Sabra Health Care Reit, Inc. · NASDAQ:SBRA
Sabra Health Care Reit — Investor Presentation (June 2011)
22 slides from Sabra Health Care Reit's investor presentation, Jun 7, 2011
Slide 1: Investor Presentation
Exhibit 99.1 INVESTOR PRESENTATION June 2011
Slide 2: Forward Looking Statements
FORWARD LOOKING STATEMENTS Statements made in this presentation that are not historical facts are “forward-looking” statements (as defined in the Private Securities Litigation Reform Act of 1995) that involve risksuncertainties and and are subject to change at any time. These statements may be ident
Slide 3: Non-GAAP Financial Measures
NON-GAAP FINANCIAL MEASURES This presentation includes the following financial measures defined as non-GAAP financial measures by the SEC: EBITDA, Adjusted EBITDA, funds from operations (“FFO”), adjusted FFO (“AFFO”), and normalized AFFO. These measures may be different than non-GAAP financial measu
Slide 4: Company Overview & Investment Highlights
ke r _~ == Company Overview & ‘jy Investment Highlights ASABAA —_"
Slide 5: Sabra Has Competitive Industry Presence
SABRA HAS COMPETITIVE INDUSTRY PRESENCE Formed by Opco/ Propco split of Sun Healthcare Group Independently traded as of November 2010 (NASDAQ: SBRA) Formation Structured as an UPREIT B/B2 rating (S&P/ Moody’s) 87 health care investments* Portfolio 67 skilled nursing facilities 86 leased to Sun Healt
Slide 6: Opportunity
OPPORTUNITY Few capital providers serving the smaller operators Over90%of seniorhousingfacilitiesare owned in portfolios of lessthan 10 properties(1) Larger health care REITs have made transformational deals and grown significantly Lack of debt sources limits private equity activity Uncertainty surr
Slide 7: Sabra Capitalizes on Opportunity
SABRA CAPITALIZES ON OPPORTUNITY Focused Tactics Execution 7
Slide 8: Acquisitions Yield Diversification
ACQUISITIONS YIELD DIVERSIFICATION Acquisition of Texas Regional Medical Center and Hillside Terrace Note Agreement to acquire Oak Brook Health Care Facility Steady pipeline across spectrum of healthcare real estate 8
Slide 9: Investment Highlights
INVESTMENT HIGHLIGHTS Texas Regional Medical Center at Sunnyvale * (Closed May 3, 2011) Purchase Price: $62.7mm Investment Type: Equity Oak Brook Health Care Facility Property Type: Acute Care Hospital ** (Expected to close Q2 2011) Available Beds: 70 Facility Age: 1.5 years Purchase Price: $11.3mm
Slide 10: Impact of Acquisitions
IMPACT OF ACQUISITIONS (as of March 31, 2011) Acquisitions are changing the revenue makeup of our portfolio Sabra’s Revenue 94.6% 85.5% 5.4% 5.3% 8.4% 0.8% Actual Pro Forma(1) (2) (3) Skilled Nursing/ Healthcare Facilities Senior Housing Hospital Interest Income(4) $79.3 million of invested capital
Slide 11: Capital Deployment and Growth Strategy
CAPITAL DEPLOYMENT AND GROWTH STRATEGY Sabra’s capital deployment strategy Long-term benefits for Sabra and investors Deploy available liquidity into accretive acquisitions Reduce Sun revenue concentration and diversify asset base Improve credit rating statistics Replenish or expand revolver Continu
Slide 12: Sabra's Portfolio & Major Tenant
Sabra’s Portfolio & Major Tenant
Slide 13: Strong Portfolio Performance
STRONG PORTFOLIO PERFORMANCE Strong occupancy and skilled mix trends in Sabra’s portfolio HistoricalSkilledNursing/HealthcareFacilitiesOccupancy (1) Historical Overall Occupancy (1) Skilled nursing and healthcare facilities include skilled nursing, multi-license designation and mental health facilit
Slide 14: Property Diversification
PROPERTY DIVERSIFICATION (as of March 31, 2011) Key real estate Geographically diversified portfolio of skilled nursing and portfolio information senior housing assets (as of March 31, 2011) Investments: 8 5 1 2 Equity Investments: 4 Skilled Nursing 67 1 3 Multi-License Designation 10 1 Assisted Liv
Slide 15: Geographically Diverse Portfolio
GEOGRAPHICALLY DIVERSE PORTFOLIO (as of March 31, 2011) (1) (2) 87 investments in 20 states 9,603 licensed beds Properties/ Facilities by State Beds/ Units by State 5.7% 9.9% 9.2% 17.2% (1) Sabra has 86 equity investments in 19 states and 1 debt investment in 1 state as of March 31, 2011. (2) The ab
Slide 16: Primary Tenant Overview
PRIMARY TENANT OVERVIEW (as of March 31, 2011) Sun operates 199 inpatient centers in 25 states Key portfolio information (as of March 31, 2011) Number of Centers: 199 15 5 Property Type: 5 Skilled Nursing 163 (82%) 18 Multi-License Designation 16 (8%) Assisted Living 10 (5%) 11 2 Mental Health 8 (4%
Slide 17: Financially Secure Major Tenant
FINANCIALLY SECURE MAJOR TENANT Attractive business profile Corporate guarantee across diverse healthcare services Sun Healthcare Group, SunBridge Healthcare, CareerStaff, SolAmor Hospice, SunDance Rehabilitation Strong operating performance $483.9 million in Revenue* $63.9 million in Adjusted EBITD
Slide 18: Financial Overview
Financial Overview ASABAA —
Slide 19: Financial Highlights
FINANCIAL HIGHLIGHTS Income statement and other data (in millions, except per share data and %) For Three Months Ended March 31, 2011 (1) Actual Pro Forma Revenues $ 17.6 $ 19.7 G&A costs 2.7 4.3 EBITDA 14.9 15.5 Net income 1.2 1.4 Adjusted EBITDA 16.2 18.3 FFO 7.3 7.9 AFFO 9.0 10.9 Normalized AFFO
Slide 20: Financial Highlights
FINANCIAL HIGHLIGHTS Balance sheet and other data (dollars in millions) As of March 31, 2011 Actual Pro Forma (1) Cash $ 80.2 $ 4.6 Real Estate, Gross Book Value 571.0 645.0 Real Estate, Asset Value (2) 720.0 794.0 Mortgage Note Receivable 5.3 5.3 Total Debt 385.7 385.7 Total Equity 179.9 179.9 Capi
Slide 21: Investment Highlights Summary
INVESTMENT HIGHLIGHTS SUMMARY Geographically Diverse Portfolio Experienced Attractive Industry Management Team Fundamentals Growth Favorable Long-Term Opportunities Lease Structure Financially Secure Strong Lease Primary Tenant Coverage Strong Asset Coverage 21
Slide 22: Actual and Pro Forma Reconciliation
ACTUAL AND PRO FORMA RECONCILIATION Reconciliation of Net Income to EBITDA, Adjusted EBITDA, Funds from Operations (FFO), Adjusted Funds from Operations (AFFO) and Normalized AFFO (in millions) Three Months Ended March 31, 2011 (1) Actual Pro Forma Net income $ 1.2 $ 1.4 Interest expense 7.6 7.6 Dep
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