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]