Brookdale Defends Market Position Amid Quarterly Losses

The nation’s largest senior housing provider has certainly seen better days, though it is assuring stakeholders that its latest quarterly performance remains “generally in line with the industry.”

Brookdale Senior Living’s (NYSE: BKD) second-quarter 2017 operating income for its consolidated senior housing portfolio dropped nearly 19% from a year ago to $278.6 million, according to earnings results posted Monday afternoon.

The company posted an overall loss of 25 cents per share in the second quarter, missing analysts’ expectations by 2 cents. Brookdale’s second-quarter revenue of $1.19 billion, meanwhile, beat analysts’ expectations by $50 million.


Increased competition has continued to be a problem for the Brentwood, Tennessee-based provider, according to President and CEO Andy Smith.

“During the second quarter we continued to be challenged by a difficult macro-environment with a large number of new competitive openings across our markets,” Smith stated in a press release. “We are focused on defending our market position while putting the company in a better position for 2018.”

At the start of the second quarter, Brookdale had 16 communities held for sale. During the quarter, the provider terminated the leases for seven communities and completed the disposition of two communities.


As of June 30, Brookdale operated about 1,039 communities in 46 states.

The provider has a plan to better position itself for future success.

“While our performance for the quarter was generally in line with the industry, we are pleased with the progress that we are making to improve our market positioning through our segmentation initiative, maximize our RevPAR through more sophisticated pricing tools, and build the best workforce in the industry through improved training and development,” Smith said. “We also continue to improve our financial position with increased liquidity and by executing on our plan to refinance our near-term debt maturities.”

Earlier on Monday, it was reported that the acquisition of Brookdale by Beijing-based real estate and leisure firm Zhonghong Zhuoye Group Co Ltd had reportedly been put on hold. That doesn’t mean that Brookdale has stopped exploring its options, however.

In fact, Brookdale’s management team and board are continuing to work with financial and legal advisors to explore options and alternatives to create and enhance shareholder value, according to Brookdale’s press release.

“That process is ongoing,” the press release states.

As of 5:30 p.m. CT, Brookdale’s share price had risen about 4% in after-hours trading.

Written by Mary Kate Nelson

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