ewsba.se
Interested in Brookdale Senior Living Inc.? Here are five stocks we like better.
Brookdale reaffirmed its 2026 outlook, expecting RevPAR growth of 8% to 9% and adjusted EBITDA of $502 million to $516 million, while keeping its multi-year target for mid-teens annual EBITDA growth through 2028.
Occupancy trends improved meaningfully, with first-quarter consolidated occupancy rising to 82.1% year over year and April occupancy ticking higher again, suggesting momentum heading into the key selling season.
The company is continuing a major portfolio reshaping, having exited more than 100 communities since early 2025 and expecting about $200 million in 2026 disposition proceeds, while also lowering G&A expectations and extending debt maturities through 2033.
Brookdale Senior Living (NYSE:BKD) said it remains confident in its full-year 2026 outlook after first-quarter results showed higher occupancy and RevPAR growth, even as winter storms, portfolio changes and internal restructuring weighed on early-quarter performance.
On the company’s first-quarter earnings call, Chief Executive Officer Nick Stengle said Brookdale is continuing a “transformational pivot” toward being “first and foremost an operating company,” while also emphasizing the value of its senior housing real estate base. Stengle, who has been CEO for just over seven months, said organizational changes made over the past year temporarily disrupted fourth-quarter and early 2026 results but are beginning to show benefits in March and April.
→ Light Speed Returns: Corning Cashes In on NVIDIA Growth
Brookdale reiterated its 2026 guidance for 8% to 9% RevPAR growth and adjusted EBITDA of $502 million to $516 million. The company also maintained its multi-year outlook for mid-teens annual adjusted EBITDA growth through 2028.
Brookdale reported first-quarter consolidated occupancy of 82.1%, up 280 basis points from the prior-year period. Same-community occupancy was 82.7%, an increase of 170 basis points from 81.0% a year earlier.
→ The Hormuz Defense Hedge: Cashing In on Chaos
Chief Financial Officer Dawn Kussow said the quarter marked the 17th consecutive quarter in which Brookdale delivered at least 100 basis points of year-over-year consolidated occupancy growth. Sequentially, however, consolidated occupancy declined 40 basis points from the fourth quarter of 2025, which Kussow said was consistent with seasonal pressure from winter illness, weather, holiday timing and annual rate increases.
Stengle said January and February were slower than expected due to typical seasonality, two meaningful winter storms, the absorption of a significant Jan. 1 in-place rate increase and the impact of ongoing leadership and structural changes.
→ Apple Talks Just Changed Everything for Intel
April results were stronger. Brookdale said consolidated occupancy increased 30 basis points sequentially to 82.3%, while same-community occupancy rose 30 basis points to 82.8%. Stengle said the April increase was notable because the senior housing selling season typically runs from May through September, and April historically has been closer to flat or up 10 to 20 basis points.
First-quarter resident fees were $722 million, down 7.1% from the prior-year quarter. Kussow said the decline was primarily due to a 14.2% reduction in consolidated average units, partially offset by an 8.2% increase in RevPAR.
Same-community RevPAR rose 5.5%, while consolidated RevPAR benefited from portfolio mix as Brookdale exited underperforming communities. Kussow said RevPAR growth was driven by a combination of rate improvement and higher occupancy. Revenue per occupied room, or RevPOR, increased 4.5% year over year and 6% sequentially, reflecting the Jan. 1 rate increase.
Stengle said Brookdale implemented a high single-digit in-place rate increase on Jan. 1. In response to analyst questions, he said higher-occupancy communities received low double-digit increases, while lower-occupancy communities received mid-single-digit increases, resulting in the overall high single-digit figure. He said move-outs related to financial reasons were slightly higher because of the rate increase, but within company expectations.
Stengle also said community fees are another lever for pricing, particularly as occupancy improves. He noted that upfront non-refundable community fees can be discounted in lower-occupancy communities to support move-ins, but can be collected more consistently and potentially increased in higher-occupancy communities.
Brookdale said winter storms added approximately $3 million to $4 million in direct costs during the quarter, including higher utility expenses, repair and maintenance costs, snow removal, tree work, food expenses and some labor-related costs. Kussow said roughly two-thirds of the storm-related costs were in other facility operating expenses, with about one-third in labor.
Despite the storm impact, adjusted EBITDA rose 5.6% year over year to $131 million. Kussow said adjusted EBITDA growth would have been approximately 11% if prior-year G&A timing had been normalized to account for cost reductions taken before community dispositions occurred later in 2025.
On a consolidated basis, senior housing operating income grew 14% sequentially, with margin expansion of 330 basis points. Year over year, operating margin improved 80 basis points, while operating income declined 4% on a 14% decline in units.
Labor remained Brookdale’s largest cost item, representing 64% of total facility operating expenses in the quarter. Kussow said same-community labor expense as a percentage of revenue improved 20 basis points year over year, and the company expects additional leverage as occupancy grows. Stengle said overtime and contract labor improved sequentially and said there is further opportunity to improve labor utilization.
Brookdale continued to reduce its owned, leased and managed community count. Stengle said the company has exited more than 100 communities since the start of 2025, including owned, leased and managed locations.
Kussow said Brookdale sold seven communities with 330 units during the first quarter for $22 million in proceeds net of transaction costs. Through the date of the call in the second quarter, the company had sold three additional communities comprising 545 units for $88 million in net proceeds. Brookdale still expects to sell 29 communities in 2026 for total proceeds of approximately $200 million. Most of the remaining 19 planned dispositions are expected to close in the second quarter, though some could close later in the year.
The company also exited two communities with 152 units through lease terminations in the first quarter. Kussow said that once the remaining dispositions are complete, Brookdale does not foresee significant changes to its consolidated portfolio on a forward-looking basis.
Brookdale has also reduced its managed community exposure. Stengle said the company had 229 managed communities at the end of 2017 and has reduced that figure to seven today, with further reductions expected. Brookdale recorded a $2.5 million exit fee in management fees during the first quarter and expects management fees of roughly $1 million for the remainder of 2026.
Brookdale lowered its 2026 G&A expectation, excluding non-cash stock-based compensation and transaction, legal and restructuring costs, to approximately $157 million from the prior estimate of $162 million. Kussow said most of the incremental savings are expected in the second half of the year.
The company continues to expect cash facility operating lease payments of approximately $180 million in 2026. First-quarter cash facility operating lease payments were $44.7 million, down from $56.7 million a year earlier, primarily due to Ventas lease dispositions completed in the second half of 2025.
As of March 31, Brookdale reported total liquidity of $369 million and annualized leverage of 8.8 times. Kussow said the company refinanced a significant portion of its remaining 2027 mortgage debt maturities on March 31, obtaining $185 million of non-recourse mortgage debt secured by seven communities and repaying $191 million of mortgage debt secured by 11 communities. The new maturities extend to April 2033.
Brookdale also reiterated its planned 2026 capital expenditure range of $175 million to $195 million. Stengle said the company is prioritizing comprehensive community renovation projects where it expects attractive returns. General Counsel Chad White said Brookdale has shifted away from piecemeal projects and toward larger refreshes designed to drive growth.
Stengle pointed to service quality metrics as additional support for management’s outlook. He said 294 Brookdale communities were recognized by U.S. News & World Report with Best Senior Living Awards, the fifth consecutive year Brookdale received the most awards of any senior living operator. He also said the company’s February and March trailing 12-month Net Promoter Scores were the highest since Brookdale resumed monthly surveys after the COVID pandemic in 2022, while associate turnover and key leader turnover are at their lowest levels since the beginning of the pandemic.
Brookdale Senior Living Inc (NYSE: BKD) is one of the nation's largest operators of senior living communities, offering a full spectrum of living options that includes independent living, assisted living, memory care, continuing care retirement communities, respite care and skilled nursing services. The company emphasizes programs and amenities that support wellness, social engagement and overall quality of life for older adults.
Across the United States and Puerto Rico, Brookdale manages more than 700 communities serving tens of thousands of residents.
This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to contact@marketbeat.com.
The article "Brookdale Senior Living Q1 Earnings Call Highlights" was originally published by MarketBeat.
View MarketBeat's top stocks for May 2026.