Brookdale Senior Living Inc

Brookdale Senior Living reported second-quarter results that management framed as proof its turnaround is taking hold, even as occupancy growth keeps arriving slower than the company originally expected. The senior living operator reaffirmed its full-year guidance of 8% to 9% RevPAR growth and adjusted EBITDA between $502 million and $516 million, pointed to a shrinking pool of underperforming communities, and unveiled two acquisitions meant to turn leased real estate into owned assets. Second quarter RevPAR climbed 8.2% year over year, while consolidated occupancy reached 82.4%, up 230 basis points from a year earlier and the 57th straight month of year-over-year occupancy gains. Brookdale closed on the 244-unit Brookdale Galleria in Houston for $23.4 million at the end of June, and announced plans to buy 17 communities it currently leases for approximately $157 million, a deal expected to close in the fourth quarter and lift 2027 EBITDA and cash flow. Management called the pace of improvement in its weakest communities not sufficient, and full-year consolidated occupancy is now projected to land around 83%, while leverage stood at 8.4 times adjusted EBITDA, above the company's own target of under 6 times.

Brookdale Senior Living reaffirmed its 2026 outlook after second-quarter adjusted EBITDA rose 4.3% to $122.1 million. The company continues to target 8% to 9% RevPAR growth and $502 million to $516 million in adjusted EBITDA. RevPAR increased 8.2% year over year, but occupancy growth was slower than expected, prompting management to lower its full-year consolidated occupancy expectation to roughly 83%. Brookdale said pricing, labor savings and other efficiency efforts should offset the impact. The company is reshaping its portfolio and balance sheet by selling nonstrategic communities, pursuing targeted acquisitions and refinancing debt, with leverage improving to 8.4 times and liquidity rising to $566 million.