Brookdale Senior Living’s 3rd Quarter Revenues Rise On Increases In Average Monthly Rents

Brookdale Senior Living Inc. (NYSE: BKD) (the "Company") reported financial and operating results for the third quarter of 2009 that showed that revenue for the third quarter was a record $505.8 million, an increase of $23.6 million, or 4.9%, from the third quarter of 2008. According to the Brookdale, the increase in revenue was primarily driven by an increase in average monthly revenue per unit, including growing revenues from ancillary services, partially offset by a small decline in occupancy.  The Company’s facility operating expenses for the third quarter were $328.9 million, an increase of $2.7 million, or 0.8%, from the third quarter of 2008 and was primarily driven by the growth of ancillary services and expenses associated with expansions.

Bill Sheriff, Brookdale’s CEO, said, "We are happy with our strong results this quarter which build on the success of the first two quarters this year. We believe our platform is operating effectively in today’s difficult environment as evidenced by our results, and is well positioned to take advantage of growth opportunities. Without being unduly aggressive, we are evaluating and deploying capital in long-term growth opportunities, including both acquisitions and expansions, especially those that fit well within our ancillary services footprint. Last month, we announced our first acquisition since 2007 and one which fits firmly within this strategy."


Mark Ohlendorf, Co-President and CFO of Brookdale, commented, "Our business continues to perform well with recurring CFFO per share increasing dramatically to $0.43 from $0.30 in the third quarter last year. This growth includes over $1.5 million of start-up losses related to the opening of new expansions this quarter. Same-community Facility Operating Income ("FOI") results also showed substantial improvement of 11.7% aided by both revenue growth and strong expense management. We have continued the roll-out of ancillary services, materially increasing our ancillary profitability per unit, from $128 of monthly FOI per occupied unit last year to $206 this quarter. Our operating stability combined with our strong liquidity profile positions us well for long-term value creation."

For the full earnings release, click here.

For the full 8-K, click here.