October 17, 2017, Seniors Housing Business - Brookdale Senior Living Inc. (NYSE: BKD), the largest owner and operator of seniors housing in the United States, has announced that its chief operating officer, Labeed Diab, is resigning to pursue another opportunity. Diab will leave his position effective Oct. 28.
Details regarding his new position were not disclosed. Andy Smith, the company’s president and CEO, will temporarily perform Diab’s duties until a replacement is found, according to an SEC filing. Diab served nearly two years in the COO position. He previously worked for Wal-Mart and Aramark.
In addition to announcing Diab’s retirement, Brookdale provided an update on damages due to Northern California wildfires, as well as hurricanes Harvey and Irma.
Approximately 20 of Brookdale’s California communities are affected by the wildfires. The company evacuated the residents of six communities, two of which have already returned to full operation. Other Brookdale communities are hosting residents who were evacuated. So far, none of the communities have suffered major damage from the wildfires.
Regarding the back-to-back hurricanes that hit Texas and Florida over the summer, Brookdale operates 171 communities serving 19,000 residents in the affected areas. All communities except one have returned to operation, though seven are still undergoing remediation for hurricane damage.
Brookdale estimates a total of between $12 million and $13 million in losses as a result of the hurricanes. This comes from lost home health revenue and increased operating costs due to hurricane response. The company expects to incur an additional $13 million to $13 million for building remediation, which will mostly occur in 2018.