Brookdale Senior Living (BKD) Q2 2026 earnings summary

Executive summary

• Achieved 8.2% year-over-year RevPAR growth in Q2 2026, with weighted average occupancy up 230 bps to 82.4% and same community occupancy at 82.9% (+110 bps).

• Adjusted EBITDA for Q2 2026 was $122.1M, up 4.3% year-over-year, and net income was $23.3M, reversing a prior year loss.

• Portfolio optimization included the sale of up to 16 communities for $150M–$190M, acquisition of Brookdale Galleria for $23.4M, and agreement to acquire 17 leased communities for $157M.

• Strategic focus on operating performance, real estate optimization, capital reinvestment, and deleveraging.

• Expanded revolving credit facility to $200M and refinanced all 2027 mortgage maturities, eliminating near-term debt maturities until 2028.

Financial highlights

• Q2 2026 revenue was $718.6M, down 11.6% year-over-year due to asset dispositions; net income was $23.3M vs. $(43.0)M prior year.

• Resident fees were $708M, down 8.7% year-over-year, but same community RevPAR rose 5.5% and RevPOR 4.1%.

• Facility operating expenses decreased 10.5% year-over-year, mainly from asset sales.

• Adjusted free cash flow was $38.2M for Q2, with expectations to be significantly positive for the year.

• Total liquidity at June 30, 2026 was $565.8M, including $370.4M cash and $175.6M credit facility availability.

Outlook and guidance

• Reaffirmed 2026 guidance: 8%-9% RevPAR growth and $502M-$516M adjusted EBITDA.

• Expect full-year consolidated occupancy of ~83% and anticipate stronger RevPAR and occupancy growth in Q3 and Q4.

• Projected annual G&A expense of $157M and cash lease expense slightly under $180M.

• Multi-year outlook: mid-teen annual adjusted EBITDA growth and leverage ratio below 6x by end of 2028.

• Management expects liquidity and cash flows from operations, plus credit facility access, to be sufficient for at least the next 12 months.