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Brookdale Expands Real Estate Portfolio With Strategic Acquisitions

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Brookdale Senior Living Inc. (BKD - Free Report) recently announced that it has reinforced its position in the senior living industry by completing two major portfolio acquisitions on Feb. 27, 2025. This strategic decision enhances financial stability, improves operational efficiencies, and capitalizes on the increasing demand for senior care services.

The acquisitions include 25 communities from Diversified Healthcare Trust and five communities from Welltower Inc., totaling 41 senior living assets. By increasing its real estate ownership, Brookdale can maximize the financial benefits of its operations. The company expects to own more than 75% of its consolidated unit count by year-end, further strengthening its industry standing.

The $310 million acquisition was funded through a combination of $69 million in cash and $241 million in mortgage financing. Favorable loan agreements with Ally Bank and Freddie Mac provide Brookdale with cost-effective capital, ensuring long-term financial benefits. The company is well-positioned to leverage industry trends, including limited supply and rising demand, to drive revenue growth.

This move bodes well for BKD as direct ownership allows the company to fully capture future growth opportunities. In October 2024, BKD agreed to buy 41 senior living communities, currently leased through three triple-net lease portfolios, for a total price of $610 million. As the senior living market expands due to demographic shifts, Brookdale’s latest acquisitions establish a strong foundation for sustained growth and leadership in the industry.

BKD’s Price Performance

Brookdale shares have gained 1.5% in the past year compared with the industry’s growth of 0.9%.

Zacks Rank and Other Key Picks

Brookdale currently carries a Zacks Rank #2 (Buy).

Investors can look at some other top-ranked stocks in the broader Medical space, like Doximity, Inc. (DOCS - Free Report) , The Ensign Group, Inc. (ENSG - Free Report) and Cencora, Inc. (COR - Free Report) . While Doximity sports a Zacks Rank #1 (Strong Buy), Ensign and Cencora carry a Zacks Rank #2. You can see the complete list of today’s Zacks #1 Rank stocks here.

The Zacks Consensus Estimate for Doximity’s 2025 bottom line suggests 35.8% year-over-year growth. DOCS witnessed nine upward estimate revisions over the past 60 days against no movement in the opposite direction. It beat earnings estimates in each of the last four quarters, with the average surprise being 26%.

The Zacks Consensus Estimate for Ensign’s2025 bottom line is pegged at $6.20 per share, which indicates 12.7% growth from a year ago. During the past 30 days, ENSG witnessed three upward estimate revisions against none in the opposite direction. It beat earnings estimates in each of the last four quarters, with the average surprise being 1.5%.

The Zacks Consensus Estimate for Cencora’scurrent-year earnings implies a 11.6% improvement from the year-ago reported figure. COR beat earnings estimates in each of the last four quarters, with an average surprise of 4.9%. The consensus mark for its current-year revenues is pegged at $321.2 billion, which indicates a 9.3% year-over-year increase.


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