Sabra Health Care REIT Inc (SBRA) Q3 2024 Earnings Call Highlights: Strong Occupancy Gains and ...

In This Article:

  • Occupancy SNF Portfolio: Increased by 130 basis points sequentially.

  • Skilled Mix: Increased by 110 basis points sequentially.

  • Same-Store SHOP Portfolio Occupancy: Increased by 90 basis points sequentially.

  • EBITDARM Rent Coverage: Skilled Nursing at 1.94 times; Triple-net Senior Housing at 1.37 times.

  • Investments: Totaled just under $100 million for the quarter.

  • Managed Senior Housing Portfolio Occupancy: Increased by 140 basis points sequentially.

  • Cash NOI Margin: Increased by 60 basis points sequentially.

  • Revenue Growth: 7.6% year over year for the same-store managed Senior Housing portfolio.

  • Cash NOI Growth: 17.8% year over year for the same-store managed Senior Housing portfolio.

  • Normalized FFO per Share: $0.35 for the third quarter of 2024.

  • Normalized AFFO per Share: $0.37 for the third quarter of 2024.

  • Cash Rental Income: $91.8 million from the triple-net portfolio for the quarter.

  • NOI from Managed Senior Housing: $22.9 million for the quarter.

  • Recurring Cash G&A: $9.5 million for the quarter.

  • Net Debt to Adjusted EBITDA Ratio: 5.3x as of September 30, 2024.

  • Liquidity: $947.8 million as of September 30, 2024.

  • Quarterly Cash Dividend: $0.30 per share declared on October 31, 2024.

Release Date: November 01, 2024

For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Positive Points

  • Sabra Health Care REIT Inc (NASDAQ:SBRA) reported several consecutive quarters of improvement in primary asset classes, distancing itself from pandemic impacts.

  • Occupancy rates for the Skilled Nursing Facility (SNF) portfolio increased by 130 basis points sequentially, with skilled mix also rising by 110 basis points.

  • The company's EBITDARM rent coverage for Skilled Nursing and triple-net senior housing portfolios reached 1.94 times and 1.37 times, respectively, higher than pre-pandemic levels.

  • Sabra Health Care REIT Inc (NASDAQ:SBRA) increased its earnings guidance at the midpoint, expecting strong growth of over 6% year-over-year.

  • The company has ample liquidity of $947.8 million, including unrestricted cash and available borrowings, supporting its financial stability and growth plans.

Negative Points

  • Avamere, one of Sabra Health Care REIT Inc (NASDAQ:SBRA)'s top 10 tenants, experienced a decrease in performance due to percentage rents, although rent coverage remained strong.

  • Coverage and occupancy in the behavioral and other categories were flat sequentially, partly due to a lower occupancy stabilized addiction treatment center.

  • The company is seeing more portfolio opportunities but remains cautious about engaging in larger deals due to potential complexities and noise.

  • Despite improvements, the skilled nursing opportunities have not been as robust as expected, limiting potential acquisitions in this area.

  • The regulatory environment remains uncertain, with potential challenges from CMS regarding minimum staffing requirements, which could impact operations.

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