Brookdale Senior Living Inc. — Third Quarter 2026 Earnings Summary

Financial Performance:

• Reported a net loss of $13.9 million for the third quarter of 2026, a significant improvement from the $114.7 million loss in the same period of 2025.
• Adjusted EBITDA reached $124.3 million for the third quarter of 2026, representing a 12.0% year-over-year increase from $111.1 million in 2025.
• Consolidated resident fees were $707.3 million for the quarter, an 8.7% decrease from $775.1 million in 2025, primarily driven by community dispositions.
• Facility operating expense decreased 11.2% year-over-year to $503.5 million from $567.0 million in 2025.
• General and administrative expense fell 17.7% to $41.9 million from $50.9 million in 2025.
• Consolidated RevPAR increased 7.5% year-over-year to $5,546 from $5,158 in 2025.
• Weighted average occupancy improved by 130 basis points year-over-year to 83.1% from 81.8% in 2025.
• Same community RevPAR grew 5.4% to $5,602, driven by a 4.8% increase in RevPOR and a 50 basis point rise in occupancy to 83.6%.
• Total average units decreased 15.3% to 42,383 from 50,012 in the prior year period.
• Net cash provided by operating activities was $197.7 million for the nine months ended September 30, 2026, compared to $183.5 million in the prior year period.

Guidance and Future Outlook:

• Revised full-year 2026 Adjusted EBITDA guidance to a range of $495 million to $502 million, down from the previous $502 million to $516 million.
• Revised full-year 2026 RevPAR year-over-year growth guidance to 7.4% to 7.9%, down from the previous 8.0% to 9.0%.
• Management expects long-term Adjusted EBITDA growth in the mid-teens range.
• Guidance revisions reflect slower occupancy growth in the third quarter, additional marketing investments, and the expected revenue and expense impact of a recent fire at the Clinton, Mississippi community.

Business Segments and Product Lines:

• Completed the acquisition of 17 leased communities in September 2026 for $157.4 million plus $2.6 million in transaction costs.
• Entered into a definitive agreement in October 2026 to acquire 30 leased communities (1,152 units) for $290.0 million, expected to close in the fourth quarter of 2026.
• Received approximately $180 million in cash proceeds from the sale of communities in 2026 to date.
• Sold 11 owned communities (856 units) since July 1, 2026, generating $31.2 million in net proceeds.
• Sold 24 owned communities (1,964 units) in 2026 to date, generating $178.6 million in net proceeds.
• Plans to sell five additional owned communities (270 units) during 2026.
• The Clinton, Mississippi community (97 units) is currently vacant following a recent fire.

Market and Competitive Landscape:

• Brookdale operates 529 communities across 41 states with capacity for approximately 45,000 residents as of September 30, 2026.
• The company continues to execute a strategy of portfolio optimization through the disposition of assets and acquisition of leased communities to convert to owned.
• The acquisition of the 30 communities is expected to reduce 2027 annual cash rent payments by approximately $17.8 million.

Risks and Challenges:

• Slower occupancy growth, particularly late in the third quarter, contributed to missing the RevPAR goal.
• The recent fire at the Clinton, Mississippi community has created revenue and expense impacts affecting full-year guidance.
• Facility operating expenses on same communities increased 4.5% due to higher wage rates, estimated insurance expenses, estimated losses on accounts receivable, utilities, and maintenance.
• The company faces risks related to the completion of pending asset sales and acquisitions, including regulatory approvals and closing conditions.
• Forward-looking statements note risks including economic downturns, housing market conditions, competition, regulatory changes, and labor shortages.

Management Commentary and Tone:

• CEO Nick Stengle stated the company continued to make significant progress against key objectives, noting improvements in occupancy, rate, net loss, and Adjusted EBITDA.
• Management acknowledged falling short of the quarterly RevPAR goal due to slower occupancy growth late in the quarter.
• Despite the guidance revision, management expressed excitement about the senior housing opportunity and confidence in long-term Adjusted EBITDA growth.
• The company scaled general and administrative costs in connection with community dispositions and management agreement terminations.

Other Key Points:

• Obtained $108.0 million of debt in September 2026 secured by first priority mortgages on 17 communities at SOFR plus 215 basis points.
• Secured $248.9 million of debt in July 2026 secured by non-recourse first mortgages on 45 communities at a fixed rate of 6.16%, maturing in 2031; this transaction eliminated mortgage debt maturities until 2028.
• Settled $23.3 million of 2.00% convertible senior notes due 2026 in October 2026 using $23.3 million in cash and 0.9 million shares of common stock.
• Received $45.9 million in cash and 0.4 million shares of common stock from the settlement of capped call transactions associated with the convertible notes.
• Total liquidity as of September 30, 2026, was $523.6 million, comprising $323.4 million in unrestricted cash, $24.7 million in marketable securities, and $175.6 million of availability on the secured credit facility.
• The 30-community acquisition includes a contingent amendment to extend a separate 39-community lease by four years to June 2036 and make a purchase option exercisable at any time.