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Sep 30, 2020
Brookdale Q3 2020 Earnings Report
Brookdale's financial position was strengthened through operational improvements and strategic transactions amidst the pandemic.
Key Takeaways
Brookdale Senior Living Inc. reported results for the quarter ended September 30, 2020, highlighting a lease restructuring transaction with Ventas, Inc. that reduced expected aggregate cash rent by approximately $500 million. Liquidity was $491 million, and 95% of the company’s communities were open for move-ins as of October 31, 2020. Same community RevPOR increased sequentially by 60 basis points.
Completed a lease restructuring transaction with Ventas, Inc., reducing expected aggregate cash rent by approximately $500 million.
Maintained liquidity of $491 million at September 30, 2020, and completed two refinancing transactions, resulting in no significant debt maturities until 2022.
Achieved 95% community open status for move-ins as of October 31, 2020, demonstrating strong infection control protocols.
Increased same community RevPOR sequentially by 60 basis points.
Revenue by Segment
Forward Guidance
Given the unprecedented nature of COVID-19 and rapidly changing developments, the Company will continue to be agile and adjust its local community response to help protect its residents, associates, and patients.
Positive Outlook
- Move-in volume at communities with fewer restrictions fare better than those with higher restrictions.
- The Company expects the sequential decline in quarterly consolidated occupancy will again moderate, barring a severe resurgence.
- The Company expects to increase its marketing investments for communities that are able to welcome visitors and move-ins to drive future resident awareness and referrals.
- The Company’s census for Health Care Services is expected to move directionally with elective medical procedure and hospital discharge trends and the occupancy trend within the Company’s senior housing segment.
- The Company expects the fourth quarter non-development capital expenditures, net of anticipated lessor reimbursements, to be approximately $35 million, and development capital expenditures to be approximately $5 million.
Challenges Ahead
- The Company’s consolidated weighted average occupancy was 73.8% for October 2020.
Revenue & Expenses
Visualization of income flow from segment revenue to net income
Historical Earnings Impact
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Avg. Return Before/After Earnings
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