Brookdale Senior Living's Occupancy Trends Ahead of Estimates, RBC Says

MT Newswires Live06-09

Brookdale Senior Living (BKD) has reported May occupancy data in line with bullish comments by the company's management at a recent event and ahead of levels implied in RBC's model for Q2, RBC Capital Markets said in a note Tuesday.

The company's May occupancy figure of 82.5% compared with RBC's Q2 consolidated weighted-average occupancy estimate of 82.3%, RBC said. The note added that month-end occupancy rose to 83.5%, which is an "encouraging leading indicator for June."

The investment firm said it increased its Q2 occupancy estimate to 82.5% from 82.3% due to the "better-than-expected occupancy seen to date this quarter."

RBC said it is "optimistic" around the company's positioning as Brookdale is entering what is "historically its strongest occupancy growth period of the year from May to September."

The investment firm added that there is indication of "demographic tailwinds and meaningful upside from operating leverage as occupancy continues to improve at underperforming facilities."

RBC has an outperform rating on Brookdale and a $17 price target.

Price: 12.51, Change: +0.64, Percent Change: +5.39

Disclaimer: Investing carries risk. This is not financial advice. The above content should not be regarded as an offer, recommendation, or solicitation on acquiring or disposing of any financial products, any associated discussions, comments, or posts by author or other users should not be considered as such either. It is solely for general information purpose only, which does not consider your own investment objectives, financial situations or needs. TTM assumes no responsibility or warranty for the accuracy and completeness of the information, investors should do their own research and may seek professional advice before investing.

Comments

We need your insight to fill this gap
Leave a comment