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Dec 31, 2020
Sabra Health Care REIT Q4 2020 Earnings Report
Sabra Health Care REIT reported fourth quarter 2020 results and provided a business update and 1Q 2021 guidance.
Key Takeaways
Sabra Health Care REIT announced its Q4 2020 results, with key highlights including net income attributable to common stockholders of $0.18 per diluted common share, FFO of $0.42 per diluted common share, Normalized FFO of $0.42 per diluted common share, AFFO of $0.42 per diluted common share, and Normalized AFFO of $0.41 per diluted common share. The company also reported that EBITDARM Coverage for their Skilled Nursing/Transitional Care portfolio increased to 1.93x.
Net income attributable to common stockholders was $0.18 per diluted common share.
FFO was $0.42 per diluted common share.
EBITDARM Coverage for the Skilled Nursing/Transitional Care portfolio increased to 1.93x.
Collected 99.9% of forecasted rents since the beginning of the COVID-19 pandemic.
Sabra Health Care REIT
Sabra Health Care REIT
Forward Guidance
Sabra Health Care REIT provided limited guidance for the first quarter of 2021 due to the financial effects of the COVID-19 pandemic, expecting net income per diluted common share of $0.16 - $0.17, FFO per diluted common share of $0.39 - $0.40, and AFFO per diluted common share of $0.38 - $0.39.
Positive Outlook
- Expect investments of $39.0 million with a weighted average initial cash yield of 8.2%.
- Expect dispositions and loan repayments of $6.2 million, with associated annualized Cash NOI of $0.4 million.
- Will maintain Net Debt to Annualized Adjusted EBITDA (including unconsolidated joint venture) below 5.50x on expected Annualized Adjusted EBITDA between $479 million and $481 million as of March 31, 2021.
- Will utilize availability under the revolver.
- Will issue between $100 million and $110 million of equity under our ATM Program to fund acquisitions and meet our goal of maintaining leverage below 5.50x.
Challenges Ahead
- Senior Housing - Managed Portfolio Average Quarterly Occupancy is expected to be lower than prior periods.
- Occupancy declines continue to put pressure on NOI generated from these investments.
- The potential for rent relief remains as tenants within the leased portfolios continue to experience occupancy declines.
- Uncertainty remains, and accuracy in projecting the pace of recovery remains difficult beyond the very near term.
- The estimated amounts do not include any anticipated funds from the Provider Relief Fund for our Senior Housing - Managed communities.