Brookdale Senior Living just reported June occupancy, and the increases were much better than we expected for a second quarter, which historically has been a mixed bag for the industry. Let’s just say, we were impressed.
June’s same-community weighted average occupancy was 81.1%, up 220 basis points year over year and up 50 basis points sequentially. Month-end same community occupancy increased sequentially by 70 basis points to 82.8%. Occupancy levels have been steadily increasing since January, which is great for the company and shareholders. This is all happening before the third quarter, which historically has always been the best period for census gains.
While shareholders should be happy, we wonder if this would have happened without the pressure from Ortelius Advisors and the ouster of the previous CEO. It may not matter, since the momentum is the best it has been in years, but there is still much work to be done. In addition, occupancy gains alone will not increase the share price, but they will help. The news sent the share price up by more than 5%.
