Brookdale Has Great Start To Third Quarter Nearly two years ago, we wrote that the first half of every year was a census downer for the industry, but that the third quarter was always a winner. We are making history, or better said, you are making history.
The first half of this year has been a winner, which it should have been because of the COVID recovery. But census should have been growing faster, held back in part by the labor supply
problems and lingering COVID outbreaks. Month-end occupancy for Brookdale Senior Living increased by 210 basis points in the first half of 2022, and then got a great start for the third quarter with a 50-basis point increase in July. The weighted average increase in July was even higher at 70 basis points, reaching 75.9%. Management has stated that these increases are outpacing the averages for the industry, which is great. Investors pushed the share price up more than 8%. But they neglect to say that Brookdale is also coming from a lower bottom of 69.4% as an average in February 2021. They should be outpacing the industry.
The portfolio at Ventas is already above 80%. We do look forward to the day when Brookdale tops 85%, and returns to margins above 30%, both of which were the norm for the company less than four years ago. I have volunteered my services to help get there with the new Board vacancy, but the silence is deafening. It seems gender and ethnicity may be more important than industry expertise these days.
Speaking of gender, a year ago the CEOs of all three publicly traded seniors housing companies were women, in an industry where the majority of employees and customers are women. Made sense. Now, however, Kim Lody is leaving Sonida Senior Living, following Katie Potter’s departure from AlerisLife three months ago. That leaves Cindy Baier as the last woman standing. Call me.
