Brookdale Senior Living, Ventas, Diversified Healthcare Trust, Healthcare Realty Trust and Enhabit shared first-quarter financial results with shareholders on Tuesday.

Brookdale Senior Living

Brentwood, TN-based Brookdale Senior Living announced Monday that it has entered into revised agreements under each of its three triple-net leases with Welltower, which will provide up to $17 million of additional lessor-funded capital investment.

“We are pleased to have reached a beneficial agreement to improve several Brookdale leases,” Brookdale President and CEO Lucinda “Cindy” Baier stated in a press release issued in conjunction with the earnings call. “Through the transaction that we are announcing today, we have successfully replaced a unique financial covenant, extended the term of a portfolio of positively covering communities and secured additional landlord-funded capital expenditures to accelerate performance.” 

On Tuesday’s call, Baier said that the action will improve the company’s long-term position in several ways.

“As part of this transaction, we extended a lease containing 39 communities that was due to mature in 2026, and Welltower has agreed to make available a pool of $17 million for additional landlord-funded CapEx investments across two of its leased portfolios,” Baier said.

Brookdale has no additional near-term lease amendments or transactions planned, she added.

For more coverage of this earnings call, visit McKnight’s Senior Living.


Ventas Chairman and CEO Debra Cafaro said the Chicago-based real estate investment trust had an “outstanding” first quarter. 

“The multiyear growth and recovery cycle in senior housing is well underway,” she said.

Ventas reported that it has successfully refinanced more than 70% of its 2023 maturing debt, with just 1% of the company’s total consolidated debt maturing for the balance of 2023.

In April, Ventas issued $600 million (Canadian) of 5.398% senior notes due in 2028 and successfully repurchased, at a discount to par, approximately cash available for distribution $527 million aggregate principal amount of its 2.80% senior notes due in April 2024 and approximately cash available for distribution $87 million aggregate principal amount of its 4.125% senior notes due in September 2024.

“Our impressive SHOP [senior housing operating portfolio] performance was fueled by robust growth in the US and bolstered by our high-quality, highly occupied Canadian communities,” Cafaro stated in a press release issued in conjunction with the earnings call. “Our senior housing portfolio continues to exhibit significant pricing power, reflecting strong demand and attractive positioning in the marketplace.”

May 1, Ventas completed its previously announced plan to take ownership of the Santerre portfolio, consisting of SHOP communities, triple net leased healthcare facilities and medical office buildings.

The REIT marks 5 years in May.

Diversified Healthcare Trust

Although Diversified Healthcare Trust has seen some turnaround in its senior housing operating portfolio (SHOP), President and CEO Jennifer Francis stated. “The recovery has not occurred fast enough for DHC to overcome its near-term challenges and refinance the $700 million of debt maturing within the next year.”

It was for that reason, she said, that the Newton, MA-based real estate investment trust moved forward with plans to merge with Office Properties Income Trust. The transaction is expected to close during the third quarter.

“Upon closing, we believe that the combined company will be in compliance with all of its debt covenants. It is also expected to have access to multiple capital sources to fund upcoming debt maturities and continue to invest in the senior living portfolio to contribute to the recovery that is underway,” Francis said. “DHC shareholders will benefit in a number of ways from this transaction, including a dividend increase of over 267%.”

SHOP occupancy increased 390 basis points to 76.9%, and average monthly rates increased by 8.2% year over year, resulting in a 13.9% increase in revenues.

The REIT reported funds from operations of $12.5 million, or $.05 per share, in the first quarter. The company experienced a net loss of $52.7 million, or $0.22 per share.

For more coverage of this earnings call, visit McKnight’s Senior Living.

Healthcare Realty Trust

Nashville, TN-based Healthcare Realty Trust had a “really solid first quarter,” President, CEO and Director Todd Meredith said.

“We also see near-term tailwinds that could strengthen our growth outlook including market expectations for softening inflation and lower short-term interest rates in the months ahead,” Meredith said. “These tailwinds align well with Healthcare Realty’s post-merger strategic initiatives.”

Quarterly same-store net operating income grew 2.8%, quarterly revenue increased by 2.7% and operating expenses by 2.6%, “marking a return to margin expansion year-over-year,” according to Executive Vice President and CFO Kirk Douglas. 

The real estate investment trust reported a first quarter net loss attributable to common stockholders of $87.1 million, or $0.23 per diluted common share. Normalized funds from operations for the quarter totaled $152.8 million, or $0.40 per diluted common share.

Healthcare Realty has reserved $1.5 million of rental income for three skilled nursing facilities in Florida and $0.9 million in interest income due under a $54.1 million mezzanine construction loan for a project in Houston.

In addition, the REIT recorded an allowance for credit loss of $5.2 million against the mezzanine loan principal balance and $3.4 million for previously deferred rent from the skilled nursing facilities. The company expects to generate more than $100 million in proceeds over the next 12 months from the repayment of the loan and the sale of the skilled nursing facilities.

Healthcare Realty does not have any additional mezzanine loans or skilled nursing facilities in its portfolio.


Home health and hospice care provider Enhabit executed a new national agreement with a Medicare Advantage payer plus two new agreements with conveners with national reach, the company said. Additionally, the Dallas-based firm experienced continued growth in home health Medicare Advantage admissions, with non-episodic admissions up 31.9%, driving total admissions growth of 1.2% year over year.

The company acquired one home health location in Indiana and opened two de novo hospice locations in March in Texas.

“The first quarter was underscored by progress in two of our critical success factors for 2023. Our sequential admissions growth for home health and hospice was possible due to our continued efforts in recruitment and retention of clinical staff and our payor innovation team negotiating a new national payor agreement and two convener agreements with national reach,” Enhabit’s President and CEO Barb Jacobsmeyer stated in a press release. 

“With our expansion of Medicare Advantage contracts and improved rates, combined with reduced staffing capacity constraints, we expect to see improvements in our bottom line throughout 2023,” she said.

Total net revenue decreased by 3.4% year-over-year. The company attributes the decrease primarily to the continued payor mix shift to more non-episodic admissions and the resumption of sequestration. Revenue per episode decreased year-over-year primarily due to the resumption of sequestration and the timing of completed episodes partially offset by a 0.7% increase in Medicare reimbursement rates. 

For more coverage of the Enhabit call, visit McKnight’s Home Care.