Sabra Health Care Reit, Inc. · NASDAQ:SBRA
Sabra Health Care Reit — NAREIT Presentation November 13-15, 2012
27 slides from Sabra Health Care Reit's conference presentation, Nov 13, 2012
Slide 1: NAREIT Presentation November 13-15, 2012
NAREIT Presentation November 13 - 15, 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 • Primary focus - Senior housing and memory care deals • Secondary Focus - SNF deals • Long-term, triple-net leases • RIDEA • Developme
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 Investments: Frankenmuth, First Phoenix, New Dawn
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 JV Estimated Investment: $150 mm Number of Properties: 10, through 2014 Planned Units: 50-7
Slide 11: Accretive Investments Lead to Increasing Stockholder Value
11 $0.35 $0.40 $0.38 $0.41 $0.38 $0.42 $0.39 $0.40 $0.32 $0.32 $0.32 $0.33 $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 Q3 2012 Pro Forma Q3 2012 AFFO/share Dividend/share AFFO/share & Dividend/share ACCRETIVE INVESTMEN
Slide 12: Impact of Acquisitions: Tenant Diversification
12 As of December 31, 2010 Tenant Diversification Through Growth Sabra’s Annualized Revenue By Tenant IMPACT OF ACQUISITIONS As of September 30, 2012
Slide 13: Impact of Acquisitions: Asset Class Diversification
13 Asset Class Diversification Through Growth Sabra’s Annualized Revenue By Asset Class IMPACT OF ACQUISITIONS As of December 31, 2010 As of September 30, 2012 Skilled Nursing/Post Acute Acute Care Hospital Senior Housing/Memory Care
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 108 Investments in 26 States $107.3 mm Annualized Revenue 12.9% 12.5% 10.7% 9.9% 4.9% 9.3% 27.6% Number of assets by state 7.3% New Hampshire Connecticut Kentucky Ohio Florida Texas Montana
Slide 16: Rent Coverage Analysis
RENT COVERAGE ANALYSIS 16 (1) All coverages are calculated one month in arrears. (2) Excluding the impact of Age Well (formerly known as Creekside), which was not stabilized as of September 30, 2012, for the three months ended September 30, 2012, EBITDARM and EBITDAR coverages for Senior Housing fac
Slide 17: Strong Portfolio Performance
17 Historical overall occupancy(1) Historical SNF portfolio skilled mix(1) (2) STRONG PORTFOLIO PERFORMANCE (as of September 30, 2012) 41.7% 37.9% 42.1% 36.3% 20.0% 25.0% 30.0% 35.0% 40.0% 45.0% 50.0% Trailing 12 Months, Q3 2011 Trailing 12 Months, Q3 2012 Q3 2011 Q3 2012 88.7% 89.0% 88.3% 88.3% 85.
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) Repaid revolving credit facility balance of $42.5 million Increased total revolving credit facility commitment to $230 million in Q3 Pro forma weighted average effective interest
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 $18.0 $1.2 $3.9 $8.6 $5.7 $7.8 $8.0 $8.9 $- $5.0 $10.0 $15.0 $20.0 $25.0 $30.0 Q1 2 0 1 1 Q2 2 0 1 1 Q3 2 0 1 1 Q4 2 0 1 1 Q1 2 0 1 2 Q2 2 0 1 2 Q3 2 0 1 2 A d ju st e d Q 3 201 2 Sun Other Sources $26.
Slide 21: Financial Results: EBITDA and FFO/AFFO
$14.9 $15.9 $16.9 $22.1 $19.4 $21.6 $22.3 $23.1 $- $6.3 $12.5 $18.8 $25.0 Q1 2 0 1 1 Q2 2 0 1 1 Q3 2 0 1 1 Q4 2 0 1 1 Q1 2 0 1 2 Q2 2 0 1 2 Q3 2 0 1 2 A d ju st e d Q 3 2 0 1 2 EBITDA Adjusted EBITDA FINANCIAL RESULTS 21 FFO/ Normalized AFFO (2) (dollars in millions) (1) EBITDA and Adjusted EBITDA f
Slide 22: Financial Strength
2.49x 2.18x 1.85x 1.76x 1.67x 2.03x 1.53x 1.49x 3.47x 3.07x 2.60x 2.50x 2.37x 2.26x 3.15x 3.15x 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 Q3 2012 Adjusted Q3 2012 Secured Leverage Unsecured Leverage FINANCIAL STRENGTH 22 LTM Consolidated Debt to
Slide 23: Capital Structure Poised for Growth
CAPITAL STRUCTURE POISED FOR GROWTH Liquidity totaling $232.1 million as of September 30, 2012 Low leverage provides capital structure flexibility Accordion feature on revolving credit facility Strong high yield market Opportunistically access equity markets Stable baseline EBITDA No l
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 the senior notes indenture and amended credit agreement. (2) Adjusted to give effect to the payoff of a $4.4 million mortgage note subsequent to September 30, 2012. (As of September 30, 2012) Pro-Forma (2) Min Max Actual Adjusted (2) Incurrence: To
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) Adjusted for the impact of all acquisitions through September 30, 2012, to give effect to the $100 million add-on 8.125% senior notes issued at 106.0
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