Sabra Reports Second Quarter 2023 Results

About this update from Sabra Health Care Reit, Inc.

[{"type":"text","content":" IRVINE, Calif.--(BUSINESS WIRE)--\nSabra Health Care REIT, Inc. (“Sabra,” the “Company” or “we”) (Nasdaq: SBRA) today announced its results of operations for the second quarter of 2023.\n\n\nSECOND QUARTER 2023 RESULTS AND RECENT EVENTS\n\n\n\nResults per diluted common share for the second quarter of 2023 were as follows:\n\n\nNet Income: $0.09\n\n\n\nFFO: $0.32\n\n\n\nNormalized FFO: $0.33\n\n\n\nAFFO: $0.33\n\n\n\nNormalized AFFO: $0.34\n\n\n\n\n\n\nEBITDARM Coverage Summary:\n\n\nSkilled Nursing/Transitional Care: 1.65x (1.57x excluding Provider Relief Funds)\n\n\n\nSenior Housing - Leased: 1.15x\n\n\n\nBehavioral Health: 1.87x\n\n\n\nSpecialty Hospitals & Other: 6.68x\n\n\n\n\n\n\nDuring the second quarter of 2023, Sabra generated $18 million of gross proceeds from the disposition of four skilled nursing facilities.\n\n\n\nOn July 6, 2023, Sabra successfully transitioned 11 wholly-owned managed senior housing properties formerly managed by Enlivant to Inspirit Senior Living, an existing Sabra operator.\n\n\n\nAs illustrated in the Supplemental Information presentation we issued today, we believe the Annualized Cash NOI upside opportunity for Sabra’s portfolio is attractive. The upside is a result of the Company's internal growth initiatives over the past several years, as well as the benefits of the broader healthcare industry's continued recovery from the pandemic.\n\n\n\nOn August 7, 2023, Sabra’s Board of Directors declared a quarterly cash dividend of $0.30 per share of common stock. The dividend will be paid on August 31, 2023 to common stockholders of record as of the close of business on August 17, 2023.\n\n\n\nBUSINESS UPDATE\n\n\nUpdate on Reimbursement Trends\n\n\nReimbursement trends continue to move in a positive direction. In terms of Medicare Part A, which accounts for nearly 25% of revenue for Sabra’s skilled nursing tenants, CMS recently finalized a 4.0% rate increase that goes into effect on October 1, 2023.\n\n\nIn addition, and in recognition of skilled nursing’s vital role of providing high-quality, high-acuity care at a relatively low cost, many states have also increased support for the industry through various means, including Medicaid base rate increases, Federal Medical Assistance Percentage (“FMAP”) add-on extensions, and rebasing cost measures to better capture inflationary pressures. Notable exa...

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