Brookdale Senior Living Reports Mixed Q3 2024 Results, Revenue Growth Offset by Increased Losses

Brookdale Senior Living Inc. reported its financial results for the third quarter and nine months ended September 30, 2024, highlighting a mixed performance in revenue and profitability compared to the previous fiscal period.

For Q3 2024, total revenue and other operating income reached $784.2 million, up from $757.3 million in Q3 2023, marking a 3.6% increase. Resident fees also saw a rise, totaling $743.7 million, compared to $717.1 million in the same quarter last year, reflecting a 3.7% increase. The nine-month figures showed total revenue of $2.34 billion, an increase from $2.26 billion in the prior year, while resident fees rose to $2.23 billion from $2.14 billion.

Despite the revenue growth, Brookdale reported a net loss of $50.7 million for Q3 2024, slightly higher than the $48.8 million loss in Q3 2023. For the nine months, the net loss increased to $118.1 million from $97.9 million in the previous year. The company attributed the increased losses to higher facility operating expenses, decreased property insurance recoveries, and increased depreciation and amortization expenses, despite the rise in resident fees.

Brookdale's income from operations improved significantly, reporting $10.3 million for Q3 2024, compared to a loss of $6.3 million in Q3 2023. Adjusted EBITDA also increased to $92.2 million from $80.2 million year-over-year, indicating improved operational efficiency.

Strategically, Brookdale has been active in acquisitions, entering agreements to acquire 41 senior living communities for $610 million, expected to close by year-end 2024. This includes the assumption of approximately $194.5 million in existing mortgage debt. The company also amended its master lease with Omega Healthcare Investors for 24 communities, extending the lease term and increasing capital expenditure support.

As of September 30, 2024, Brookdale's total assets increased to $5.94 billion from $5.57 billion at the end of 2023. However, total liabilities also rose to $5.64 billion from $5.17 billion, leading to a decrease in total stockholders' equity to $292.9 million from $403.7 million.

The company continues to face challenges, including increased operating expenses driven by inflation and higher insurance costs, alongside ongoing litigation related to staffing and compliance issues. Despite these challenges, Brookdale remains focused on expanding its community portfolio and improving operational performance.