The brand new prime chief of Brookdale Senior Dwelling (NYSE: BKD) is taking the corporate in a “much more offensive” course whereas consolidating its regional management construction and additional tilting towards possession of the communities it manages.
Nick Stengle, who ascended to the CEO position of Brookdale in October, mentioned that the Brentwood, Tennessee-based senior residing supplier would stay “before everything” an working firm “constructed upon an actual property basis” underneath his management.
Brookdale within the fourth quarter has clustered operations underneath six regional vice presidents, with every chief overseeing roughly 100 communities. In impact, that makes Brookdale “six working firms of roughly 100 communities every,” Stengle mentioned.
In Stengle’s view, it will enable communities to extra nimbly reply to “the regional elements of senior residing.”
“We set the purpose, we set the target, we assist pave the highway,” Stengle mentioned. “We pave the highway, we give the CapEx, we give the sources, finance and HR and our recruiting sources, we put up the guardrails.”
Stengle added that the corporate doesn’t wish to “centralize every thing” in order to lose the native contact and regional maneuverability this new construction brings.
Within the third quarter of 2025, Brookdale reported surpassing 84% same-store occupancy, representing a 170 foundation level enhance in comparison with the second quarter of 2024.
On the identical time, Brookdale continues to prune its senior residing portfolio, with Stengle noting that Brookdale would have a portfolio of roughly 550 communities “by the center of 2026,” at present at roughly 623 communities as of Sept. thirtieth, following the discount of 14 leased properties and 10 owned communities since June. Brookdale has completed disposing of 43 leased communities, a part of its plan to divest 55 leased properties.
‘We change into six firms’
One concern typically shared within the business is that nationwide senior residing operators should not nimble sufficient to succeed in opposition to native or regional operators. Brookdale is carving its holdings into six areas, every with a single chief over all operations, supported by gross sales, medical, human sources, recruiting, eating and asset administration.
“These six regional leaders act equally to a normal supervisor having direct possession of their particular enterprise,” Stengle mentioned. “In impact, we change into six firms of about 100 communities to actually be nimble and actually be targeted on the regional elements of senior residing.”
Stengle added that Brookdale is “not including extra leaders” however quite the corporate is refocusing job titles among the many six areas.
Stengle mentioned it was necessary to be “dynamic to the issues which can be occurring inside the 4 partitions, but additionally issues which can be occurring inside the market” to ensure that these new regional groups to succeed.
This reorganization effort is immediately geared toward enhancing occupancy and web working revenue progress, with Stengle noting that pricing energy would go up as occupancy continues to extend on a “strategic pricing platform” that permits Brookdale to be “much more dynamic” in setting charges.
“The silver tsunami is right here,” Stengle mentioned. “All you must do is have a look at lively grownup. Now it’s time for the assisted residing and reminiscence care phase to learn from that very same silver tsunami and the entrance fringe of the wave is subsequent yr as child boomers flip 80.”
On unit and price pricing, Stengle mentioned Brookdale may do “far, much better,” one thing that might be a “focus level” rounding out 2025 and past.
One other method the corporate can keep this “extra offensive posture” is thru regular CapEx deployment with funding plans for communities to spur NOI or occupancy progress, one thing Stengle mentioned is “simply establishing a flywheel” to get higher returns out of current properties.
Brookdale’s optimistic money stream, occupancy and charges proceed to offer Stengle optimism to take care of this offensive posture mixed with the corporate’s monthslong effort to deliver “SWAT” groups into communities prepared to reply to points.
Brookdale additionally seeks to personal extra of the communities it manages, an effort that began with Stengle’s predecessor Cindy Baier. Welltower CEO Shankh Mitra typically describes the true property funding belief (REIT) as an “working firm in an actual property wrapper.” To that finish, Brookdale just isn’t solely the most important senior residing operator, but additionally among the many largest homeowners of senior residing communities within the nation with 372 owned communities as of the top of the third quarter of 2025.
“Clearly we’re the most important operator … however the half that we now have to maintain reminding ourselves and folks is we’re additionally the third largest proprietor of senior residing actual property,” Stengle mentioned.
‘SWAT group’ operational response continues
Brookdale in current quarters has deployed “SWAT groups” of specialists in numerous elements of senior residing operations within the identify of hitting higher outcomes and enhancing buyer satisfaction.
Communities underneath 70% occupancy fell 38% from 143 within the first quarter to 129 within the second quarter to 89 within the third quarter, of which 26 are slated for disposition, 22 are in lively SWAT protocol, and 16 want 1 to three move-ins to exit sub-70%, whereas communities above 90% occupancy rose to 192 communities within the third quarter.
The SWAT group is working,” Stengle mentioned. “We’ve now outlined the playbook…It’s a mixture of operational focus, it’s a mixture of capital deployment and we’re going to make use of this to proceed increasing the efficiency of our enterprise.”
Brookdale Government Vice President and Chief Monetary Officer Daybreak Kussow mentioned the corporate’s enhancements in occupancy “stems immediately” from its SWAT groups strategy, mixed with focused pricing actions and “a deal with operational accountability.”
The corporate continues to shed leased communities from Ventas, with firm leaders anticipating to transition 55 communities leased by Ventas by yr’s finish. Additionally on the finish of 2025, Brookdale intends to spend between $170 million to $175 million in CapEx to enhance communities and drive increased NOI with “some flexibility” to deploy extra CapEx enhancements as initiatives are recognized, in accordance with Kussow.
“So we’re going to make use of CapEx with our SWAT groups to do what’s working and proceed operating the enterprise,” Stengle mentioned.
