US senior housing operator Brookdale narrowed its third-quarter loss while agreeing to buy 30 properties it already leases for 290 million dollars. The company expects the purchase to reduce next year’s rent expense by 17.8 million dollars. Occupancy improved, but slower gains late in the quarter weighed on its revised annual earnings outlook.
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Brookdale’s quarterly loss narrows
Brookdale Senior Living, a US operator of senior housing communities, reduced its third-quarter net loss to 13.9 million dollars from 114.7 million dollars a year earlier. Adjusted earnings before interest, taxes, depreciation and amortisation increased 12 per cent to 124.3 million dollars. The company announced the results on November 6. Resident fee revenue declined to 707.3 million dollars from 775.1 million dollars as the number of communities and units operated changed between periods.[1], [2]
A 290 million dollars purchase would cut rent
In October, Brookdale agreed to buy 30 properties it already leases for 290 million dollars. They contain 1,152 units. The company plans to use cash and mortgage debt, with closing expected in the fourth quarter subject to conditions. It expects the purchase to reduce 2027 rent expense by 17.8 million dollars. Associated arrangements include extending leases on 39 communities through June 2036.[1]
Occupancy gains fall short of expectations
Occupancy rose to 83.1 per cent from 81.8 per cent, while monthly revenue per available unit increased 7.5 per cent to 5,546 dollars. Slower late-quarter occupancy growth, marketing expenditure and a fire at a property in Mississippi affected the revised outlook. Brookdale put its annual adjusted earnings forecast at 495 million dollars to 502 million dollars and expected revenue per available unit growth of 7.4 per cent to 7.9 per cent.[1]
