Brookdale Senior Living posts occupancy gains in June

NASHVILLE - Brookdale (NYSE:BKD) Senior Living Inc. (NYSE: BKD), a leading operator of senior living communities in the United States, has reported an increase in occupancy rates for June 2024. The company announced a 140 basis point increase in weighted average occupancy compared to the previous year, reaching 78.2%.

The growth in June's year-over-year occupancy was attributed to higher move-in volumes, which were above the pre-pandemic average and comparable to the same period last year. Additionally, move-outs were reported to be below the levels seen in the prior year. The company also noted that the month of June saw a 10 basis point sequential growth in weighted average occupancy, while month-end occupancy improved by 20 basis points.

Brookdale's performance for the second quarter of 2024 also showed an upward trend, with a 20 basis point sequential increase in weighted average occupancy from the first quarter. The second quarter's weighted average occupancy rose by 160 basis points over the same quarter in the previous year. The company highlighted that these results continued to outperform the normal seasonality patterns observed before the pandemic.

Brookdale Senior Living operates a network of independent living, assisted living, memory care, and continuing care retirement communities. As of June 30, 2024, the company manages 649 communities across 41 states, serving around 59,000 residents. Brookdale's mission focuses on providing compassionate and respectful service, aiming to enrich the lives of its residents.

The information provided in this report is based on a press release statement from Brookdale Senior Living Inc.

In other recent news, Brookdale Senior Living Inc. has reported a positive start to the year, highlighting a 4.3% increase in revenue in the first quarter. This growth was driven by a 6.7% rise in consolidated RevPAR, a 160 basis point improvement in weighted average occupancy, and a 4.4% increase in RevPOR. The company's strategic focus on associate retention and resident satisfaction has contributed to its optimistic outlook for continued demand in the senior living market.

In addition to financial growth, Brookdale Senior Living has announced significant corporate changes, including board retirements and the introduction of a new incentive plan, the Brookdale Senior Living 2024 Omnibus Incentive Plan, aimed at aligning the interests of the company's employees and stockholders.

Furthermore, the firm has received external recognition for its Alzheimer's and Dementia Care Training and Brookdale HealthPlus program. These are recent developments that have positioned Brookdale Senior Living for sustainable growth, despite the forecasted normal fluctuation in occupancy and RevPOR in the upcoming quarter.

InvestingPro Insights

Amidst Brookdale Senior Living Inc.'s (NYSE: BKD) encouraging occupancy rate news, InvestingPro data and insights provide a deeper understanding of the company's financial health and market performance. With a market capitalization of $1.38 billion, Brookdale's growth in occupancy rates suggests a positive outlook for revenue, which aligns with the company's reported revenue growth over the last twelve months as of Q1 2024, standing at 8.42%. This growth is further supported by a gross profit margin of 26.37%, indicating the company's ability to maintain profitability in its operations.

Despite the lack of dividend payouts, as highlighted by one of the InvestingPro Tips, Brookdale has seen a high return over the last year with a price total return of 71.16%. This performance is particularly noteworthy considering the company's high EBIT valuation multiple and its significant debt burden, which may raise concerns about financial leverage. The stock's low price volatility and proximity to its 52-week high, trading at 93.83% of this peak, could suggest investor confidence in the company's direction and stability in its stock price.

For investors seeking more in-depth analysis, additional InvestingPro Tips are available, including insights on short-term obligations exceeding liquid assets and the anticipation of profitability. With 10 more tips accessible on the InvestingPro platform, users can gain a comprehensive understanding of Brookdale's financial landscape. Those interested in a deeper dive into the company's performance metrics can use the coupon code PRONEWS24 to get up to 10% off a yearly Pro and a yearly or biyearly Pro+ subscription.

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