Brookdale Senior Living (BKD) investor relations material

Executive summary

• Q3 Adjusted EBITDA rose 12.0% to $124.3M; same-community RevPAR increased 5.4%, while consolidated RevPAR rose 7.5%.

• Slower occupancy growth and the Clinton fire contributed to reduced FY26 guidance; management expects durable mid-teens Adjusted EBITDA growth in 2027 and beyond.

• Management’s priorities include operating improvement, portfolio optimization, community reinvestment, leverage reduction, and higher resident and associate quality.

Financial highlights

• Q3 revenue was $712.1M, down 12.4% YoY, primarily reflecting community dispositions and lease terminations.

• Q3 operating income was $41.0M versus an operating loss of $53.8M; net loss narrowed to $13.9M from $114.7M.

• Q3 resident fees were $707.3M versus $775.1M; average units declined 15.3%, partly offset by 7.5% consolidated RevPAR growth.

• Same-community resident fees increased 5.3% to $693.0M; same-community facility operating expense rose 4.5% to $490.5M.

• Adjusted G&A, excluding stock-based compensation and transaction, legal, and restructuring costs, fell 15% YoY to $36.6M.

Outlook and guidance

• FY26 Adjusted EBITDA guidance was reduced to $495M–$502M from $502M–$516M; consolidated RevPAR growth guidance fell to 7.4%–7.9% from 8.0%–9.0%.

• Guidance assumes muted Q4 occupancy growth, relatively firm rates, continued labor improvement, slightly elevated other facility costs, ~$154M FY G&A, $172M lease payments, and ~$7M management fees.

• Q4 RevPAR growth is expected in the high-6% range; average consolidated units are expected to be ~41,750, down 8% YoY.

• FY26 Adjusted EBITDA growth is expected in the low-double-digit to mid-teens range versus 2025 reported results; Q4 growth implies low-double-digit to mid-teens YoY growth.

• Management expects mid-teens Adjusted EBITDA growth in 2027 and beyond, citing labor productivity, lower other facility expense growth, acquisitions, and G&A reductions.