BKD Brookdale Senior Living

Kathy MacDonald Senior Vice President-Investor Relations
Cindy Baier President and Chief Executive Officer
Steve Swain Executive Vice President and Chief Financial Officer
Josh Raskin Nephron
Tao Qiu Stifel
Brian Tanquilut Jefferies
Steve Valiquette Barclays
Joanna Gajuk Bank of America
Frank Morgan RBC Capital Markets
Call transcript
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Kathy MacDonald

Good morning. This is Kathy MacDonald. I’m very sorry for the technical delay. Thank you for joining us. And welcome to the Second Quarter 2021 Earnings Call for Brookdale Senior Living.

Cindy Swain, President and our Officer. are Officer; Chief Chief today Steve and Executive us Baier, and our Executive Financial Joining Vice President statements the federal may laws. historical forward-looking All within securities are to statements of deemed be facts, meaning the which today, be not any future. are statements disclaim of update these and we today’s These to date, statements as expressly made obligation in the differ and from forward-looking performance may materially results Actual statements. cause issued Certain the actual as factors of could results in the we and that are time to in with earnings differ as risk time, release file including Annual our quarterly Form the yesterday Report in from to well XX-K detailed on we reports the XX-Q. the reports contained on factors SEC Form to statement. release Safe the full the you Harbor for I direct note financial call, present we Also, during this will measures. please our that non-GAAP

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

Now over to I Cindy. call turn will the

Cindy Baier

quarter COVID-XX Good hope demonstrate and morning I the shareholders, earnings versatility and Welcome our to analysts and to and care attributes our of those The to proving and are win all recovery participants. sound. to second Kathy. we are save those call. continue safe you other about pandemic and that as continues you, you resilience, XXXX lives. Brookdale’s Thank critical help

in industry our and is As mode. entire reopen lease-up the economy a

environment. We in are and operating intense an dynamic

to our the I report have members and We’ve wellbeing has to a at consecutive the Brookdale to delivered We team to up, tenacity helped month for our hard an diligence our on the the regional health our growth. and plans been associates. on on so that vaccination end long-term recovery initial than led build our with COVID-XX the months work we The and we pandemic to accelerated success. opportunities. safety occupancy earlier of July occupancy June that our appropriate to of year results. great placed expected has this five quickly will of demands significant throughout The of has associates the of have The tremendous corporate residents The made position achieving with step showed phases even process stronger hard to stay communities communities which protect occupancy reopen work. pleased we occurred and and our refine been our can am progress and continue protocol. on more focused growth objectives. and able Thanks capitalize

we smooth when further therapy business of of position by As XX% July X, to over strengthened transition fail the completed and hospice health, and million home our Healthcare. our liquidity outpatient HCA we $XXX

services high healthcare continue of the beginning while housing our At the I growth behind pandemic for our significantly of drive efforts pillars across are and We be value residents meaningful us. in our residents. transaction from value, ongoing step to positioning sustained a to enhancing with that shareholder three core put continuum. quality our our improving year, care this introduced to latest transaction seamless senior in represents Brookdale’s offering operation services The plan liquidity, the the broad benefit growth. available will pleased to a

especially and clinics pillar, our accelerate with in success is in remain and first to our protect helping over residents, recovery. the delta We of opening months believe strategy light hosting The communities, associates, vaccine our us variant. our diligent I our complete. communities enabled largely in clinic occupancy four vaccine X,XXX

best of practices our wellbeing ensure of state and effective new we residents the and We stay of continue health to officials CDC developments support protocols help meet with local implement associates. and and informed in the to

of and of aging expertise our to testament our strengths. a the core are challenges efforts is helping one with ongoing Our how people

The second sharpen pillar edge to business transformation. our sales through was

engagement. locally outreach our on attention part local refocused win strategy, As have we our of

second In opportunistically leads. dollars strong quarter, and addition, during delivering we in allocated areas, strategically the returns marketing our which to is particular

together, achieve industry. outpaced this help us gains occupancy the believe that’s we Taken

our improvement We in, sequential living are to in assisted pleased leads and care. with as the convert well to ability memory as in particularly leads move

The and pillar care. third higher better of we strategic memory our assisted in a the concentration was announced capitalized on portfolio living

position addition, our In capitalize better leadership wanted prospects. our demonstrated and for we on to residents

complex with are to medical condition. serve well-equipped We appropriate residents

satisfaction We evidenced our Memory for Living also satisfaction. ranking Assisted in most Communities customer recently customer J.D. and Power highest by have Care industry-leading Award for

in is approximately be the outside that positioned this the portfolio successful broader care The success in today. these our notable. particularly of we assisted Our seen of means memory can from recovery care living, execution recovery. with our portfolio three memory in ideally XX% our growth to occupancy sequential is benefit which strategies pillar segment, are The

show Let me increased stabilized housing occupancy as basis points second approximately a basis turn quarter to sequential second by for reported Nick that industry for the financial on our highlights quarter. the senior portfolio. XX The

community We a faster significantly basis. are same Brookdale’s occupancy pleased on growth

our quarter, move-ins June occurs the August XXXX. in occupancy since with note positive During strongest the quarter. see This happening growth and the is within historically of the volume each accelerated move-in second in quarter third our month strongest particularly community our since same

we am flat managing continue June. We however, for proud occupancy accelerate overall percentage living Sequentially, to even pleased grew on to housing sequential occupancy that relatively a was basis. our see were with maintaining basis community rate a in care on to same discipline. a memory at positive For points faster basis the and the occupancy assisted our able turn in XXX points living and occupancy quarter senior were quarter. independent I and second XX basis, May increasing

better industry a sustainable up achieve this period, growth, both we’ve we occupancy While competitors focusing seen with working. – By lease during discounts strategy result. on price within dynamic discipline the believe some the pandemic related our pricing use is we and will significant

cases you elements of slightly key to our a basis. drop Senior OpEx, Turning expenses. expenses When was communities. favoribility the related expenses, in the COVID-XX with a housing reduction in in were operating sequential a bifurcate correspond significant lower the on

expense with slightly the address business labor Brookdale’s I core As want incremental higher increase expected, depends our care marketing investments. people on labor of was related people. since to mainly taking along

from is general the of pandemic the normal population the worn routines. have returning While life’s out challenges to are those vaccinated who been

However, Brookdale’s frontline. remained the everyday heroes on

industry associates continue virus chronic to population Our most our condition. enhanced due protect protect help this the to is against age since community vulnerable to protocol to incorporate COVID-XX that helps and

associates largest I labor. the increased grow be competitive industry With compensation fill exception to intensely recruiting the and today’s ensure the the environment, and fulfill believe the current we on the benefit, their positions open market. industry and senior actively to competitive living to must of attractive in in wages place lease-up efforts that related our for With to mode, to adjusted an continues pressure being competitive purpose, We earn remain industry is professionally.

Our we goal is openings, to labor with to use have however, ensure staffed and that can contract associates. continue our When be and we full part-time expensive. be which communities overtime,

claims. weekly ended In near-term been environment recent that has this will pressure, improve. states feel we also in believe payments, a unemployment there unemployment enhanced drop we the the While

As stabilize that we costs year. more labor extensive internal return expect workforce our through effort, will this people and to later our the

of growth mapping As positive trajectory. RevPAR we range gain momentum, we are a

releases. issue We to monthly press will occupancy continue

needed fierce workforce care the our heart At it. to see will will pressure more manage near-term I seniors help manner. believe challenges support our margin, need risk progress aging. expect timely with you and in are clinically one housing this be than but So competitive environment in four and improve we put the provide the increased transitory of The margins that Brookdale, XXXX. for our a at comes isolation in will we risk on senior then disease stroke And dementia, and social strongly of for and in

we for engagement, of help the seniors, and power Our ready social they is know whenever and communities are, desires us. satisfy where meet emotional Brookdale to they community. need wellbeing seniors’

the the turn of help thrive. to provider with choice call I’ll over Steve. expertise experience senior to and seniors the With are that, living We

Steve Swain

takeaways three our related financial There are Cindy. results. you, Thank to key

RevPAR First, good expected. enter a sequential on This the as earlier sign with a basis. year RevPAR. than the strongest inflicted the Consistent a growth, delivers pricing in growth. while We in maintaining sequential maintain in historically sequential growth momentum targeted while is outpace we to which occupancy our on third we improved Occupancy occupancy using RevPAR industry quarterly able basis, discounting quarter, strategy, markets. the we competitive were positive select

our rates to basis a fewer and costs, vaccination in first and cases the and reduce COVID-XX were high able quarter, – year-over-year OpEx. on both we COVID-XX versus communities Second, basis. significantly sequential With resident

this offset they labor intensely challenging largely As Cindy detailed, benefit. environment,

Third, liquidity.

we X, the segment With of sale our have strengthened position. services of July liquidity our on incrementally healthcare the completion

quarter This provide is starting Now for XXXX. occupancy every these context in highlights, occupancy. the time first some the since grew let me with month

some Second quarter same or a basis year weighted primarily basis. that the us beginning and through a same our maintaining by of discipline annual XX.X% slightly. on rates of rate community better related was sequential RevPAR was basis increase community up the the rate basis, price cover the points the from to extraordinary X.X% pandemic. year-over-year the year. saw increase The occupancy driven first average helps XX on On at increase we the costs annual quarter

expenses. operating to Turning

The improved basis $XX and a reduction basis, of a and driver approximately of housing was year-over-year on community on sequential million million the was costs of a X.X% primary expense favorable same the On senior the slightly sequentially. quarter second $XX operating year-over-year basis. favoribility COVID-XX

we labor workday with and from primarily labor an as mitigate costs, increases increased the merit due annual and positions labor difficult COVID-XX sequentially, community contract expense extra overtime use seasonal increase. to Excluding environment to the along open

increases excluding consolidated were recovery. incremental along win quarter the to COVID-XX operating the help in were marketing insurance costs, other included expenses Healthcare investments For with to services related operating sequential results the higher report. expenses, second due

provided the net completed $XXX With X, consolidated as will the July the be will on going from million removed be forward, net by reported segment activities. investing and proceeds cash cash of results transaction

transaction largest gained compared from sequentially the in to higher associated costs earlier by the we healthcare we win-win lower occupancy benefit of quarter due second $XXX was driver flow be of million comp, G&A compared the services and as grants senior Provider year-over-year the million reductions. reduction the the and transition stock-based to non-cash benefited was when that million last payroll was lower The to prior NOI $XXX pandemic year short-term $XX $XX million received excluding sale both negotiated as quarter highlights program. the to Relief quarter. related both G&A, to prior million Act. significantly year’s need was $XX prior of agreement in quarter to to see free increased expected. to difference will the mitigated million quarter, of third lower with of This benefit and we second than deferral with from Payments cash EBITDA impact Fund the expense business. due $XX The of we Adjusted for Medicare Adjusted for rent Turning accruals year the in the Advanced was and million incentive the CARES payments cash the housing quarter Ventas. was tax period. of the year deferred second under the related the costs $XX accepted

year higher was In In million for across planned. cash the Payments the initial current Advanced we than Medicare non-development the $XX program. a of second as make the there addition use quarter, to communities our for was prior continue quarter, to repayment investments the $XX as CapEx million

to highlight, key Turning third liquidity. the

adjusted As was third March sale $XXX On change from July The net cash from add our expectations million million me proceeds wrap $XXX free third the of expect was X, to financial sequential would trends, the growth primarily With share let quarter XX, we million flow. accelerate. the as $XXX liquidity. to the recent liquidity some end occupancy quarter the quarter. of business services total of healthcare up, in XX. directional To June to impact for of compared

the of We be based expect nature the the down to in to slightly up on industry. environment lease RevPAR flat competitive

the adjust our With rate necessary. We second market to RevPAR quarter. sequential will rates and accelerate could and to of expectations, double growth nearly as growth the continue monitor occupancy percentage

day labor seasonal with quarter. intense we competition, higher along in extra costs third holiday the contract extra labor overtime, expect With market the the and and from

services it higher expenses, seasonal operating investments to occupancy as in healthcare marketing we full expense utilities. be benefit. expect transition HCA lower transition with gains accelerated to see other higher sale, as services the drive us will to such the with the For associates’ will expense Healthcare. along help Because also expect indirect take provide connection costs, we to G&A time

of Annual $XXX for key non-development XXXX. to adjusted third services free at of in will sale tax approximately million And flow. book other expense cash remain investment CapEx we to healthcare expected the to the approximately state drivers is Turning million $X related quarter.

remain we in confident key based drivers. the business growth three longer-term, on opportunity Looking of our

First, senior are lives path we nearly of demand. the population communities firmly minutes Demand and the for on XX within returning, A XX% and target our gaining to a community. Brookdale is recovery in notable beginning population increase momentum. is of the

Second, and new next supply several this has tailwind us the a dropped dramatically provide will years. for positive

demand overtime, unpaid quality to due needs there high Finally, presence chronic for a conditions and services is of higher based significantly fewer caregivers.

would just levels to turn desire drive provide to $XXX back and pre-pandemic over these our this I associates will million foundation and returning additional for of solid over occupancy With Cindy. services. the Importantly, margin growth NOI. XXXX call now the have to community skills

Cindy Baier

In Steve. we business. you, HCA an interest the the Healthcare strengthened summary, in health position, transaction of ongoing to home continue liquidity Thank our have completion and hospice a has growing as

senior optimistic historically as of occupancy delivered second quarter, the sequential of five period industry enter the the which growth business remain we occupancy and in year. I highest has we Our growth. third outperformed consecutive growth living a the occupancy quarter, has been months

years, to the healthcare reshape transformational we the including have business. changes past made three services our Over transaction, recent significant

you shareholder open in the We of capture Operator, demand if share for larger of meaningful to drive position robust demographic a the silver you. questions. would value. line Thank way are and better senior a


the [Operator Instructions] comes from you. Josh question Nephron. Thank of first Raskin line Your from

Cindy Baier

Hi, Josh.

Josh Raskin

good morning, evening. not good Hi,

So good morning.

quarter So the my follow-up $XXX the million, additional what were of guess, say? question heard firstly, Could want that NOI. I what XXXX to levels understand million relative $XX what $XX if – I Is there rate I just that saw to the just that or help would to? to that exactly we Steve’s you was we on us run occupancy returned, and that’s million means comment, relative in drive intended

Steve Swain

That’s Good morning, generally Josh. what basis the is.

a $XXX kind $XXX close or run to ballpark. plus then so of million $XXX So million and rate million is

Josh Raskin

Okay, okay.

million. it’s $XXX you’re what is actually So saying, still

were of just about Brookdale if maybe states place what you rules remind rules think closures. you I the on and et But And about using a spring guys triggers stop And the could the that. you that that the I something current So pressures, we to that’s specific or question, risk us closures we of be and for you that then think and of internal what should the And don’t the community to in risk there’s about like into. should act cetera. last move start normalizes or metrics sort labor My I know situation, state for thumb, have how the where thinking and hate means the here. assume think the downer that potential how move-ins? decision party any stopping community

Cindy Baier

the to of and engagement. pandemic, vaccine. vaccine of received been to our ability we’ve what’s our of we today There’s the the than highly Josh. that is residents added strategy balance safety no star a pandemic as help a able Delta vaccine over And but XX% question protect at beginning the effective challenging, associates. different and X,XXX demonstrate that clinics, Throughout is residents conclusion variant Sure. to have

requirement we So limited we’ve our steps are the with exception. a building already for with that vaccine taken on associates

a widespread better position we’re the access pandemic. to vaccine, the the handle Given to in much

things, even we to a many case, place protocols is all Now new positive COVID-XX see move-ins. because to in what of that in if remain have of open cases we is these there resident

have carefully, protocol it control proceeding we’re accordingly. we monitoring infection strong we’re that think and I So

Josh Raskin

was I and when ago, that of measurements because think acts or mean, bed half guess, available, year, and back state were I about look sort year a you more I says, occupancy levels the thinking it hospital a ventilators capacity that of stuff. I if ICU even was and

vaccinations of actually So rise, think you your protocols even scenario but the you of sounds it and place. closing. a envision hands, where like, if communities some do Brookdale of of to kind Delta It the like have it out you I don’t sounds are because and continues is in think

Cindy Baier

illness are that is we’ll at clear severe hospitalization. to about I’m preventing risk that, the be community profile is saying that’s what I never a and not want given rates the highly possible. But I’m the associates have Brookdale today, different vaccination closed. saying high significantly that vaccines of our the fact effective and

So we our we’ll what seen heard sure comfortable health when that needs and is vaccine. a and the a make But community the our to health residents protocols they industry with reopen. residents that the deciding regard, And we’ve we work didn’t is into everything doing the consideration, that in are that safety a than the have. we with close in that or help have year we’re access department, the that what associates. to of to local whether ago, can protect And take ago, to have course, departments different that year

a well help XXXX continued I our that’s And think we associates. protocols all now we put big of place hand change. department keep so are vaccines as in that continuing as health with And and washing focus our and appropriately the our recognizes can the distancing on masking. very social as safe and residents we And during that really as to safety

Josh Raskin

Thanks. Perfect.

Cindy Baier

Thank you.


question Qiu, next Your Stifel. comes from Tao

Cindy Baier

Tao. moring, Good

Tao Qiu

Congrats spread having is on variants. and Delta the Thank morning. the My question confusion the the reassuring good the of call. first like is you me the which new XQ Hey, of very for on clinics, outlook. vaccine regarding

are sequential part. that occupancy increase XQ, operating income? to to a you mentioned what you missed referring Steve, I think, I of doubling

Cindy Baier


hope I’m call, vaccinated. really ask vaccinated, can gotten your got I if focus answers, family your vaccination. to we Steve? friends on hope everybody stop we I going just you’ve Together, vaccinated. Steve the you’ve COVID, really Before on

Steve Swain

You bet.

So first RevPAR growth talking the Tao, and sequential nearly from in second growth quarter. about and X.X% the the I third and double RevPAR and as I I could was that if mentioned, was quarter second quarter

Tao Qiu

Got you.

So the to that impressive. month-on-month Could have right that in about seeing outlook? improved acceleration indicators leading occupancy the now talk may contributed is you’re you

Cindy Baier

We as inquiries as and increase an visits in seeing well are and conversion. leaves definitely

So coming a together to all on our sequential and result are of things improvements basis. and those move-ins

is environment investments feel second sales improving. we made in occupancy quarter. just think like and efforts We our single month the great like as entire we’ve our a the are we fact that proud are occupancy the momentum. We July that marketing feel of so the So as gaining are much transformation built almost that

Tao Qiu

How Got that in had seeing the maybe the on it the with the expected now, acuity resilient expand discounting your you. second was broader decisions I factors the than low more products. Could little a And regarding compared generally driving comment pricing? right to I on in environment especially think the part RevPAR, came apartments or bit price dynamic similarly logging? given different you

Cindy Baier


of states. proud every are our pricing year-over-year on got We’ve in basis discipline. and types competitive single We a XX and of community. operate maintain environment in is RevPAR We different have community growth a variety

our that X,XXX has different more operators. than industry know You

reflect be has highest communities, the as at And achievable local competitive pricing ability that residents and move to has many so as well in of strategy possible our occupancy as to environment as the rate. the our seeing, our we’re to it

the market, on. in And so something And changes our discounting I would and looking pricing team very that’s is our local strategy, accelerate see a rates that whether the focused growth. we to have just we’re RevPAR think that in balancing constantly

Tao Qiu

develop you mechanism So are party or third pricing house using that any did you dynamic in products?

Cindy Baier

using third-party products. not are We

Kathy MacDonald

analysts after we time Hey, wanted enough so Tao, you to with I other the for can call. follow-up the give

Tao Qiu


mean, $XX I is related last Sounds investment, earnings to the sale one question good. million from just consolidate equity me, [indiscernible] the from the off that

Steve Swain

I’ll that. so. believe I comment can’t on – I

remaining the correct. So your of last JV, part

Tao Qiu


and congrats. Sounds good. you Thank

Cindy Baier

Tao. Thanks,


from question Your comes from Tanquilut Jefferies. Brian next

Cindy Baier

Brian. Hi,

Brian Tanquilut

rates Josh’s first to morning. Yes, clarify good earlier. to the Hey, Cindy, vaccination question, question just on

you you you So to use residents range. the on then putting vaccination? vaccinations. plus vaccinated And this able majority of perspective? from out like of could concerned a said are, your now maybe you are associates the highly but are some are are turnover, drive you And flip a mandate And that side guess are increased it then mandating looks that marketing in employee if that, I the XX%

Cindy Baier


education, well-being our and were our Our our Northstar led of focused mean, the importance since we our associates, before the on associates. vaccines been we’ve of vaccines, just our residents I vaccines over, residents and have health the the for way. incredible. XX% is available about vaccinations readily and oh resident And made residents gosh, and even available

associates the a really get seen and get our spread next to have to with think we the step of a large it’s Delta our vaccinated. We vaccinated, associates majority but of to require take variant, time

their of there but our there exceptions, jurisdictions where and trust be for including limited and will Now, held some families. really are of our get we associates think the And religious medical to it’s sincerely residents course, beliefs. require cannot mandated, we important

So vaccinations. our we to to to I that be prospects require we Brookdale I a that that lose is with do everyone with talking not going made single we we’ll hope decision recognize but associates, the as about agree do don’t communities. think

staff if we education full Brookdale part-time associates on medical will family, we to the coming about with providing to our is our and community associates have them and be we And into bring to And want be from they’re and to to religious associates the because vaccinated. where working additional understanding, accommodation. will proactive process so through necessary, objective

Brian Tanquilut

and ramp And use across picking as rates that. the infection we ramp right pick the country the I preparing then, guess, on thinking Delta you Cindy, testing now. up are see are up, up up just of ramping PPE to cost testing appreciate the side, or up I as

Cindy Baier


communities requirements masking our in for We associates. our have

testing. state in of pandemic and there been the and beginning place since are local it requirements that’s relates so And to the as

focused largely vaccinated on individuals. that’s Now

those a percentage something we much. not it’s residents necessarily as of of to that costs vaccinated, so, we’ve involve So I in would case that having But the have and testing depend on we strategy will are to course whether our going associates right But testing. an community. increase in the the are increasing And that more extent got positive place. if feel like

effectively associates. honestly, to pandemic appropriate well. us and prioritization you Do We’re our about help quite add residents the steps the that medical plans, over of the that anything? And the costs get taking more through with healthcare if we the and longer-term manage as the of think our health our with of associates should vaccinated wellbeing our you want to

Brian Tanquilut

go Sorry, ahead.

Steve Swain

The Yes, third variant, go kind Cindy. COVID-related expect expenses second quarter, pre-delta we it down to of quarter, from slightly.

mentioned, Cindy – are there there’s As unknowns.

So extent to it is seen. in my it to projection was much the go the doesn’t projection – quite as down be as

Cindy Baier

Thanks, Steve.

Brian Tanquilut

it. then questions question I about since maturity. gotten Steve, some XXXX me, last Got got your for just we’ve but you And

any wondering forward. can comments strategy your on just So if debt make you going refinancing

Steve Swain

You bet.

HCA. a So debt some evaluating And looking de-leveraging X services by July that big maturities, transactional picture, after we of as refinance small uses strengthened the cash, our over we’re interest of we closing to a down accelerate growth. XXXX rate pay perhaps communities targeted higher liquidity potential million position or healthcare as investments such their on $XXX

liquidity At the discipline. We focus continue we’re through pursuing and grants. relief provider fund occupancy growth time, on expense to same enhancing

steps continue while take that flow executing business. on So to and a overall, proactive we’ll and evaluating the and sheet opportunities priority cash a balance liquidity are core

Brian Tanquilut

you. Thank Awesome.

Cindy Baier

Thank you so much.



Barclays. from Your from Steve comes Valiquette next question

Cindy Baier

are you doing? how Steven, Hi

Steve Valiquette

far of COVID the most but on are prevalent those the little a mix in for as it’s morning, and pretty geographic Texas, a states California taking Brookdale but July as Florida, of on number states the sure. everybody. a where lot dig do new at of just for was two or bit Those for Good in earlier, touched three question bit are encouraging, This seeing states Thanks we on the occupancy here. your as deeper units. least cases little Great. largest three trends

is perhaps you as where gains your analyze cases curious new it correlation are of any states COVID own a fewer there’s you little just and in – I’m Thanks. slower occupancy Just is no Any are gains, curious seeing some calling really around Just more to prevalent where the by those that. cases new trends or state. observations get out were there additional correlation? better

Cindy Baier

question. the for Thanks Yes.

I growth COVID we much think I a individuals trends. seen the seen have than thought we’ve trends correlation between know population during is XXXX. among any and younger largely COVID and our increasing don’t that in we unvaccinated occupancy cases

to remember business. is thing needs important the that are a we driven think I

And memory we in And there, softness care the is we’ve is had variant. our the something that’s seen in phenomenal. think living what it’s and seen have performance focus in independent so And in then second is was of strategic the particular, as to really which absolutely outperformance where their really helps communities quarter a during think the course. we’ve across delta I surge But industry related well. I don’t the

Steve Valiquette


geographic offering end the at product than So to mix. of the day, related more it’s any


reinforce Just to that. wanted Thanks.

Cindy Baier

Steven. Thanks,


Joanna from Gajuk of comes next Bank America. from Your question

Cindy Baier

Joanna morning, Good

Joanna Gajuk

morning. Thank here. you question for Hey, good the taking

follow-up these may been of So just have things if couple that I a discussed.

in highlighted different So thought the of side, commentary near-term. you the continuation least on of – equally pressure contract pressure one on we labor providers lot see from this is at a some expect labor they’re

can turnover like and Are benefits that you any can in about to think going benefits, confirm still you see are kind you and turnover? how seeing higher easier and forward? seeing different you you be somewhat markets? going what Do also talk of unemployment recruit you about think to in – well expired, you it’s the market saw you you supplemental So mentioned, that do once do

Cindy Baier

labor But adjust of labor covered and overtime wages felt had competitive to open as and the by remain contract I is The fill actively it to we use we an have when news. course, we opening, increased fiercely Yes, sure. we was market efforts positions. competitive. our necessary. do And recruiting

Looking unemployment do market supplemental gradually forward, reopen. the labor as return benefits will schools the expect to that end work improve as after and we people

think important I So to that’s note.

return we to that I will continue quarter, yes, have believe not think more level we too all third the that We a in things of but the it we it. normal future. the distant of the you’ve So will labor overarchingly into experienced think talked market about, see it,

Joanna Gajuk

happening. Okay. to from whatnot I don’t I applications elsewhere from some helpful can are interest or acuity you maybe there. of that higher end, some seeing and – are housing? jobs shifts guess housing, That’s moving in nursing inquires interest senior know. I for that any senior to or people it’s homes – settings And say increase There

Cindy Baier

The quarter right. bit has been coaster, a of a roller little

to just I was there our jobs our interest the quarter, much increases increased when as I an postings. the economy. in available massive think in interest didn’t incentive early more seen stay in we think do in see there economic we’ve particularly recently were and on postings in unemployment

so that’s something about. that we’re And encouraged

I industry do that day can’t they’ve offers after that. others in made at difference the someone’s Brookdale offer few employers home goes when a thing Most that life. an a one think that our associate that know is

of And and who much home in that easier so wants helps school, supplemental And the we genuinely a some difference to really operate the vaccine concerns to workforce around aren’t than of that to a had and a benefits, business. unemployment the and barrier do of bigger the part make kids variant moms something at COVID-XX it’s genuinely their solve, be attract wants you themselves. remove when

Joanna Gajuk

it. Appreciate you. Thank

Cindy Baier

Thanks, Joanna.


question Frank RBC Capital Morgan next comes Your from Markets. from

Cindy Baier

morning, Good Frank.

Frank Morgan

answered, been going here, morning. have mandatory couple ones to a of but vaccine. of might Good Most just the random back

– would share are share you – allow could allowed. you not with us think mandatory be you those employers? mentioned not that what with where states those for there’s enforce vaccines to will states Do some that you I

Cindy Baier

with follow-up There mind. me a separately. Oregon few mind list with you top of So states, to comes is We for Oregon. can but are the

Frank Morgan

Got you.

regarding in I move-ins seeing think? And coming their when behavior pricings at COVID people competitors other the real you your well? curious be period mandates I doing improving. during they do Okay. in the and back or there as think do field, out this vaccines surge or you’re actually providers change Any what where out what the you are and handle Are out look in considering guess the from then hearing just incentives would are you will for how you and

Cindy Baier

X,XXX got see competitive is that competitors that imagine. operates and you many the pretty say Yes. fewer about we’ve I everything five because will or environment communities. just and can We

we things the sustainable. see quite think are of that Some honestly, we don’t

more healthcare you Physicians look overall, And a the vaccine that out come more healthcare vaccines of being and statements strong associates people that we’re the as the all had maintain to the system, the And we’re our to and the the healthcare we Nurses people mandate, in that that results growth hospital we and strategy in while well to a sustainable number American from at that discipline. seeing proud as if leading in on so move the quarter occupancy a outperforming second fact yield will are taking going we’re something is their Association, that Association, of protect rate the really that have a industry such I that do And that help are step I their of important able residents. already think industry best to sorts and are think institutions, basis. recognize think mandate. American and systems taking longest-term patients

Frank Morgan

Maybe better lagging. just areas you’re any last of one markets, where same than it’s – markets a where token seeing the getting at then any anything, terms average things in one, Thanks. faster particular geographic and last rate by

Cindy Baier

that I basis. a that don’t I is out there know anything jumps just would that say market on

is communities to been have they tend an or that has particular I think our teams to quickest. that recover Director tend more, have we years been with in what that placed, at Brookdale, know if two Executive that better. leadership We to tend us perform see

Directors And back course, you communities, in so least our about two-thirds the see of to if been fastest our community. I two well who’ve of got Executive memory recovery. that’s And performing we they years at And for XX% recovery. really just care with go where us the our we’ve during think incredibly are

have care And so concentration better. memory a higher we performing are communities, where of we

questions Are Okay. operator? there more any

Kathy MacDonald

think it. that’s I

interest So for close the morning. in and now us joining thank call. this you you can your Brookdale Operator,


This concludes today’s conference.

now may You disconnect.