Sabra Health Care Reit, Inc. · NASDAQ:SBRA
Sabra Health Care Reit — Q3 2022 Earnings Presentation
31 slides from Sabra Health Care Reit's earnings presentation, Nov 8, 2022
Slide 1: What Happens Inside Our Buildings Matters Most
What Happens Cost Inside Our Buildings Matters Most Investor Presentation | November 7, 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. 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: Tenant Information and Non-GAAP Measures
Disclaimers Tenant, Operator 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.
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. No
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 November 7, 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: Expanding Relationship with Ensign and Avamere
STRATEGY IN ACTION Expanding Relationship with Ensign and Avamere • As detailed in a separate press release, Sabra announced that it will transition the 24-property portfolio previously leased to North American to two of Sabra’s existing tenants, Ensign and Avamere, for a combined initial annual ren
Slide 8: By consistently executing our strategy, we deliver long-term value
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 November 7, 2022 Investo
Slide 9: Adaptive Reuse for Behavioral Health
STRATEGY IN ACTION Adaptive Reuse for Behavioral Health • Sabra’s growing behavioral health portfolio represents a total investment of approximately $756 million, which accounts for roughly 14% of the Company’s Annualized Cash NOI. • In total, eleven properties have been converted or are in the proc
Slide 10: Good for the Planet. Good for Our Stakeholders.
ENVIRONMENTAL, SOCIAL AND GOVERNANCE Good for the Planet. Good for Our Stakeholders. “We endeavor to operate efficiently, sustainably and always in the best interest of our stakeholders.” -Rick Matros (he/him), Chief Executive Officer Learn more about our commitment to strong corporate governance an
Slide 11: Sabra's ESG Priorities
ENVIRONMENTAL, SOCIAL AND GOVERNANCE Sabra’s ESG Priorities November 7, 2022 Investor Presentation 11
Slide 12: Committed to Diversity, Equity & Inclusion
ENVIRONMENTAL, SOCIAL AND GOVERNANCE Committed to Diversity, Equity & Inclusion We believe a diverse workforce is essential to our continued success, and are integrating our DE&I efforts into our hiring process so that we can achieve our aspirations for a more diverse and culturally inclusive team.
Slide 13: Addressing Critical Health And Wellness Issues In Senior Facilities
ENVIRONMENTAL, SOCIAL AND GOVERNANCE Addressing Critical Health And Wellness Issues In Senior Facilities Sabra is a proud Alliance Member of the Well Living Lab and active participant in WISE— Wellness Innovation in Senior Living—initiative. The initiative will leverage scientific research conducted
Slide 14: WELL Health-Safety Ratings
ENVIRONMENTAL, SOCIAL AND GOVERNANCE WELL Health-Safety Ratings Enlivant, one of Sabra’s largest operators, recently became the first senior living organization to achieve the WELL Health-Safety Rating for its entire portfolio. We are encouraging all our operators to pursue the WELL Health-Safety Ra
Slide 15: Dedicated to Effective Corporate Governance
ENVIRONMENTAL, SOCIAL AND GOVERNANCE Dedicated to Effective Corporate Governance Our strong, independent and diverse board brings unique skill sets and relevant experience that enrich our decision making. Healthcare Real Estate Finance Leadership Portfolio Management ESG Regulatory Risk Management P
Slide 16: Our Success Is Predicated on a Healthy Portfolio
PORTFOLIO Our Success Is Predicated on a Healthy Portfolio As of September 30, 2022 73% 82% 81% 83% 80% 442 1 SNF/TC SH - Leased Average Occupancy Percentage SH - Managed BH 2 Hosp./Oth. Investments 72 Relationships 34% Skilled Mix 2 8 Years Wtd. Avg. 1.83x 1.13x 1.72x 7.30x SNF/TC 3 SH - Leased BH
Slide 17: Diverse Portfolio, Positioned to Perform
PORTFOLIO Diverse Portfolio, Positioned to Perform As of September 30, 2022 1 1 Relationship Concentration Asset Class Concentration Signature Healthcare, 8.7% Behavioral Health, 13.5% Avamere Family of Companies, 8.0% Senior Housing - The Ensign Group, Leased, 11.6% 7.7% Other, 51.7% Signature Beha
Slide 18: 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 November 7, 2022 Investor Presentation 18
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 November 7, 2022 Investor Presentation 19
Slide 20: 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 November 7, 2022 Investor Presentation 20
Slide 21: 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 22: 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 November 7, 2022 Investor Presentation 22
Slide 23: Balanced Capital Structure
PERFORMANCE Balanced Capital Structure 1 Capital Structure Our diverse menu of capital options and $0.9 billion of available liquidity ensures that we have ready access to low cost Common Equity Value capital to fund our growth. 56% Unsecured Debt Our credit facility contains an accordion 43% featur
Slide 24: Strong Investment-Grade Credit Metrics
PERFORMANCE Strong Investment-Grade Credit Metrics 1 Investment grade Sabra 3Q 22 2 peers median 3 Net Debt to Adjusted EBITDA 5.50x 6.00x 3 Interest Coverage Ratio 4.71x 4.30x Debt as a % of Asset Value 35% 39% Secured Debt as a % of Asset Value 1% 5% We expect to reduce leverage closer to our 5.0x
Slide 25: Favorable Profile with Staggered Maturities
PERFORMANCE Favorable Profile with Staggered Maturities Debt maturity profile at September 30, 2022 (Dollars in millions) 5.8% $1,200 4.8% 5.1% 4.5% 3.9% 2.9% 2.9% 2.9% 3.2% 3.1% 2.8% $1,000 $2 $800 $600 $861 $2 $2 $400 $2 800 527 500 $200 350 $2 $0 $139 $2 100 $2 $2 $31 $0 2022 2023 2024 2025 2026
Slide 26: Attractive Valuation Relative to Direct Peers
PERFORMANCE Attractive Valuation Relative to Direct Peers 1 2 Forward FFO multiples Dividend yield 8.9% 8.5% 13.8x 6.6% 12.3x 12.5x 6.0% 6.0% 10.4x 9.0x SBRA OHI CTRE NHI LTC SBRA LTC CTRE NHI OHI 3 Premium / discount to consensus NAV Portfolio composition (% Annualized Cash NOI) 20.4% 1% 5% 8% 18.2
Slide 27: Well-Positioned Portfolio
PERFORMANCE Well-Positioned Portfolio 1 SNF concentration Top five relationships SNF EBITDARM SH EBITDARM 1 1,3 1 concentration Coverage Coverage 93% 71% 2.67x 2.57x 1.13x 67% 1.10x 1.11x 1.01x 0.95x 70% 2.01x 60% 1.83x 58% 46% 41% 37% 1.39x 34% 2 2 4,5 4 SBRA NHI LTC OHI CTRE SBRA OHI LTC NHI CTRE
Slide 28: Appendix
Appendix Appendix November 7, 2022 Investor Presentation 28
Slide 29: 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 30: 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 31: Definitions
APPENDIX Definitions Occupancy Percentage. Occupancy Percentage represents the facilities’ average operating occupancy for the period indicated. The percentages are calculated by dividing the actual census from the period presented by the available beds/units for the same period. Occupancy includes
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