As we have mentioned time and again, the seniors housing industry needs Brookdale Senior Living to succeed. While census continues to increase, the pace needs to increase as well before we head into the flu season this winter, which usually sees a drop in census. Many providers were spared this seasonal decline in census last year, as the industry’s recovery was stronger than the flu season. But Brookdale lost 90 basis points of census in the first quarter this year.
September’s weighted average occupancy increased 60 basis points from August, to 78.2%. Month-end occupancy in September increased by 40 basis points from August, to 79.7%, inching closer to that psychological 80% level. But 80% is no panacea, as the company needs to get at least 500 basis points above that to generate some real cash flow.
Investors were encouraged with the September census report, sending the shares up 9.2% in early trading.
