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In 2024, senior living operators are making significant strides in improving margins despite ongoing operational challenges. Companies like 12 Oaks Senior Living, Atria Senior Living, Juniper Communities, and Discovery Senior Living have successfully boosted their margins and are optimistic about future growth.
Chuck Hastings, President and CFO of Juniper Communities, stated that 2024 has been a strong year for the company, exceeding pre-pandemic margins. Similarly, 12 Oaks Senior Living has seen revenue per available room increase by 10.4% in the second quarter of 2024, showing signs of margin growth.
Discovery Senior Living has reported consistent margin growth throughout 2024, focusing on maintaining and growing resident rates while reducing discounts. The industry as a whole is experiencing improvements in margins, with operators like Brookdale Senior Living and Atria Senior Living achieving their highest operating margins since the start of the pandemic.
Occupancy growth and price discipline have been key factors in driving margin increases for many operators. Looking ahead, operators are cautiously optimistic about the future, with a focus on balancing margins with growth opportunities for the incoming demographic of older adults.
‘Definitely heading in the right direction’
As operators continue to navigate the challenges of the senior living industry, maintaining a balance between growth and margins remains a top priority. Acquisitions have played a significant role in driving growth, with companies like 12 Oaks Senior Living and Juniper Communities focusing on strategic acquisitions to expand their portfolios.
Despite the hurdles faced by some acquired communities, operators are implementing innovative strategies to turn them around and achieve positive margins. Juniper Communities, for example, has adopted a measured approach to revitalize underperforming properties, emphasizing the importance of new systems and programming to drive occupancy and revenue growth.
