Brookdale sees 4% same-community operating income growth
By stabilizing occupancy, controlling expenses and realizing “operating expense synergies,” Brookdale Senior Living saw same-community operating income growth of more than 4% over the fourth quarter of 2014, company CEO Andy Smith said in a statement Monday as Brookdale released financial and operating results for the fourth quarter of 2015 and the entire year. Brookdale plans to stay on the same path in 2016, Smith added.
According to the company:
- Average occupancy at properties in the fourth quarter of 2015 was 86.8%, an increase of 10 basis points from the third quarter, according to the company.
- Facility operating expenses for the fourth quarter of 2015 were $697.3 million, a decline of $10.7 million, or 1.5%, from the fourth quarter of 2014, primarily due to cost management and operating cost synergies.
“Our fourth quarter results demonstrate the progress we are making on our operational execution,” Smith said, adding that the company is “well-positioned” at the beginning of 2016. “Our teams are in place, and we are focused on extending the fourth-quarter progress through improved occupancy and increased rates, maintaining expense discipline, delivering more synergies and, importantly, providing our residents with high-quality care and service.”
The company had adjusted earnings before interest, taxes, depreciation and amortization of $222.2 million in the fourth quarter of 2015, a 4.4% increase from the fourth quarter of the previous year. The figure, according to the company, does not include integration, transaction, transaction-related and electronic medical record roll-out costs in either period.
Total revenue for the fourth quarter of 2015 was $1.2 billion, with resident fees of $1 billion level with the fourth quarter of the previous year. Average monthly revenue per unit for the consolidated senior housing portfolio was $4,302 in the fourth quarter of 2015, an increase of $82, or 1.9%, compared with the fourth quarter of the previous year.