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 net loss in the third quarter of 2025.
• Adjusted EBITDA reached $124.3 million for the third quarter of 2026, representing a 12.0% year-over-year increase compared to $111.1 million in the prior year period.
• Consolidated resident fees decreased 8.7% year-over-year to $707.3 million, primarily due to the disposition of communities.
• Consolidated facility operating expense decreased 11.2% year-over-year to $503.5 million, driven by community dispositions.
• General and administrative expense decreased 17.7% year-over-year to $41.9 million.
• Consolidated RevPAR increased 7.5% year-over-year to $5,546.
• Consolidated weighted average occupancy improved 130 basis points year-over-year to 83.1%.
• Same community RevPAR increased 5.4% year-over-year to $5,602, driven by a 4.8% increase in RevPOR and a 50 basis point increase in occupancy.
• Same community resident fees increased 5.3% year-over-year to $693.0 million.
• Total average units decreased 15.3% year-over-year to 42,383.
• Net cash provided by operating activities for the nine months ended September 30, 2026, was $197.7 million.
• Net cash used in investing activities for the nine months ended September 30, 2026, was $194.9 million.
• Net cash provided by financing activities for the nine months ended September 30, 2026, was $50.7 million.
• 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.
• Total liabilities as of September 30, 2026, were $5.96 billion, with long-term debt (less current portion) at $4.29 billion.

Guidance and Future Outlook

• Revised full-year 2026 Adjusted EBITDA guidance downward to a range of $495 million to $502 million, previously $502 million to $516 million.
• Revised full-year 2026 RevPAR year-over-year growth guidance to a range of 7.4% to 7.9%, previously 8.0% to 9.0%.
• Management cites slower occupancy growth late in the quarter, additional marketing investments, and the expected revenue and expense impact of a fire at the 97-unit Clinton, Mississippi community as reasons for the guidance revision.
• Management expressed confidence in the ability to address the senior housing opportunity and remains positioned for longer-term Adjusted EBITDA growth in the mid-teens range.
• Full-year 2026 guidance reflects expectations around transaction activity and the impact of the Clinton, Mississippi fire.

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 currently leased communities (1,152 units) for $290.0 million, expected to close in the fourth quarter of 2026.
• The 30-community acquisition is expected to reduce 2027 annual cash rent payments by approximately $17.8 million and includes a lease extension for a separate 39-community portfolio to June 2036.
• Sold 11 owned communities (856 units) since July 1, 2026, receiving $31.2 million in net cash proceeds.
• Sold 24 owned communities (1,964 units) in 2026 to date, receiving $178.6 million in net cash proceeds.
• Plans to sell five additional owned communities (270 units) during 2026, subject to regulatory approvals and closing conditions.
• Obtained $108.0 million of debt in September 2026 secured by first-priority mortgages on 17 communities, bearing interest at SOFR plus 215 basis points.
• Obtained $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.
• Settled $23.3 million in outstanding 2.00% convertible senior notes due 2026 in October 2026 using cash and 0.9 million shares of common stock.
• Received $45.9 million in cash and 0.4 million shares of common stock upon settlement of capped call transactions associated with the convertible notes.

Market and Competitive Landscape

• Brookdale operates 529 communities across 41 states with the ability to serve approximately 45,000 residents as of September 30, 2026.
• The company operates independent living, assisted living, memory care, and continuing care retirement communities.
• Management highlighted the "compelling senior housing opportunity" ahead.
• The company faces competition for the acquisition of assets and for associates, with wage pressures and labor shortages noted as risks.

Risks and Challenges

• A fire at the 97-unit Clinton, Mississippi community has resulted in the facility being vacant, impacting revenue and expenses.
• Slower occupancy growth, particularly late in the third quarter, contributed to missing the quarterly RevPAR goal.
• Rising facility operating expenses on a same-community basis due to increased wage rates, estimated insurance expenses, estimated losses on accounts receivable, utilities, and maintenance.
• Risks include potential inability to renew, restructure, or extend leases, and the risk of lenders declaring cross-defaults due to non-compliance.
• Regulatory changes, acts of nature, and climate change effects in concentrated geographic areas pose operational risks.
• Cybersecurity attacks, data breaches, and failure to comply with privacy laws (including HIPAA) are potential risks.
• Economic downturns, housing market conditions, and consumer confidence levels could affect seniors' ability to afford resident fees.

Management Commentary and Tone

• Nick Stengle, CEO, 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.
• Despite the guidance revision, management expressed excitement about the senior housing opportunity and confidence in long-term Adjusted EBITDA growth.
• The tone reflects a focus on strategic execution, cost reduction, and asset optimization through acquisitions and dispositions.

Other Key Points

• The company received approximately $180 million of cash proceeds for communities sold in 2026 to date.
• The 2026 Notes maturity settlement involved the delivery of 0.9 million shares of common stock and the settlement of capped call transactions.
• The July 2026 debt transaction resulted in no remaining mortgage debt maturities until 2028.
• The company will file a Form 8-K and post supplemental information, including an updated investor presentation, at brookdaleinvestors.com.
• An earnings conference call was scheduled for November 6, 2026, at 8:30 AM ET.