Brookdale Senior Living's (BKD) weighted average occupancy rose sequentially but at a slower rate in September, resulting in Q3 occupancy coming in "slightly below" estimates, RBC Capital Markets said in a note emailed Friday.
The company's Q3 weighted average occupancy was 83.1%, up 130 basis points year on year and up 70 basis points sequentially, but below RBC's 83.3% estimate, according to the note.
RBC said it now expects the company to deliver Q3 adjusted EBITDA of $123.9 million, down from the previous $124.3 million estimate. The investment firm also said it lowered its 2026 weighted average occupancy outlook to 82.9% from 83.0% previously, and cut its adjusted EBITDA forecast to $502.8 million from $503.6 million, near the low end of Brookdale's guidance range.
With its H2 revenue per occupied room, or RevPor, estimates unchanged, the firm said its revised 2026 occupancy estimate implies revenue per available room, or RevPar, growth for the year of 8.27%, which is in the lower half of Brookdale's 8% to 9% guidance range.
RBC kept its outperform rating and $17 price target on Brookdale Senior Living.
Shares of Brookdale Senior Living were down 7.7% in Friday trading.
Price: 10.06, Change: -0.84, Percent Change: -7.67