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Sabra Health Care REIT Resets the Expected First Quarter 2020 Dividend to $0.30 Per Share
IRVINE, Calif.--(BUSINESS WIRE)-- Sabra Health Care REIT, Inc. (“Sabra” or the “Company”) (Nasdaq: SBRA) today announced that the Company’s Board of
About this update from Sabra Health Care Reit, Inc.
[{"type":"text","content":" IRVINE, Calif.--(BUSINESS WIRE)--\nSabra Health Care REIT, Inc. (“Sabra” or the “Company”) (Nasdaq: SBRA) today announced that the Company’s Board of Directors has determined that in this current uncertain economic environment, it is prudent to lower the quarterly dividend to $0.30 per share for the dividend expected to be declared in May 2020.\n\n\nCommenting on this announcement, Rick Matros, CEO and Chairman, said, “Our focus continues to be on the health and well-being of our employees, tenants, caregivers, and the patients they serve. We are in close contact with our operators and are grateful for their dedication to providing quality care and prudent oversight as recommended by the CDC and local health departments.”\n\n\nMr. Matros continued, “Preservation of capital is important in times of uncertainty. Retaining a greater portion of our cash flows from operations will help us better manage our leverage as we expect to face disruption in our revenue stream during the pendency of the COVID-19 pandemic. Our operators are diligently and skillfully managing through the pandemic, and we are pleased with how they have been handling these unprecedented challenges. However, it is impossible to predict the ultimate impact on our operators. We believe that reducing the quarterly dividend is an appropriate response to enhance the Company’s management of this pandemic. We expect that our Board will re-evaluate the dividend once the pandemic has passed.”\n\n\nThis reduction in the quarterly dividend expected to be declared in May 2020 would generate approximately $30 million of cash savings per quarter, which the Company expects to use to manage its leverage and fund operations as needed. The Company’s availability under its revolving credit facility today is $895 million and the Company has no significant debt maturities until 2024.\n\n\nThe Company also announced today that it has indefinitely postponed its potential $150 million senior housing investment that was referenced in the Company’s February 24, 2020 press release and does not expect any material acquisitions or other investments in the near term.\n\n\nIn addition, given the current interest rate environment, the Company was able to obtain significant cost certainty upon refinancing its 2024 maturities by entering into $225 million notional amount of 10-year interest rate ...