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Mar 31, 2021
Sabra Health Care REIT Q1 2021 Earnings Report
Sabra Health Care REIT's Q1 2021 results were announced, featuring updates and guidance for Q2 2021.
Key Takeaways
Sabra Health Care REIT reported a net income of $0.16 per diluted common share for Q1 2021. The company has collected 99.9% of forecasted rents since the pandemic's start and is seeing occupancy recovery with increased vaccine uptake and decreased infection rates.
Net income, FFO, Normalized FFO, AFFO and Normalized AFFO per diluted common share were $0.16, $0.39, $0.40, $0.39 and $0.39, respectively.
EBITDARM Coverage for the Skilled Nursing/Transitional Care portfolio increased 0.06x over the fourth quarter of 2020 to 1.99x, with Skilled Mix improving 10 basis points to 39.6%.
99.9% of forecasted rents have been collected from the beginning of the COVID-19 pandemic through April 2021.
Average occupancy in the portfolio has begun its recovery as vaccine uptake has increased and COVID-19 infection rates have decreased.
Sabra Health Care REIT
Sabra Health Care REIT
Sabra Health Care REIT Revenue by Segment
Revenue by Segment
Rental and related revenues Revenue
CapyFin.comResident fees and services Revenue
CapyFin.comInterest and other income Revenue
CapyFin.com Forward Guidance
The company provided guidance for the second quarter of 2021, expecting net income per diluted common share of $0.13 - $0.14, FFO per diluted common share of $0.38 - $0.39, and AFFO per diluted common share of $0.37 - $0.38.
Positive Outlook
- Senior Housing - Managed Portfolio Average Quarterly Occupancy: Wholly-owned: 77.0% - 79.0%
- Senior Housing - Managed Portfolio Average Quarterly Occupancy: Unconsolidated Joint Venture: 68.0% - 70.0%
- Investments of $86 million with a weighted average initial cash yield of 9.0%, including the 116-unit Senior Housing - Managed community acquired May 1, 2021 for $32.5 million.
- Dispositions and loan repayments of $9.4 million, with associated Annualized Cash NOI of $0.5 million.
- Maintain Net Debt to Annualized Adjusted EBITDA (including unconsolidated joint venture) below 5.50x on expected Annualized Adjusted EBITDA between $470 million and $472 million as of June 30, 2021.
Challenges Ahead
- Financial effects of the COVID-19 pandemic have made it more difficult to accurately forecast future earnings, primarily within the Senior Housing - Managed portfolio.
- Guidance is limited to the second quarter of 2021.
- The estimated amounts above do not include any anticipated funds from the Provider Relief Fund for our Senior Housing - Managed communities.
- Capital expenditures in our wholly-owned Senior Housing- Managed portfolio of $4.6 million.
- There are no additional negatives provided.
Revenue & Expenses
Visualization of income flow from segment revenue to net income