided by (used in) operating activities | 166,177 | 162,923 | |
Cash Flows from Investing Activities | |||
Purchase of marketable securities | (49,054) | (174,476) | |
Sale and maturities of marketable securities | 60,000 | 197,100 | |
Capital expenditures, net of related payables | (201,250) | (233,205) | |
Acquisition of assets, net of cash acquired | (108,411) | (574) | |
Investment in unconsolidated ventures | — | (7,589) | |
Proceeds from sale of assets, net | 7,017 | 83,526 | |
Property and casualty insurance proceeds | 8,548 | 24,704 | |
Change in lease acquisition deposits, net | (5,000) | — | |
Purchase of interest rate cap instruments | (10,149) | (12,454) | |
Proceeds from interest rate cap instruments | 20,563 | 9,890 | |
Other | (330) | (286) | |
Net cash provided by (used in) investing activities | (278,066) | (113,364) | |
Cash Flows from Financing Activities | |||
Proceeds from debt | 765,652 | 205,549 | |
Repayment of debt and financing lease obligations | (594,997) | (367,242) | |
Payment of financing costs, net of related payables | (25,157) | (10,831) | |
Payments of employee taxes for withheld shares | (3,437) | (1,915) | |
Net cash provided by (used in) financing activities | 142,061 | (174,439) | |
Net increase (decrease) in cash, cash equivalents, and restricted cash | 30,172 | (124,880) | |
Cash, cash equivalents, and restricted cash at beginning of period | 349,668 | 474,548 | |
Cash, cash equivalents, and restricted cash at end of period | $ 379,840 | $ 349,668 | |
Non-GAAP Financial Measures
This earnings release contains the financial measures Adjusted EBITDA and Adjusted Free Cash Flow, which are not calculated in accordance with
Adjusted EBITDA
Adjusted EBITDA is a non-GAAP performance measure that the Company defines as net income (loss) excluding: benefit/provision for income taxes, non-operating income/expense items, and depreciation and amortization; and further adjusted to exclude income/expense associated with non-cash, non-operational, transactional, legal, cost reduction, or organizational restructuring items that management does not consider as part of the Company's underlying core operating performance and that management believes impact the comparability of performance between periods. For the periods presented herein, such other items include non-cash impairment charges, operating lease expense adjustment, non-cash stock-based compensation expense, gain/loss on sale of communities, and transaction, legal, and organizational restructuring costs. Transaction costs include those directly related to acquisition, disposition, financing, and leasing activity, and are primarily comprised of legal, finance, consulting, professional fees, and other third-party costs. Legal costs include charges associated with putative class action litigation. Organizational restructuring costs include those related to the Company's efforts to reduce general and administrative expense and its senior leadership changes, including severance.
The Company believes that presentation of Adjusted EBITDA as a performance measure is useful to investors because (i) it is one of the metrics used by the Company's management for budgeting and other planning purposes, to review the Company's historic and prospective core operating performance, and to make day-to-day operating decisions; (ii) it provides an assessment of operational factors that management can impact in the short-term, namely revenues and the controllable cost structure of the organization, by eliminating items related to the Company's financing and capital structure and other items that management does not consider as part of the Company's underlying core operating performance and that management believes impact the comparability of performance between periods; (iii) the Company believes that this measure is used by research analysts and investors to evaluate the Company's operating results and to value companies in its industry; and (iv) the Company uses the measure for components of executive compensation.
Adjusted EBITDA has material limitations as a performance measure, including: (i) excluded interest and income tax are necessary to operate the Company's business under its current financing and capital structure; (ii) excluded depreciation, amortization, and impairment charges may represent the wear and tear and/or reduction in value of the Company's communities, goodwill, and other assets and may be indicative of future needs for capital expenditures; and (iii) the Company may incur income/expense similar to those for which adjustments are made, such as gain/loss on sale of assets, facility operating lease termination, or debt modification and extinguishment, non-cash stock-based compensation expense, and transaction, legal, and other costs, and such income/expense may significantly affect the Company's operating results.
The tables below reconcile Adjusted EBITDA from net income (loss).
Three Months Ended | |||||
(in thousands) | December 31, 2024 | September 30, 2024 | December 31, 2023 | ||
Net income (loss) | $ (83,937) | $ (50,734) | $ (91,170) | ||
Provision (benefit) for income taxes | 3,560 | 677 | 9,813 | ||
Equity in (earnings) loss of unconsolidated ventures | — | — | 840 | ||
Loss (gain) on debt modification and extinguishment, net | 18,495 | 2,267 | 2,702 | ||
Non-operating loss (gain) on sale of assets, net | — | (20) | (581) | ||
Other non-operating (income) loss | (2,255) | (3,584) | (5,175) | ||
Interest expense | 67,005 | 66,316 | 64,716 | ||
Interest income | (5,007) | (4,663) | (5,382) | ||
Income (loss) from operations | (2,139) | 10,259 | (24,237) | ||
Depreciation and amortization | 93,569 | 90,064 | 87,398 | ||
Asset impairment | 5,915 | 934 | 30,966 | ||
Operating lease expense adjustment | (9,732) | (12,489) | (11,919) | ||
Non-cash stock-based compensation expense | 3,533 | 3,403 | 3,019 | ||
Transaction, legal, and organizational restructuring costs | 7,379 | 66 | 96 | ||
Adjusted EBITDA | $ 98,525 | $ 92,237 | $ 85,323 | ||
Years Ended December 31, | |||||
(in thousands) | 2024 | 2023 | |||
Net income (loss) | $ (201,994) | $ (189,070) | |||
Provision (benefit) for income taxes | 4,646 | 8,784 | |||
Equity in (earnings) loss of unconsolidated ventures | — | 3,996 | |||
Loss (gain) on debt modification and extinguishment, net | 20,762 | 2,702 | |||
Non-operating loss (gain) on sale of assets, net | (923) | (1,441) | |||
Other non-operating (income) loss | (9,376) | (21,687) | |||
Interest expense | 252,575 | 238,274 | |||
Interest income | (19,162) | (23,146) | |||
Income (loss) from operations | 46,528 | 18,412 | |||
Depreciation and amortization | 357,788 | 342,712 | |||
Asset impairment | 8,557 | 40,572 | |||
Loss (gain) on sale of communities, net | — | (36,296) | |||
Operating lease expense adjustment | (48,793) | (45,739) | |||
Non-cash stock-based compensation expense | 14,184 | 11,985 | |||
Transaction, legal, and organizational restructuring costs | 7,930 | 3,892 | |||
Adjusted EBITDA | $ 386,194 | $ 335,538 | |||
Adjusted Free Cash Flow
Adjusted Free Cash Flow is a non-GAAP liquidity measure that the Company defines as net cash provided by (used in) operating activities before: distributions from unconsolidated ventures from cumulative share of net earnings, changes in prepaid insurance premiums financed with notes payable, changes in operating lease assets and liabilities for lease termination, cash paid/received for gain/loss on facility operating lease termination, and lessor capital expenditure reimbursements under operating leases; plus: property and casualty insurance proceeds and proceeds from refundable entrance fees, net of refunds; less: non-development capital expenditures and payment of financing lease obligations. Non-development capital expenditures are comprised of corporate and community-level capital expenditures, including those related to maintenance, renovations, upgrades, and other major building infrastructure projects for the Company's communities and is presented net of lessor reimbursements. Non-development capital expenditures do not include capital expenditures for: community expansions, major community redevelopment and repositioning projects, and the development of new communities.
The Company believes that presentation of Adjusted Free Cash Flow as a liquidity measure is useful to investors because (i) it is one of the metrics used by the Company's management for budgeting and other planning purposes, to review the Company's historic and prospective sources of operating liquidity, and to review the Company's ability to service its outstanding indebtedness, pay dividends to stockholders, engage in share repurchases, and make capital expenditures, including development capital expenditures; and (ii) it provides an indicator to management to determine if adjustments to current spending decisions are needed.
Adjusted Free Cash Flow has material limitations as a liquidity measure, including: (i) it does not represent cash available for dividends, share repurchases, or discretionary expenditures since certain non-discretionary expenditures, including mandatory debt principal payments, are not reflected in this measure; (ii) the cash portion of non-recurring charges related to gain/loss on facility lease termination generally represent charges/gains that may significantly affect the Company's liquidity; and (iii) the impact of timing of cash expenditures, including the timing of non-development capital expenditures, limits the usefulness of the measure for short-term comparisons.
The tables below reconcile Adjusted Free Cash Flow from net cash provided by (used in) operating activities.
Three Months Ended | |||||
(in thousands) | December 31, 2024 | September 30, 2024 | December 31, 2023 | ||
Net cash provided by (used in) operating activities | $ 45,198 | $ 66,455 | $ 29,294 | ||
Net cash provided by (used in) investing activities | (144,550) | (58,113) | 22,383 | ||
Net cash provided by (used in) financing activities | 147,147 | (38,801) | (105,285) | ||
Net increase (decrease) in cash, cash equivalents, and restricted cash | $ 47,795 | $ (30,459) | $ (53,608) | ||
Net cash provided by (used in) operating activities | $ 45,198 | $ 66,455 | $ 29,294 | ||
Changes in prepaid insurance premiums financed with notes payable | (7,930) | (7,772) | (6,530) | ||
Changes in assets and liabilities for lessor capital expenditure reimbursements under operating leases | (8,630) | (6,432) | (7,600) | ||
Non-development capital expenditures, net | (42,121) | (41,718) | (41,536) | ||
Property and casualty insurance proceeds | 2,251 | 3,593 | 5,168 | ||
Payment of financing lease obligations | (284) | (273) | (251) | ||
Adjusted Free Cash Flow | $ (11,516) | $ 13,853 | $ (21,455) | ||
Years Ended December 31, | |||||
(in thousands) | 2024 | 2023 | |||
Net cash provided by (used in) operating activities | $ 166,177 | $ 162,923 | |||
Net cash provided by (used in) investing activities | (278,066) | (113,364) | |||
Net cash provided by (used in) financing activities | 142,061 | (174,439) | |||
Net increase (decrease) in cash, cash equivalents, and restricted cash | $ 30,172 | $ (124,880) | |||
Net cash provided by (used in) operating activities | $ 166,177 | $ 162,923 | |||
Distributions from unconsolidated ventures from cumulative share of net earnings | — | (430) | |||
Changes in assets and liabilities for lessor capital expenditure reimbursements under operating leases | (16,362) | (9,844) | |||
Non-development capital expenditures, net | (186,755) | (216,511) | |||
Property and casualty insurance proceeds | 8,548 | 24,704 | |||
Payment of financing lease obligations | (1,084) | (8,473) | |||
Adjusted Free Cash Flow | $ (29,476) | $ (47,631) | |||
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SOURCE Brookdale Senior Living Inc.
FAQ
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