Brookdale Senior Living Reports 4% Revenue Growth but Increased Net Loss in Q1 2025

Brookdale Senior Living Inc. reported its financial results for the first quarter of 2025, revealing total revenue of $813.9 million, a 4% increase from $782.8 million in the same period last year. The rise in revenue was primarily driven by a 4.5% increase in resident fees, which reached $777.5 million, up from $744.2 million in the prior year. However, the company also experienced a net loss of $65.0 million, significantly higher than the loss of $29.6 million reported in the first quarter of 2024. This increase in net loss was attributed to a $32.8 million loss on extinguishment of a financing obligation related to the reacquisition of three communities.

In terms of operational metrics, Brookdale's average monthly resident fee revenue per available unit (RevPAR) increased to $5,090, reflecting a 4.9% rise from the previous year. The company reported a weighted average occupancy rate of 79.3%, up from 77.9% in the prior year, indicating improved utilization of its facilities. The total number of communities operated by Brookdale remained stable at 647, with a slight decrease in total average units from 51,039 to 50,840.

Strategically, Brookdale completed two significant acquisitions in February 2025, acquiring 25 senior living communities from Diversified Healthcare Trust for $135 million and five communities from Welltower Inc. for $175 million. These acquisitions were funded through mortgage financing and cash on hand, transitioning previously leased properties into owned assets. The company also reported a total of $4.3 billion in long-term debt as of March 31, 2025, with a weighted average interest rate of 5.21%.

Looking ahead, Brookdale's management expressed a commitment to enhancing operational efficiency and increasing revenue per available unit. The company aims to maintain its focus on improving occupancy rates and managing costs effectively. Despite the challenges posed by rising interest rates and operational expenses, Brookdale anticipates that its strategic initiatives will support its long-term growth objectives. The company remains in compliance with its financial covenants and is actively evaluating its capital structure to ensure sufficient liquidity for future investments and operational needs.