Brookdale Senior Living (NYSE: BKD) reported a surge in occupancy and revenue, bringing its operating margins close to pre-pandemic levels in the first quarter. CEO Cindy Baier highlighted the company’s “highest reported adjusted margin rate since the initial impact of the pandemic.”
The Tennessee-based senior living operator is capitalizing on its recent momentum, with CEO Baier noting significant opportunities for future revenue and operating income growth.
Brookdale’s adjusted operating margin for the first quarter stood at 27.6%, up from 25.6% in the same quarter last year. Baier emphasized the company’s focus on increasing occupancy and revenue to further boost operating margins in the upcoming quarters.
Factors contributing to the margin expansion include increased occupancy rates and growth in average resident rates. Baier mentioned that move-ins were 7.5% higher than pre-pandemic levels, indicating strong demand for the company’s services.
The company’s revenue per occupied room saw a 4.4% increase in the first quarter, reaching $6,228. Brookdale’s strong liquidity position and focus on cost management have positioned it well for future growth.
Brookdale’s emphasis on resident satisfaction and employee retention, along with the expansion of its HealthPlus program, are key strategies driving margin expansion. Baier highlighted the company’s commitment to recovery and growth, aiming to enhance its services and offerings.
With a focus on training and personalized development for associates, Brookdale is set to continue its positive trajectory, aiming for further margin improvements in the upcoming quarters.
Overall, Brookdale’s CEO remains optimistic about the company’s progress and growth potential, emphasizing the continuous efforts to regain pre-pandemic occupancy and margins, and beyond.
