Brookdale Senior Living (BKD) Q4 2024 earnings summary

Executive summary

• Q4 and full-year 2024 RevPAR and adjusted EBITDA exceeded guidance, with strong operational and financial progress driven by occupancy gains, strategic acquisitions, and portfolio optimization.

• Weighted average occupancy grew 140 basis points year-over-year, with Q4 occupancy at 79.4% and full-year at 78.6%.

• Strategic focus on profitable occupancy, associate retention, and resident satisfaction, despite mid-year occupancy challenges from third-party referral disruptions.

• Major lease amendments, acquisitions, and dispositions increased owned real estate, reduced lease exposure, and improved cash flow.

• Net loss improved by nearly 8% in Q4, with net cash from operating activities up 54% and adjusted free cash flow up 46% year-over-year.

Financial highlights

• Q4 2024 consolidated revenue was $744.4M, up 3.9% year-over-year; full-year revenue was $2.97B, up 4.0%.

• Q4 adjusted EBITDA was $98.5M, up 15.5% year-over-year; full-year adjusted EBITDA was $386.2M, up 15.1%.

• Adjusted free cash flow improved nearly 40% year-over-year, with Q4 at $(11.5)M and full-year at $(29.5)M.

• Annualized leverage ended at 10.4x (9.9x normalized), with $389M in liquidity at year-end.

• ONOI per available unit is 8% above 2019 levels despite lower occupancy.

Outlook and guidance

• 2025 guidance: RevPAR growth of 4.75%-5.75% and adjusted EBITDA of $430-$445M, representing 11%-15% year-over-year growth.

• Guidance reflects the October 2025 disposition of 55 Ventas non-renewal communities and incremental $3M facility operating expense for new ERP system.

• 2025 non-development capital expenditures projected at $175M–$180M.

• Expectation for continued positive adjusted free cash flow in 2025, with further improvement in occupancy and expense management.

• RevPOR growth expected to moderate in 2025 due to lower in-place rate increases and lower acuity move-in trends.