Brookdale Senior Living Inc. (BKD) filed Quarterly Report for the period ended 2009-09-30.
Brookdale Senior Living Inc. is a leading owner and operator of senior living facilities throughout the United States. The Company is committed to providing an exceptional living experience through properties that are designed purpose-built and operated to provide the highest-quality service care and living accommodations for residents. The Company owns and operates independent assisted and dementia-care facilities. Brookdale Senior Living Inc. has a market cap of $2.1 billion; its shares were traded at around $17.72 with and P/S ratio of 1.1.
Highlight of Business Operations:
During the first half of the year, we took steps to preserve our liquidity and increase our financial flexibility. For example, during the second quarter, we completed a public equity offering which yielded $163.7 million of net proceeds, which were primarily used to repay the $125.0 million of indebtedness which was outstanding under our credit facility. Furthermore, we extended the maturity of a number of mortgage loans and, factoring in contractual extension options, have no mortgage debt maturities until 2011 (other than periodic, scheduled principal payments). Finally, we took steps to reduce materially our exposure to collateralization requirements associated with interest rate swaps. As a result of these steps and our operating performance during the nine months ended September 30, 2009, we ended the third quarter with $159.3 million of unrestricted cash and cash equivalents on our condensed consolidated balance sheet.
We recently entered into an agreement to acquire 21 senior living communities from affiliates of Sunrise Senior Living, Inc. for an aggregate purchase price of $204.0 million plus customary transaction expenses. The portfolio has a total of 1,389 units, comprised of 92 independent living units, 876 assisted living units and 421 Alzheimer s units. We expect to finance the transaction with approximately $134.0 million of mortgage debt (substantially through the assumption of existing debt), with the balance of the purchase price to be paid from cash on hand. The consummation of the transaction is subject to the satisfaction of certain closing conditions and contingencies and the receipt of certain lender approvals. The transaction is expected to close in November 2009.
Our revenues for the three months ended September 30, 2009 increased to $505.8 million, an increase of $23.5 million, or approximately 4.9%, over our revenues for the three months ended September 30, 2008. For the nine months ended September 30, 2009, our revenues increased $63.4 million, or approximately 4.4%, to $1,504.5 million over the nine months ended September 30, 2008. The increase in revenues in the current year period was primarily a result of an increase in the average revenue per unit/bed compared to the prior year period, including growing revenues from our ancillary services programs, partially offset by a decline in occupancy from the prior year period. Our weighted average occupancy rate for the third quarter of 2009 was 89.0%, compared to 89.7% for the third quarter of 2008.
BKD is in the portfolios of Arnold Schneider of Schneider Capital Management, Ron Baron of Baron Funds.
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