Brookdale Senior Living Reports $3.13 Billion Revenue with Increased Resident Fees and Net Loss

Brookdale Senior Living Inc. reported a total revenue of $3.13 billion for the fiscal year ending December 31, 2024, marking a 3.7% increase from $3.02 billion in 2023. The company's resident fee revenue rose to $2.97 billion, up 4.0% from the previous year, driven by a 5.8% increase in same-community revenue per available room (RevPAR). However, the company recorded a net loss of $201.9 million, compared to a loss of $189.1 million in 2023, primarily due to increased facility operating expenses and a significant loss on debt modification and extinguishment.

In terms of operational changes, Brookdale managed 647 communities across 41 states as of December 31, 2024, with a capacity to serve approximately 58,000 residents. The company owned 353 communities, leased 266, and managed 28. The average occupancy rate for owned communities was 78.4%, while leased communities reported an occupancy rate of 80.8%. The company has focused on improving occupancy levels post-COVID-19, which has contributed to the increase in resident fees.

Strategically, Brookdale has been active in acquisitions, entering into agreements to acquire 30 senior living communities for $310 million, expected to close in early 2025. Additionally, the company amended its lease agreements with Ventas, Inc. and Omega Healthcare Investors, which included provisions for capital expenditures and adjustments to lease payments. These strategic moves are part of Brookdale's broader goal to enhance its portfolio and improve operational efficiency.

The company faced challenges from macroeconomic conditions, including labor pressures and inflation, which impacted its operating expenses. Labor costs accounted for approximately two-thirds of total facility operating expenses, with a 3.0% increase in labor expenses noted for 2024. Despite these pressures, Brookdale aims to improve its profitability by focusing on increasing occupancy and managing expenses effectively.

Looking ahead, Brookdale anticipates continued growth in resident fees and occupancy as it capitalizes on favorable demographic trends and lower new supply in the senior living market. The company aims to return to pre-pandemic occupancy levels and improve its margins over the long term, while also exploring further development and acquisition opportunities to enhance its service offerings.