Sabra Health Care Reit, Inc. · NASDAQ:SBRA
Sabra Health Care Reit — BMO 2021 Real Estate Conference
45 slides from Sabra Health Care Reit's conference presentation, Sep 13, 2021
Slide 1: What Happens Inside Our Buildings Matters Most
What Happens Inside Our Buildings Matters Most BMO 2021 Real Estate Conference | September 14, 2021
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
September 14, 2021 BMO 2021 Real Estate Conference 4 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.
Slide 5: Strategy
September 14, 2021 BMO 2021 Real Estate Conference 5 “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 S
Slide 6: Our Strategy — Passion Meets Know-how
September 14, 2021 BMO 2021 Real Estate Conference 6 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 - B
Slide 7: Strategy in Action
September 14, 2021 BMO 2021 Real Estate Conference 7 “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 Investmen
Slide 8: Expanding our Relationship with RCA
September 14, 2021 BMO 2021 Real Estate Conference 8 Expanding our Relationship with RCA STRATEGY IN ACTION ▪ Sabra intends to enter into an agreement to expand its relationship with Recovery Centers of America (“RCA”). Under the proposed agreement with RCA, Sabra would provide RCA a $325 million mo
Slide 9: Good for the Planet. Good for Our Stakeholders.
September 14, 2021 BMO 2021 Real Estate Conference 9 Good for the Planet. Good for Our Stakeholders. Our inaugural ESG report is now available on our website at sabrahealth.com. “ESG principles are intrinsically tied to our objective to drive shareholder value by operating efficiently, sustainably a
Slide 10: Committed to Diversity, Equity & Inclusion
Committed to Diversity, Equity & Inclusion 55% As of August 31, 2021, women comprised 55% of our workforce and 64% of our management-level/leadership roles. 26% As of August 31, 2021, 26% of our team members self-identified as being members of one or more ethnic minorities. We believe our ethnic div
Slide 11: Ethics. Transparency. Accountability.
September 14, 2021 BMO 2021 Real Estate Conference 11 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 Po
Slide 12: Our Success Is Predicated on a Healthy Portfolio
Our Success Is Predicated on a Healthy Portfolio September 14, 2021 BMO 2021 Real Estate Conference 12 1 Excludes (i) three real estate investments held for sale as of 6/30/2021 and (ii) our unconsolidated joint venture which consists of 158 facilities. 2 Average Occupancy Percentage and Skilled Mix
Slide 13: Delivering Quality Care
September 14, 2021 BMO 2021 Real Estate Conference 13 Delivering Quality Care
Slide 14: Diverse Portfolio, Positioned to Perform
1 Concentrations are calculated using Annualized Cash NOI and exclude (i) three real estate properties held for sale as of the end of the current period and (ii) our unconsolidated joint venture which consists of 158 facilities and 7,056 units. Relationship and asset class concentrations use Annuali
Slide 15: Portfolio
September 14, 2021 BMO 2021 Real Estate Conference 15 “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
Slide 16: COVID-19 Impact on Our Business
COVID-19 Impact on Our Business September 14, 2021 BMO 2021 Real Estate Conference 16 PORTFOLIO ▪ From the beginning of the COVID-19 pandemic through August 2021, we have collected 99.8% of our forecasted rents. While we have agreed to temporary pandemic-related rent deferrals for four tenants of tw
Slide 17: COVID-19 Impact on Our Portfolio
COVID-19 Impact on Our Portfolio September 14, 2021 BMO 2021 Real Estate Conference 17 PORTFOLIO AVAMERE ▪ Avamere Family of Companies (“Avamere”) leases 27 skilled nursing/transitional care facilities and one continuing care retirement community from us (primarily in Oregon, Colorado and Washington
Slide 18: COVID-19 Impact on Our Portfolio (Cont.)
COVID-19 Impact on Our Portfolio (Cont.) September 14, 2021 BMO 2021 Real Estate Conference 18 PORTFOLIO Overall, average occupancy in our portfolio continues to recover from its low point as vaccine uptake has been high among patients and residents across the acuity spectrum. However, while infecti
Slide 19: COVID-19 Impact on Our Portfolio (Cont.)
COVID-19 Impact on Our Portfolio (Cont.) September 14, 2021 BMO 2021 Real Estate Conference 19 PORTFOLIO SENIOR HOUSING – MANAGED OCCUPANCY ▪ Average occupancy for our same-store, wholly-owned Senior Housing - Managed portfolio bottomed out during the first half of March 2021 and has increased 413 b
Slide 20: COVID-19: Mitigation
COVID-19: Mitigation September 14, 2021 BMO 2021 Real Estate Conference 20 PORTFOLIO ▪ In response to the COVID-19 pandemic, the federal government approved several relief packages that initially extended to just our Skilled Nursing/Transitional Care facility operators. However, since September 1, 2
Slide 21: COVID-19: Mitigation (Cont.)
COVID-19: Mitigation (Cont.)1 September 14, 2021 BMO 2021 Real Estate Conference 21 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”) f
Slide 22: COVID-19: Mitigation (Cont.)
COVID-19: Mitigation (Cont.) September 14, 2021 BMO 2021 Real Estate Conference 22 PORTFOLIO ▪ We estimate that our operators have received approximately $250 million from the PRF but have only recognized $200 million in their operating results to date. Recognition of the remaining $50 million is de
Slide 23: Portfolio Spotlight – Behavioral
Portfolio Spotlight – Behavioral September 14, 2021 BMO 2021 Real Estate Conference 23 PORTFOLIO 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
Slide 24: Advancing the Quality of Care
September 14, 2021 BMO 2021 Real Estate Conference 24 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
Slide 25: We Support Our Operators
September 14, 2021 BMO 2021 Real Estate Conference 25 We Support Our Operators We Invest in Our Tenants’ Success: • Redevelopment • Expansion • Strategic development • Flexible equity and debt capital solutions OPERATORS
Slide 26: Driving Performance with Free Access to Industry-Leading Business Intelligence Tools
Driving Performance with Free Access to Industry-Leading Business Intelligence Tools September 14, 2021 BMO 2021 Real Estate Conference 26 OPERATORS
Slide 27: PointRight Solutions for SNF Tenants
PointRight Solutions for SNF Tenants September 14, 2021 BMO 2021 Real Estate Conference 27 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 acc
Slide 28: “What started with a single sale/leaseback transaction for a senior living community in Indiana
September 14, 2021 BMO 2021 Real Estate Conference 28 “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
Slide 29: Performance
September 14, 2021 BMO 2021 Real Estate Conference 29 “We continue to enhance our strong balance sheet, which further positions us to capitalize on investment opportunities and paves the way for continued earnings growth.” – Harold Andrews, Jr., Chief Financial Officer PERFORMANCE
Slide 30: Balanced Capital Structure
Balanced Capital Structure September 14, 2021 BMO 2021 Real Estate Conference 30 Common Equity Value 62% Secured Debt 1% Unsecured Debt 37% Capital Structure 1 Our diverse menu of capital options and $1.1 billion of available liquidity ensures that we have ready access to low cost capital to fund ou
Slide 31: Strong Investment-Grade Credit Metrics
Sabra 2Q 21 1 Investment grade peers median 2 LTM Net Debt to Adjusted EBITDA 4.75x 3 5.95x Interest Coverage Ratio 5.20x 4.46x Debt as a % of Asset Value 33% 41% Secured Debt as a % of Asset Value 1% 5% Strong Investment-Grade Credit Metrics September 14, 2021 BMO 2021 Real Estate Conference 31 1 C
Slide 32: Favorable Profile with Staggered Maturities
Favorable Profile with Staggered Maturities September 14, 2021 BMO 2021 Real Estate Conference 32 PERFORMANCE 1 Term loans are pre-payable at par. Weighted Average Interest calculation is inclusive of related interest rate swaps. 2 Revolving Credit Facility is subject to two six-month extension opti
Slide 33: Attractive Relative Valuation
Attractive Relative Valuation September 14, 2021 BMO 2021 Real Estate Conference 33 PERFORMANCE 2.2% 5.9% 14.3% 17.5% 23.2% 34.6% SBRA NHI LTC OHI CTRE Big 2 Average 7.3% 3.0% 4.9% 6.2% 6.7% 8.1% SBRA Big 2 Average CTRE NHI LTC OHI 10.1x 9.9x 11.6x 13.9x 14.0x 21.9x SBRA OHI NHI LTC CTRE Big 2 Avera
Slide 34: Well-Positioned Portfolio
Well-Positioned Portfolio September 14, 2021 BMO 2021 Real Estate Conference 34 PERFORMANCE SNF concentration 1 1 Represents latest available concentration and coverage for peers as of 9/10/2021. 2 Based on Annualized Cash NOI as of 6/30/2021 for real estate investments, investments in loans receiva
Slide 35: Appendix
Appendix September 14, 2021 BMO 2021 Real Estate Conference
Slide 36: Non-GAAP Reconciliations
36 Non-GAAP Reconciliations APPENDIX September 14, 2021 BMO 2021 Real Estate Conference
Slide 37: Non-GAAP Reconciliations
37 APPENDIX September 14, 2021 Non-GAAP Reconciliations BMO 2021 Real Estate Conference
Slide 38: Non-GAAP Reconciliations
38 APPENDIX September 14, 2021 Non-GAAP Reconciliations BMO 2021 Real Estate Conference
Slide 39: Non-GAAP Reconciliations
39 APPENDIX September 14, 2021 Non-GAAP Reconciliations BMO 2021 Real Estate Conference
Slide 40: Non-GAAP Reconciliations
40 APPENDIX September 14, 2021 Non-GAAP Reconciliations BMO 2021 Real Estate Conference
Slide 41: Non-GAAP Reconciliations
41 APPENDIX September 14, 2021 Non-GAAP Reconciliations BMO 2021 Real Estate Conference
Slide 42: Non-GAAP Reconciliations
42 APPENDIX September 14, 2021 Non-GAAP Reconciliations BMO 2021 Real Estate Conference
Slide 43: Definitions: Adjusted EBITDA and Annualized Cash NOI
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 44: Definitions: FFO and AFFO
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 45: Definitions: REVPOR, Senior Housing, Skilled Mix
REVPOR. REVPOR represents the average revenues generated per occupied unit per month at Senior Housing - Managed communities for the period indicated. It is calculated as resident fees and services revenues, excluding Grant Income, divided by average monthly occupied unit days. REVPOR includes only
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