Brookdale Senior Living Inc. (NYSE:BKD) Q1 2024 Earnings Call Transcript

Lucinda Baier: I was going to say the last part of questions was on the home base, we’ve not seen an impact of home-based services at this point in time. And the age of our residents over the last few years hasn’t really changed in terms of the age that they’re moving in at. In fact, what we’ve actually seen is a lower acuity resident is moving into Brookdale, and that is even compared to pre-pandemic.

Joshua Raskin: Got you. Got you. I was going to say, I sort of misspoken. I shouldn’t have used the word development. I meant more around sort of like your development CapEx at the local level, like sort of developing more memory care. Is that more targeted? Or is there sort of a general thought on that? I know those numbers have been relatively low in recent years.

Lucinda Baier: We aren’t currently doing much in terms of devel on capital in terms of changing the configuration of the community from assisted living to memory care. We’re very pleased with the mix that we’ve. We’re much higher assisted living and memory care than the industry and lower in terms of SNF at 1%, 2% of our portfolio. So we’re pretty pleased with the position of our portfolio and we’re really looking forward to improving the execution and capturing the opportunities in front of us.

Joshua Raskin: Got you. And then you sort of touched on this, Cindy, but I understand Brookdale HealthPlus is an explicit upcharge to residents that’s more kind of built into the rents. But is there a thought of getting back into health services and actually charging for specific services? I know you sold the home base — you sold the JV to HCA. But I’m just curious if there’s an appetite to sort of get back into other value-added services?

Lucinda Baier: It’s a good question, Josh. And I’m very proud of the transaction that we had with HCA. I think we’ve got a very good exit from that service line. I think we’re more interested in this point of making sure that our residents have access to the services within our communities and less with the — adding a new business line. If you look at just the Investor presentation and the opportunity that’s in front of us, there is so much opportunity from getting back to our pre-pandemic and our historical high occupancy and margins. That’s where we’re focused. And I think that’s the right answer for us today.

Operator: With no further questions in the queue at this time, this will conclude the Brookdale Senior Living 1Q 2024 Earnings Call. Thank you to everyone who has joined us today. You may now disconnect your lines.