Brookdale Narrows Net Loss to $7 Million in Q3, Revenue Up 7%

Brookdale Senior Living Inc. (NYSE:BKD) reported a net loss of $7 million, or $0.06 per diluted share, for the quarter ended Sept. 30, 2011, an improvement from the previous year’s loss of $16.9 million, $0.14 per diluted share.

Income from operations increased substantially to $29.5 million in the quarter, more than triple the previous year’s $8.6 million. However, overall facility operating income saw just a 3.1% gain to $187.2 million, as operating expenses went up 3.4% to $381.4 million.

Cash from facility operations (CFFO) were up 9.9% to $65.6 million compared to $59.7 million in the same period of 2010.


“The Company delivered a solid operating performance for the third quarter of 2011,” said Bill Sheriff, Brookdale’s CEO, in a statement. “Increasing average occupancy by 80 basis points with a portfolio our size is meaningful. Continuing to focus on marketing led to an average occupancy increase of 120 basis points from the year’s low point in May to 87.6% in September.”

Total revenue for the third quarter was $615.7 million, an increase of 6.9% from Q3 2010’s $39.9 million.

During the third quarter, Brookdale completed its previously announced acquisition of 100% of the equity interests in Horizon Bay Realty, L.L.C., adding 91 communities to its portfolio. As a part of this acquisition, Brookdale formed a joint venture with HCP, Inc., which had an existing relationship with Horizon Bay, to own and operate 21 communities, and lease the remaining 12 communities from HCP pursuant to long term, triple net leases. Brookdale acquired a 10% interest in the joint venture, which utilizes a RIDEA structure.


View the earnings report here.

Written by Alyssa Gerace

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