Sabra Health Care Reit, Inc. · NASDAQ:SBRA
Sabra Health Care Reit — Stifel 2022 Seniors Housing and Healthcare Real Estate Conference
43 slides from Sabra Health Care Reit's conference presentation, Jan 27, 2022
Slide 1: What Happens Inside Our Buildings Matters Most
What Happens Inside Our Buildings Matters Most Stifel 2022 Seniors Housing and Healthcare Real Estate Conference | January 27, 2022
Slide 2: Forward-Looking Statements
Forward-Looking Statements This presentation contains “forward-looking” statements, as defined in the Private Securities Litigation Reform Act of 1995, that may be identified, without limitation, by the use of “expects,” “believes,” “intends,” “should” or comparable terms or the negative thereof. Fo
Slide 3: Tenant and Borrower Information; Non-GAAP Financial Measures
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 to our tena
Slide 4: 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. Uniquely Positioned to Thrive January 27, 2022 Stife
Slide 5: Strategy quote from CEO Rick Matros
“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 STRATEGY January 27, 2022 Stifel 2022 Seniors Housing
Slide 6: Our Strategy — Passion Meets Know-how
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 expansion and
Slide 7: Strategy in Action quote
“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 STRATEGY IN ACTION January 27, 2022 Stifel
Slide 8: Expanding our Relationship with RCA
January 27, 2022 Stifel 2022 Seniors Housing and Healthcare Real Estate Conference 8 Expanding our Relationship with RCA STRATEGY IN ACTION ▪ On October 15, 2021, Sabra closed on the first tranche of the previously announced $325 million mortgage loan, that when fully funded, will be secured by eigh
Slide 9: Recovery Centers of America Monroeville and Greenville
STRATEGY IN ACTION Recovery Centers of America Monroeville, PA • Purchased a shuttered inpatient rehabilitation facility on a beautiful secluded, wooded site • Invested capital to renovate and reconfigure the building for a new use—inpatient detox and substance use disorder facility • RCA pre-leased
Slide 10: Good for the Planet. Good for Our Stakeholders.
January 27, 2022 Stifel 2022 Seniors Housing and Healthcare Real Estate Conference 10 Good for the Planet. Good for Our Stakeholders. Our inaugural ESG report is available on our website at sabrahealth.com. “ESG principles are intrinsically tied to our objective to drive shareholder value by operati
Slide 11: Committed to Diversity, Equity & Inclusion
Committed to Diversity, Equity & Inclusion 57% As of December 31, 2021, women comprised 57% of our workforce and 64% of our management-level/leadership roles. 26% As of December 31, 2021, 26% of our team members self-identified as being members of one or more ethnic minorities. We believe our ethnic
Slide 12: Ethics. Transparency. Accountability.
January 27, 2022 Stifel 2022 Seniors Housing and Healthcare Real Estate Conference 12 Ethics. Transparency. Accountability. Our strong, independent board brings unique skill sets and relevant experience that enrich our decision making. Healthcare Real Estate Finance Leadership Portfolio Management E
Slide 13: Our Success Is Predicated on a Healthy Portfolio
Our Success Is Predicated on a Healthy Portfolio 1 Excludes (i) one real estate property held for sale as of September 30, 2021 and (ii) our unconsolidated joint venture which consists of 158 facilities and 7,056 units. 2 Occupancy Percentage and Skilled Mix (together, “Operating Statistics”) and EB
Slide 14: Diverse Portfolio, Positioned to Perform
1 Concentrations are calculated using Annualized Cash NOI and exclude (i) one real estate property held for sale as of September 30, 2021 and (ii) our unconsolidated joint venture which consists of 158 facilities and 7,056 units. Relationship and asset class concentrations use Annualized Cash NOI fo
Slide 15: Operator relationships quote
“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 PORTFOLIO January 27, 2022 Stifel 2022 Seniors Housing and Healthcare Real Estate Conference 15
Slide 16: COVID-19 Impact on Our Business
COVID-19 Impact on Our Business PORTFOLIO ▪ From the beginning of the COVID-19 pandemic through December 2021, we have collected 99.5% of our forecasted rents and excluding Avamere, collections through the first three weeks of January are in line with what we normally receive through this point of t
Slide 17: COVID-19 Impact on Our Portfolio: Avamere
COVID-19 Impact on Our Portfolio PORTFOLIO AVAMERE ▪ As noted in our September 13, 2021 business update, Avamere has experienced cash flow constraints over the past several months from census declines as a result of a spike in COVID-19 cases in Oregon, Colorado and Washington together with mandated
Slide 18: COVID-19 Impact on Our Portfolio (Cont.)
COVID-19 Impact on Our Portfolio (Cont.) PORTFOLIO Average occupancy in our portfolio continues to recover despite the surge of the Delta variant in the broader population during the third quarter and has shown resiliency during the Omicron variant surge. Vaccine uptake has been high among patients
Slide 19: COVID-19 Impact on Our Portfolio: Senior Housing Managed Occupancy
COVID-19 Impact on Our Portfolio (Cont.) PORTFOLIO SENIOR HOUSING – MANAGED OCCUPANCY ▪ Since the roll-out of the vaccines, we continue to see a greater occupancy recovery in higher-acuity communities where pent-up demand is most apparent. Assisted living and memory care communities lost more occupa
Slide 20: COVID-19: Mitigation (Cont.)
COVID-19: Mitigation (Cont.)1 PORTFOLIO Mitigation Source Mitigates EBITDARM Reductions Description Estimated Available (All Sabra Relationships) PRF: Yes The CARES Act has, to date, appropriated $178 billion to the Provider Relief Fund (“PRF”) for hospitals and other health care providers nationwid
Slide 21: COVID-19: Mitigation (Cont.)
COVID-19: Mitigation (Cont.) PORTFOLIO ▪ In addition to the $20 million to $50 million that we estimate may still be recognized in earnings by our tenants from funds they have already received from the PRF, we expect our tenants to receive additional funding to help support their operations. On Sept
Slide 22: Advancing the Quality of Care
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 OPERATORS January 27, 2022 Stifel 2022 Seniors Housing and Healthcare Real Estate Co
Slide 23: We Support Our Operators
We Support Our Operators We Invest in Our Tenants’ Success: • Redevelopment • Expansion • Strategic development • Flexible equity and debt capital solutions OPERATORS January 27, 2022 Stifel 2022 Seniors Housing and Healthcare Real Estate Conference 23
Slide 24: Free Access to Industry-Leading Business Intelligence Tools
Driving Performance with Free Access to Industry-Leading Business Intelligence Tools OPERATORS January 27, 2022 Stifel 2022 Seniors Housing and Healthcare Real Estate Conference 24
Slide 25: PointRight Solutions for SNF Tenants
PointRight Solutions for SNF Tenants OPERATORS Data Integrity Audit (DIA) Real-time MDS verification analysis. Ensures accuracy and quality of MDS data with insights into PDPM reimbursement. Each MDS is checked for logical and clinical coding accuracy with helpful alerts to identify quality measure
Slide 26: Leo Brown Group operator testimonial
“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 capital partn
Slide 27: Performance: CFO quote on balance sheet
PERFORMANCE “With a strong balance sheet and ready access to capital, Sabra is well-positioned to capitalize on investment opportunities and drive value for our shareholders.” –Michael Costa, Chief Financial Officer January 27, 2022 Stifel 2022 Seniors Housing and Healthcare Real Estate Conference 2
Slide 28: Balanced Capital Structure
Balanced Capital Structure Common Equity Value 57% Secured Debt 2% Unsecured Debt 41% Capital Structure 1 Our diverse menu of capital options and $1.2 billion of available liquidity ensures that we have ready access to low cost capital to fund our growth. Our credit facility contains an accordion fe
Slide 29: Strong Investment-Grade Credit Metrics
Sabra 3Q 21 1 Investment grade peers median 2 Net Debt to Adjusted EBITDA 4.81x 3 5.94x Interest Coverage Ratio 5.32x 4.53x Debt as a % of Asset Value 34% 39% Secured Debt as a % of Asset Value 1% 5% Strong Investment-Grade Credit Metrics 1 Credit statistics (except Net Debt to Adjusted EBITDA) are
Slide 30: Favorable Profile with Staggered Maturities
Favorable Profile with Staggered Maturities PERFORMANCE 1 Assumes the October 7, 2021 redemption of $300 million of 4.8% senior unsecured notes due 2024 occurred as of September 30, 2021. 2 Term loans are pre-payable at par. Weighted Average Interest calculation is inclusive of related interest rate
Slide 31: Attractive Relative Valuation
Attractive Relative Valuation PERFORMANCE -16.5% 6.7% 10.0% 11.9% 21.4% 21.7% SBRA OHI NHI CTRE LTC Big 2 Average 9.1% 3.2% 5.0% 6.1% 6.3% 8.8% SBRA Big 2 Average CTRE NHI LTC OHI 8.3x 9.6x 12.6x 13.4x 14.9x 21.2x SBRA OHI NHI CTRE LTC Big 2 Average 19% 13% 18% 54% 40% 63% 67% 87% 77% 8% 59% 32% 14%
Slide 32: Well-Positioned Portfolio
Well-Positioned Portfolio PERFORMANCE SNF concentration 1 1 Represents latest available concentration and coverage for peers as of 1/25/2022. 2 Based on Annualized Cash NOI as of 9/30/2021 for real estate investments, investments in loans receivable and other investments. See the appendix to this pr
Slide 33: Appendix
January 27, 2022 Stifel 2022 Seniors Housing and Healthcare Real Estate Conference 33 Appendix
Slide 34: Non-GAAP Reconciliations
34 Non-GAAP Reconciliations APPENDIX January 27, 2022 Stifel 2022 Seniors Housing and Healthcare Real Estate Conference
Slide 35: Non-GAAP Reconciliations
35 APPENDIX January 27, 2022 Non-GAAP Reconciliations Stifel 2022 Seniors Housing and Healthcare Real Estate Conference
Slide 36: Non-GAAP Reconciliations
36 APPENDIX January 27, 2022 Non-GAAP Reconciliations Stifel 2022 Seniors Housing and Healthcare Real Estate Conference
Slide 37: Non-GAAP Reconciliations
37 APPENDIX January 27, 2022 Non-GAAP Reconciliations Stifel 2022 Seniors Housing and Healthcare Real Estate Conference
Slide 38: Non-GAAP Reconciliations
38 APPENDIX January 27, 2022 Non-GAAP Reconciliations Stifel 2022 Seniors Housing and Healthcare Real Estate Conference
Slide 39: Non-GAAP Reconciliations
39 APPENDIX January 27, 2022 Non-GAAP Reconciliations Stifel 2022 Seniors Housing and Healthcare Real Estate Conference
Slide 40: Non-GAAP Reconciliations
40 APPENDIX January 27, 2022 Non-GAAP Reconciliations Stifel 2022 Seniors Housing and Healthcare Real Estate Conference
Slide 41: Adjusted EBITDA and Annualized Cash NOI 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. Adjusted EBITDA is a
Slide 42: FFO and AFFO 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 National Association of Re
Slide 43: Definitions: Senior Housing, Skilled Mix, Skilled Nursing
Senior Housing. Senior Housing communities include independent living, assisted living, continuing care retirement and memory care communities. Senior Housing - Managed. Senior Housing communities operated by third-party property managers pursuant to property management agreements. Skilled Mix. Skil
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