Sabra Health Care Reit, Inc. · NASDAQ:SBRA
Sabra Health Care Reit — Q1 2023 Earnings Presentation
30 slides from Sabra Health Care Reit's earnings presentation, May 4, 2023
Slide 1: Committed to Long-Term Value: What Happens Inside Our Buildings Matters Most
Committed What Happens Cost to Inside Our Buildings Long-Term Value Matters Most Investor Presentation | May 3, 2, 2023
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 and Borrower Information, Non-GAAP Measures
Disclaimers 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
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. Ma
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 May 3, 2023 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: By consistently and deliberately 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 May 3, 2023 Investor Pre
Slide 8: 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 $793 million, which accounts for roughly 14% of the Company’s Annualized Cash NOI as of March 31, 2023. • Our portfolio of owned addiction treatment ce
Slide 9: 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 10: Sabra's ESG Priorities
ENVIRONMENTAL, SOCIAL AND GOVERNANCE Sabra’s ESG Priorities May 3, 2023 Investor Presentation 10
Slide 11: 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 gives us a competitive advantage. We integrated DE&I into our hiring process, which has proven to be successful in our hiring of top talent from di
Slide 12: 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 13: WELL Health-Safety Ratings
ENVIRONMENTAL, SOCIAL AND GOVERNANCE WELL Health-Safety Ratings Claiborne, Holiday, Paradigm, Sienna and Solvere, some of Sabra’s Senior Housing - Managed operators, are the latest to achieve the WELL Health-Safety Rating for their Sabra-owned portfolios. We are encouraging all our operators to purs
Slide 14: 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 15: Our Success Is Predicated on a Healthy Portfolio
PORTFOLIO Our Success Is Predicated on a Healthy Portfolio As of March 31, 2023 74% 86% 84% 77% 431 1 SNF/TC SH - Leased Average Occupancy Percentage BH Hosp./Oth. 2 Investments 72 Relationships 35% Skilled Mix 2 8 Years Wtd. Avg. 1.63x 1.14x 1.71x 6.40x SNF/TC SH - Leased BH Hosp./Oth. 2 Remaining
Slide 16: Diverse Portfolio, Positioned to Perform
PORTFOLIO Diverse Portfolio, Positioned to Perform As of March 31, 2023 1 1 Relationship Concentration Asset Class Concentration Signature Healthcare, 9.0% Behavioral Health, 13.6% The Ensign Group, 8.3% Avamere Family Senior Housing - Other, 48.3% of Companies, Managed, 14.4% 7.6% Signature Behavio
Slide 17: 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 May 3, 2023 Investor Presentation 17
Slide 18: 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 May 3, 2023 Investor Presentation 18
Slide 19: 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 May 3, 2023 Investor Presentation 19
Slide 20: 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 21: 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 May 3, 2023 Investor Presentation 21
Slide 22: Balanced Capital Structure
PERFORMANCE Balanced Capital Structure 1 Capital Structure Our diverse menu of capital options and $1.0 billion of available liquidity ensures that Common Equity Value we have ready access to low cost capital 52% to fund our growth. Unsecured Debt 47% Our credit facility contains an accordion featur
Slide 23: Strong Investment-Grade Credit Metrics
PERFORMANCE Strong Investment-Grade Credit Metrics 1 Investment-Grade Sabra 1Q 23 2 peers median 3 Net Debt to Adjusted EBITDA 5.52x 5.82x 3 Interest Coverage Ratio 4.34x 4.10x Debt as a % of Asset Value 36% 38 % Secured Debt as a % of Asset Value 1% 5% We continue to focus on strengthening our bala
Slide 24: Favorable Profile with Staggered Maturities
PERFORMANCE Favorable Profile with Staggered Maturities Debt maturity profile at March 31, 2023 (Dollars in millions) 5.9% 6.2% 5.1% $1,200 3.9% 3.2% 2.9% 3.1% 2.9% 2.9% 2.9% 2.9% $1,000 $2 $800 $920 $600 $2 $2 $400 $2 800 500 541 $200 350 80 $1 $2 $2 100 $2 $2 $29 $0 — 2023 2024 2025 2026 2027 2028
Slide 25: Attractive Valuation Relative to Direct Peers
PERFORMANCE Attractive Valuation Relative to Direct Peers 1 2 Forward FFO multiples Dividend yield 10.5% 10.0% 6.8% 7.2% 13.2x 11.7x 12.4x 5.7% 9.8x 8.3x SBRA OHI NHI LTC CTRE SBRA CTRE LTC NHI OHI 3 Premium / discount to consensus NAV Portfolio composition (% Annualized Cash NOI) 1% 5% 18% 12% 10.2
Slide 26: Well-Positioned Portfolio
PERFORMANCE Well-Positioned Portfolio 1 SNF concentration Top five relationships SNF EBITDARM SH EBITDARM 1 1,3 1 concentration Coverage Coverage 92% 70% 2.66x 65% 2.47x 1.14x 1.14x 1.16x 1.10x 1.10x 75% 58% 47% 57% 1.70x 1.63x 40% 37% 1.37x 35% 2 2 4 4 SBRA NHI LTC OHI CTRE SBRA OHI LTC NHI CTRE SB
Slide 27: Appendix
Appendix Appendix May 3, 2023 Investor Presentation 27
Slide 28: 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 29: 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 30: 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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