Brookdale Senior Living (BKD) 8 Aug 232023 Q2 Earnings call transcript

Hello, everyone and welcome to Brookdale Senior Living's Second Quarter Earnings Conference Call. My name is Bruno and I'll be operating your call today. [Operator Instructions]

I will now hand over to your host, Jessica Hazel, Vice President of Investor relations. Please go ahead.

morning. good and you Thank I'd like earnings second XXXX to welcome for Brookdale you call the Senior quarter to Living.

and our Joining us Executive Vice statements Kussow, Chief to are be not forward-looking president our Officer. historical President today Executive facts which today are Officer statements Cindy and within Baier, Chief these All Financial deemed future. expressly may and be the of today's as results statements are disclaim obligation may from meaning any made differ of the the forward-looking Federal Securities statements to performance and statements. update and Actual Laws. we in These materially date Dawn

Certain SEC earnings factors XX-K could release from Form including the time to we contained as results the yesterday, of on XX-Q. issued reports the well to our Form as time, cause are on actual factors Annual Report we in and risk in the that in reports with detailed quarterly the differ filed

the may on during direct we X-K release most that and from information, comparable note for to Safe the non-GAAP GAAP at Also, each please full and the financial yesterday. brookdaleinvestors.com non-GAAP reconciliations measures. this I which the you measure I release found to furnished of you supplemental for direct Harbor be call, measure, was present will statement. an

call Now, I Cindy. to the will turn over

extraordinary have priorities to for are we second by our XXXX that earnings supported quarter Good initiatives, Thank am and future first remarkable and other to growth. half you, ongoing and to for morning the announce all our XXXX, Jessica. participants. call. of analysts year-over-year strategic our positioned Welcome of shareholders, pleased results I delivered

exceeded quarter, our guidance. For the our consecutive EBITDA adjusted results second

and on growth that prioritizes incredibly sustainable operational strategic of priorities. execution strategy excellence recovery of our focused key our long-term are through We profitable

get by valued, family develop earn and room attract, high-quality and As satisfaction personalized service. best every a service retain best the rate, providing and trust our and resident priorities in and engage, profitable at available the include strategic reminder, associates, care

which year-over-year XX%. of adjusted Our EBITDA yielded of a positive increase growth continued momentum of management and flow an expense quarter, adjusted improvement and second top-line free cash the in XX%

is this will as most decision-making lease EBITDA Lease that to a was in aligning flow through Omega cash approximately a that affect immediate we and Welltower $XX classification the lease payments but and drive strong pace that amendments, result of delivering achieved in by impressive as of to change. didn't There this due a had change impacted believe growth. classification. critical even This result results million is actions last and year, more for considering of meaningful of measured adjusted free the no steady around organization disciplined changes adjusted being while the years We performance the come year

and pre-pandemic care our diligent have Demand our continued exceeded now is and has opportunity consecutive remained two appropriately RevPAR have product our our while quarters census. as expenses growth for service. Importantly, strong we for for our controlling results teams and we providing personalized in high-quality offerings increase

that exceeded activity pre-pandemic quarter and the second supported On that our our growth. move-in continued occupancy to by have side, average we have demand X.X% sequential

have quarters coming and the demand healthy pipeline years. growing We a anticipate and over lead

recovery. steady we that same to At sustainable achieving recurring quarter, and occupancy improved our of exceeded we our our ending performance. full the beginning us in second and time, for year. quarter remained at versus in occupancy quarter, provide the streams Throughout we the quarter. pre-pandemic operational the the so, improving first move-outs seasonality while second elevated important move the and revenue delivered Even normal the further occupancy and outperformed June closer increases financial

we associates. associates received from community step have best of good we translate are diligent efforts in improved and work our being still compassionate into stewards resident finally engage, revenue managing our turnover high-quality the important is experience attract, carefully. while forward. by associates an retain through to and a to efforts expense the residents develop seeing do, our this we we create expenses while On side, trusted remained of to the

third nearly to our the our regarding priority Lastly, providing HealthPlus of end expand the HealthPlus second to At our I Brookdale communities. quarter, the residents, communities. Brookdale care to we plans high-quality shared previously program additional of had XX

urgent again, care I that am independent parties communities have third that competitive HealthPlus hospitalizations, residing independently. the or report to living senior in similar in compared confirmed seniors visits once proud to and facilities living residents fewer

lower Brookdale providing XX% proactive and the individuals supporting were similar lower preventive effectiveness and care living than measures. residents program's These Importantly, hospitalizations at health by home. highlight and in coordination for improved urgent were care HealthPlus well-being visits resident XX% care outcomes

They believe in Brookdale's the and performance quarter. also our care provides successfully third lowering against for the costs pleased are demonstrate in we with value healthcare that am deliver I right path residents. to expectations our year-to-date the on

that anticipated consistent cash progress towards us guidance moves quarter quarterly third forward achieving closer positive Our reflects and flow. even

level. to to clinical occupancy quarter, to leadership profitably with In at we a to working with are each teams support and our community-centered our grow leaders targeted, operations the to third ensure the quarter. at are the first key consistent and margins alignment approach support community maintaining community strategic grow our efforts and sales,

to opportunities, satisfaction. associates shifts we to much occupancy our and rebuilding our potential family staff the actions There largest setting focusing our the so operational contract and from to associates overall us resident for up full and achieving and incredibly than can we enhance by rather and tailoring with labor, performance, part-time creation. accomplished and decisions are we I enhance individual strategies is our on value am communities operational proud and of long-term know our Brookdale are initiatives. us I place. this making of what taking, are get team has

with to non-renewal share XX-community that May, wanted reached I'm regarding our update I Properties the XXXX. moving details spoke beneficial to pleased an our notice XXst, because to all the with communities investments we a to Brookdale, under provide agreed a very on for I LTC these of agreement set we XX has to Before to CapEx that to December have communities. favorable lease. assets additional provide beneficial acquire retain to LTC to lease a longer-term purchase under This lease funded landlord agreement. now mutually XX-community outlook, LTC is our XX is new mature Also, option. lease In right for

work our lease achieve teams with We new positive the relationship this both the Under to positive from coverage. provide outcome. terms, communities and lease these would LTC hard appreciate value

has I positive any momentum with to of years, Brookdale. opportunity macroeconomic outlook coming positive for coupled the dynamics point As I last potential than year, path am think decade. confident contributing our growth beyond capturing more over in for will key at differentiators occupancy are the organic on growth long-term that a this remain Brookdale's we The an

I'll begin a muted with supply and inventory demand strong fundamentals.

of new modest high Our XXXX exposure only and exposed equation elevated XX lows, driven interest the and costs, X% supply within side our to historic communities new to is with labor minutes' at rates, XXXX. by and the a drive during time. construction supply record of construction remains inflation

up compete recent it lining points. to community lending and from can communities inflation a would to difficult factors macro for is that resulting likely financial for has achieve rapidly banking silver three these price take increasingly able years new the The become that tighter successfully keep and regional if for starts. feasibility to follow-on be developers the low The improved, our at starts to after will some it Even open criteria crisis construction time. pandemic

demographic demand by are is significantly in XX individuals are the robust the products. million to senior new resulting one accelerate for More of tailwinds. year expected XX plus the demographics the the the our the to in cohort our will target growth for year, housing market equation, other country. XXXX. seniors Older every surge, than set an target in of aged On fastest-growing side enter estimated fueled in the one million record forecasted demand age population Americans

result, the the that low see but supply can you with will drivers a support are accelerating. sector. the When increasing demand, drive combine positive are only for exposure and As clearly growth that strong fundamentals the industry not solid, significant our expectations demand our we

competitive uniquely our With dynamics. on these capitalize brookdale is positioned advantages, to

living a products. apart is of us of portfolio communities set assisted care memory diverse the towards skewed acuity which Our lower with industry, and from higher mix

chronic be living will population comprised elders Alzheimer's. senior increasingly is Americans expects Alzheimer's of more like By conditions disease. XXXX, with The with million the X.X CDC

population XXXX these seniors help XXXX, deepens are need and astounding services. to ratio by building As by from there caregiver This XXXX. fewer Brookdale the prior for noticeable them. to the more need care, adult valued, to the decreases The personalized high-quality services. care decline, fall exists already children to upon is providing spanning aging XX% decades in to support an projected

senior living care, this a from point, cost incredibly when needs perspective. a senior to is attractive

of of XX% believe a themselves memory of senior living a home Without population. considering care averages across normal distinguish as living home aide. cost health offerings for care expense living, and affordable Brookdale's at even an assisted independent product the living, Assisted choice memory we mere the the

Through industry. with leverage current are care, certainly programs a HealthPlus enhanced will and as way. confident Brookdale clinical measurable housing deliver will least, quality highly-effective future not we the Last, itself Brookdale distinguish leader like value-added to the we but and further outcomes, resident senior scale, our health within and positive residents and expertise in that services

the the value-based At from created value care improved outcomes. to the transition sharing on same time, opportunity we by have in the capitalize to health

strengths, Given drive company will our for considerably, operating the for which Brookdale's value all increase growth anticipate creation will of significant differentiated future stakeholders. these we and demand communities income

opportunities advantages, fundamentals, business continued with the demand our I capture operational supply Brookdale, excited summary, look provide is by our positioned a essential before the and I'm significant, this are robust opportunities and about service In that to and the Brookdale's competitive improvements for model. an to well growth driven lie in and resilient aging growth to forward us. journey ahead excellence population.

turn over to call the now dawn. I'll

thank with our and including operating adjusted Good position. ultimately, RevPAR, today. morning margin, included being here continued Thank you, key pleased our our in cash you were gains community for quarter and second free liquidity which adjusted year-over-year operating metrics, occupancy, results, EBITDA, We Cindy. flow

results, proud of consistent that to strategic and our believe commitment are to are a of priorities growth. execution they We these testament and

RevPAR. grew occupancy Both second quarter. This X.X% XXX-basis increase contributing quarter, was beginning senior consolidated move-in favorable first the the volume and to an revenue average prior-year the quarter. for improved over and in occupancy second sequentially by housing driven compared second in increase move-out point to weighted with XX% revenue, a quarter

had loss X.X% with XX.X% growth, every recovered with to basis from year-over-year occupancy increase XX.X% in month-end, community expected, portfolio, the quarter, by same As we line occupancy grew our specific in seasonal was the grew June points quarter, year-end. returned previously a the RevPAR an second XXXX within the consolidated XXX growth at and first above level our of RevPAR occupancy to driven guidance range. RevPAR. quarter and provided month year-over-year,

moving to expenses.

basis quarter, second operating consolidated maintain approximately operating to facility were to was first growing operating sequentially quarter second expense, XX prior-year the revenue labor same of million. while facility points. facility expense more expense our compared rate. other expense community $XXX occupancy the as decreased Our points while within basis decreased quarter compared than to We a pleased operating expense percent XXX facility flat

expense base, utilities other to premium our improvements operating second we thirds quarter labor while supported in which in expense labor more than was continued expense Same facility labor year-over-year favorability. and food in our saw is our reduction decline our two expense, XX%. also contract and community of

that on diligently ensuring appropriate regulations. Our compliance high-quality residents' continue of care remain expense to we services, control in meet and leadership and focused and while team applicable with provide our remain needs, associates

margin represents administrative Same the quarter over prior-year remained remarkable second quarter. this at recognized. income community expansion XX.X% relatively the basis to operating flat operating general first second the $XX million. excluding quarter of and margin a points XXX when approximately other we was expense

which quarter changes unfavorable culminated million, million our of second lease transactions. to the million in Cash provided our previously million, a quarter $XX to transactions. consistent These more $XX with change recent is over lease and the second of for in second previously results classification related $XX expectations operating payments reflects were lease $XX the lease accounting increase quarter prior-year related classifications in despite of the EBITDA million impact approximately $XX than communicated adjusted

this above driven outperformance adjusted the million the was Adjusted by as our cash was year-over-year free revenue $X quarter guidance million a was provided second driven operating was flow management. quarter compared EBITDA adjusted to housing our second improvement of previously range. end by positive $XX primarily the to largely better-than-anticipated EBITDA expectations, top working second for and expense quarter. negative Importantly, growth, quarter, senior prior-year as margin well capital. favorability

with CapEx line reimbursable in anticipate XXXX, relatively approximately excluding million, $XX non-development remediation costs. we continue first were the in expenditures quarter capital quarter Second expected million expected. to $XXX as of

costs, we remaining of million currently have to incurred $X reimbursable Year-to-date, our approximately occur million. spend been of remediation $XX approximately reimbursed $XX XXXX the We and in we total will million reimbursable have in be $XX believe expect million. which approximately reimbursement

liquidity total XXth, have successfully delivered increase EBITDA June of over $XXX was in Year-to-date, As million. a adjusted XXXX. XX% we

meaningful making beyond, will and third us recovery and sustainable the our towards closer are quarter complete goals. We move and gains to believe

guidance, in EBITDA quarter we third growth the in of to third $XX of RevPAR adjusted Regarding press to prior range XX.X% guided the quarter $XX yesterday's XX% million release, to million. year over and

throughout second third to third be quarter. than higher the sequential by occupancy We expect driven monthly quarter quarter, increases continued

to EBITDA reflected in patterns, typical quarter pressure our guidance. As the strong part as reported sustainable average occupancy seasonal of as is produce anticipate weighted would normal above of quarter was to third and quarter yesterday, anticipated adjusted range in revPAR of pivoting some our normal We achieving as attrition $XX July to $XX EBITDA another guidance million third progress. million adjusted very June

range, Relief the quarter considering the of a adjusted for prior-year included guidance Phase in X the Provider of the EBITDA sizable prior-year XXXX normalizing When classification $XX third reminder, recent lease As XXX%. our would Fund in midpoint third and adjusted our third over the of the results. be recognized quarter changes EBITDA increase grant, million quarter and

will occupancy, revenue anticipated Considering and deliver growth spoke second this the leverage. in expense when increase sequentially both the quarter to, compared I guidance to quarter, third

page to presentation. are and impact on investor quarter our In through factors normal by million continued management, mitigate third and our outlined EBITDA the are partially approximately impact expected are diligent which adjusted appropriate last expect addition, unfavorable sequentially. we factors, of $XX normal expense results the seasonality to seasonality of These

in the impact from Finally, transaction, quarter closing. classification there's a in mid-quarter a from transaction the incremental the only change sequential lease Welltower a impact rata $X had million since pro second

it flow. lease EBITDAR, this change free that metric, adjusted it This While operating standard accounting impact note lease. accounting will not and adjusted is will non-GAAP used cash change and our have lease a widely was impact in EBITDA, to valuation adjusted will our no impact a from important finance to on merely

another plans of and are third look solid We in the confident successful forward to our delivering results. execution of quarter quarter

in outlook about growth the long-term organic way, before and Cindy the which Lastly, thinking shared with opportunity robust you us. we are our

their We returning quantifies included presentation slide in a have segment new investor our margin and occupancy that the levels. potential to from operating pre-pandemic opportunity

recovery EBITDA We RevPAR achieving with support approximately increase adjusted growth. positive billion believe additional on of shown would its housing from from magnitude operating senior level future the by would income annually our $X.X cash exceptional to that the milestones growth and new current meaningful flow. This slide, opportunity

we exceeding are toward working goal, diligently vision are capable this that achieving of long-term but teams with Our not this it. objective a only

the complete during are recovery quality substantial disciplined that in for us yield still and pandemic. our half to short results, forward we underlying of opportunities progress come. will the significant capture favorable had to of many years the we've know impact our to I achievements approach the as ensuring closing, first for sustainable and There term both the from In XXXX.

I'll back now over to the Cindy. call turn

a of progress. demand starting the organic and evolving for an our of midst the strengthen landscape, are anticipated beginning supply multi-year growth. see at to broadly The remarkable of runway industry we In cycle dynamics

groundwork an shared, the passionate These their coupled for with lay those lives housing establish serve, as leader earnings unwavering promising committed of industry. and focus advantages on the competitive advantages the future. Additionally, Brookdale's incredibly we the enriching with as I've us our in unique senior associates,

to the eager believe success opportunities growth a and there's solid I this careful in of and era of rapid living. senior seek are to And while new embrace We that steps. often the execution outcome is temptation results, planning, measured sustainable immediate

for the Brookdale. long open a successful clear line and please for I into path see future questions. a operator,

Our comes now [Operator question proceed. Ben, RBC. Instructions] from open. Hendrix you. first your line Ben Please Thank is from

morning, the Good on and quarter. you. strong congrats Thank

morning. Good Ben. Hey,

income level occupancy? highlight? we And pre-pandemic highlighted your set billion assumptions reduction numbers? occupancy that sustain the thoughts to certainly morning. get Thanks. you to baked forth are on you've the Clearly, a appreciate fixed Or presentation. cost as there. Can fund those you to Good at staff we pre-pandemic in can I you that total that achieve require leverage about staffing full-time talk back a the number $X.X further staffing operating larger costs agency would strong into in of scenario potential

calculation what that that massive of the is that we a added I our within fact over there growth, way demonstrate increasing is built would really that overall and the XX did not a deck, our did history questions on of of we've portfolio. the Ben, assume have are increases. investor question. page the the revPAR good lot And that slides we they really within cost any the is leverage rate say we despite that

But get we've we workforce of that we We this increase increased our assumed stabilization workforce. by does have we would also we would occupancy that for grateful the historical do and XX%. the XXXX, workforce size in our as ranges our of I'm of portfolio. operating seen is, midpoint what to really And the that XXXX, recognize increase during to of the

in and the disciplined necessary we think something, And XXXX. see markets we getting I are labor a significant we us that where a that through into can back had think be situation, I associates occupancy, see should grow grow so where like don't really the recovering And as labor I we it approach. contract

be we occupancy. rebuild it grow think as need workforce, that over slowly, time, that we where I to we our able will

dynamics can revPAR your supply highlighted, seen given industry you And Brookdale's to a talk sustain that overall, you've to favorable rank demand the Thanks. you of and quarters? in specifically, recent that, strong that ability forward view up as follow momentum a about and Thanks.

at want are look, that through profitability we think Yes. and expense while we our flow residents our supply high-quality, is sure kind strong of that think tight that stewardship opportunity a good services we're economics I do that Brookdale for appropriately coming that control. to very through trends good and growing focus price to receive revenue balancing cash for us providing of we them, with valued make of make the I forward, company. the to our with sure there is and demand product affordability

Thanks, quarter. guys. Great

We Ben. happy. Thanks, pretty were

comes Josh Our your next Nephron Josh, from question is open. Please Raskin proceed. line from Research. now

Hi. Thanks. Good morning.

As you again? pricing getting look to and competitive pricing Jan more environment? you there's at seem are opportunity structure you think think Does to an outsized discounting, XXXX, competitors more the X, for normalizing be perhaps cost do do back

I forward if think decline. cost Yes. to definitely January look seeing we're I Xst, that pressures

for inflation see costs can rate of You all coming is the down.

don't inflation and into And so situation have we our in we're making a normalized going in the had costs. we're that XXXX XXXX. we same seeing more progress

think that's I something price consideration take for increases. into our Xst that So, January we'll

XX% regard our communities. Now, operate competitors to the of competitive with environment, five or fewer

are example, everything it particularly others. So, markets and it's the but always more are you some We've than that Angeles, markets see true case in an be seen more Orlando. Los and competitive in always others. than the market have that competitive that we some Houston, it's Texas as in competitive

on at services is we excited what price focused say the our living. would sure residents. I affordable value really valued for making assisted point We're provide what really high-quality, we're is about of Now, that

of the healthcare at include care assisted about and fact stays of that If having home cost even who and the someone XX% cost a that you memory the aid, home. think is of living doesn't

our where the value need But product I think that need to Brookdale who compared competitors. people, times, we appropriately be and for services. attractive there's can there discounting make sure we it's provides will an that to our differentiate

at than in honestly, reasons urgent Think do And I just to we proposition home we'll who need we're or that people in quite HealthPlus, hospitalizations live And the lower visits be staying that live to XX% who and charge. similar have balancing future. we real of even at the that value. than big rate similar the XX% about healthier hospitalizations. or home, value better with is XX% lower sure think having make care that the There's lower people, able one we

thinking moderated with what more Okay. consistent start so, not historical about number this should certainly levels maybe we year. more we're revPAR and seeing a from that's

in guidance would XXXX. getting XXXX, at not I will is expect I say but this we're to moderation Yes. point. what compared some

to generating Okay. that monthly about statistics resident give residents to looks revenue And of I'm to how and then relative should some maybe opportunity can residents? your for pandemic. trying you as talk average and the on and more curious of that really to stay pre-pandemic sort stay, your retention at sell additional maybe and length of acuity services you just the current if than the prior be HealthPlus. base get

overall two being portfolio middle length our overall longest independent certainly being under care -- memory the is stay. the slightly assisted of if Yes. shortest, average if stay by length at you portfolio, product living and being with our line, look living varies the years. of our That

our and in of little the of have a true, that been we that higher One naturally, building existing new occupancy residents community. average stay because residents bit. would press our length because of mix our of just is a down have we things

more good, if moving really people pre-pandemic. needed think think really a and at during both XXXX. in to they're care opportunity has hold about to a we I ended now, that's about to get the So, something our acuity of bit the with little improve population that because and of the you of our normalized during but you pre-pandemic we've they pandemic, think to hesitated in, acuity the length higher it. as last and a the norms a moved move in returned services. but sort stay couple pandemic, years, acuity And in When got more XXXX that's resident, normal we until we resident of of to who up occupancy compared

of should a And length so bode stay. for longer well that

it's will who's And think seniors, who will lives. their only it now looking for what HealthPlus are help maximizing uniquely that And in us, as can about continue do on is Again, I I think that focused think we that positioned I for span. communities. do really XX what their health when attract they are to someone

right. All Okay.

probably really on. So, new lot the down in but there's like a number it's residents just going brought sounds it that growth little the have a bit. that

maybe, So a apples oranges. to little

And Yes. do improvement we due that have higher improvement in we for move-outs say continued that in normal I larger that financial seen July. than and will the between reasons to for and sequential did I QX. the of rate increase. think we've QX that But month saw

of we affected the that sequential think in to sort our in I half occupancy the appropriately our But that definitely rate growth. and operating a factor first our the cost rate factor decision made of increase. So, of the was to services year, right our

Okay. thanks.

Thanks, Josh.

is Our Instructions] Please your Joanna, line of now comes Bank ahead. next Joanna from open. question go America. from Gajuk [Operator

thank Oh, Thanks Good for morning. you. question. the taking

questions couple the quarter. a guidance So, here if just I may, third of on a for

you obviously, right, expect headwind So, offset the that. seasonality to $XX $X at million the you outlined, to guess I million there. but help quarter-over-quarter core growth

entrance this growth us you assume do second And So, selling can is benefit any and I community that also, will the in understand occupancy fixed driving there. the fee is be How cost I that leverage in from quarter? number? that number? income I mean you much understand guess, grant help there

you question. This Joanna. the is Thank Hi, for dawn.

our you presentation. XX and second I'll quarter just if you from Let in quarter. investor page to -- third walk into turn me and

If $X grant guidance said we you would recorded been second in think we number. that the in quarter, bit have our income, had million a and our included had little about quarter expected over second we that

so a you less expect if into quarter, material. income, the grant we'll but nothing And about the just third think little bit

over quarter, the just of our quarter walk from seasonality page third deck. investor the normal last we outline So, doing our factors, to second on

higher expect in we that's quarter the third So, seasonal. utilities

expect also work an extra We day.

of costs. the quarter, incremental weekend quarter a lot, labor. third then a two have the a we in versus that's also second days holiday, and the mostly where day So labor either or

the lease really so And the piece the impact is of classification. second

we free [indiscernible] a flow. or So, our adjusted no impact but second reclassification, of have quarter, cash lease reduction quarter, mid EBITDAR, to our small because again, Welltower EBITDA adjusted a our sequentially,

normal performance to expect expect have to as our the then seasonal $XX third impact then expect expense that have $X expectations increase, And we quarter. million the we revPAR. to is occupancy really as we in structures, fixed we And our occupancy that the well better leverage as and on increases, million expect to management cost

of just material. QX. adjusted with course, there's scheme did, it's not It community, produce QX if not expense that to continue sort the -- anything circling of in management in entrance EBITDA. we we second material between the scale, but showed quarter, So, the the fee saw expect back you the and that to and of continue Brookdale, we quarter. our in third size and then

That's of Great. of of core fixed growth it. that's helpful. kind No, think sequential growth really leveraging occupancy $X summarize guess, and to the about million driven rate. the way the to million that's the $XX I to cost

expense continued expense. the And management

Expense.

about the XX.X% to year-over-year. occupancy guide XX% So, so talk you rate, RevPAR on

So, July I implies And XX guess about in did it bps. seems you maybe quarter-over-quarter. bps occupancy occupancy like it the growth Is ballpark? increased disclose that that XX

So, imply two the pace. I maybe you a guess also growing other assume that that would similar months

about what grow I nevertheless, being and growth. the that. guess I two could higher September sequential different years we to than deceleration. we with less some confidence kind in that were guess think the July saw prior it pace, this gives saw the also in of August, being strongest these years but a bit little way And at is it? that you So,

guidance this think Thank growth? for So, you. to occupancy about versus how QX QX

the normal seasonality growth pointing And investor seasonal quarter is in say historical back revPAR pressure. the as Joanna, the our pressure, But thank with about we revPAR particularly I on fair, the course, we're then specific the occupancy in not our I your where deck, of season. we're not think summer think third thought page guidance third had that high process would the giving selling to, the quarter. assumptions you. for guiding, you

if on sequentially may CapEx, deceleration some last nondevelopment in terms And slide, of there, one just from implies QX. that QX the I that

So, the forward development of of about going in CapEx? some you about think of spending terms should talk communities. it how your more I in peers guess, a

So, next you you. year? as head do CapEx you expect into more Thank

What Elliott a first had gotten numbers, say second total that. elevated so had and CapEx Hurricane of $X is million, reimbursed we've total Ian million CapEx spent of the we $XX which of within of CapEx. $XXX and I'll we net. spend. because we a in those spent million a quarter we've remember, about and and

so second to And non-development of year the half going spend. you're the of see $XXX the of remainder our million in is what CapEx

$XX about second spend. the see million of half reimbursement also hurricane the that in So, a year of the And come you'll through or on quarter, $XX back year. half the for the million

just the of we're in our process budgeting middle for And XXXX.

our So, that but share back ready beyond year for go appropriate getting we're the occupancy our and at yet. continued and to not the pre-pandemic, margins. growth there next have and to time, we we'll expectations

you. Thank

Joanna. Thanks,

Joanna. Thanks,

Please line's next comes from proceed. Valiquette Steven from now question Our Barclays. your open. Steven,

Great. morning, Thanks. Good everybody.

Steve. morning, Good

-- good us for So, I morning. think hey,

AL the relative a the you color your on CCRC witnessed some the occupancy segments, can on and trending of three curious trends about these So, especially if I guess sequential context more versus property a occupancy type. trends across industry the to just given trends just little sequential thinking just outlook IL different different occupancy little this When bit. of across in quarter versus CCRC, provide down

for guys. smaller it's just the know color segments. across different curious, you Thanks. property additional just but I

Steve. sort that of number rest is a CCRCs, have little sequentially in smaller our than anything it CapEx. affects can the question, to as of recovery there's a talked of good we a Storm Elliott would been so softer What CCRCs, communities. say earlier it and a IL has community about outsized related And an Winter if sort single bit the the portfolio. Dawn impact. it's have Yes. of I

to. and Houston, that one the that we We And did have was we we in Elliott, our seeing an like that one have by some not performing pressure impact. that outsized heavily of so our it would of Houston. is Storm affected CCRCs way were talked also communities does Winter about CCRC

And impact. growth in and sort we that well. memory AL that something so affects is strong the that would care to as also But we expect certainly, see our of continue,

me. it Okay. Thank for All you. right, that's

you. Thank

call. Thank joining. gentlemen, this you concludes and for today's Ladies

You lines. a day. may your disconnect Have you. Thank great now