BKD Filings — Brookdale Senior Living Inc. - FilingSpy
BKD
Brookdale Senior Living Inc.
A senior living company that operates hundreds of communities across the United States, offering independent living, assisted living, and memory care for older adults. Founded in 1978 and based in Brentwood, Tennessee, it grew into the nation's largest senior living operator after merging with Emeritus Corporation in 2014. The name comes from Old English words for "stream" and "valley," chosen to evoke a peaceful, natural setting.
Brookdale swung to a $23.3M net profit in Q2 2026, its first since 2020, driven by a $45.4M gain on community sales.
Brookdale posted its first quarterly in six years. fell 11.6% to $718.6M as community dispositions outweighed a 5.5% same-community increase, but a $45.4M gain on asset sales and lower pushed net income to $23.3M and to 11.9%. The company is now profitable, but the top line is shrinking as it sells communities to fund itself.
Key takeaways
swung to a $23.3M gain from a $43.0M loss a year ago, primarily because of a $45.4M gain on community sales and lower , marking the first positive quarter since Q3 2020.
Total resident fees fell 8.7% to $708.5M as $106.4M in from disposed communities dropped out, more than offsetting a 5.5% increase in same-community .
Same-community growth was driven by a 4.1% increase in and a 110-basis-point improvement in weighted average occupancy, continuing the post-pandemic recovery.
Section summaries
Management's Discussion and Analysis
Same-community RevPAR grew 5.5% in Q2 2026, but total resident fees fell 8.7% due to community dispositions.
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Total resident fees declined 8.7% to $708.5M, driven by $106.4M less from disposed communities, partially offset by a 5.5% same-community increase.
Same-community growth was driven by a 4.1% increase in and a 110-basis-point improvement in weighted average occupancy.
rose 4.3% to $122.1M, as the same-community lift was partly offset by higher same-community facility operating expenses.
reached $85.2M, up from $14.9M a year ago and $51.8M in Q1 2026, as the gain on sale and lower costs from disposed communities widened the margin.
Liquidity stood at $565.8M as of June 30, 2026, and the company expects existing resources to fund operations for at least the next 12 months.
What changed
The Q1 2026 watch item on same-community occupancy was confirmed: the recovery held, with occupancy rising another 110 to 83.8% in Q2, sustaining the pace through the spring leasing season.
The Q1 2026 watch item on asset sales progressed: the $45.4M gain on community sales in Q2 indicates closings are underway against the $200M estimated proceeds from the 29-community disposition plan.
The Q1 2026 watch item on the permanent CEO search remains unresolved: the filing notes the Board Chairman continues as Interim CEO with no appointment announced.
swung to $43.5M in Q2 2026 from -$25.6M in Q1 2026, a reversal driven by the cash proceeds from asset sales, addressing the prior quarter's cash consumption.
What to watch
Q3 2026 same-community occupancy after the 83.8% Q2 level to confirm the recovery's pace is sustainable as the company moves past the spring leasing season.
Closing of additional asset sales and total realized proceeds against the $200M estimate for the 29-community disposition plan, and the effect on liquidity and debt.
Appointment of a permanent CEO and any resulting shift in strategy, particularly around the pace of further lease buyouts or asset sales.
Q3 2026 against the $43.5M Q2 level, which was boosted by asset sale proceeds, as $175M-$180M in annual net non-development continues.
swung to a $23.3M gain from a $43.0M loss, primarily due to a $45.4M gain on community sales and lower .
rose 4.3% to $122.1M, reflecting higher same-community resident fees partly offset by higher same-community facility operating expense.
Liquidity stood at $565.8M as of June 30, 2026, and the company expects existing resources to fund operations for at least the next 12 months.
Quantitative and Qualitative Disclosures About Market Risk
Variable-rate debt is partially hedged with SOFR caps and swaps, limiting interest expense sensitivity.
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As of June 30, 2026, 77% of ($3.3B) carried a fixed rate of 4.80%, while $1.0B in variable-rate debt and $23M drawn on a secured had a weighted average rate of 6.03%.
The company uses interest rate caps and swaps to manage exposure above certain levels on its variable-rate debt, which is indexed to SOFR plus a weighted average margin of 240 .
Outstanding cap and swap instruments had a of $1.0B, a weighted average fixed rate of 4.26%, and a remaining term of 1.6 years, covering $11.6M less than total variable-rate borrowings.
A hypothetical 100-basis-point increase in would raise annual by $4.7M after considering hedges, while a 1,000-basis-point increase would raise it by $8.7M.
Many variable-rate debt instruments require the company to obtain additional interest rate cap agreements when existing ones mature, which may offset the benefits of current hedges.
The information contained in Note 7 to the condensed consolidated financial statements contained in Part I, Item 1 of this Quarterly Report on Form 10-Q is incorporated herein by this reference.
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The information contained in Note 7 to the condensed consolidated financial statements contained in Part I, Item 1 of this Quarterly Report on Form 10-Q is incorporated herein by this reference.
There have been no material changes to the risk factors set forth in Part I, Item 1A of our Annual Report on Form 10-K for the year ended December 31, 2025. 39
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There have been no material changes to the risk factors set forth in Part I, Item 1A of our Annual Report on Form 10-K for the year ended December 31, 2025.
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