0001332349-25-000143
SEC filingRevenue grew 4.2% YoY driven by same community RevPAR growth, but net loss widened due to $62.7M impairments.
In Q3 2025, Brookdale generated resident fees of $775.1 million, a 4.2% increase year-over-year, driven by strong same community performance. Same community RevPAR rose 5.3%, supported by a 260 basis point improvement in weighted average occupancy to 82.3% and a 2.0% increase in RevPOR. Facility operating expense increased 3.4% to $567.0 million, with same community costs up 5.1% due to higher wage rates, group health insurance, and utilities. The net loss widened to $114.7 million from $50.7 million in the prior year, largely due to $62.7 million in non-cash impairment charges on underperforming communities planned for disposition. Adjusted EBITDA improved 20.4% to $111.1 million, reflecting revenue growth and lower cash lease payments.
All three senior housing segments contributed to revenue growth. Independent Living resident fees grew 4.4% to $157.0 million, driven by a 5.2% same community RevPAR increase (occupancy +180bps, RevPOR +3.0%). Assisted Living and Memory Care, the largest segment, saw fees rise 4.3% to $531.9 million, with same community RevPAR up 5.4% (occupancy +280bps, RevPOR +1.9%). CCRCs grew fees 3.5% to $86.2 million, with same community RevPAR up 4.9% (occupancy +300bps, RevPOR +1.0%). Occupancy gains were broad-based, reflecting continued demand recovery. Dispositions reduced total average units by 1.6%, partially offsetting organic growth.
Management remains focused on increasing RevPAR through rate and occupancy gains while maintaining expense discipline. The company continues to execute its capital recycling program, with plans to sell approximately 25 owned communities in 2025. Acquisition of 30 communities from Diversified Healthcare Trust and Welltower in February 2025 (funded with mortgage debt and cash) is expected to enhance portfolio quality. Full-year 2025 non-development capital expenditures are projected between $170 million and $175 million. Liquidity of $351.6 million and compliance with debt covenants provide near-term stability, though $100.8 million of current liabilities exceed current assets, and significant debt maturities in 2026 require refinancing. The company aims to optimize its capital structure and explore opportunistic financing.
As of September 30, 2025, Brookdale had cash and cash equivalents of $253.4 million, down from $308.9 million at year-end 2024. Marketable securities were zero. Total debt rose to $4.26 billion from $4.06 billion, driven by $320.8 million in new debt proceeds (including $130.1M fixed-rate and $161.0M variable-rate mortgages) partially offset by $127.4 million in repayments. Stockholders' equity turned negative to $(6.7) million, reflecting accumulated deficits and share repurchases (though no buyback program is active). Deferred revenue stood at $49.0 million, primarily monthly resident fees billed in advance.
The company has significant lease commitments: $1.89 billion in undiscounted operating lease payments and $43.6 million in financing lease payments, with a total of $1.94 billion. Lease obligations are concentrated in master leases with annual escalators. No other material purchase commitments (e.g., supply agreements) were disclosed.
Capital expenditures totaled $137.9 million (5.65% of revenue) for the nine months, primarily for maintenance and non-development projects. No share buybacks or dividends were reported. Debt issuance included $130.1M fixed-rate and $161.0M variable-rate mortgages, with net debt increasing by $200.6 million. The company used proceeds to fund acquisitions of 30 communities from Diversified Healthcare Trust and Welltower for $311 million.
Brookdale reports three operating segments: Independent Living, Assisted Living and Memory Care, and CCRCs, plus All Other (managed communities). In Q3 2025, Assisted Living and Memory Care generated 65.4% of total revenue ($531.9M) and 66.7% of segment operating income. Segment operating margins ranged from 18.5% (CCRCs) to 32.8% (Independent Living). Revenue grew 4-5% YoY in owned segments, while managed community revenue declined 6%. No geographic breakdown was provided.