Sabra Health Care Reit, Inc. · NASDAQ:SBRA
Sabra Health Care Reit — Non-Deal Roadshow (October 2012)
27 slides from Sabra Health Care Reit's roadshow presentation, Oct 9, 2012
Slide 1: Non-Deal Roadshow Presentation October 10-11, 2012
Non-Deal Roadshow Presentation October 10-11, 2012
Slide 2: Forward Looking Statements
FORWARD LOOKING STATEMENTS 2 This presentation contains “forward-looking” statements that may be identified, without limitation, by the use of “expects,” “believes,” “intends,” “should” or comparable terms or the negative thereof. Forward-looking statements in this presentation also include all stat
Slide 3: Non-GAAP Financial Measures
NON-GAAP FINANCIAL MEASURES 3 This presentation includes the following financial measures defined as non-GAAP financial measures by the SEC: EBITDA, adjusted EBITDA, EBITDAR, EBITDARM, funds from operations (“FFO”) and adjusted FFO (“AFFO”). These measures may be different than non-GAAP financial me
Slide 4: Strategic Overview
Strategic Overview ASABRA
Slide 5: Sun/Genesis Merger Announcement
SUN/GENESIS MERGER ANNOUNCEMENT(1) Large diversified tenant with annual revenue of approximately $5 billion and strong liquidity Genesis lease guarantee enhanced with tangible net worth covenant Improved lease terms Leases cross defaulted with Genesis’ term loan Annual rent bumps changed f
Slide 6: Focused Strategy Brings Results
6 FOCUSED STRATEGY BRINGS RESULTS • Capital provider of choice • High quality operators and developers • Regional and local operator focus Strategy • Deals < $100mm • Senior housing/ post- acute/ SNF deals • Long-term, triple-net leases • RIDEA • Development Tactics • Broader tenant base • Portfolio
Slide 7: Deploying Capital Selectively
7 0 1 2 3 4 Q1 2011 Q2 2011 Q3 2011 Q4 2011 Q1 2012 Q2 2012 Q3 2012 N u m b er of P ro p ert ies P er T ra n sa ct io n $21.8mm $5.7mm $11.0mm $16.0mm(3) DEPLOYING CAPITAL SELECTIVELY $5.3mm(1) $62.7mm $11.3mm $97.5mm $16.2mm $14.2mm $29.9mm $2.6mm $10.0mm Senior Housing/Memory Care Skilled Nursing/
Slide 8: Opportunistic Investing
OPPORTUNISTIC INVESTING 8 SNF AL / MC IL Acute Hospital Equity Mezzanine Debt Mortgage Debt RIDEA Development Creative approaches to meet operators’ needs
Slide 9: Growing Strong Tenant Relationships
9 GROWING STRONG TENANT RELATIONSHIPS Region Public or private Asset focus Cadia NE Private SNF Aurora NE Private SNF Meridian (1) SW Private SNF/AL Stoney River/First Phoenix (2) MW Private AL, Memory Care New Dawn (3) SW Private Memory Care (1) Sabra currently has a mezzanine loan with Meridian, w
Slide 10: Recent Acquisitions
Independence Village at Frankenmuth (Closed September 2012) First Phoenix Group RIDEA (Closed August 2012) 10 Property Type: Assisted Living & Memory Care Investment Type: Pipeline Agreement & RIDEA Estimated Investment: $150 mm Number of Properties: 10, through 2014 Planned Units: 50-72 p
Slide 11: Accretive Investments Lead to Increasing Stockholder Value
11 $0.35 $0.40 $0.38 $0.41 $0.38 $0.42 $0.42 $0.32 $0.32 $0.32 $0.33 $0.33 $0.33 $0.00 $0.05 $0.10 $0.15 $0.20 $0.25 $0.30 $0.35 $0.40 $0.45 Q1 2011 Q2 2011 Q3 2011 Q4 2011 Q1 2012 Q2 2012 Pro Forma Q2 2012 AFFO/share Dividend/share AFFO/share & Dividend/share ACCRETIVE INVESTMENTS LEAD TO INCREASIN
Slide 12: Impact of Acquisitions: Tenant Diversification Through Growth
12 As of December 31, 2010 As Adjusted (1) Tenant Diversification Through Growth Sabra’s Annualized Revenue By Tenant IMPACT OF ACQUISITIONS (1) Includes completed acquisitions through September 30, 2012. As of June 30, 2012
Slide 13: Impact of Acquisitions: Asset Class Diversification Through Growth
13 Asset Class Diversification Through Growth Sabra’s Annualized Revenue By Asset Class IMPACT OF ACQUISITIONS As of December 31, 2010 As of June 30, 2012 As Adjusted (1) Skilled Nursing/Post Acute Acute Care Hospital Senior Housing/Memory Care (1) Includes completed acquisitions through September 3
Slide 14: Sabra's Portfolio
14 Sabra’s Portfolio
Slide 15: Geographic Diversification
GEOGRAPHIC DIVERSIFICATION Connecticut New Hampshire Texas Delaware Kentucky Florida Ohio Montana Other States 105 Investments in 25 States $103.3 mm Annualized Revenue 13.4% 13.0% 11.2% 10.2% 5.1% 9.6% 24.8% Number of assets by state 7.6% New Hampshire Connecticut Kentucky Ohio Florida Texas Montan
Slide 16: Rent Coverage Analysis
RENT COVERAGE ANALYSIS 16 (1) All coverages are calculated one month in arrears. (2) Sun’s Tenant EBITDAR Coverage for the three months and twelve months ending June 30, 2012 was 1.44x and 1.50x, respectively. On January 4, 2012, Sun issued a press release announcing its 2012 financial outlook and g
Slide 17: Strong Portfolio Performance
17 Consolidated Tenant EBITDAR coverage(1) Historical overall occupancy Historical SNF portfolio skilled mix(2) STRONG PORTFOLIO PERFORMANCE (as of June 30, 2012) 1.78x 1.76x 1.53x 0.00x 0.50x 1.00x 1.50x 2.00x FY 2011 Q2 2011 Q2 2012 41.4% 42.4% 37.5% 35.0% 37.0% 39.0% 41.0% 43.0% 45.0% FY 2011 Q2
Slide 18: Financial Overview
18 Financial Overview
Slide 19: Recent Financing Highlights
RECENT FINANCING HIGHLIGHTS 19 Issued $100 million of 8.125% senior notes in Q3 at 106.0 (6.9% yield to maturity) Revolver commitment increased to $230 million in Q3 Pro forma weighted average effective interest rate at June 30, 2012 of 6.76%, down from 7.25% at March 31, 2012. (1) (1) Pro forma
Slide 20: Financial Results
FINANCIAL RESULTS 20 Revenue(1) Leveraging G&A Expenses $17.6 $17.6 $17.6 $17.7 $18.0 $18.0 $18.0 $1.2 $3.9 $8.6 $5.7 $7.8 $8.8 $- $5.0 $10.0 $15.0 $20.0 $25.0 $30.0 Q1 2011 Q2 2011 Q3 2011 Q4 2011 Q1 2012 Q2 2012 Adjusted Q2 2012 Sun Other Sources $1.2 $1.4 $1.3 $1.1 $1.6 $1.5 $1.5 0.3 1.4 $1.1 $1.
Slide 21: Financial Results: EBITDA and FFO/Normalized AFFO
$14.9 $15.9 $16.9 $22.1 $19.4 $21.6 $23.3 $- $6.3 $12.5 $18.8 $25.0 Q1 2011 Q2 2011 Q3 2011 Q4 2011 Q1 2012 Q2 2012 Adjusted Q2 2012 EBITDA Adjusted EBITDA FINANCIAL RESULTS 21 FFO/ Normalized AFFO (2) (dollars in millions) (1) EBITDA and Adjusted EBITDA for Q4 2011 do not adjust for the repayment o
Slide 22: Financial Strength
2.49x 2.18x 1.85x 1.76x 1.67x 2.03x 1.53x 3.47x 3.07x 2.60x 2.50x 2.37x 2.26x 3.16x 0.00x 1.00x 2.00x 3.00x 4.00x 5.00x 6.00x 7.00x Q1 2011 Q2 2011 Q3 2011 Q4 2011 Q1 2012 Q2 2012 Adjusted Q2 2012 Secured Leverage Unsecured Leverage FINANCIAL STRENGTH 22 LTM Consolidated Debt to EBITDA (1) LTM Inter
Slide 23: Capital Structure Poised for Growth
CAPITAL STRUCTURE POISED FOR GROWTH Pro-forma liquidity totaling $251.0 million as of June 30, 2012. (1) Low leverage provides capital structure flexibility Accordion feature on revolver High yield market strong Opportunistically access equity markets Stable baseline EBITDA No lease ex
Slide 24: Virtuous Cycle
24 Make accretive investments Diversify from Sun Diversify payor sources Lower risk Lower cost of capital and enhance competitive position Higher AFFO VIRTUOUS CYCLE
Slide 25: Appendix
Appendix ASABRA
Slide 26: Debt Covenants
DEBT COVENANTS (1) 26 (1) Based on defined terms in senior notes indenture and amended credit agreement. (2) Assumes all acquisitions through September 30, 2012 and the $100 million add-on to the 8.125% senior notes were completed as of January 1, 2012. (As of June 30, 2012) Min Max Actual Adjusted
Slide 27: Reconciliation of Net Income to EBITDA, FFO and AFFO
27 Reconciliation of Net Income to EBITDA, Adjusted EBITDA, Funds from Operations (FFO), Adjusted Funds from Operations (AFFO) and Normalized AFFO (1) Assumes all acquisitions through September 30, 2012 and the $100 million add-on to the 8.125 % senior notes were completed as of January 1, 2012. 201
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