Brookdale Senior Living (BKD) 21 Feb 242023 Q4 Earnings call transcript

Good morning all, and welcome to the Brookdale Fourth Quarter 2023 Earnings Call. [Operator Instructions].

I would now like to turn this conference call over to our host from Brookdale's Investor Relations team, Jessica Hazel.

Thank you, and good morning. you Senior Fourth Living. welcome Call XXXX to Brookdale for like to Quarter the Earnings I'd

Executive Chief Joining President Officer; our and today Chief President us are Executive and Cindy Dawn Officer. Financial Baier, our Vice and Kussow,

SEC in expressly cause facts update you safe XX-K made which factors forward-looking future. to and in differ annual date, as the XX-Q. the well from the time, of Form actual of including historical yesterday contained within these detailed I Form laws. report securities direct we be reports as on release the harbor are deemed the as statement. today's factors All statements issued statements. federal and to not the disclaim These results earnings that results in may in to release performance the today, from we meaning are our time materially quarterly the statements differ any full Certain be to obligation statements the risk on statements of for Actual we and could the are to may reports with forward-looking file

we note this please during measures. present call, that financial non-GAAP Also, will

on non-GAAP furnished each an For reconciliations brookdellinvestors.com may X-K which measure, release comparable most and information, was direct GAAP yesterday. from of measure you the I supplemental the at to be and found

I over will Cindy. Now turn call the to

intense it earnings shareholders, which encompassed We focus operational of commitment and health to residents This quarter well-being is and of associates. fulfilling positive morning our our Thank and financial a other a to deliver year-end priority, all extended Good our beyond and commitment achieving with clear and our started Welcome and call. the you, overarching positive fourth call Jessica. also outcomes, analysts and XXXX XXXX vision participants. to results.

most had clearly ensuring had with important plans. that why but these dedicated to plans place people stop the our had efforts in effectively year, we objectives, were communicated initiatives didn't the to for right our created the right We priorities the ourselves meet and our and

intensely focused and a leaders as adjusted available. objectives, together as Our worked new achieving information our team on became tactics our

and I'm of growth. team to our For this, for which say a year leadership community, that extremely proud to efforts, and was greater an strong improvements and grateful the in our Brookdale their to marked chose residents occupancy, significant robust more their part be result I'm financial led to incredibly who operations by

quarter XXXX, recovery build Although growth. complete each of of to paves way we the a with solid continue foundation is us, that sustained still ahead for

For and the are exceeded both quarter to RevPAR our fourth provided adjusted which EBITDA pleased quarter, in previously guidance. another report achieved or we

focused throughout operations, remaining number real our portfolio by community on and financials. priorities, delivered estate our our positive we a key Additionally, outcomes of strategic our

have grew results. care Same-community rate, RevPAR while the appropriate and RevPOR increased RevPAR top positive quarter, favorable continue RevPAR service management, XXXX, provide needs, we quarter. remain adjusted throughout expense and fourth meet that same-community compliance Through growth applicable high-quality prior and ensuring operating residents' regulations. our over with to in income the year personalized last XX% margin pursuing line approximately delivered and quarter occupancy we we fourth over through and occupancy positive growth. achieved balance XX% of year's a In maintained on improvements we fourth the By

people In Year-over-year rates serving is and business. basis retention our am meaningful points critical in year are from of of leadership improved area making This fourth progress addition hourly once goals. roles this increased people. turnover our full-time QX I our associate business prior is leadership quarter. we again all towards the these XXX basis achieved community associate about retention points financial proud important turnover because we the for to critically accomplishments, XXX incredibly and progress the by

Lastly, our recognize particularly venture. want health remaining completion to in of equity as transactions our my of these interest team for specifics, financing Treasurer, sold X transactions, the Hicks counterparties. but our our hospice Brookdale each successful we I December, Dawn and and to completed gratitude will the home and toward in reported share the George share

As and to and for we was These while margin strategic driving focus continuing changes, our our performance on and the a services. resident as year strong further mission our that business senior notable some and incumbents recover leaders, our favorably began the leadership future would high-quality for central of close from This we our team. consistent Executive We contributed decision-making. refining providing experiences. impact our mindset, XXXX, structure a high-quality like to community the both emphasize pandemic, underscoring year out and care We or Director with acumen I the support to maintaining rebuild role to then while priorities operations difficult in incredibly to results. and significantly all pivotal accomplishments streamlining evolved the highlight our growth satisfaction organizational business with while stronger matching and combining resident remarkable

have but step improvements to the This a community led yielding was of level. to a some foster culture necessary noticeable effectively continue turnover year-end, positive these it our in by excellence And started XXXX, mission. at changes delivering and

Brookdale and like best our and attract, that years are shifts we and excellence favorable teams have our several rather a by of our stronger piloted and associates with across to. engage, family who in Brookdale programs retain number to associates supported alignment the a our but hiring improved our contract for mission impact introducing extending employment and develop enhance and of hourly that to the satisfaction. the By priorities of would associates spoke launched than To new training length overall processes and and are the business, that I resident only associates, leaders that we staffed increasing community outcomes importantly, the core resulted leaders dedicated community and not provide support mindset turnover part-time building growth field full will labor, retention for to We new further operational and come.

these successes to confident level continuous our with have progress. improvements. pleased so in are from committed further seen we already community plans and improvement for remain am the We I

year. the we I'm critical our by company at engagement across all rate in increase XXXX, amount annual increases to significant which resident has positive responses, a been that survey, improved priority the proud Brookdale. received our which roughly of fourth completed family of became at invaluable priority with report quarter consistently product satisfaction more we beginning and given again in even the Resident XX,XXX the family and score provided once total implemented a lines. Our insights. and key This

to grateful residents vast we will and highly that to they our positive responded we would build desired satisfaction results their great majority upon work for Additionally, are the this that goals ultimately Brookdale or the achieve their of community recommend associates, recommend family. These friends reflect families. of our overall our and and overwhelmingly dedicated residents

received We this appreciative regular to the we'll engagement, meaningful and family and insights are extremely resident for always on critical of continue area. focus

Communities urgent for evaluations but Another Brookdale's expect proactive residents, underway, improving of and measures. and fewer our remarkable benefit the its which the to continued integrated expansion this care HealthPlus model. through end of is Plus and preventive HealthPlus also nearly an creates Planning for XXX confirmed market program, stakeholders accomplishment clinical well of further next position creates Independent industry-leading The have residents establishes our HealthPlus that for health Brookdale program in industry Brookdale value resident care our Brookdale the leader in XXXX Health many a our innovator. only underscoring in hospitalizations, we communities visits and experienced innovative in care expansion and outcomes XXXX. by success the expansion has delivery demonstrated of as was effectiveness not it

improve leased of XXXX, to properties in terms as as included manage our portfolio, favorable our proactively leased portfolios continue owned disposing decisions long-term X position. no certain negotiating right strategic Also and for with landlords were and This longer such well as that about our further financial we making long-standing not owned additional funded to favorable only options portfolio lease come. our years mix improve to support transactions, the future CapEx, in not also we previously us will cash these but certain further and to This to Brookdale. on obtained were own available flows Through purchase communities enable that landlord secured to us.

XXXX pandemic manage successfully executed growth, annualized Lastly, EBITDA maintain at of our to strong our XXXX recovery structure adjusted and we our XXXX. at decreased liquidity. from Throughout period, XX.Xx as the the end to XX.Xx a have and subsequent plans result appropriate leverage end of capital of the

on our is delivering recent successfully are transactions quarter Combining success. an mission for fourth passion Our margin the our examples a for of critical executing while focusing on this. appropriate most

financial our of will well-being the to and While priorities. continue our associates, our be and priority overarching cash remains and top flow liquidity health residents

solid In meaningful I'll summary, to year goals, now will and of strong full XXXX XXXX operational significant, while the strategic Dawn a efforts, are was you measurable improvements a share our turn execution results moment, In and growth recovery. these of with which steadfast our plans. towards of

to simple, stay our XXXX, course. look the we As expectations are

successful intend We growth, build the strong and execution upon a of strategy. have worked future we our incredibly hard to foundation lay for to

growth that Our initiatives to reinforcing in XXXX. to we while and processes provide commitment opportunities introduced continue people rewards and favorable the is to our

refinement time. will remarkable also driving stepping address take potential. we'll see continuous our achieving full made areas an the our and that full learning in pursuit but ultimate and change recovery in takes be nation's towards and and Brookdale require our pride take them year, accomplishments, reaping our remains last improve the XXXX, organization. first progress that We Accordingly, and living. ongoing through our benefit senior a choice in from we to organization as we meaningful stones change of learnings We

in our organization teams to our success priorities our such, executing against are throughout that and strategic the XXXX. key committed growth incredibly guided As

grow we meaningful XXXX. satisfaction. and at remain: providing believe to free grow for EBITDA care further every continuing available attract and priorities I support and improvement creation, develop retain RevPAR, all the second, valued, while throughout third, Through earn quarterly profitable adjusted high-quality to look our providing strategic forward adjusted and with and by resident will execution flow on trust of and key I best and XXXX shareholder These positive rate; room deliver you growth best updates and and engage, cash these, progress XXXX consistent resident satisfaction service first, associates; will service. family occupancy the personalized get value

Dawn. over I'll now turn the to call

consolidated were Thank thank revenue, XXXX and with growth. in provided is line prior with We finish which Beginning here prior was with XX% solid over range. of Residency quarter. over Good fourth quarter for pleased to being quarter results and you operating financial Cindy. you, today. morning, very another top year, guidance revenue RevPAR our the growth quarter grew the X.X% previously the Fourth year of

year-over-year represented occupancy quarter occupancy increase. Sequentially, third a Our in growth increase to in ninth basis was to a weighted of XXX point This attributable an growth. quarter. compared X.X% and these marked year-over-year results RevPAR in RevPAR RevPOR decrease an consecutive average basis occupancy the X.X% XX point increase and our

report meaningfully mix, for disposition pre-pandemic competitive We are and timing occupancy below our pleased on was to RevPOR period. due quarter slightly that sequential above this normal response resident was our seasonality expectations, Fourth pricing. this growth to

XX%, weighted Our largely the over X% increase approximately the of line including in in point and approximately fourth XXX consolidated growth the portfolio same basis occupancy a RevPAR community prior with year. performed portfolio RevPOR in growth average quarter

We are top pleased these results. with line

peers. same-community expense operating our growth. year of facility operating facility operating ninth fourth quarter over the Page Consolidated prior was supplement deliver $XXX million. to XX% expenses. by quarter operating quarter, year-over-year was Fourth while $XXX expense This financial on significantly million, X income as adjusted same-community fourth grew our to income was our shown quarter consecutive outpacing Moving adjusted

to We compliance are margins work residents' pre-pandemic to as that high-quality our meet of and to we operating continuing we progress segment ensure this needs, with service, very applicable remain provide and diligently return proud while in care regulations.

of growth payments result approximately rate Fourth $X the million quarter represented lower appropriate the XX.X%, expectations. margin since solid continued to, initial which outcomes operating $XX with fourth and expense RevPAR is XXXX This quarter margin lease adjusted was highest expense which impact general reported million, previously including and the is provided than Same-community management. of in the administrative favorable third progress the spoke were from was Cash our accomplishments Cindy pandemic. a operating line quarter.

year top fourth combination G&A. quarter the adjusted favorability end $XX the Fourth lease range quarter EBITDA million the prior and in quarterly and million the the was was the no positive adjusted million. by $X government recognized in exceeded EBITDA modest of guidance This despite grew and XX%. quarter, of Compared and to million result of due flow-through of fourth was This our classification remarkable to quarter of in strong credits the versus fourth revenue in grants of quarter $X approximately growth grant in $XX changes XXXX impact income XXXX. a fourth

Adjusted driver the capital working for the quarter. free Fourth of negative quarter. of cash to primary flow Normal net expenditures, million tax third annual quarter was real capital, proceeds $XX were $XX specifically the payments variance nondevelopment was estate the insurance million. seasonal

and For XXXX we natural insurance received million the in costs disasters. reimbursement year, approximately $XX to of related $XX the full approximately million reimbursable incurred remediation XXXX

release refinancing the $XX press or pending we transactions. liquidity each sequential December we completed million. As I'll December decrease December million end the In in in was XX, total reported press capital of release, was of to speak markets driver a on primary announced them to the quarter liquidity of briefly. XX. $XXX transaction related X The

First, secure tranche million another by existing larger maturity. loan that mortgages XX with nonrecourse debt we under obtained first of an also is communities on credit loan with a later Mae. a facility master secured The agency Fannie $XXX agreement

in interest runway grateful under the this we a on size Mae's in very as with for the borrow next loan, months facility recover. September for was of XXXX $XXX transaction, maturity million the this the XX used fixed and a set The additional the which in coupled a of million cash allows We out proceeds We Fannie $XXX tranche to to loan, the right loan. latter our in repay were With existing which cleared to and continue loan transaction. XXXX. mature loan X.XX%, rate has from credit partnership for hand proceeds communities provision, potential

additional up amended $XX options our increased and transaction, revolving million In to the January with the extension agreement, we by agreement thereafter. credit to the extended which second existing commitment XXXX

remaining the part million. home of as new this in $XX for our press hospice Third, we a plans and we venture unconsolidated sold transaction. financing noted month, for new health fourth, Earlier of we a XX% completed equity aggregate proceeds the interest carries two of debt, And which level obtain with on of extension in basis a variable financing $XX This bank previously and rate SOFR. transaction XXX to financing million matures communities mortgage interest points property February is X-year options. XX XXXX unencumbered over release,

We are and outcome with management believe each the transactions of they structure. very of capital our examples these of of are pleased proactive continued liquidity and our

debt next is maturity September Our XXXX. without extension options

walked of accomplishments. to delivered approximately have Cindy of XXXX through of you XXXX. results some highlights. I'll hard a positive measurable the in Thanks work XX,XXX associates, share few the we our our

point Same-community average XX.X%, the has grown As pandemic government of XXX margin. the income from On per of peers. weighted in a points over improvement occupancy a reached the we same-community of operating year the income year, XXXX adjusted grants, total operating recovery. year-end, our RevPAR XXX same-community adjusted unit of start excludes has grew basis, a significantly outpaced Full income, our nearly reported. available basis adjusted XX% adjusted supporting XX% which same-community grew XXXX prior basis operating operating which

Given the strong to occupancy, available believe a significant still we this runway grow very reflects recovery.

income grant flow team's grew of despite Lastly, impact went was of changes results over in appreciative year, proud adjusted $XX efforts and these million year classification. than improved am them. of while million that prior XX% in into the adjusted cash $XX free XX%. X deeply of lease higher the This our I EBITDA prior achieving the the

specific press X.XX% the expectations. over the and guidance in RevPAR are year growth EBITDA guided our of few release, like first $XX In these adjusted million. to we to I'd to prior range provide $XX considerations quarter ranges. X.XX% to quarter Turning million of yesterday's first a There to to

Regarding anticipate trend average RevPAR, will quarter this occupancy a seasonal first we reflect weighted period. normal for

compared expectation to prior in quarter first normal this and declined generally the saw guidance. fourth reminder, into quarter We pre-pandemic, our have year return first quarter. seasonality the a sequentially As this the built

XXX occupancy over prior basis weighted was January. point year increase the average a XX%, January

addresses prior Additionally, higher implemented than but January we our focused deliver to resident X on a appropriately the remain which norms. costs, interest supplies ensuring in-place historic and expected we community services increase the well rate year, which the increases than remain labor utilities as pricing our pricing significant to elevated. is annual of communities normal portion addition appropriate believe expense inflationary as in in food, in increase and We match most lower rates, operating on our

guidance. EBITDA adjusted our Regarding

for course believe sequential compared I While it helpful. expectations, note few more and particular me prior variations would more year to considerations to quarter has the been first this quarter, a be normal noting for

be with impact incremental will day year, there on in an higher which expense this specifically results only leap a revenue. day, minor First,

the is in the timing quarter EBITDA. second change million of XXXX, will continue a to the $X.X this lease quarter, adjusted given to Second, Specific first year-over-year a there of impact. impact year-over-year be a to XXXX classification, through

As a on cash adjusted to and EBITDA, non-GAAP adjusted no reminder, change and this EBITDAR, impact decreased a but flow. standard lease impact has adjusted widely free valuation accounting no metric used

recognized the prior $X any income the guidance quarter, in grant and assume grant XXXX. does Third, first million in not of income quarter our in first year we

$X assessing in estimate the the the of guidance we Lastly, million. our to expense estimate EBITDA total reflected adjusted This maintenance and storms repairs, while winter January approximately we from fully impact are X is still cost needed currently be range.

over back to has our XXXX, success I in the of now XXXX. I our continued the and am Cindy. team to forward in looking call proud made am very turn progress I'll

remarkable path on proud but of also accomplished, am the for associates of Today, them holds residents, more we've serve of of need standing to The ever sustainable opportunities, and even to determined shareholders. the of I seizing year, are so not this come. we we Brookdale, our than growth just that continue benefit what to on and our the for building committed and other greater may future years seniors stronger a fully more side

our saying partnership, thank well-being associates support. you. dedicated Thank health to our our our by their close who home, to to for and I'll to continued residents who of and are and the you trust Brookdale shareholders call residents

for open please the line Operator, questions.

Capital RBC Hendrix [Operator line Instructions] comes of first question the from Our of Markets. Ben

and your drill appears bit held Great. I occupancy a bit December so just the given in down up occupancy historical that into I we're a the points wanted could to of second basis range thinking conservatism end certainly the pre-pandemic into more level see January. occupancy The or XXXX 'XX better path January you've that with be saw that some targeting? through step there to occupancy just any we're broadly, if seen views seasonal back consistent half than XQ quarter on last trends little give basis. RevPAR certainly comments momentum that called said, a more. what first month range the little there XX take. That And guidance a updated year, in then we out into the Dawn to wanted pre-pandemic, on

on as at And in profitable follow prepared for we full year How we to this what continuing is is I our continuing is about would say Thanks getting continuing went in we're her every to as far points the -- for occupancy, this year, say points as the January remarks, what is that we service did to occupancy as Dawn. is, mentioned XX first the would quarter. basis XX room to last historical Cindy opposed it focus we're rate. full down basis are most Yes, see year, but yes, pre-pandemic expectation thinking question. trend

XXXX. continue that So we grow through to expectations would be occupancy would

And if is and we to have has incredibly that we for the quarter that results longer would to way really solid that And were paved operating the term, go another built really, Cindy, this sustained we solid pleased believe XXXX Ben, financial I foundation with I a very say just growth. growth. finish of

our into our our which us associates to so services, new as of the and on And achieve communities, forward quality looking length possible. objectives welcoming focusing providing residents extending service long-term help will we're quickly for as

one. can I add a quick just on If

a postings labor guidance your occupancy. first quarter? about Our the thoughts onboarding job the periodic is that late in expectations and of in cost if which trackers year be the in added suggest I with on year, labor rest and strong get there thinking consistent wanted could full-time pickup through costs you're the just to in the some the

I'll we're our less would 'XX is contract Ben, And savings XXXX, much labor 'XX. our how costs of the I so labor Yes, have gotten something thinking in we out start. labor that in be than premium in think, about

better we expect in labor However, is what that productivity there expect retention focus to our as remarks as we mentioned well. the our focus training prepared And have and as the Cindy on occupancy. we increased would -- naturally our would her we see we And productivity about improve, will on increase of will get as and turnover.

resulted would market I in X competitive, are to positions the has is which churn. labor in and is a challenges, continues nurses add thing hourly market there definitely labor see some that the we the certain and labor definitely less CNAs, caregivers in there market, like particularly that but be stabilization And and just

And inflation per per so basis hour on years. labor muted than saw more you in be when there in think costs a about we that, prior employee will

Our the America. next line comes question of Bank from Gajuk Joanna of of

the on So pricing. follow-up I first guess, a

occupancy. just guess, you I So talked about

around So pricing. historical. but pricing less some activity pricing, or than also But activity when comes year, to comment competitive being you you the in competition made mentioned around last a up it above QX,

I increases when the there maybe this just assume going more do to markets to -- to forward what kind And of dynamic? I maybe comes Is you a And implies more going So confirm, seems can some it competitive? to outlook mid-single-digit or guidance you so. be elaborate guess, what's bit have little just where, the on? guess, you pricing

when our What the and Dawn. expectation product expectation a say that to this is effect competitive in the first we mix price markets disposition is as would impacted RevPOR. looking into it continue that we as quarter well little by quarter, January as X bit that competitive our put at the our markets coming Joanna, for I fourth would of RevPOR grow certainly, to is was and our our reaction you're those our is, Yes, increase

And let pricing you what I'm by me that out full significantly really just Dawn add with look pleased if outpaced the that way said has our to for I XX.X%, And back for the that XXXX. peers. strategy saying worked was and RevPAR see whole our year year

So is the had what Brookdale that outsized that to occupancy of right price tells we me that performance. balance for get and

comes of those if exits the occurred when impact another and it occupancy the to, say, I about in on QX? from outlook how expense EBITDA? or to, guess, that when should comes lease may, impact run lease we And your I rate, And rent just follow-up around else exits think it EBITDA anything

had give asked see the assets that. say a I the are favorable well many with of sitting XX That our ended it's well, ultimately, extend going ultimately LTC extend what continue for purchase LTC. shareholders. that's or forward excited you that our a the the XX% to we on us and What which at If was be a about options. that lease way lease they're not, matter I'm shoes end like then with is think would lease a may as we it we very not Brookdale. favorable up expirations with asset lease, chose CapEx situation where under happens we I those can good lease. up lease to choose in performing to lease, we minds. the assets If But re-leasing no we go can with Joanna, support is and I the not The as question us gave people's optionality today, extend

we heads tails win, So we win.

actually what I the terms my on forward? question in to And expense, in going guess, the of rent was impact particular, LTC this Right.

it the XXXX. would say LTC is is favorable would this to XX the Dawn. I Yes, we impact Joanna, to be as expect What modestly dispositions, that of relates

you're to material I thinking of just forward? comes So not kind but there's these the annual rent whether going having when talking increases, also leases was XX it about impact

Yes.

that, be favorable would an think I those it adjusted going for from perspective, say modestly EBITDA what away. that's we would leases

January, they topic. I of Okay. on of question, transparency And and I guess were lack aging committee And may, a talked different special accountability, on assisted standards. hearings a focused in living there's Congress this another and called about facilities quality the care, some of study this there GAO on for government topic, if guess, in I that

in other for of your risks efforts staffing kind So with to up what maybe of this thoughts some the the around could terms are that be or come some operators? requirements requirements

and we services saying just their families. Let and residents health by care Brookdale, to of start high-quality always me at well-being the top providing and to priority, are has dedicated and our residents been our

lives best enrich As and as the over the of of company, to decade, seniors in of nation. thousands a our honored some we're communities of the been have hundreds the recognized last

in example, the an As U.S.

assisted News than Senior for row. in for recognized living Living communities any the in ratings care second has living & senior and communities Brookdale XXXX, provider more year World memory a other Best Report

country of is hundreds currently by satisfaction XXXX with and care. to in serving for decade. our were others the memory advocate thousands Brookdale over serve Additionally, and XXXX residents one We're #X living in by assisted several best the pride for we're Brookdale interest is committee partner true to and take customer ranking that and promote across willing Casey, It of seniors living Bob on an and is provided response. have of assisted great special as Senator organizations communities in at we in the both that J.D. of residents recognized aging, a Power the the last We industry. contacted

soon be. focus to has quality could I'm But care. of what comfortable it's is very providing the point, inquiry that tell our the too At this outcome and always been

[Operator line Nephron Josh of Instructions] Raskin from Research. comes of next question Our the

And XX%, of to made to the Dawn or are I basis per better of room. pre-pandemic, income unit a sort per think how per XX% the operating returns on occupied that just on you do with of was. wanted the back that where Is about then do go room you comment understand And what cost a where capital? same-store that versus available juxtapose were pre-pandemic? they

Well, this that is -- let saying start by and me Cindy.

start still the have saying us. me of recovery we ahead Let by that

most operate And that so senior living communities rate. occupancy at XX-plus percent effectively

So prepared our she us. the in address remarks. of that that XX% Dawn still ahead But can is referenced

XX% The same was our Yes, on Jeff, community reference you can Dawn. the shown this in is available and there. slide, on supplement that's so room basis,

Okay. at that occupancy. you have total I'll pre-pandemic, look then take guys And a that. XX.X% referenced

I think points basis of about that. you're XXX off

a side. I you at it's if bit think just look AL less little the

a what's frame. time So reasonable

a improvement? As that that take think that Just out to longer? target, about X-year cadence frame? trying Does of figure is occupancy a you time as

would as recover So to possible. is what quickly I say, is Josh, our as goal

think our are number of recovery. factors I a there timing will that impact the of

of very we're the before. Brookdale is environment differentiation very And would providing. HealthPlus. capital our First, given seeing a ever pandemic We're supply and target supply incredibly market year with on seeing strong the demand Brookdale industry the to muted we're seniors more this constraints demographics of entering continuing than We're tightening. say about as quality excited care that I well then that excited the grow. about We're as our

that it's goal how take. comment exactly to can. is our recovery can to seniors quickly But as as full many as we as soon so long is we And too going on to serve

a don't the community-based the sneak mentioned Okay. you that's and guess, I I'm HealthPlus. is in difference economics enrolled difference if individual room, actually Brookdale Is helpful if program. in, last of margin -- the -- there by a a if just economic a X just I I in stay? data length room are residents in that of any know economics resident? the could that's there assume that's or be sort of curious us. on And of that sort I that of of for would Maybe

care that X outside a is it completely Brookdale fewer to hospitalization is to visits so for change charges individuals as HealthPlus. Brookdale. is of model the XX% that there living residents outside we designed community. Brookdale no exciting part of HealthPlus XX% Brookdale innovative operating it to And which living resident in No, cost priced of care about incremental in Brookdale close a particular resulted care of compared that's to and things an into the has gaps, when care of we community, fewer similar of protocols the sort similar compared particular urgent and put community, We

me shareholders faster communities. HealthPlus the than for much of that grows most But we have non-HealthPlus community's the excites Brookdale is profitability seen what

well-being And our residents so return more of we going think there's even our health supporting be by the a do. than we to previously and for shareholders, strong

Right.

non-Brookdale Is no when it? about charges say incremental not the a it's think to that So community. I but there's you to than that higher are assumed HealthPlus cost their care -- -- way the residents community, that

necessarily. Not

on would built was value us case mentioned, increased be that the and business length help Our it residents as fact in you proposition for of that an attractive would, stay.

last of the HealthPlus to those been rolling length is gotten Now the is true for things X out because over communities we of yet. few haven't stay a stabilized years, we've that

that's the Brookdale encouraged choosing so residents we're that a by statistic watching. as But are HealthPlus. Brookdale that And still we're result X of

for today's session As thank to gentlemen, like this Q&A I would Ladies concludes your joining great and rest a day. of our call. you Have for today.

now may your You disconnect lines.