November consolidated occupancy results: Weighted average occupancy of 82.5% increased 300 basis points year-over-year and decreased 10 basis points sequentially. Historical sequential monthly occupancy change has been a 10 to 20 basis point decline. Fourth quarter-to-date occupancy of 82.6% represents an 80 basis point increase over the full third quarter of 2025. November same community occupancy results: Weighted average occupancy of 82.8% increased 250 basis points year-over-year. Weighted average ...

Group 1: Fund Performance - Night Watch Investment Management's fund LP appreciated by 4.28% net of fees in Q3 2025, with a year-to-date performance of 25.88% [1] - The portfolio continued its strong performance during the quarter, coinciding with a robust market recovery [1] Group 2: Brookdale Senior Living Inc. Overview - Brookdale Senior Living Inc. (NYSE:BKD) operates senior living communities and had a one-month return of 12.83%, with shares gaining 91.71% over the last 52 weeks [2] - As of December 04, 2025, Brookdale's stock closed at $10.64 per share, with a market capitalization of $2.529 billion [2] Group 3: Investment Thesis for Brookdale Senior Living Inc. - Night Watch Investment Management reinitiated a position in Brookdale Senior Living Inc. due to strong demand anticipated from the aging baby boomer population [3] - The senior living facilities industry faced challenges in the past decade, including overbuilding in 2017, the impact of Covid, and a nursing shortage, which affected margins [3] - Currently, the construction of new facilities has halted, resulting in a multi-decade low order book, while demand is expected to increase [3] Group 4: Hedge Fund Interest - Brookdale Senior Living Inc. is not among the 30 most popular stocks among hedge funds, with 35 hedge fund portfolios holding the stock at the end of Q3, unchanged from the previous quarter [4] - While acknowledging Brookdale's potential, the company believes certain AI stocks present greater upside potential and less downside risk [4]

Core Viewpoint - Brookdale Senior Living Inc. has appointed Mary Sue Patchett as Chief Operating Officer, effective December 1, 2025, bringing 40 years of senior living experience to the role [1]. Company Summary - Mary Sue Patchett is currently serving as the Interim Executive Vice President – Community and Field Operations at Brookdale [1]. - The appointment is expected to enhance operational leadership within the company [1].

Core Points - Brookdale Senior Living made a $30,000 donation to Folds of Honor to support educational scholarships for families of fallen or disabled service members and first responders [1][3] - The donation reflects Brookdale's commitment to honoring veterans, including its residents and employees who have served in the U.S. Armed Forces [1][3] - Folds of Honor has awarded nearly 73,000 scholarships totaling over $340 million since its founding in 2007, with a mission to "Honor Their Sacrifice. Educate Their Legacy." [3][8] Company Overview - Brookdale Senior Living operates 623 communities across 41 states, serving approximately 57,000 residents as of September 30, 2025 [6] - The company focuses on enriching the lives of seniors through compassionate care, clinical expertise, and exceptional service [6] - Brookdale's stock trades on the New York Stock Exchange under the ticker symbol BKD [6] Folds of Honor Overview - Folds of Honor is a 501(c)(3) nonprofit organization providing educational scholarships to the spouses and children of U.S. military service members and first responders [8] - The organization supports various educational needs, including K-12 tuition, college, technical or trade school, and post-graduate work [8] - 91% of Folds of Honor's expenses fund its mission, and it has a strong rating as a charity [8]

Company Operations - As of September 30, 2025, the company operates 623 senior living communities across 41 states, serving approximately 57,000 residents[97]. - The number of communities decreased by 26 to 593 as of September 30, 2025, compared to 619 in 2024, reflecting ongoing strategic adjustments[141]. - The company operates 221 communities under long-term leases, with the majority structured as master leases[183]. Financial Performance - For the three months ended September 30, 2025, resident fees increased by 4.2% to $775.1 million compared to $743.7 million in the same period of 2024[108]. - The net loss for the three months ended September 30, 2025, was $114.7 million, an increase of 126.2% compared to a loss of $50.7 million in the prior year[108]. - Adjusted EBITDA for the same period increased by 20.4% to $111.1 million, attributed to higher resident fees and decreased cash facility operating lease payments[111]. - Resident fees for the nine months ended September 30, 2025, were $2,328,208, reflecting a 4.5% increase from $2,227,679 in 2024, driven by a 4.9% increase in same community RevPAR[136]. - Net loss for the nine months ended September 30, 2025, was $222,770, an increase of 88.7% from a loss of $118,057 in 2024, largely due to higher impairment charges and operational expenses[138]. - Adjusted EBITDA increased by 22.5% to $352,260 for the nine months ended September 30, 2025, attributed to higher resident fees and decreased cash facility operating lease payments[139]. Revenue and Expenses - Facility operating expenses rose by 3.4% to $567.0 million, primarily due to a 5.1% increase in same community facility operating expenses[109]. - General and administrative expenses increased by $5,937,000 (13.2%) to $50,866,000 compared to $44,929,000 in 2024[125]. - Facility operating expenses increased by $57,950, reaching $1,686,289 for the nine months ended September 30, 2025, primarily due to wage rate increases and other operational costs[137]. - General and administrative expenses increased by 11.9% to $153.7 million, primarily due to $8.8 million in organizational restructuring costs[154]. Asset Management - The company completed the acquisition of 25 senior living communities for $135.0 million, funded through mortgage financing and cash on hand[99]. - The company has executed a capital recycling program, exiting non-strategic or underperforming assets, including the sale of 10 owned communities and the disposal of 15 communities through lease termination[101]. - The company reported a significant asset impairment of $62,696,000 in 2025, compared to only $934,000 in 2024[125]. - Non-cash impairment charges totaled $62.7 million for the three months ended September 30, 2025, compared to $0.9 million in the same period of 2024, primarily due to planned dispositions of underperforming communities[128]. Debt and Liquidity - The company had $4.3 billion in outstanding debt at a weighted average interest rate of 5.18% as of September 30, 2025[169]. - Total liquidity decreased to $351.6 million as of September 30, 2025, down from $389.3 million at the end of 2024[171]. - The company has $98.8 million and $227.1 million of mortgage notes payable maturing in January 2026 and October 2026, respectively[175]. - The revolving credit facility has an expanded commitment amount of up to $100.0 million, maturing in January 2027[181]. Operational Metrics - The same community RevPAR increased by 5.3%, driven by a 2.0% increase in same community RevPOR and a 260 basis point increase in same community weighted average occupancy[108]. - The weighted average occupancy increased by 290 basis points to 81.8% in 2025 from 78.9% in 2024[113]. - Weighted average occupancy improved by 210 basis points to 80.4% for the nine months ended September 30, 2025, compared to 78.3% in 2024[141]. - RevPAR improved to $6,087, a 3.4% increase from $5,886 in the prior year[150]. Cash Flow - Net cash provided by operating activities increased by 51.7% to $183.5 million from $121.0 million in 2024[164]. - Adjusted Free Cash Flow improved to $45.5 million, a significant increase from a negative $18.0 million in the previous year[164]. - The company reported net cash provided by operating activities of $76.525 million for the three months ended September 30, 2025, compared to $66.455 million for the same period in 2024, reflecting a 16.4% increase[203]. - Adjusted Free Cash Flow for the three months ended September 30, 2025, was $21.794 million, compared to $13.853 million in the same period of 2024, indicating a 57.1% increase[203].

Financial Data and Key Metrics Changes - Brookdale achieved a consolidated occupancy of 81.8% for Q3 2025, marking an improvement of 290 basis points year-over-year and 170 basis points sequentially [29][30] - Adjusted EBITDA for Q3 increased by 20% year-over-year to $111.1 million, with year-to-date adjusted EBITDA up 22.5% [35][36] - The company generated positive adjusted free cash flow of $21.8 million in Q3, a 57% increase compared to the prior year [16][35] Business Line Data and Key Metrics Changes - The occupancy growth was driven by targeted initiatives, including the SWAT team approach, which reduced the number of communities below 70% occupancy from 143 in Q1 to 89 in Q3 [13][14] - Revenue per available room (Rev Par) increased by 5.9% year-over-year, supported by a 2.2% increase in revenue per occupied room [31][32] Market Data and Key Metrics Changes - The senior living industry is experiencing strong demand due to the aging baby boomer population, with the first baby boomers turning 80 in 2026 [11][12] - New construction starts in the senior living sector are at record lows, contributing to a future scarcity of available units [12][52] Company Strategy and Development Direction - The company is focused on five strategic priorities: improving operating performance, optimizing the real estate portfolio, reinvesting capital, reducing leverage, and elevating quality for residents and associates [17][19] - A new regional operating structure has been implemented to enhance operational excellence and accountability across the organization [18][19] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's ability to capture opportunities in the senior living market, emphasizing the importance of operational focus and strategic pricing [44][49] - The company anticipates mid-teen percentage growth in adjusted EBITDA over the next several years, driven by improved occupancy and effective capital deployment [24][74] Other Important Information - Brookdale plans to hold an investor day in early 2026 to provide more details on strategic priorities and expected results [23] - The company is transitioning 55 communities leased from Ventas and expects to complete these transitions by year-end 2025 [27][39] Q&A Session Summary Question: What areas of opportunity have been identified within the Brookdale portfolio? - The CEO noted that a clear picture of opportunities is evolving, with a focus on driving the business rather than reacting to it [43][44] Question: How is the company balancing pricing focus versus occupancy? - The CEO emphasized a more offensive posture, focusing on operational excellence and strategic pricing to drive occupancy and NOI growth [44][49] Question: What is the rationale behind the new FFO disclosure? - The CFO explained that the FFO metric provides additional insight into the company's performance and value compared to other real estate companies [57][59] Question: How will the organizational changes impact G&A costs? - The CEO indicated that the changes are expected to result in a net zero impact on G&A costs while enhancing operational focus [61][62] Question: What are the plans for addressing upcoming debt maturities? - The CFO stated that the company plans to extend and refinance bank debt due in 2026, focusing on managing upcoming maturities effectively [70][71]

Core Insights - The article emphasizes the importance of enabling Javascript and cookies in browsers to prevent access issues [1] Group 1 - The article suggests that users may face blocks if ad-blockers are enabled, indicating a need for users to disable them for proper access [1]

Investor Presentation November 6, 2025 Leading senior living operator in the United States Forward-Looking Statements – Safe Harbor Certain statements in this Investor Presentation 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 our intent, belief, or expectations. Forwar ...

Core Insights - Brookdale Senior Living reported Q3 CY2025 revenue of $813.2 million, which was a 3.7% year-on-year increase but fell short of analyst expectations of $827.4 million [1][7] - The company experienced a GAAP loss of $0.48 per share, significantly missing the consensus estimate of a loss of $0.17 [1][7] - Adjusted EBITDA was $111.1 million, exceeding analyst estimates of $106.1 million, with a margin of 13.7% [7] Company Overview - Brookdale operates over 650 senior living communities across 41 states, serving approximately 59,000 residents [4] - The company offers various services including independent living, assisted living, memory care, and continuing care retirement communities [4] Revenue Growth - Over the last five years, Brookdale's sales declined at an annual rate of 2.6%, indicating poor business quality [5] - However, the company has shown an annualized revenue growth of 4.3% over the last two years, which is an improvement compared to the five-year trend [6] Financial Performance - The operating margin for Q3 was -6.6%, a decline from 1.4% in the same quarter last year [7] - Free cash flow margin improved to 14.1%, up from 1.5% in the same quarter last year [7] - Market capitalization stands at $2.20 billion [7] Future Outlook - Analysts project a revenue decline of 3.4% over the next 12 months, indicating potential demand headwinds for Brookdale's products and services [8]

Core Insights - Brookdale Senior Living Inc. will release its third quarter 2025 financial results on November 6, 2025, after market close, followed by a conference call on November 7, 2025, at 8:00 a.m. Central Time [1][2]. Company Overview - Brookdale Senior Living Inc. is the leading operator of senior living communities in the United States, managing 623 communities across 41 states and serving approximately 57,000 residents as of September 30, 2025 [3]. - The company offers a range of living options including independent living, assisted living, memory care, and continuing care retirement communities, focusing on enriching the lives of seniors through compassionate care and exceptional service [3]. - Brookdale emphasizes its commitment to wellness, personal growth, and meaningful relationships, guided by its core values of passion, courage, partnership, and trust [3].