Brookdale's 2025Q2 Earnings Call: Key Contradictions in Occupancy Strategy, Expense Management, and Marketing Shift

Expense management and operational efficiency, dynamic pricing and occupancy improvement, free cash flow guidance and operational improvements, marketing strategy and third-party referral sources are the key contradictions discussed in Brookdale Senior Living's latest 2025Q2 earnings call.



Occupancy and Financial Performance:
- Brookdale Senior Living reported a second quarter weighted average occupancy of 80.7%, growing 190 basis points over the prior year quarter.
- The company delivered a positive adjusted free cash flow of $20 million for the quarter, compared to a negative $6 million the previous year.
- The increase in occupancy and adjusted free cash flow was driven by operational improvements, strategic pricing promotions, and disciplined expense management.

Portfolio Optimization and Disposition:
- Brookdale is exiting 55 leased assets by year-end, with a plan to dispose of 1 owned community and is under contract for the transition of 1 leased property.
- Efforts to optimize the real estate portfolio are expected to result in improved occupancy, RevPAR, adjusted EBITDA, and adjusted free cash flow.
- The company is focused on communities with the strongest long-term value creation potential and expects additional positive impacts from disposition-related cash proceeds.

Operational SWAT Teams and Initiatives:
- Brookdale deployed SWAT teams to improve operational performance, focusing on high-opportunity locations and communities collateralizing debt refinancing.
- The initiatives led to a 350 basis point occupancy increase and 7% RevPAR growth in Q4 for the first SWAT team, and 200 basis point occupancy growth with 150 basis point RevPAR growth for the second team.
- The teams were instrumental in driving occupancy growth and enhancing community performance through targeted strategic investments and operational accountability.

Revenue and Expense Management:
- The company reported a 5.1% growth in consolidated RevPAR, supported by a 200 basis point increase in weighted average occupancy year-over-year.
- Same-community RevPAR grew 4.8%, with a 2.4% increase in RevPOR, reflecting continued focus on revenue yield management and expense oversight.
- The improvements in revenue and expense management contributed to a 19.7% increase in adjusted EBITDA quarter-over-quarter.