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Sabra Reports Second Quarter 2024 Results; Increases 2024 Guidance
TUSTIN, Calif.--(BUSINESS WIRE)-- Sabra Health Care REIT, Inc. (“Sabra,” the “Company” or “we”) (Nasdaq: SBRA) today announced its results of operations for
About this update from Sabra Health Care Reit, Inc.
[{"type":"text","content":" TUSTIN, 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 2024.\n\n\nSECOND QUARTER 2024 RESULTS AND RECENT EVENTS\n\n\n\nResults per diluted common share for the second quarter of 2024 were as follows:\n\n\nNet Income: $0.10\n\n\n\nFFO: $0.35\n\n\n\nNormalized FFO: $0.35\n\n\n\nAFFO: $0.36\n\n\n\nNormalized AFFO: $0.36\n\n\n\n\n\n\n\nEBITDARM Coverage Summary:\n\n\nSkilled Nursing/Transitional Care: 1.85x\n\n\n\nSenior Housing - Leased: 1.35x\n\n\n\nBehavioral Health, Specialty Hospitals and Other: 3.69x\n\n\n\n\n\n\n\nSame store managed senior housing Cash NOI increased 17.7% on a year-over-year basis.\n\n\n\n\nInvestment activity through June 30, 2024 amounts to $60.1 million at an expected initial cash yield of 8.7%. Additionally, subsequent to quarter end, Sabra closed on the $75.8 million acquisition of two managed senior housing communities operated by the Leo Brown Group, with an initial expected cash yield of 8.0%.\n\n\n\n\nDuring the second quarter of 2024, Sabra closed on the disposition of four facilities for gross proceeds of $6.7 million with a trailing-twelve-month cash yield of 5.0%. Additionally, subsequent to quarter end, Sabra closed on the disposition of four properties for gross proceeds of $34.9 million with a trailing-twelve-month cash yield of 4.0%.\n\n\n\n\nYear-to-date, Sabra has utilized the forward feature under its at-the-market equity offering program to allow for the sale of up to 4.7 million shares at an initial weighted average price of $14.72 per share, net of commissions. As of August 7, 2024, 2.0 million shares remained outstanding under the forward sale agreements, with an initial weighted average price of $15.11 per share, net of commissions.\n\n\n\n\nAs of June 30, 2024, Net Debt to Adjusted EBITDA was 5.45x.\n\n\n\n\nReimbursement trends remain positive, highlighted by the Centers for Medicare & Medicaid Services recently finalizing a 4.2% Medicare rate increase for skilled nursing facilities that goes into effect on October 1, 2024. In addition, many states have also increased support for the skilled nursing industry through various means, including Medicaid base rate increases, and rebasing cost measures to better capture inflationary pressures. In aggregate, we esti...