Brookdale Senior Living(US:BKD)2025-11-07 21:18Company 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].