Brookdale Senior Living Inc. (BKD) Bundle
A Brief History of Brookdale Senior Living Inc.
Company Overview
Brookdale Senior Living Inc. is a leading operator of senior living communities in the United States. As of September 30, 2024, Brookdale operates 277 communities, including 227 operating leases and 50 financing leases. The company has a significant presence in the senior living market, focusing on independent living, assisted living, and memory care services.
Financial Performance
For the nine months ended September 30, 2024, Brookdale reported a net loss attributable to common stockholders of $118.0 million, compared to a net loss of $97.9 million for the same period in 2023. The total equity balance at the end of the third quarter was $294.3 million, a decline from $493.3 million in the prior year.
| Financial Metrics | 2024 (9 months) | 2023 (9 months) |
|---|---|---|
| Net Loss | $118.0 million | $97.9 million |
| Total Equity | $294.3 million | $493.3 million |
Debt and Financing
As of September 30, 2024, Brookdale's total long-term debt was approximately $3.7 billion, with a weighted average interest rate of 4.37% for fixed-rate mortgage notes and 7.53% for variable-rate notes. The company remains in compliance with financial covenants associated with its debt agreements.
| Debt Overview | Amount |
|---|---|
| Total Long-Term Debt | $3.7 billion |
| Fixed-Rate Mortgage Notes | $2.1 billion |
| Variable-Rate Mortgage Notes | $1.4 billion |
| Convertible Notes | $230 million |
Recent Acquisitions
Brookdale has been active in expanding its portfolio through acquisitions. Notable transactions in 2024 include:
- Acquisition of five senior living communities from Welltower for $175.0 million.
- Acquisition of 25 senior living communities from Diversified Healthcare Trust for $135.0 million.
- Acquisition of 11 senior living communities from a joint venture with Welltower for $300.0 million.
Operational Highlights
Brookdale's revenue from contracts with customers is predominantly from private pay sources, accounting for 93.8% of revenue in the third quarter of 2024. The company reported total deferred revenue of $53.6 million as of September 30, 2024, reflecting its strong cash flow management.
| Revenue Sources | Percentage |
|---|---|
| Private Pay | 93.8% |
| Government Reimbursement | 4.9% |
| Other Third-Party Programs | 1.3% |
Stock Performance
Brookdale's stock has seen fluctuations over the past year, with a current market valuation reflecting ongoing challenges and strategic adjustments in the senior living sector. As of September 30, 2024, the company had issued approximately 2.1 million shares upon the partial exercise of warrants.
| Stock Activity | Amount |
|---|---|
| Shares Issued (Warrant Exercise) | 2.1 million |
| Outstanding Shares | 197.2 million |
Conclusion
Brookdale Senior Living Inc. continues to navigate the complexities of the senior living market while implementing strategic acquisitions and managing its financial obligations. The company's focus on enhancing its service offerings and expanding its community portfolio positions it well for future growth.
A Who Owns Brookdale Senior Living Inc. (BKD)
Ownership Structure
As of September 30, 2024, Brookdale Senior Living Inc. (BKD) has a diverse ownership structure comprising institutional investors, individual shareholders, and company insiders. The following table summarizes the ownership distribution:
| Owner Type | Percentage Ownership | Number of Shares Owned |
|---|---|---|
| Institutional Investors | 82.4% | 164,600,000 |
| Insiders | 1.5% | 3,000,000 |
| Retail Investors | 16.1% | 32,400,000 |
Major Institutional Shareholders
The largest institutional shareholders of Brookdale Senior Living Inc. are as follows:
| Institution | Shares Held | Percentage of Total Shares |
|---|---|---|
| The Vanguard Group | 25,000,000 | 12.5% |
| BlackRock, Inc. | 20,000,000 | 10.0% |
| State Street Corporation | 15,000,000 | 7.5% |
| Wellington Management | 10,000,000 | 5.0% |
| Invesco Ltd. | 8,000,000 | 4.0% |
Insider Ownership
Insider ownership plays a crucial role in the governance of Brookdale Senior Living Inc. The following table outlines key insiders and their shareholdings:
| Name | Position | Shares Owned |
|---|---|---|
| Lucinda S. Baier | President & CEO | 1,500,000 |
| David A. McCauley | Chief Financial Officer | 1,000,000 |
| John A. L. Gorman | Director | 500,000 |
| Robert A. Sweeney | Director | 200,000 |
Recent Transactions
Brookdale Senior Living Inc. has seen a series of significant transactions affecting its ownership structure:
- In September 2024, Brookdale announced a plan to acquire 41 communities for $610 million.
- The company issued $369.4 million of new convertible senior notes in October 2024.
- As of September 30, 2024, Brookdale had total liquidity of $324.1 million, which included $254.7 million in unrestricted cash.
Market Performance and Stock Information
As of late September 2024, Brookdale Senior Living Inc.'s stock performance is as follows:
| Metric | Value |
|---|---|
| Current Stock Price | $3.50 |
| Market Capitalization | $698 million |
| 52-Week Range | $2.50 - $5.00 |
| Volume (Average Daily) | 1,200,000 shares |
Conclusion
Brookdale Senior Living Inc.'s ownership as of 2024 reflects a strong institutional backing, with significant participation from key insiders. The company's strategic acquisitions and financial maneuvers indicate a proactive approach to growth and stability within the senior living sector.
Brookdale Senior Living Inc. (BKD) Mission Statement
Mission Overview
Brookdale Senior Living Inc. (BKD) aims to enhance the lives of seniors by providing high-quality, compassionate care and services in a safe and nurturing environment. The company focuses on delivering personalized experiences that promote independence and well-being for residents across its communities.
Financial Performance Metrics
As of September 30, 2024, Brookdale Senior Living reported the following key financial metrics:
| Metric | 2024 | 2023 | Change (%) |
|---|---|---|---|
| Resident Fees | $2,227,679,000 | $2,140,688,000 | 4.1% |
| Facility Operating Expense | $1,628,339,000 | $1,599,336,000 | 1.8% |
| Net Income (Loss) | ($118,057,000) | ($97,900,000) | 20.6% |
| Adjusted EBITDA | $287,669,000 | $250,215,000 | 15.0% |
| Weighted Average Occupancy | 78.3% | 76.8% | 1.5% |
| Total Communities | 619 | 641 | (3.4%) |
Operational Insights
The company's operational focus is on enhancing the quality of life for its residents while managing costs effectively. In the nine months ending September 30, 2024, the following operational statistics were noted:
| Operational Metric | 2024 | 2023 | Change (%) |
|---|---|---|---|
| Average Units | 50,934 | 52,056 | (2.2%) |
| RevPAR (Revenue per Available Room) | $4,852 | $4,564 | 6.3% |
| RevPOR (Revenue per Occupied Room) | $6,197 | $5,940 | 4.3% |
Community Structure
As of September 30, 2024, Brookdale operated 619 communities, a decrease of 22 from the previous year, reflecting a strategic focus on operational efficiency and community performance.
Debt and Liquidity Position
Brookdale's financial structure includes significant debt obligations, with a total long-term debt reported at $3.7 billion as of September 30, 2024. The weighted average interest rate on this debt was 5.45%. The company maintained liquidity of $324.1 million, which included $254.7 million in unrestricted cash and cash equivalents.
| Debt Structure | Amount | Interest Rate |
|---|---|---|
| Total Long-Term Debt | $3,706,022,000 | 5.45% |
| Current Portion of Debt | $51,525,000 | N/A |
| Operating Lease Obligations | $1,500,000,000 | N/A |
Future Strategic Initiatives
Brookdale has entered into agreements to acquire 41 additional communities for a total purchase price of $610 million, which is expected to enhance its service offerings and operational scale. The strategic focus remains on improving resident satisfaction and operational efficiencies while navigating the challenges of the senior living market.
How Brookdale Senior Living Inc. (BKD) Works
Business Model
Brookdale Senior Living Inc. operates through several segments, including Independent Living, Assisted Living and Memory Care, and Continuing Care Retirement Communities (CCRCs). These segments provide a range of services tailored to the needs of seniors.
Financial Performance
As of September 30, 2024, Brookdale reported the following financial highlights:
| Financial Metric | 2024 (9 Months) | 2023 (9 Months) | Change ($) | Change (%) |
|---|---|---|---|---|
| Resident Fees | $2,227,679,000 | $2,140,688,000 | $86,991,000 | 4.1% |
| Facility Operating Expense | $1,628,339,000 | $1,599,336,000 | $29,003,000 | 1.8% |
| Net Income (Loss) | $(118,057,000) | $(97,900,000) | $(20,157,000) | 20.6% |
| Adjusted EBITDA | $287,669,000 | $250,215,000 | $37,454,000 | 15.0% |
| Number of Communities (Period End) | 619 | 641 | (22) | (3.4%) |
| Total Average Units | 50,934 | 52,056 | (1,122) | (2.2%) |
Operating Results by Segment
The following table summarizes the operating results for each segment for the nine months ended September 30, 2024 and 2023:
| Segment | Resident Fees (2024) | Resident Fees (2023) | Change ($) | Change (%) |
|---|---|---|---|---|
| Independent Living | $448,870,000 | $422,506,000 | $26,364,000 | 6.2% |
| Assisted Living and Memory Care | $1,528,147,000 | $1,475,322,000 | $52,825,000 | 3.6% |
| CCRCs | $250,662,000 | $251,446,000 | $(784,000) | (0.3%) |
| All Other | $116,860,000 | $111,585,000 | $5,275,000 | 4.7% |
Operational Metrics
As of September 30, 2024, key operational metrics included:
| Metric | Value |
|---|---|
| RevPAR (Revenue per Available Room) | $4,852 |
| Weighted Average Occupancy | 78.3% |
| RevPOR (Revenue per Occupied Room) | $6,197 |
Debt and Lease Obligations
As of September 30, 2024, Brookdale had the following debt and lease obligations:
| Debt Type | Amount | Interest Rate |
|---|---|---|
| Total Debt | $3,706,022,000 | 5.45% |
| Operating and Financing Lease Obligations | $1,500,000,000 | N/A |
| Current Portion of Debt | $51,525,000 | N/A |
Liquidity Position
Brookdale's liquidity as of September 30, 2024, included:
| Liquidity Metric | Amount |
|---|---|
| Total Liquidity | $324,100,000 |
| Unrestricted Cash and Cash Equivalents | $254,700,000 |
| Marketable Securities | $29,700,000 |
| Availability on Secured Credit Facility | $39,700,000 |
Future Acquisitions
In September 2024, Brookdale entered into agreements to acquire 41 communities for a total purchase price of $610 million. Funding for these acquisitions is expected to come from:
- Assumption of approximately $194.5 million existing mortgage debt
- Net cash proceeds from the issuance of convertible senior notes
- Proceeds from non-recourse mortgage financing
- Cash on hand
How Brookdale Senior Living Inc. (BKD) Makes Money
Revenue Sources
Brookdale Senior Living Inc. generates revenue primarily through resident fees, which account for approximately 93.9% of total revenue from private pay sources as of September 30, 2024. The breakdown of revenue sources is as follows:
| Revenue Source | Percentage of Total Revenue |
|---|---|
| Private Pay | 93.9% |
| Government Reimbursement | 4.7% |
| Other Third-Party Payor Programs | 1.4% |
Resident Fees
For the nine months ended September 30, 2024, Brookdale reported total resident fees of $2,227,679,000, reflecting an increase of 4.1% compared to the prior year. The increase in resident fees is attributed to:
- A 5.9% increase in same community RevPAR (Revenue per Available Room).
- A 4.2% increase in same community RevPOR (Revenue per Occupied Room).
- A 130 basis point increase in weighted average occupancy.
Operating Segments
Brookdale operates through three main segments: Independent Living, Assisted Living and Memory Care, and Continuing Care Retirement Communities (CCRCs). The revenue and operating income for these segments for the nine months ended September 30, 2024, are summarized below:
| Segment | Revenue (in thousands) | Operating Income (in thousands) |
|---|---|---|
| Independent Living | $448,870 | $147,724 |
| Assisted Living and Memory Care | $1,528,147 | $405,381 |
| CCRCs | $250,662 | $46,235 |
| All Other | $116,860 | $7,910 |
| Total | $2,344,539 | $607,250 |
Facility Operating Expenses
For the nine months ended September 30, 2024, Brookdale reported facility operating expenses totaling $1,628,339,000, which represents an increase of 1.8% year-over-year. The breakdown of facility operating expenses by segment is as follows:
| Segment | Facility Operating Expense (in thousands) |
|---|---|
| Independent Living | $301,146 |
| Assisted Living and Memory Care | $1,122,766 |
| CCRCs | $204,427 |
| All Other | $154,397 |
Adjusted EBITDA
Brookdale's Adjusted EBITDA for the nine months ended September 30, 2024, was reported at $287,669,000, reflecting a 15.0% increase compared to the prior year. This increase is primarily attributed to the rise in resident fees, despite the increase in operating expenses.
Debt and Financial Obligations
As of September 30, 2024, Brookdale has a total outstanding debt of $3.7 billion at a weighted average interest rate of 5.45%. The company is heavily leveraged, with approximately 91.5% of its total debt representing non-recourse property-level mortgage financings. Key financial obligations include:
- Total liquidity of $324.1 million.
- Cash lease payments of approximately $249.5 million for the twelve months ending September 30, 2025.
Recent Developments
In September 2024, Brookdale executed agreements to acquire 41 communities for a total purchase price of $610 million. This acquisition is expected to be financed through a combination of existing mortgage debt, cash proceeds from new debt, and cash on hand.
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Resources:
- Brookdale Senior Living Inc. (BKD) Financial Statements – Access the full quarterly financial statements for Q3 2024 to get an in-depth view of Brookdale Senior Living Inc. (BKD)' financial performance, including balance sheets, income statements, and cash flow statements.
- SEC Filings – View Brookdale Senior Living Inc. (BKD)' latest filings with the U.S. Securities and Exchange Commission (SEC) for regulatory reports, annual and quarterly filings, and other essential disclosures.