Summary of Brookdale Senior Living Inc. Q1 2026 Earnings Call

1Key Financial Results and Metrics

Consolidated Occupancy: Increased by 280 basis points year-over-year to 82.1%; same-community occupancy rose 170 basis points to 82.7%.

Revenue: Resident fees totaled $722 million, down 7.1% year-over-year due to a 14.2% reduction in average units, partially offset by an 8.2% increase in RevPAR.

Adjusted EBITDA: Grew 5.6% year-over-year to $131 million, despite a 14% decrease in weighted average consolidated unit count.

Operating Margin: Improved by 80 basis points year-over-year, with senior housing operating income growing 14% sequentially.

General and Administrative Expenses: Decreased by 3.8% year-over-year to $40.6 million.

Cash Facility Operating Lease Payments: Reduced significantly to $44.7 million from $56.7 million in the prior-year quarter.

2Strategic Updates and Business Highlights

Organizational Changes: Implemented a regional leadership structure with six geographic regions, enhancing operational accountability and efficiency.

Community Dispositions: Exited over 100 communities since the start of 2025, including seven communities sold in Q1 for $22 million. Plans to sell an additional 19 communities in 2026 are on track.

Recognition: 294 communities received the Best Senior Living award from U.S. News & World Report, marking the fifth consecutive year of leading awards in the sector.

HealthPlus Program: Integrated into 180 communities, aimed at reducing hospitalizations and enhancing resident care.

3Forward Guidance and Outlook

2026 Guidance:

Expected RevPAR growth of 8% to 9%.

Adjusted EBITDA projected between $502 million and $516 million.

Anticipated mid-teens annual growth in adjusted EBITDA through 2028.

Quarterly Performance Expectations:

Q2 adjusted EBITDA growth expected in the low- to mid-single-digit range, with stronger growth anticipated in the second half of the year as occupancy improves.

4Bad News, Challenges, or Points of Concern

Seasonal Occupancy Decline: Q1 occupancy was impacted by winter storms and ongoing structural changes, leading to a 40 basis point sequential decline from Q4 2025.

Cost Impacts from Winter Storms: Estimated additional costs of $3 million to $4 million due to storms, affecting both revenue and expenses.

Labor Costs: Labor remains the largest expense category at 64% of total facility operating expenses, with challenges in managing labor utilization amid ongoing changes.

Community Move-Outs: Increased move-outs were noted, particularly in January and February, attributed to a significant in-place rate increase, although management deemed this within expectations.

5Notable Q&A Insights

RevPAR and Move-Outs: Management expressed confidence in RevPAR growth despite higher move-out rates, indicating that pricing power remains strong.

Acquisition Strategy: The company aims for small, strategic acquisitions in existing markets rather than competing with larger REITs for larger assets.

CapEx Investments: Projected CapEx spending of $175 million to $195 million for 2026, focusing on larger community refresh initiatives to drive returns.

G&A Savings: Adjusted expectations for G&A expenses down to $157 million for 2026, with most savings expected in the second half of the year. Overall, Brookdale Senior Living Inc. is navigating through a transformative period with a focus on operational efficiency, strategic community dispositions, and enhancing resident care, while managing challenges related to occupancy and costs.