Sabra Health Care Reit, Inc. · NASDAQ:SBRA
Sabra Health Care Reit — Q2 2025 Earnings Presentation
33 slides from Sabra Health Care Reit's earnings presentation, Aug 5, 2025
Slide 1: Strategic. Disciplined. Opportunistic.
Strategic. Disciplined. Opportunistic. Investor Presentation | August 4, 2025
Slide 2: Disclaimers
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
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. Au
Slide 5: We know what happens inside our buildings matters most
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 August 4, 2025 Investor Presentation 5
Slide 6: Portfolio Strategy
STRATEGY Portfolio Strategy Growing Demand Mission-Driven Needs-Based • > 80 population is • Passionate workforce • Lifestyle enhancement expected to grow 4% per • Positive societal impact • Post-acute care year through 2040 • Community backbone • Psychosocial support • Virtually no new senior • Saf
Slide 7: Execution — Passion Meets Know-how
STRATEGY Execution — 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 expansi
Slide 8: 2025 Full-Year Guidance
STRATEGY IN ACTION 2025 Full-Year Guidance Sabra is updating 2025 guidance ranges as follows (attributable to common stockholders, per diluted common share): 2025 Guidance: Net Income $ 0.77 — $ 0.79 NAFFO midpoint FFO $ 1.52 — $ 1.54 implies 4% year-over- Normalized FFO $ 1.45 — $ 1.47 year growth
Slide 9: By consistently and deliberately executing our strategy
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 August 4, 2025 Investor
Slide 10: Good for the Planet. Good for Our Stakeholders.
CORPORATE SUSTAINABILITY Good for the Planet. Good for Our Stakeholders. “The strategic investments we’ve made in our properties— and those we’ve supported our operators in making—are designed to improve the lives of residents, foster healthier working environments for caregivers and strengthen the
Slide 11: Sustainability Framework
CORPORATE SUSTAINABILITY Sustainability Framework We understand that good governance underpins sustainability, strengthens the accountability of our Board and management team and supports the long-term interests of our stakeholders. Our corporate sustainability principles are intrinsically tied to o
Slide 12: E-Initiative Roadmap
CORPORATE SUSTAINABILITY E-Initiative Roadmap Our efforts to improve the environment start with enabling our operators. We take a comprehensive, integrated and collaborative approach to environmental stewardship, as demonstrated by our E-Initiative Roadmap. August 4, 2025 Investor Presentation 12
Slide 13: E-Playbook: Turning Vision into Action
CORPORATE SUSTAINABILITY E-Playbook: Turning Vision into Action Sabra’s E-Playbook builds on our E-Roadmap and green initiatives to provide a structured framework for advancing initiatives that drive measurable environmental and operational improvements across our portfolio. • Align internal and ext
Slide 14: Going the Extra Green Mile
CORPORATE SUSTAINABILITY Going the Extra Green Mile At Gardens of Wakefield, Sabra worked with Blue Sky E3 Partners and Carrier engineers to design a custom, energy-efficient solution for the community’s heating and cooling system. By replacing outdated equipment, the project achieved a combined 44
Slide 15: Committed to Diversity, Equity & Inclusion
CORPORATE SUSTAINABILITY Committed to Diversity, Equity & Inclusion We believe a diverse workforce is essential to our continued success and gives us a competitive advantage. We believe we attract the best talent by embracing the diversity of our country. 58% As of June 30, 2025, 35% As of June 30,
Slide 16: Our Success Is Predicated on a Healthy Portfolio
PORTFOLIO Our Success Is Predicated on a Healthy Portfolio As of June 30, 2025 83% 90% 78% 392 Investments SNF/TC SH - Leased Average Occupancy Percentage BH/Hosp./Oth. 1 58 Relationships 38% Skilled Mix 1 7 Years Wtd. Avg. 2.27x 1.49x 3.87x SNF/TC SH - Leased BH/Hosp./Oth. 1 Remaining Lease Term EB
Slide 17: Diverse Portfolio, Positioned to Perform
PORTFOLIO Diverse Portfolio, Positioned to Perform As of June 30, 2025 1 1 Relationship Concentration Asset Class Concentration Avamere Family of Companies, 8.4% Senior Housing - The Ensign Group, 8.3% Managed, 20.9% Signature Other Healthcare, 8.1% 38.4% Signature Behavioral Skilled Nursing/ Behavi
Slide 18: Favorable Supply and Demand Trends
PORTFOLIO Favorable Supply and Demand Trends Since 2000, the 85-or-older population has grown by 60%, compared to a 12% decline in skilled nursing beds over the same time frame. SNF Supply and Demand SNF Beds (000s) Population 85 or older (000s) 8,000 6,859 7,000 6,380 6,539 6,483 6,486 6,166 5,753
Slide 19: Skilled Nursing Medicaid and Medicare Rates
PORTFOLIO Skilled Nursing Medicaid and Medicare Rates As of June 30, 2025 Medicaid Average Daily Rate Medicare Average Daily Rate $350 $750 $720 $312 $700 $300 $285 $674 2.1% CAGR $657 4.2% CAGR $262 $650 $635 $246 $250 $236 $217 $600 $582 $204 $193 $558 $200 $184 $544 $544 $179 $550 $531 $531 $519
Slide 20: We invest in relationships with operators who are nimble
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 August 4, 2025 Investor Presentation 20
Slide 21: 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 August 4, 2025 Investor Presentation 21
Slide 22: 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 August 4, 2025 Investor Presentation 22
Slide 23: 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 24: Our strong balance sheet and ready access to capital
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 August 4, 2025 Investor Presentation 24
Slide 25: Prudent Balance Sheet Management
PERFORMANCE Prudent Balance Sheet Management 1 Pro forma June 30, 2025 • Hedged variable rate exposure, resulting Line of Credit in interest savings of $8.6 million over the 2% last 12 months. Common Equity Fixed Rate Bonds Value 18% 64% • Weighted average debt maturity of nearly 5 years with no mat
Slide 26: Investment-Grade Credit Metrics
PERFORMANCE Investment-Grade Credit Metrics 1 Investment-Grade Sabra 2Q 25 2 peers range 3 Net Debt to Adjusted EBITDA 5.00x 0.50x - 5.63x Interest Coverage Ratio 4.39x 4.10x - 13.45x Debt as a % of Asset Value 37% 21% - 41% Secured Debt as a % of Asset Value 1% 0% - 8% We continue to focus on stren
Slide 27: Favorable Profile with Staggered Maturities
PERFORMANCE Favorable Profile with Staggered Maturities 1 Pro forma debt maturity profile at June 30, 2025 (Dollars in millions) 5.6% 1,200 4.6% 4.1% 3.9% 3.2% 2.9% 2.9% 2.9% 3.1% 1,000 2.9% 2.9% $2 800 $837 600 $2 $2 400 $2 800 540 500 200 163 350 $1 $2 100 $2 $2 $2 $25 0 2025 2026 2027 2028 2029 2
Slide 28: Attractive Valuation Relative to Direct Peers
PERFORMANCE Attractive Valuation Relative to Direct Peers 1 2 Forward FFO multiples Dividend yield 22.6x 16.6x 6.7% 6.7% 6.9% 14.4x 12.0x 12.6x 12.8x 5.2% 4.2% 2.6% SBRA LTC OHI NHI CTRE AHR SBRA AHR CTRE NHI LTC OHI 3 Premium / discount to consensus NAV Portfolio composition (% Annualized Cash NOI)
Slide 29: Well-Positioned Portfolio
PERFORMANCE Well-Positioned Portfolio SNF concentration 1 Top five relationships SNF EBITDARM SH EBITDARM 1,4 1 concentration 1 Coverage Coverage 92% 3.06x 2.90x 1.53x 65% 1.49x 1.38x 1.39x 1.40x 1.40x 58% 2.27x 60% 2.03x2.04x 47% 1.88x 56% 51% 37% 36% 30% 3% SBRA2 AHR 3 NHI LTC OHI CTRE SBRA2 OHI L
Slide 30: Appendix
Appendix Appendix August 4, 2025 Investor Presentation 30
Slide 31: 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 32: 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 33: Definitions
APPENDIX Definitions 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 agreemen
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