What happened
Shares of Brookdale Senior Living(NYSE: BKD) were up more than 12% for the week as of Friday at 12:30 p.m. ET, according to data provided by S&P Global Market Intelligence. The healthcare company's stock closed last week at $3.76 then rose as high as $4.71 on Wednesday. The stock is up more than 54% this year.
So what
Brookdale is the No. 1 provider of senior housing in the U.S., with 672 communities in 41 states. It operates independent living, assisted living, dementia-care, and continuing care retirement centers. Brookdale issued second-quarter earnings on Monday. It reported resident fee revenue of $710.2 million, up 10.9% year over year, and a net loss of $4.5 million compared to a loss of $84.3 million in the same period a year ago. The company also reported an improved occupancy rate in July of 77.1% on average and 78.5% at the end of the month, compared to 75.9% on average in July 2022 and 77.1% at the end of that month. Adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA) was reported as $81.4 million, up 60.5% year over year.
The company also saw a strong rise in average revenue per available room (RevPAR), with the company reporting $4,544 in the quarter, up 11.6% year over year and topping pre-pandemic averages for the second quarter in a row.
So what
Investors were encouraged by signs the company's business is getting back to pre-pandemic levels and appears to be getting closer to profitability. The company also released third-quarter guidance to show it expects RevPAR growth in the quarter of 10% to 10.5% year over year.
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