Sabra Health Care Reit, Inc. · NASDAQ:SBRA
Sabra Health Care Reit — Investor Presentation (February 2022)
33 slides from Sabra Health Care Reit's investor presentation, Feb 22, 2022
Slide 1: What Happens Inside Our Buildings Matters Most
What Happens Inside Our Buildings Matters Most Investor Presentation | February 22, 2022
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, that may be identified, without limitation, by the use of “expects,” “believes,” “intends,” “should” or comparable terms or the negative
Slide 3: Disclaimers: Tenant and Borrower Information
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 operators and borrowers, most of which are not subject to SEC reporting requirements. The infor
Slide 4: Uniquely Positioned to Thrive
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. February 22, 2022 Inve
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 February 22, 2022 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: Strategy in Action: Quote from Chief Investment Officer
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 22, 2022 Invest
Slide 8: Expanding our Relationship with Sienna
STRATEGY IN ACTION Expanding our Relationship with Sienna ▪ Sabra and Sienna have announced the pending acquisition of a portfolio of 11 high- quality senior housing communities strategically positioned across the provinces of Ontario and Saskatchewan. ▪ Sabra and Sienna will acquire the 1,048 unit
Slide 9: Adaptive Reuse for Behavioral Health
STRATEGY IN ACTION Adaptive Reuse for Behavioral Health 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 u
Slide 10: Good for the Planet. Good for Our Stakeholders.
ENVIRONMENTAL, SOCIAL AND GOVERNANCE Good for the Planet. Good for Our Stakeholders. “ESG principles are intrinsically tied to our objective to drive shareholder value by operating efficiently, sustainably and with our stakeholders’ best interest in mind.” -Rick Matros (he/him), Chief Executive Offi
Slide 11: Committed to Diversity, Equity & Inclusion
ENVIRONMENTAL, SOCIAL AND GOVERNANCE Committed to Diversity, Equity & Inclusion 58% As of February 18, 28% As of February 18, 2022, 28% of our team members 2022, women self-identified as being members comprised 58% of our of one or more ethnic minorities. We believe our ethnic diversity workforce an
Slide 12: Ethics. Transparency. Accountability.
ENVIRONMENTAL, SOCIAL AND GOVERNANCE 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 ESG Regulatory Risk Management Policy February 22,
Slide 13: Our Success Is Predicated on a Healthy Portfolio
PORTFOLIO Our Success Is Predicated on a Healthy Portfolio As of December 31, 2021 443 71% 78% SNF/TC SH - Leased 79% SH - Managed 83% Hosp./Oth. Investments1 Average Occupancy Percentage2 76 40% Relationships Skilled Mix2 7 2.16x 1.04x SNF/TC/Hosp./Oth. SH - Leased Years Wtd. Avg. Remaining Lease T
Slide 14: Diverse Portfolio, Positioned to Perform
PORTFOLIO Diverse Portfolio, Positioned to Perform As of December 31, 2021 Relationship Concentration1 Asset Class Concentration1 North American Specialty Hospital and Healthcare, 8.6% Other, 17.0% Signature Healthcare, 8.4% Avamere Family of Companies, 6.8% Senior Housing - Leased, 12.6% Signature
Slide 15: 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 February 22, 2022 Investor Presentation 15
Slide 16: COVID-19 Impact on Our Business
PORTFOLIO COVID-19 Impact on Our Business ▪ From the beginning of the COVID-19 pandemic through January 2022, we have collected 99.6% of our forecasted rents. This includes drawing on a letter of credit to fund $11.9 million of rent from Avamere. Rent collections through the first three weeks of Feb
Slide 17: COVID-19 Impact on Our Portfolio (Cont.)
PORTFOLIO COVID-19 Impact on Our Portfolio (Cont.) OCCUPANCY TRENDS – SKILLED NURSING ▪ On average, Sabra’s seven largest skilled nursing tenants (representing 39% of Annualized Cash NOI) saw a slight sequential decline in occupancy in the fourth quarter driven primarily by the rise of the Omicron v
Slide 18: COVID-19 Impact on Our Portfolio (Cont.)
PORTFOLIO COVID-19 Impact on Our Portfolio (Cont.) SAME-STORE SENIOR HOUSING – MANAGED ▪ After several months of steady gains following the implementation of vaccine clinics, occupancy growth slowed in the fourth quarter due to the rise of the Omicron variant of COVID-19 and normal seasonality. In a
Slide 19: 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 22, 2022 Investor Presentation 19
Slide 20: We Support Our Operators
OPERATORS We Support Our Operators We Invest in Our Tenants’ Success: • Redevelopment • Expansion • Strategic development • Flexible equity and debt capital solutions February 22, 2022 Investor Presentation 20
Slide 21: Driving Performance with Free Access to Industry-Leading Business Intelligence Tools
OPERATORS Driving Performance with Free Access to Industry-Leading Business Intelligence Tools February 22, 2022 Investor Presentation 21
Slide 22: PointRight Solutions for SNF Tenants
OPERATORS PointRight Solutions for SNF Tenants 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 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: With a strong balance sheet and ready access to capital
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 February 22, 2022 Investor Presentation 24
Slide 25: Balanced Capital Structure
PERFORMANCE Balanced Capital Structure Capital Structure 1 Our diverse menu of capital Common Equity Value options and $1.1 billion of 58% available liquidity ensures that we have ready access to low cost capital to fund our growth. Unsecured Debt CONSOLIDATED 41% ENTERPRISE Our credit facility cont
Slide 26: Strong Investment-Grade Credit Metrics
PERFORMANCE Strong Investment-Grade Credit Metrics Investment grade Sabra 4Q 21 1 peers median 2 Net Debt to Adjusted EBITDA 4.98x 3 6.12x Interest Coverage Ratio 5.19x 3 4.29x Debt as a % of Asset Value 34% 39% Secured Debt as a % of Asset 1% 5% Value 1 Key credit statistics (except Net Debt to Adj
Slide 27: Favorable Profile with Staggered Maturities
PERFORMANCE Favorable Profile with Staggered Maturities Debt maturity profile at December 31, 2021 (Dollars in millions) 1 2 1 Revolving Credit Facility is subject to two six-month extension options. 2 Represents actual contractual interest rates excluding private mortgage insurance and impact of in
Slide 28: Attractive Relative Valuation
PERFORMANCE Attractive Relative Valuation Forward FFO multiples 1 Dividend yield 2 9.5% 8.9% 20.2x 6.6% 6.7% 5.9% 13.4x 11.4x 11.5x 9.6x 8.4x 3.2% SBRA OHI CTRE NHI LTC Big 2 SBRA Big 2 CTRE NHI LTC OHI Average 3 Average 3 Premium / discount to consensus NAV Portfolio composition (% Annualized Cash
Slide 29: Well-Positioned Portfolio
PERFORMANCE Well-Positioned Portfolio SNF concentration 1 Top five relationships SNF EBITDARM SH EBITDARM concentration 1 coverage 1,3 coverage 1 2.80x 64% 64% 2.70x 87% 1.10x 75% 50% 1.06x 2.06x 1.86x 1.04x 61% 59% 39% 36% 1.52x 0.99x 0.95x 32% 4,5 4 SBRA 2 NHI LTC OHI CTRE SBRA 2 OHI LTC NHI CTRE
Slide 30: Appendix
Appendix February 22, 2022 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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