Brookdale Senior Living Adopts Aggressive Strategy with New CEO at the Helm
The new leadership at Brookdale Senior Living (NYSE: BKD) is steering the company towards a more proactive approach while streamlining its regional leadership structure. This shift also emphasizes a greater focus on owning the communities it manages.
Nick Stengle, who took over as CEO in October, stated that Brookdale, based in Brentwood, Tennessee, will continue to operate as “first and foremost” an operating company grounded in real estate. Under his guidance, the company is poised for significant changes.
In the fourth quarter, Brookdale has reorganized its operations under six regional vice presidents, each responsible for approximately 100 communities. Stengle described this structure as creating “six operating companies of roughly 100 communities each,” which will enhance the company’s ability to respond to the unique regional dynamics of senior living.
“We set the goal, we set the objective, we help pave the road,” Stengle explained. “We provide the CapEx, resources, finance, HR, and recruiting support, while ensuring we maintain local touch and flexibility.”
As of the third quarter of 2025, Brookdale reported an impressive occupancy rate of over 84%, marking a 170 basis point increase from the previous quarter. However, the company is also strategically trimming its portfolio, aiming for approximately 550 communities by mid-2026, down from about 623 as of September 30. This reduction includes the divestment of 14 leased properties and 10 owned communities since June, part of a broader plan to offload 55 leased properties.
‘We become six companies’
A common concern in the industry is that large national senior living operators may lack the agility to compete with local or regional players. To address this, Brookdale is dividing its operations into six regions, each led by a single leader overseeing all aspects, including sales, clinical, human resources, recruiting, dining, and asset management.
“These six regional leaders function similarly to general managers with direct ownership of their specific business,” Stengle noted. “This structure allows us to be nimble and focused on the regional aspects of senior living.”
Importantly, Stengle emphasized that the company is not adding new leadership but rather refocusing existing roles within the six regions. He believes that being responsive to both internal and external market dynamics is crucial for the success of these new teams.
This reorganization aims to enhance occupancy and net operating income growth. Stengle pointed out that as occupancy rises, Brookdale’s pricing power will also increase, allowing for a more dynamic pricing strategy. “The silver tsunami is here,” he remarked, highlighting the impending demand as baby boomers reach their 80s.
On the topic of unit and rate pricing, Stengle expressed optimism, stating that Brookdale can achieve “far, far better” results, which will be a focal point as the company moves into 2025 and beyond. The company plans to maintain this “offensive posture” through consistent CapEx investments aimed at boosting NOI and occupancy growth.
Brookdale’s positive cash flow, occupancy rates, and pricing strategies give Stengle confidence in this proactive approach, complemented by the deployment of specialized “SWAT” teams to address operational challenges.
Additionally, Brookdale is working to increase its ownership of the communities it manages, a strategy initiated by Stengle’s predecessor, Cindy Baier. As one of the largest senior living operators, Brookdale also ranks among the top owners of senior living communities in the U.S., with 372 owned properties as of the end of Q3 2025.
‘SWAT team’ operational response continues
In recent quarters, Brookdale has deployed “SWAT teams” of specialists to enhance operational performance and customer satisfaction. The number of communities with occupancy below 70% has decreased significantly, from 143 in Q1 to 89 in Q3. Of these, 26 are slated for disposition, while 22 are actively engaged with SWAT teams, and 16 require just a few move-ins to exit the sub-70% occupancy bracket.
“The SWAT team is working,” Stengle affirmed. “We have defined the playbook, which combines operational focus and capital deployment to enhance our business performance.”
Dawn Kussow, Brookdale’s Executive Vice President and Chief Financial Officer, noted that the improvements in occupancy are directly linked to the SWAT teams’ efforts, alongside targeted pricing strategies and operational accountability. The company is also transitioning away from leased communities, with plans to shift 55 properties leased from Ventas by year-end. Furthermore, Brookdale intends to invest between $170 million and $175 million in CapEx to enhance community conditions and drive higher NOI, with flexibility for additional investments as opportunities arise.
“We will leverage CapEx alongside our SWAT teams to continue improving our operations,” Stengle concluded.
The new leadership at Brookdale Senior Living (NYSE: BKD) is steering the company towards a more proactive approach while streamlining its regional leadership structure. This shift also emphasizes a greater focus on owning the communities it manages.
Nick Stengle, who took over as CEO in October, stated that Brookdale, based in Brentwood, Tennessee, will continue to operate as “first and foremost” an operating company grounded in real estate. Under his guidance, the company is poised for significant changes.
In the fourth quarter, Brookdale has reorganized its operations under six regional vice presidents, each responsible for approximately 100 communities. Stengle described this structure as creating “six operating companies of roughly 100 communities each,” which will enhance the company’s ability to respond to the unique regional dynamics of senior living.
“We set the goal, we set the objective, we help pave the road,” Stengle explained. “We provide the CapEx, resources, finance, HR, and recruiting support, while ensuring we maintain local touch and flexibility.”
As of the third quarter of 2025, Brookdale reported an impressive occupancy rate of over 84%, marking a 170 basis point increase from the previous quarter. However, the company is also strategically trimming its portfolio, aiming for approximately 550 communities by mid-2026, down from about 623 as of September 30. This reduction includes the divestment of 14 leased properties and 10 owned communities since June, part of a broader plan to offload 55 leased properties.
‘We become six companies’
A common concern in the industry is that large national senior living operators may lack the agility to compete with local or regional players. To address this, Brookdale is dividing its operations into six regions, each led by a single leader overseeing all aspects, including sales, clinical, human resources, recruiting, dining, and asset management.
“These six regional leaders function similarly to general managers with direct ownership of their specific business,” Stengle noted. “This structure allows us to be nimble and focused on the regional aspects of senior living.”
Importantly, Stengle emphasized that the company is not adding new leadership but rather refocusing existing roles within the six regions. He believes that being responsive to both internal and external market dynamics is crucial for the success of these new teams.
This reorganization aims to enhance occupancy and net operating income growth. Stengle pointed out that as occupancy rises, Brookdale’s pricing power will also increase, allowing for a more dynamic pricing strategy. “The silver tsunami is here,” he remarked, highlighting the impending demand as baby boomers reach their 80s.
On the topic of unit and rate pricing, Stengle expressed optimism, stating that Brookdale can achieve “far, far better” results, which will be a focal point as the company moves into 2025 and beyond. The company plans to maintain this “offensive posture” through consistent CapEx investments aimed at boosting NOI and occupancy growth.
Brookdale’s positive cash flow, occupancy rates, and pricing strategies give Stengle confidence in this proactive approach, complemented by the deployment of specialized “SWAT” teams to address operational challenges.
Additionally, Brookdale is working to increase its ownership of the communities it manages, a strategy initiated by Stengle’s predecessor, Cindy Baier. As one of the largest senior living operators, Brookdale also ranks among the top owners of senior living communities in the U.S., with 372 owned properties as of the end of Q3 2025.
‘SWAT team’ operational response continues
In recent quarters, Brookdale has deployed “SWAT teams” of specialists to enhance operational performance and customer satisfaction. The number of communities with occupancy below 70% has decreased significantly, from 143 in Q1 to 89 in Q3. Of these, 26 are slated for disposition, while 22 are actively engaged with SWAT teams, and 16 require just a few move-ins to exit the sub-70% occupancy bracket.
“The SWAT team is working,” Stengle affirmed. “We have defined the playbook, which combines operational focus and capital deployment to enhance our business performance.”
Dawn Kussow, Brookdale’s Executive Vice President and Chief Financial Officer, noted that the improvements in occupancy are directly linked to the SWAT teams’ efforts, alongside targeted pricing strategies and operational accountability. The company is also transitioning away from leased communities, with plans to shift 55 properties leased from Ventas by year-end. Furthermore, Brookdale intends to invest between $170 million and $175 million in CapEx to enhance community conditions and drive higher NOI, with flexibility for additional investments as opportunities arise.
“We will leverage CapEx alongside our SWAT teams to continue improving our operations,” Stengle concluded.
