Sabra Health Care Reit, Inc. · NASDAQ:SBRA
Sabra Health Care Reit — Q4 2022 Earnings Presentation
32 slides from Sabra Health Care Reit's earnings presentation, Feb 22, 2023
Slide 1: What Happens Inside Our Buildings Matters Most
What Happens Cost Inside Our Buildings Matters Most Investor Presentation | February 21, 2023
Slide 2: Disclaimers: Forward-Looking Statements
Disclaimers Forward-Looking Statements This presentation contains “forward-looking” statements as defined in the Private Securities Litigation Reform Act of 1995. Any statements that do not relate to historical or current facts or matters are forward looking statements. These statements may be ident
Slide 3: Disclaimers: Tenant and Borrower Information, Non-GAAP
Disclaimers Tenant and Borrower Information This presentation includes information (e.g., EBITDARM Coverage and Occupancy Percentage) regarding certain of our tenants that lease properties from us and our borrowers, most of which are not subject to SEC reporting requirements. The information related
Slide 4: Uniquely Positioned to Thrive
LOREM IPSUM Heading Uniquely Positioned to Thrive Our passion for quality care and deep industry experience uniquely position Sabra to succeed in the dynamic healthcare real estate market. We have the size, know-how and resilient balance sheet necessary to deliver long-term value to shareholders. Fe
Slide 5: CEO Quote on Operators and Care
STRATEGY “We know what happens inside our buildings matters most. That’s why we align ourselves with operators who skillfully and compassionately care for the residents and patients in the buildings we own.” -Rick Matros (he/him), Chief Executive Officer February 21, 2023 Investor Presentation 5
Slide 6: Our Strategy — Passion Meets Know-how
STRATEGY Our Strategy — Passion Meets Know-how Unique, Accretive Investments - Utilize our operational and asset management experience to identify and capitalize on new opportunities where off-market price dislocation exists. Support Operator Expansion - Be the capital partner of choice for the expa
Slide 7: Recent Highlights
STRATEGY IN ACTION Recent Highlights North American Transition ▪ On February 1, 2023, Sabra completed the transition of the 24-property portfolio previously leased to North American Health Care, Inc. to The Ensign Group and the Avamere Family of Companies, for a combined initial annual rent of $34.5
Slide 8: Amended and Restated Credit Facility
STRATEGY IN ACTION Amended and Restated Credit Facility ▪ $1.0 billion unsecured revolving credit facility maturing in January 2027, with two additional six- month extension options ▪ $430 million USD unsecured term loan maturing in January 2028 ▪ $150 million CAD (~$110 million USD) unsecured term
Slide 9: Chief Investment Officer Quote
STRATEGY IN ACTION “By consistently and deliberately executing our strategy, we deliver long-term value to our shareholders and provide the capital our tenants need to invest in their business and deliver quality care.” -Talya Nevo-Hacohen (she/her), Chief Investment Officer February 21, 2023 Invest
Slide 10: Adaptive Reuse for Behavioral Health
STRATEGY IN ACTION Adaptive Reuse for Behavioral Health • Sabra’s growing behavioral health portfolio represents a total investment of approximately $784 million, which accounts for roughly 13% of the Company’s Annualized Cash NOI as of December 31, 2022. • In total, eleven properties have been conv
Slide 11: Good for the Planet. Good for Our Stakeholders.
ENVIRONMENTAL, SOCIAL AND GOVERNANCE Good for the Planet. Good for Our Stakeholders. “We endeavor to operate efficiently, sustainably and always in the best interest of our stakeholders.” -Rick Matros (he/him), Chief Executive Officer Learn more about our commitment to strong corporate governance an
Slide 12: Sabra's ESG Priorities
ENVIRONMENTAL, SOCIAL AND GOVERNANCE Sabra’s ESG Priorities February 21, 2023 Investor Presentation 12
Slide 13: Committed to Diversity, Equity & Inclusion
ENVIRONMENTAL, SOCIAL AND GOVERNANCE Committed to Diversity, Equity & Inclusion We believe a diverse workforce is essential to our continued success, and are integrating our DE&I efforts into our hiring process so that we can achieve our aspirations for an even more diverse and culturally inclusive
Slide 14: Addressing Critical Health And Wellness Issues In Senior Facilities
ENVIRONMENTAL, SOCIAL AND GOVERNANCE Addressing Critical Health And Wellness Issues In Senior Facilities Sabra is a proud Alliance Member of the Well Living Lab and active participant in WISE—Wellness Innovation in Senior Living—initiative. The initiative will leverage scientific research conducted
Slide 15: WELL Health-Safety Ratings
ENVIRONMENTAL, SOCIAL AND GOVERNANCE WELL Health-Safety Ratings Claiborne, Paradigm and Solvere, three of Sabra’s Senior Housing - Managed operators, are the latest to achieve the WELL Health-Safety Rating for their Sabra-owned portfolios. We are encouraging all our operators to pursue the WELL Heal
Slide 16: Dedicated to Effective Corporate Governance
ENVIRONMENTAL, SOCIAL AND GOVERNANCE Dedicated to Effective Corporate Governance Our strong, independent and diverse board brings unique skill sets and relevant experience that enrich our decision making. Healthcare Real Estate Finance Leadership Portfolio Management ESG Regulatory Risk Management P
Slide 17: Our Success Is Predicated on a Healthy Portfolio
PORTFOLIO Our Success Is Predicated on a Healthy Portfolio As of December 31, 2022 74% 84% 82% 84% 77% 437 1 SNF/TC SH - Leased Average Occupancy Percentage SH - Managed BH 2 Hosp./Oth. Investments 73 Relationships 34% Skilled Mix 2 7 Years Wtd. Avg. 1.77x 1.19x 1.71x 6.95x SNF/TC 3 SH - Leased BH H
Slide 18: Diverse Portfolio, Positioned to Perform
PORTFOLIO Diverse Portfolio, Positioned to Perform As of December 31, 2022 1 1 Relationship Concentration Asset Class Concentration Signature Healthcare, 8.8% Behavioral Health, 13.4% The Ensign Group, 8.5% Avamere Family Senior Housing - of Companies, Managed, 13.4% Other, 49.6% 7.4% Signature Beha
Slide 19: Asset Management Quote on Operator Relationships
PORTFOLIO “We invest in relationships with operators who are nimble and poised to deliver excellent care now and in the future.” -Peter Nyland, Executive Vice President, Asset Management February 21, 2023 Investor Presentation 19
Slide 20: Advancing the Quality of Care
OPERATORS Advancing the Quality of Care We Work with Operators Who Are: • Committed to their mission • Nimble • Regional experts • In markets with favorable demographics • Well-positioned for the future of healthcare delivery February 21, 2023 Investor Presentation 20
Slide 21: We Support Our Operators
OPERATORS We Support Our Operators We Invest in Our Tenants’ Success: • Redevelopment / Adaptive Reuse • Expansion • Strategic development • Flexible equity and debt capital solutions February 21, 2023 Investor Presentation 21
Slide 22: Operator Testimonial: Leo Brown Group
OPERATORS “What started with a single sale/leaseback transaction for a senior living community in Indiana has grown into a multi-state, multi- community relationship. We truly value the collaboration, insight and support we receive from Sabra. Sabra is who we think about first when it comes to a cap
Slide 23: CFO Quote on Balance Sheet and Capital Access
PERFORMANCE “Our strong balance sheet and ready access to capital allows us to thoughtfully finance investment opportunities and drive value for our shareholders.” –Michael Costa, Chief Financial Officer February 21, 2023 Investor Presentation 23
Slide 24: Balanced Capital Structure
PERFORMANCE Balanced Capital Structure 1 Capital Structure Our diverse menu of capital options and $0.9 billion of available liquidity ensures that we have ready access to low cost Common Equity Value capital to fund our growth. Unsecured Debt 55% 44% Our credit facility, amended January 4, 2023, co
Slide 25: Strong Investment-Grade Credit Metrics
PERFORMANCE Strong Investment-Grade Credit Metrics 1 Investment grade Sabra 4Q 22 2 peers median 3 Net Debt to Adjusted EBITDA 5.38x 5.82x 3 Interest Coverage Ratio 4.61x 4.10x Debt as a % of Asset Value 35% 38 % Secured Debt as a % of Asset Value 1% 5% We continue to focus on strengthening our bala
Slide 26: Favorable Profile with Staggered Maturities
PERFORMANCE Favorable Profile with Staggered Maturities Debt maturity profile at December 31, 2022 (Dollars in millions) 5.8% 5.7% $1,200 5.1% 3.9% 2.9% 3.2% 2.9% 3.1% 2.8% 2.9% 2.9% $1,000 $2 $800 $821 $600 $2 $2 $400 $2 800 500 541 $200 179 350 $2 $2 $2 100 $2 $2 $29 $0 — 2023 2024 2025 2026 2027
Slide 27: Attractive Valuation Relative to Direct Peers
PERFORMANCE Attractive Valuation Relative to Direct Peers 1 2 Forward FFO multiples Dividend yield 9.2% 9.4% 13.2x 13.6x 13.9x 6.1% 6.1% 10.7x 5.3% 9.3x SBRA OHI NHI LTC CTRE SBRA CTRE LTC NHI OHI 3 Premium / discount to consensus NAV Portfolio composition (% Annualized Cash NOI) 1% 5% 18.9% 18% 12%
Slide 28: Well-Positioned Portfolio
PERFORMANCE Well-Positioned Portfolio 1 SNF concentration Top five relationships SNF EBITDARM SH EBITDARM 1 1,3 1 concentration Coverage Coverage 92% 70% 2.66x 1.19x 65% 2.47x 1.14x 1.16x 1.10x 75% 1.02x 1.95x 58% 47% 1.77x 54% 40% 37% 1.37x 35% 2 2 4,5 4 SBRA NHI LTC OHI CTRE SBRA OHI LTC NHI CTRE
Slide 29: Appendix
Appendix Appendix February 21, 2023 Investor Presentation 29
Slide 30: Definitions
APPENDIX Definitions Adjusted EBITDA.* Adjusted EBITDA is calculated as earnings before interest, taxes, depreciation and amortization (“EBITDA”) excluding the impact of merger-related costs, stock-based compensation expense under the Company's long-term equity award program, and loan loss reserves.
Slide 31: Definitions
APPENDIX Definitions Funds From Operations (“FFO”) and Adjusted FFO (“AFFO”).* The Company believes that net income as defined by GAAP is the most appropriate earnings measure. The Company also believes that funds from operations, or FFO, as defined in accordance with the definition used by the Nati
Slide 32: Definitions
APPENDIX Definitions Occupancy Percentage. Occupancy Percentage represents the facilities’ average operating occupancy for the period indicated. The percentages are calculated by dividing the actual census from the period presented by the available beds/units for the same period. Occupancy includes
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