Brookdale Senior Living’s stock price plunged 20% on disappointing third quarter news….and forecasts.
My, my, my. Brookdale Senior Living just doesn’t seem to be able to get a break. Despite having a 40 basis point increase in same-community occupancy from the second quarter, which beat the market as a whole, problems continue. They are seeing new properties having a big impact on their secondary market properties, they revised downward full year 2016 forecasts, former employees are soliciting staff and customer leads, and Dan Decker has decided to become even more involved, becoming Executive Chairman as opposed to Chairman of the Board. On top of all of this, they are forming a JV with Blackstone Real Estate Partners, which is buying 64 properties leased by HCP to Brookdale for $1.125 billion, or about $188,500 per unit. Well, that finally explains why David Roth was at NIC in September! The result is that investors are abandoning the stock, sending it plunging 20%, after it had already dropped 20% since a near-term peak of $18.20 on September 19. The stock was at $39 two years ago. Now? Under $12. They should have listened to me about the Emeritus acquisition.
