Q4 2025 Brookdale Senior Living Inc Earnings Call Transcript
Key Points
- Brookdale Senior Living Inc (BKD) achieved a RevPAR growth of 5.7% for 2025, reaching the top end of their initial guidance.
- The company reported a 19% increase in adjusted EBITDA for 2025, marking the fourth consecutive year of double-digit growth.
- Occupancy rates improved significantly, with a consolidated fourth quarter occupancy of 83.7%, the highest since the pandemic began.
- Brookdale successfully reduced its leverage ratio from 9.9x to 8.9x adjusted EBITDA by the end of 2025.
- The company plans to generate approximately $200 million from the sale of 29 owned communities in 2026, which will be reinvested into capital projects.
- Brookdale fell short of its adjusted free cash flow guidance for 2025, generating $23 million instead of the targeted $30 million to $50 million.
- The company experienced a 4% decline in fourth-quarter resident fees compared to the previous year, due to a reduction in total average units.
- Despite improvements, Brookdale's adjusted annualized leverage remains high at 8.9x adjusted EBITDA.
- The company faces ongoing challenges with lower resident acuity, impacting revenue per occupied room (RevPOR).
- Brookdale's fourth-quarter operating margin declined by 30 basis points, partly due to higher labor costs associated with the longer quarter.
Good morning. My name is Jordan, and I'll be your conference operator today. At this time, I would like to welcome everyone to the Brookdale Senior Living Fourth Quarter 2025 Earnings Call. Today's conference call is being recorded. (Operator Instructions)
At this time, I would now like to turn the conference over to Mike Grant, Brookdale's Vice President of Investor Relations. Please go ahead.
Thank you, operator. Good morning, everyone, and welcome to Brookdale Senior Living's Fourth Quarter 2025 Earnings Call. Participating on today's call are Nick Stengle, Brookdale's Chief Executive Officer; Dawn Kussow, our Executive Vice President and Chief Financial Officer; Mary Sue Patchett, our Chief Operating Officer; and Chad White, our Executive Vice President, General Counsel and Secretary. On today's call, we will discuss fourth quarter and full year 2025 results as well as our financial guidance for the 2026 year. We'll also provide other general business updates.
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