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Dec 31, 2021

Sabra Health Care REIT Q4 2021 Earnings Report

Sabra Health Care REIT reported fourth quarter 2021 results and provided a business update.

Key Takeaways

Sabra Health Care REIT reported a net loss of $(0.11) per diluted common share for Q4 2021. Normalized FFO was $0.39 and AFFO was $0.20. The company completed the sale of eight facilities for gross proceeds of $85.9 million and continued to maintain a strong Net Debt to Adjusted EBITDA ratio of 4.98x.

Net Loss per share was $(0.11) for Q4 2021.

FFO was $0.11, Normalized FFO was $0.39, and AFFO was $0.20.

EBITDARM Coverage for skilled nursing and specialty hospital portfolios were 1.77x and 3.83x, respectively.

The company completed the sale of four skilled nursing/transitional care facilities, two senior housing communities and two hospitals for gross sales proceeds of $85.9 million.

Total Revenue
$136M
Previous year: $152M
-10.8%
EPS
$0.39
Previous year: $0.42
-7.1%
FFO per diluted share
$0.11
Previous year: $0.42
-73.8%
Normalized FFO per diluted share
$0.39
Previous year: $0.42
-7.1%
AFFO per diluted share
$0.2
Previous year: $0.42
-52.4%
Gross Profit
$98.3M
Previous year: $119M
-17.4%
Cash and Equivalents
$112M
Previous year: $59.1M
+89.6%
Total Assets
$5.97B
Previous year: $5.99B
-0.3%

Sabra Health Care REIT

Sabra Health Care REIT

Forward Guidance

Sabra is optimistic that absent the emergence of a new variant, their portfolio and the broader industry can get back on track toward recovery. The company is also pleased to have agreed with Avamere on a restructuring of their lease obligations and believe the restructured lease provides them with a path for success. Their pending Canadian joint venture gets 2022 off to a good start on the investment front. Canada has proven to be a stable market and they look forward to continued growth there.

Positive Outlook

  • COVID cases in our portfolio peaked before the end of January and then started dropping, materially so for the staff at our facilities.
  • With more staff available, occupancy has increased the first two weeks of February.
  • We are more optimistic that absent the emergence of a new variant, our portfolio and the broader industry can get back on track toward recovery.
  • We are also pleased to have agreed with Avamere on a restructuring of their lease obligations and believe the restructured lease provides them with a path for success.
  • Our pending Canadian joint venture gets 2022 off to a good start on the investment front.