Business
Sabra Reports Third Quarter 2021 Results; Provides Business Update; Reaffirms 2021 NFFO and NAFFO Guidance
IRVINE, 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":" IRVINE, Calif.--(BUSINESS WIRE)--\nSabra Health Care REIT, Inc. (“Sabra,” the “Company” or “we”) (Nasdaq: SBRA) today announced its results of operations for the third quarter of 2021. In addition, the Company provided a business update, reaffirmed its full-year 2021 guidance for Normalized FFO and Normalized AFFO and provided updates to previously issued 2021 per share guidance for net loss, FFO and AFFO.\n\nTHIRD QUARTER 2021 RESULTS AND RECENT EVENTS\n\nFollowing are the highlights of our results for the third quarter of 2021 and recent events:\n\n\nFor the third quarter of 2021, net income, FFO, Normalized FFO, AFFO and Normalized AFFO per diluted common share were $0.05, $0.27, $0.38, $0.38 and $0.38, respectively. Included in net income and FFO is the write-off of $25.2 million ($0.11 per diluted common share) of straight-line rent receivables related to our lease with the Avamere Family of Companies (“Avamere”). As noted in our September 13, 2021 business update, Avamere has experienced cash flow constraints over the past several months and as a result, we subsequently determined that this lease should no longer be accounted for on an accrual basis and wrote off its straight-line rent receivable balance. This write-off is reflected as a reduction of our rental revenues for the third quarter of 2021. See further discussion on Avamere under “Business Update.”\n\n\nEBITDARM Coverage for our Skilled Nursing/Transitional Care and Specialty Hospitals and Other portfolios were 1.78x and 3.86x, respectively. Together, our Aggregate Acute/Post Acute and Other facilities reported EBITDARM Coverage of 2.09x, 0.02x higher than the third quarter of 2020 and 0.18x lower than the second quarter of 2021. See further discussion on EBITDARM Coverage trends under “Business Update.”\n\n\nFrom the beginning of the COVID-19 pandemic through October 2021, we have collected 99.7% of our forecasted rents. This includes drawing on a letter of credit to fund $7.9 million of rent for September and October of 2021 due from Avamere.\n\n\nSubsequent to September 30, 2021, Sabra closed on the first tranche of the previously announced $325 million mortgage loan, that when fully funded, will be secured by eight inpatient addiction treatment centers operated by Recovery Centers of America Holdings, LLC (“RCA”) located in the Northeast and Midwest regions ...