Brookdale: Quarter-end occupancy builds even as Q2 occupancy trails estimates

Research evidence excerpt

Brookdale: Quarter-end occupancy builds even as Q2 occupancy trails estimates

Accessible version

Brookdale

Quarter-end occupancy builds even as Q2

occupancy trails estimates

Maintain Rating: BUY | PO: 19.50 USD | Price: 15.28 USD

Q2 occupancy 10bp below, key selling season still ahead 10 July 2026

BKD reported Q2 occupancy of 82.4%, 10bps below our estimate and consensus of Equity

82.5%. Occupancy was flat sequentially in June, worse than the historical trends. In a

Joanna Gajuk

positive, June move-ins were the highest so far in 2026 and month end occupancy grew Research Analyst

20bps m/m, a positive indicator for July. While the Q2 occupancy was lower, the key BofAS +1 646 855 3961

leasing season is during the summer months, July-Aug-Sept, and we believe the story joanna.gajuk@bofa.com

remains on track. We maintain our Buy rating on BKD given the company is in the early Kevin Fischbeck, CFA

innings of multi-year accelerated growth given the favorable industry dynamics (low new Research Analyst BofAS

supply, strong demand) with limited exposure to government payors (a unique feature in +1 646 855 5948

the health care universe). Finally, with 76% ownership of its units, BKD has transformed kevin.fischbeck@bofa.com

from a renter into a real estate owner, creating value for shareholders. JoaquinResearchArriagadaAnalyst Martinez

BofAS

Occupancy flat m/m in June, worse than historical trend +1joaquin.arriagadamartinez@bofa.com646 855 1654

Occupancy was flat sequentially in June, decelerating from +20bps m/m in May and Katie FitzGerald

+30bps m/m in April. The same store occupancy grew 10bps m/m. This is worse than Research Analyst

the historical seasonality (on avg over the last 5 years, occupancy grew 40bps m/m in +1 646 556 2930

June from May). katie.fitzgerald@bofa.com