Brookdale Senior Living (NYSE:BKD) used its 2026 Investor Day to outline multi-year growth targets tied to occupancy recovery, pricing discipline, and a revamped operating structure aimed at improving execution at the local level. Company leaders highlighted preliminary 2025 results, 2026 guidance, and what they described as favorable industry supply-and-demand dynamics as the first wave of Baby Boomers turns 80.
Preliminary 2025 results and 2026 outlook
Chief Executive Officer Nick Stengle said Brookdale generated “just over $3 billion” of revenue in 2025 and $458 million of adjusted EBITDA, which he said beat the midpoint of upgraded guidance. Same-community occupancy ended 2025 at a 83.5% weighted average for the fourth quarter, with a spot occupancy of 84.5% at year-end. Stengle emphasized the company’s “stabilized, consolidated” go-forward footprint of 517 communities, a number he said should be reached by mid-2026 following lease exits, renegotiations, and asset dispositions.
For 2026, management guided to RevPAR growth of 8% to 9% and adjusted EBITDA of $502 million to $516 million. Stengle and Kussow also pointed to a multi-year projection of “mid-teen annualized growth” in adjusted EBITDA for the ongoing portfolio, with a net leverage target of below 6x by the end of 2028. Kussow said the leverage target is based on balance sheet net debt and excludes off-balance-sheet operating leases.
Portfolio and business mix: needs-based focus and real estate ownership
Stengle described Brookdale as “fundamentally an operating company, first and foremost,” but said it is built on a foundation of “scarce” senior housing real estate. He noted the company owns roughly 75% of its unit base, with the remainder primarily under triple-net leases, and emphasized that 94% of Brookdale revenue is private pay. He also described Brookdale as the largest U.S. operator of senior living communities and the third-largest owner of senior housing real estate, behind Welltower and Ventas.
Within Brookdale’s capacity, Stengle said 74% is needs-based (assisted living and memory care), with 23% independent living and a small skilled nursing component. Stengle argued that assisted living is typically “event-driven” and “not discretionary,” and compared senior living costs with alternatives such as 24/7 home health aides and nursing homes.
Demographics, supply constraints, and occupancy milestones
Management repeatedly highlighted demographic growth among seniors aged 80 and older as a key demand driver. Stengle said the U.S. 80+ population is expected to grow at roughly a 4% CAGR for about 15 years and cited NIC data showing senior housing inventory growth of around 0.6% in recent periods. He also pointed to NIC projections suggesting a senior housing unit shortage emerging in 2026, reaching roughly 100,000 units by 2027 and about 400,000 by 2035, based on projected demand and current supply trends.
Brookdale outlined a set of occupancy milestones. Stengle said the first goal is to surpass the pre-COVID quarterly occupancy level of 84.5%, which he said Brookdale expects to achieve in 2026. He also cited Brookdale’s historical high occupancy of 89% (reached in 2013) as a subsequent milestone before targeting industry averages and, over time, striving toward “100%” occupancy on a practical basis.
In Q&A, Stengle declined to commit to a specific timeline for reaching 89% occupancy but suggested occupancy growth could accelerate based on market dynamics and a planned “market campaign” approach that prioritizes clusters with meaningful upside.
Operating model reset: regional structure, staffing, and signature programs
Chief Operating Officer Mary Sue Patchett said Brookdale has reorganized into six regions of roughly 100 communities each, led by regional vice presidents, supported by national “Centers of Excellence.” Patchett said the structure is designed to improve speed of decision-making, tailor corporate programs to local market needs, and increase accountability.
Patchett said Brookdale is focused on four 2026 operating priorities:
- Transforming the operating structure
- Attracting, engaging, developing, and retaining associates
- Building resident and family trust through valued, high-quality care and personalized services
- Driving operational excellence through revenue growth, disciplined expense management, and accelerated EBITDA growth
Patchett cited initiatives including a “Hire Ahead” program for community leaders, a dedicated talent acquisition role in each region, referral incentives through the “Good People” program, and training programs for key community leadership roles. She said Brookdale improved retention for its “Key 3” leaders—executive directors, sales leaders, and health and wellness directors—by 390 basis points over the last two years.
Patchett also highlighted Brookdale’s signature programs, including the Optimum Life program and the Clare Bridge memory care program. She said Brookdale is the largest Alzheimer’s and dementia care senior living provider in the U.S., serving more than 9,300 residents in memory care. She also discussed Brookdale HealthPlus, a care coordination model that the company said reduces preventable hospital and ER visits; Patchett said an independent study found fewer urgent care visits and hospitalizations and higher annual wellness visit completion rates for residents in HealthPlus communities compared with similar individuals in other settings. As of November 2025, she said HealthPlus had launched in more than 180 communities across nine states.
Capital allocation: remodeling, market “bingo cards,” and targeted acquisitions
Stengle emphasized a shift toward more comprehensive, “holistic” CapEx packages—such as coordinated upgrades to common areas, lighting, flooring, and furnishings—rather than piecemeal repairs. He linked capital deployment to a market-level strategy of “filling the bingo card,” meaning addressing gaps in a market’s coverage or offering. As examples, he described potential targeted acquisitions to add a Missouri-side presence in Kansas City and a need for additional independent living capacity in Dallas-Fort Worth to complement Brookdale’s heavy assisted living and memory care mix there.
During Q&A, Brookdale did not provide a specific CapEx budget for 2026, with executives saying additional details would be provided later, including in its 10-K. Kussow noted Brookdale is already spending “over $3,000 a unit” on a net basis, with additional landlord-funded CapEx support on certain leases.
On potential expansion into hospice or home health, Stengle said Brookdale’s focus remains on core senior living operations and noted the company is currently restricted by a non-compete following a business sale, limiting such moves for roughly the next year and a half.
About Brookdale Senior Living (NYSE:BKD)
Brookdale Senior Living Inc (NYSE: BKD) is one of the nation’s largest operators of senior living communities, offering a full spectrum of living options that includes independent living, assisted living, memory care, continuing care retirement communities, respite care and skilled nursing services. The company emphasizes programs and amenities that support wellness, social engagement and overall quality of life for older adults.
Across the United States and Puerto Rico, Brookdale manages more than 700 communities serving tens of thousands of residents.
Read More
- Five stocks we like better than Brookdale Senior Living
- Do not delete, read immediately
- NEW LAW: Congress Approves Setup For Digital Dollar?
- “Fed Proof” Your Bank Account with THESE 4 Simple Steps
- A U.S. “birthright” claim worth trillions – activated quietly
- The Crash Has Already Started (Most Just Don’t See It Yet)
