Sabra Health Care Reit, Inc. · NASDAQ:SBRA
Sabra Health Care Reit — REIT World 2011
23 slides from Sabra Health Care Reit's conference presentation, Nov 15, 2011
Slide 1: REIT World Investor Presentation November 2011
REIT WORLD INVESTOR PRESENTATION NOVEMBER 2011
Slide 2: Forward Looking Statements
FORWARD LOOKING STATEMENTS 2 Certain information contained in this presentation includes forward-looking statements. Forward-looking statements include statements regarding our expectations, beliefs, intentions, plans, objectives, goals, strategies, future events or performance and underlying assump
Slide 3: Non-GAAP Financial Measures
NON-GAAP FINANCIAL MEASURES 3 This presentation includes the following financial measures defined as non-GAAP financial measures by the SEC: EBITDA, EBITDAR, EBITDAR(M), funds from operations (FFO), adjusted FFO (AFFO) and normalized AFFO, FFO per share, AFFO per diluted share and normalized AFFO pe
Slide 4: Investment Highlights
Company Update & Investment Highlights
Slide 5: Sabra Has Competitive Industry Presence
SABRA HAS COMPETITIVE INDUSTRY PRESENCE Formation Formed by Opco / Propco split of Sun Healthcare Group Independently traded as of November 2010 (NASDAQ: SBRA) Structured as an UPREIT B+/B2 rating (S&P / Moody's) - S&P upgrade from B on September 30, 2011 Portfolio 97 health care investments(1) 76 s
Slide 6: Opportunity to Be Capital Provider of Choice
OPPORTUNITY TO BE CAPITAL PROVIDER OF CHOICE Few capital providers serving the smaller operators Over 90% of senior housing facilities are owned in portfolios of less than 10 properties (1) Larger health care REITs have made transformational deals and grown significantly Limited debt sources for Sab
Slide 7: Sabra Capitalizes on Opportunity
SABRA CAPITALIZES ON OPPORTUNITY Focused Tactics Execution Diversification from original tenant Exposure to diverse property types within health care sector Increased AFFO Lower cost of capital Sale/ leaseback transactions Focus on deals < $100 mm Triple-net lease structure Broad spectrum of propert
Slide 8: Acquisitions Yield Diversification
ACQUISITIONS YIELD DIVERSIFICATION Strong acquisition activity since inception with approximately $209.0 million of capital invested through November 7, 2011 6 new operator relationships (1 pending) 12 new assets in 4 new states (9 SNFs, 1 AL (pending), 1 Hospital and 1 Debt Investment) Steady pipel
Slide 9: Recent Investment Highlights
Encore Portfolio (Closed November 1, 2011) - Texas 9 Purchase Price: $14.2mm Number of Properties: 2 Windcrest Alzheimer's Care Center Wesley Woods Alzheimer's Care Center Investment Type: Equity Property Type: SNF Available Beds: 240 combined Facility Ages: 7-12 years Annualized GAAP Rental Income:
Slide 10: Impact of Acquisitions: Revenue by Asset Class
IMPACT OF ACQUISITIONS Acquisitions are changing the revenue makeup of our portfolio As of December 31, 2010 As of September 30, 2011 Acquisitions are changing the revenue makeup of our portfolio (1) Pro Forma assumes all acquisitions closed through November 7, 2011 were completed as of January 1, 2
Slide 11: Impact of Acquisitions: Revenue by Tenant
IMPACT OF ACQUISITIONS Acquisitions are changing the revenue makeup of our portfolio Sabra's Annualized Revenue By Tenant 11 Sun 76.7% Texas Regional Medical Center 7.2% Cadia Portfolio 11.6% Aurora Portfolio 2.4% Other 2.1% As of December 31, 2010 As of September 30, 2011 Acquisitions are changing
Slide 12: Rent Coverage Analysis
RENT COVERAGE ANALYSIS Combined portfolio SUN TRMC Oak Brook Cadia Portfolio Actual Coverage facility EBITDARM Coverage (x) 2.07x 1.98x 3.15x 2.02x 2.06x facility EBITDAR Coverage (x) 1.59x 1.45x 3.08x 1.78x 1.67x tenant EBITDAR Coverage (x) 1.82x 1.74x 3.08x 1.78x 1.67x Estimated Facility EBITDAR(M
Slide 13: Sabra's Portfolio & Primary Tenant
sabra's portfolio & Primary Tenant
Slide 14: Strong Portfolio Performance
STRONG PORTFOLIO PERFORMANCE Strong occupancy and skilled mix trends in Sabra's portfolio 90.0% 88.2% 88.2% 87.2% 20% 2009 2010 Q3 2010 Q3 201189.0% 87.3% 87.5% 87.7% 2009 2010 Q3 2010 Q3 2011 39.2% 39.3% 38.6% 41.8% Q3 2011Historical skilled nursing/ health care facilities occupancy (1) Historical
Slide 15: Property Diversification
PROPERTY DIVERSIFICATION Key real estate portfolio information Equity Investments: Skilled Nursing 76 Multi-License Designation 10 Assisted Living 5 Mental Health 2 Independent Living 1 CCRC 1 Acute Care Hospital 1 TOTAL Equity Investments: 96 Debt Investments: 1 Hillside Terrace TOTAL Debt Investme
Slide 16: Geographically Diverse Portfolio
GEOGRAPHICALLY DIVERSE PORTFOLIO 96 equity investments in 22 states (1) $92.6 mm annualized pro forma (2) rental revenue (1) Properties/ facilities by state New Hampshire Connecticut Kentucky Ohio Florida Texas Montana Delware Oklahoma Other States15.6% 11.5% Annualized pro forma(2) rental revenue b
Slide 17: Primary Tenant Overview
PRIMARY TENANT OVERVIEW Sun operates 199 inpatient centers in 25 states 1)Sun defines Adjusted EBITDAR as earnings before loss on discontinued operations, income taxes, interest, net, depreciation and amortization and center rent expense (EBITDAR) before loss on sale of assets, restructuring costs a
Slide 18: Financially Secure Primary Tenant
FINANCIALLY SECURE PRIMARY TENANT 18 $150.8 million of liquidity as of September 30, 2011(5) 0.46x Net Debt-to-Adjusted EBITDA ratio(6) (1)For the quarter ended September 30, 2011. (2)Sun defines Adjusted EBITDAR as earnings before loss on discontinued operations, income taxes, interest, net, deprec
Slide 19: Financial Overview
Financial Overview
Slide 20: Financial Highlights: Income Statement and Other Data
FINANCIAL HIGHLIGHTS Income statement and other data Revenues $21.5 $23.4 $57.9 $70.0 G&A costs 4.7 4.8 10.3 10.4 EBITDA16.8 18.6 47.6 59.6 Net income2.3 3.6 5.7 14.5 FFO9.2 11.0 24.9 36.9 AFFO 12.5 14.4 31.9 41.8 Normalized AFFO12.5 14.4 32.2 42.1 Per share data: Diluted EPS$0.07$0.10$0.20$0.39 Dil
Slide 21: Financial Highlights: Balance Sheet and Other Data
FINANCIAL HIGHLIGHTS Balance sheet and other data Cash$56.4$42.2 Real Estate, Gross Book Value 757.1 771.3 Real Estate, Asset Value (2) 909.5 923.7 Mortgage Note Receivable 5.3 5.3 Total Debt 384.2 384.2 Total Equity 329.9 329.9 Capitalization 714.1 714.1 Liquidity156.4 142.2 Debt Covenants (3)MAXAc
Slide 22: Investment Highlights Summary
Geographically Diverse Portfolio Attractive Industry Fundamentals Favorable Long-Term Lease Structure Strong Lease Coverage Strong Asset Coverage Financially Secure Primary Tenant Growth Opportunities Experienced Management Team
Slide 23: Reconciliation of Net Income to EBITDA, FFO, AFFO and Normalized AFFO
Reconciliation of Net Income to EBITDA, Funds from Operations (FFO), Adjusted Funds from Operations (AFFO) and Normalized AFFO Three Months Ended September 30, 2011 Nine Months Ended September 30, 2011 Net income $2.3$3.6 $5.7 $14.5 Interest expense 7.67.6 22.7 22.7 Depreciation and amortization6.97