Second Quarter 2026
Filed Aug 10, 2026Brookdale reported second-quarter net income of $23.3 million, Adjusted EBITDA of $122.1 million, and 8.2% consolidated RevPAR growth while reiterating full-year 2026 guidance.
Same-community RevPAR, occupancy, and resident fees increased year-over-year, Adjusted EBITDA grew 4.3%, and the Company reiterated its full-year outlook. Consolidated resident fees declined because of community dispositions, while net income included a $45.4 million gain on sale of communities.
Key metrics
as reported| Metric | Value | q/q | y/y |
|---|---|---|---|
| Resident feesGAAP | $ 708.5 | – | (8.7)% |
| Facility operating expenseGAAP | 503.5 | – | (10.5)% |
| General and administrative expenseGAAP | 47.1 | – | (14.3)% |
| Cash facility operating lease paymentsother | 44.8 | – | (22.1)% |
| Net income (loss)GAAP | 23.3 | – | NM |
| Adjusted EBITDAnon-GAAP | 122.1 | – | 4.3% |
| RevPARother | $ 5,497 | – | 8.2% |
| Weighted average occupancyother | 82.4% | – | 230 bps |
| RevPORother | $ 6,670 | – | 5.2% |
| Total average unitsother | 42,820 | – | (15.7)% |
| Same community resident feesother | $ 688.7 | – | 5.5% |
| Same community facility operating expenseother | $ 485.2 | – | 5.5% |
| Same community RevPARother | $ 5,567 | – | 5.5% |
| Same community weighted average occupancyother | 82.9% | – | 110 bps |
| Same community RevPORother | $ 6,714 | – | 4.1% |
Segments
| Segment | Revenue | q/q | y/y |
|---|---|---|---|
| Same community senior housing portfolioThe same community senior housing portfolio includes operating results and data for 515 communities consolidated and operational for the full period in both comparison years. Same community RevPAR increased 5.5%, comprised of a 4.1% increase in same community RevPOR and a 110 basis point increase in same community weighted average occupancy. | $ 688.7 | – | 5.5% |
Full Year 2026 Guidance outlook
- NoteRevPAR year-over-year growth 8.0% to 9.0%
- NoteAdjusted EBITDA $502 million to $516 million
What drove it
- Same community RevPAR increased 5.5%, comprised of a 4.1% increase in same community RevPOR and a 110 basis point increase in same community weighted average occupancy.
- Disposition of communities, primarily through lease terminations, since the beginning of the prior year period resulted in $106.4 million less in resident fees during the second quarter of 2026.
- The increase in same community facility operating expense was primarily attributable to increases in wage rates, estimated insurance expense, maintenance expense, and estimated losses on accounts receivable.
- General and administrative expense declined primarily due to $5.1 million of transaction costs for stockholder relations advisory matters in the prior year period and efforts to reduce general and administrative expense as the Company scaled costs in connection with community dispositions.
- Net income improved primarily due to a $45.4 million gain on sale of communities and lower depreciation and amortization expense attributable to community dispositions.
Concerns
- Consolidated resident fees decreased (8.7)% and total average units decreased (15.7)% year-over-year, primarily reflecting community dispositions.
- Same community facility operating expense increased 5.5%, matching the increase in same community resident fees.
- The Company plans to sell 13 additional owned communities (898 units) during 2026, but stated there can be no assurance that the transactions will close or when actual closings will occur.
- The planned acquisition of 17 communities is subject to customary closing conditions for real estate transactions.
What to watch
- Full-year RevPAR year-over-year growth guidance of 8.0% to 9.0%.
- Full-year Adjusted EBITDA guidance of $502 million to $516 million.
- Completion of the planned fourth-quarter 2026 acquisition of 17 currently leased communities (735 units) for a purchase price of approximately $157 million plus transaction costs.
- Execution of the planned sales of 13 additional owned communities (898 units) during 2026.
- Occupancy progression, with consolidated weighted average occupancy at 82.7% in July 2026 and consolidated month-end occupancy at 84.1% in July 2026.
Balance sheet and cash flow
- Total liquidity of $565.8 million as of June 30, 2026 included $370.4 million of unrestricted cash and cash equivalents (excluding restricted cash of $71.1 million), $19.9 million of marketable securities, and $175.6 million of availability on the Company's secured credit facility.
- Total liquidity as of June 30, 2026 increased $197.1 million from March 31, 2026.
- During the second quarter of 2026, the Company completed the sale of six owned communities (778 units) and received cash proceeds of $125.3 million, net of transaction costs.
- Subsequent to June 30, 2026, the Company completed the sale of three owned communities (228 units) and received cash proceeds of $2.5 million, net of transaction costs.
- In June 2026, the Company acquired a previously managed community (244 units) in Houston, Texas for a purchase price of $23.4 million.
- In July 2026, the Company obtained $248.9 million of debt secured by non-recourse first mortgages on 45 communities and repaid $244.1 million of debt under the mortgage facility.
- In June 2026, the Company obtained an aggregate of $188.0 million of debt and repaid $199.9 million of outstanding mortgage debt secured by 22 communities previously scheduled to mature in 2027.
- The amended revolving credit agreement provides an expanded commitment of up to $200 million and matures in April 2029, with options to extend the facility for two additional one-year terms.
Analysis
Brookdale's underlying same-community operating trends were positive in the second quarter. Same community resident fees increased 5.5%, supported by a 5.5% increase in RevPAR. That RevPAR result reflected a 4.1% increase in RevPOR and a 110 basis point increase in same community weighted average occupancy. Consolidated RevPAR increased 8.2% and consolidated weighted average occupancy rose 230 basis points to 82.4%.
Portfolio dispositions drove the difference between operating demand indicators and consolidated revenue. Consolidated resident fees decreased (8.7)% to $ 708.5, as dispositions and lease terminations since the beginning of the prior-year period resulted in $106.4 million less in resident fees. Total average units declined (15.7)% to 42,820. Facility operating expense fell (10.5)% on the consolidated basis, also reflecting dispositions, but same community facility operating expense increased 5.5% due to wage rates, estimated insurance expense, maintenance expense, and estimated losses on accounts receivable.
Adjusted EBITDA increased 4.3% to 122.1. The Company attributed the increase to higher same community resident fees, partly offset by higher same community facility operating expense. Net income was 23.3 compared with a net loss of (43.0), with the Company citing a $45.4 million gain on sale of communities and lower depreciation and amortization expense attributable to dispositions. The gain on sale is therefore a material contributor to the GAAP earnings improvement.
Management continued reshaping the portfolio and addressing maturities. The Company sold six owned communities during the quarter and received cash proceeds of $125.3 million, net of transaction costs, then sold three additional owned communities subsequent to quarter-end for cash proceeds of $2.5 million, net of transaction costs. It also acquired a previously managed community in June and agreed subsequent to quarter-end to acquire 17 communities it currently leases. The financing actions resulted in no remaining mortgage debt maturities until 2028, while total liquidity was $565.8 million as of June 30, 2026.
The Company reiterated full-year guidance for 8.0% to 9.0% RevPAR year-over-year growth and Adjusted EBITDA of $502 million to $516 million. Occupancy trends showed consolidated weighted average occupancy of 82.7% in July 2026 and month-end occupancy of 84.1% in July 2026. Key execution items are the planned asset sales, completion and financing of the 17-community acquisition, and whether same-community revenue growth continues to offset cost inflation while the portfolio base changes.
Management, verbatim
We achieved our expectations for RevPAR and Adjusted EBITDA during the second quarter, and remain on track to deliver on our 2026 guidance of 8% to 9% RevPAR year-over-year growth and $502 million to $516 million in Adjusted EBITDA.
Nick Stengle, Chief Executive Officer
Not in the filing
stated, not guessed- Total revenue line item
- Gross profit and gross margin
- Operating income
- GAAP earnings per share
- Non-GAAP earnings per share
- Net income margin
- Operating cash flow
- Free cash flow
- Share repurchases
- Dividends
- Total debt
- Net debt
- Prior-quarter comparisons for reported operating metrics
- Guidance for revenue, gross margin, operating expenses, and tax rate
- Prior-quarter outlook document for guidance comparison
AlphaAI analysis generated from the company’s SEC earnings filing (Form 8-K Item 2.02, or Form 6-K for a foreign private issuer). Every figure was cross-checked against the filing text; consensus estimates, price targets and share-price reactions are not shown because they are not in the filing. AI-generated research, not investment advice.