Brookdale Senior Living (NYSE: BKD) shares took a nose dive last week over concerns about their levels of debt. With the market rising today almost 1000 points, BKD’s shares ended the day lower. Not exactly a vote of confidence when almost 90% of the NYSE stocks traded higher. Even though Fortress Investment Group, a large hedge fund, owns 60% of the company, could it be that the market is betting against the survival of hedge funds and/or Fortress? Or is it a bet against Brookdale’s ability to get enough bodies in their facilities to cover their debt service?
Brookdale Senior Living Inc. owns and operates retirement centers, assisted living facilities, and continuing care retirement communities throughout the United States. As of December 31, 2007, it operated 87 retirement center communities with 15,990 units/beds, 409 assisted living communities with 21,087 units/beds, 32 continuing care retirement communities with 10,593 units/beds, and 22 communities with 4,416 units/beds