Brookdale Senior Living Reports Strong Financial Performance for 2024

Financial Highlights of Brookdale Senior Living for 2024

Brookdale Senior Living Inc. (NYSE: BKD) has reported notable growth in its financial results for the fourth quarter and full year ending December 31, 2024, showing its resilience and strategic prowess amid challenging market conditions.

Q4 Revenue Growth and Occupancy Highlights

In the fourth quarter of 2024, Brookdale experienced a robust 5.5% increase in revenue per available unit (RevPAR) compared to the same quarter last year. Notably, the company also saw its average occupancy rise by 100 basis points year-over-year, driven largely by a surge in move-ins that helped the company outpace traditional seasonality trends observed pre-pandemic. This growth exemplifies Brookdale's commitment to revitalizing its occupancy levels following the trials of the pandemic.

Financial Stability and Profitability

Brookdale reported a significant improvement in net income for the fourth quarter, reflecting an almost 8% enhancement year-over-year. The company's Adjusted EBITDA surged by nearly 16%, surpassing its earlier guidance. Moreover, Brookdale's net cash provided by operating activities saw a remarkable 54% increase, alongside a notable 46% improvement in Adjusted Free Cash Flow when compared to the fourth quarter of 2023.

The company also reinforced its financial health by entering into a lease amendment with Ventas, Inc., which included the non-renewal of 55 communities, aiming to enhance cash flow in the long term. Additionally, Brookdale successfully refinanced over $300 million in debt, achieving lower interest rates, thereby boosting its financial sustainability going forward.

Strategic Growth through Acquisition

Brookdale's strategy also involved the proactive acquisition of 11 communities that were previously leased, replacing those lease payments with lower capital costs that further strengthen the company’s balance sheet. Such moves not only enhance Brookdale's asset ownership framework but also reflect its commitment to positioning for future growth.

In her remarks, Brookdale's President and CEO, Lucinda (