By MATT BLOIS
The Brentwood senior living company Brookdale continued to sell its senior living communities in the first quarter of 2019.
Brookdale sold six communities and terminated a lease on one other community. According to a press release, the company handed over 40 managed communities to new operators.
Since the beginning of 2018, the company has sold or ended leases for 118 communities containing more than 11,000 units.
The company lost more than half a billion dollars each in 2017 and 2018. It’s currently implementing a turnaround strategy. Part of the company’s strategy includes selling off or closing some communities.
In the first few months of 2018, the company lost more than $450 million. In the first quarter of 2019, the company reported a $42 million loss.
The big increase was mainly due to a decrease in goodwill impairment. During the first quarter of 2018 the company had about $430 million in goodwill impairment.
The profits from the first part of 2019 are much lower than the $132 million profit the company reported in the last quarter of 2018. CEO Cindy Baier said in a press release that that the company typically sees lower occupancy rates during the first quarter.
The consolidated portfolio of senior living facilities saw a 2% increase in revenues from resident fees, but also a 4% increase in operating expenses.
Brookdale reported that the operating expense increase was mostly due to wage increases and more overtime. The company has made employee retention a focus, and says wages are intentionally high compared with competitors.