Sabra Health Care Reit, Inc. · NASDAQ:SBRA
Sabra Health Care Reit — Jefferies Real Estate Conference 2021
44 slides from Sabra Health Care Reit's conference presentation, Dec 15, 2021
Slide 1: What Happens Inside Our Buildings Matters Most
What Happens Inside Our Buildings Matters Most Jefferies Real Estate Conference | December 15-16, 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
December 15-16, 2021 Jefferies 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 shareholde
Slide 5: Strategy
December 15-16, 2021 Jefferies 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 Office
Slide 6: Our Strategy — Passion Meets Know-how
December 15-16, 2021 Jefferies 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
Slide 7: Strategy in Action
December 15-16, 2021 Jefferies 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 Invest
Slide 8: Expanding our Relationship with RCA
December 15-16, 2021 Jefferies Real Estate Conference 8 Expanding our Relationship with RCA STRATEGY IN ACTION ▪ Subsequent to September 30, 2021, Sabra closed on the first tranche of the previously announced $325 million mortgage loan, that when fully funded, will be secured by eight inpatient addi
Slide 9: Good for the Planet. Good for Our Stakeholders.
December 15-16, 2021 Jefferies Real Estate Conference 9 Good for the Planet. Good for Our Stakeholders. Our inaugural ESG report is available on our website at sabrahealth.com. “ESG principles are intrinsically tied to our objective to drive shareholder value by operating efficiently, sustainably an
Slide 10: Committed to Diversity, Equity & Inclusion
Committed to Diversity, Equity & Inclusion 56% As of December 1, 2021, women comprised 56% of our workforce and 63% of our management-level/leadership roles. 26% As of December 1, 2021, 26% of our team members self-identified as being members of one or more ethnic minorities. We believe our ethnic d
Slide 11: Ethics. Transparency. Accountability.
December 15-16, 2021 Jefferies 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
Slide 12: Our Success Is Predicated on a Healthy Portfolio
Our Success Is Predicated on a Healthy Portfolio December 15-16, 2021 Jefferies Real Estate Conference 12 1 Excludes (i) one real estate property held for sale as of September 30, 2021 and (ii) our unconsolidated joint venture which consists of 158 facilities and 7,056 units. 2 Occupancy Percentage
Slide 13: Delivering Quality Care
December 15-16, 2021 Jefferies 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) one real estate property held for sale as of September 30, 2021 and (ii) our unconsolidated joint venture which consists of 158 facilities and 7,056 units. Relationship and asset class concentrations use Annualized Cash NOI fo
Slide 15: Portfolio
December 15-16, 2021 Jefferies 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 December 15-16, 2021 Jefferies Real Estate Conference 16 PORTFOLIO ▪ From the beginning of the COVID-19 pandemic through November 2021, we have collected 99.7% of our forecasted rents. This includes drawing on a letter of credit to fund $11.8 million of rent for Septe
Slide 17: COVID-19 Impact on Our Portfolio
COVID-19 Impact on Our Portfolio December 15-16, 2021 Jefferies Real Estate Conference 17 PORTFOLIO AVAMERE ▪ As noted in our September 13, 2021 business update, Avamere has experienced cash flow constraints over the past several months from census declines as a result of a spike in COVID-19 cases i
Slide 18: COVID-19 Impact on Our Portfolio (Cont.)
COVID-19 Impact on Our Portfolio (Cont.) December 15-16, 2021 Jefferies Real Estate Conference 18 PORTFOLIO Average occupancy in our portfolio continues to recover despite the surge of the Delta variant in the broader population during the third quarter. Vaccine uptake has been high among patients a
Slide 19: COVID-19 Impact on Our Portfolio (Cont.)
COVID-19 Impact on Our Portfolio (Cont.) December 15-16, 2021 Jefferies Real Estate Conference 19 PORTFOLIO SENIOR HOUSING – MANAGED OCCUPANCY ▪ Since the roll-out of the vaccines, we continue to see a greater occupancy recovery in higher-acuity communities where pent-up demand is most apparent. Ass
Slide 20: COVID-19: Mitigation (Cont.)
COVID-19: Mitigation (Cont.)1 December 15-16, 2021 Jefferies Real Estate Conference 20 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”
Slide 21: COVID-19: Mitigation (Cont.)
COVID-19: Mitigation (Cont.) December 15-16, 2021 Jefferies Real Estate Conference 21 PORTFOLIO ▪ In addition to the $20 million to $50 million that we estimate may still be recognized in earnings by our tenants from funds they have already received from the PRF, we expect our tenants to receive add
Slide 22: Portfolio Spotlight – Behavioral
Portfolio Spotlight – Behavioral December 15-16, 2021 Jefferies Real Estate Conference 22 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 f
Slide 23: Advancing the Quality of Care
December 15-16, 2021 Jefferies Real Estate Conference 23 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 24: We Support Our Operators
December 15-16, 2021 Jefferies Real Estate Conference 24 We Support Our Operators We Invest in Our Tenants’ Success: • Redevelopment • Expansion • Strategic development • Flexible equity and debt capital solutions OPERATORS
Slide 25: Driving Performance with Free Access to Industry-Leading Business Intelligence Tools
Driving Performance with Free Access to Industry-Leading Business Intelligence Tools December 15-16, 2021 Jefferies Real Estate Conference 25 OPERATORS
Slide 26: PointRight Solutions for SNF Tenants
PointRight Solutions for SNF Tenants December 15-16, 2021 Jefferies Real Estate Conference 26 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
Slide 27: Operator testimonial: Leo Brown Group
December 15-16, 2021 Jefferies Real Estate Conference 27 “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
Slide 28: Performance
December 15-16, 2021 Jefferies Real Estate Conference 28 “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 29: Balanced Capital Structure
Balanced Capital Structure December 15-16, 2021 Jefferies Real Estate Conference 29 Common Equity Value 58% Secured Debt 1% Unsecured Debt 41% Capital Structure 1 Our diverse menu of capital options and $1.2 billion of available liquidity ensures that we have ready access to low cost capital to fund
Slide 30: Strong Investment-Grade Credit Metrics
Sabra 3Q 21 1 Investment grade peers median 2 Net Debt to Adjusted EBITDA 4.81x 3 5.94x Interest Coverage Ratio 5.32x 4.53x Debt as a % of Asset Value 34% 39% Secured Debt as a % of Asset Value 1% 5% Strong Investment-Grade Credit Metrics December 15-16, 2021 Jefferies Real Estate Conference 30 1 Cr
Slide 31: Favorable Profile with Staggered Maturities
Favorable Profile with Staggered Maturities December 15-16, 2021 Jefferies Real Estate Conference 31 PERFORMANCE 1 Assumes the October 7, 2021 redemption of $300 million of 4.8% senior unsecured notes due 2024 occurred as of September 30, 2021. 2 Term loans are pre-payable at par. Weighted Average I
Slide 32: Attractive Relative Valuation
Attractive Relative Valuation December 15-16, 2021 Jefferies Real Estate Conference 32 PERFORMANCE -14.9% -1.3% 0.2% 13.0% 16.1% 17.3% SBRA OHI NHI LTC CTRE Big 2 Average 9.0% 3.3% 4.9% 6.5% 6.9% 9.5% SBRA Big 2 Average CTRE NHI LTC OHI 8.4x 8.6x 11.6x 13.8x 13.8x 20.1x SBRA OHI NHI LTC CTRE Big 2 A
Slide 33: Well-Positioned Portfolio
Well-Positioned Portfolio December 15-16, 2021 Jefferies Real Estate Conference 33 PERFORMANCE SNF concentration 1 1 Represents latest available concentration and coverage for peers as of 12/13/2021. 2 Based on Annualized Cash NOI as of 9/30/2021 for real estate investments, investments in loans rec
Slide 34: Appendix
December 15-16, 2021 Jefferies Real Estate Conference 34 Appendix
Slide 35: Non-GAAP Reconciliations
35 Non-GAAP Reconciliations APPENDIX December 15-16, 2021 Jefferies Real Estate Conference
Slide 36: Non-GAAP Reconciliations
36 APPENDIX December 15-16, 2021 Non-GAAP Reconciliations Jefferies Real Estate Conference
Slide 37: Non-GAAP Reconciliations
37 APPENDIX December 15-16, 2021 Non-GAAP Reconciliations Jefferies Real Estate Conference
Slide 38: Non-GAAP Reconciliations
38 APPENDIX December 15-16, 2021 Non-GAAP Reconciliations Jefferies Real Estate Conference
Slide 39: Non-GAAP Reconciliations
39 APPENDIX December 15-16, 2021 Non-GAAP Reconciliations Jefferies Real Estate Conference
Slide 40: Non-GAAP Reconciliations
40 APPENDIX December 15-16, 2021 Non-GAAP Reconciliations Jefferies Real Estate Conference
Slide 41: Non-GAAP Reconciliations
41 APPENDIX December 15-16, 2021 Non-GAAP Reconciliations Jefferies Real Estate Conference
Slide 42: 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 43: 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 44: Definitions: Senior Housing, Skilled Mix and Other Terms
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 agreements. Skilled Mix. Skil
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