Sabra Reports Fourth Quarter 2023 Results; Introduces 2024 Guidance
FOURTH QUARTER 2023 RESULTS AND RECENT EVENTS
-
Results per diluted common share for the fourth quarter of 2023 were as follows:
-
Net Income:
$0.07 -
FFO:
$0.30 -
Normalized FFO:
$0.32 -
AFFO:
$0.32 -
Normalized AFFO:
$0.33
-
Net Income:
-
EBITDARM Coverage Summary:
- Skilled Nursing/Transitional Care: 1.78x (1.72x excluding Provider Relief Funds)
Senior Housing - Leased: 1.28xBehavioral Health : 1.85x- Specialty Hospitals & Other: 7.00x
-
During the fourth quarter of 2023, Sabra expanded its relationship with
Ignite Medical Resorts through the$38.8 million acquisition of two skilled nursing facilities with a cash lease yield of 9.5%. -
On
February 1, 2024 , Sabra’s Board of Directors declared a quarterly cash dividend of$0.30 per share of common stock. The dividend will be paid onFebruary 29, 2024 to common stockholders of record as of the close of business onFebruary 13, 2024 .
2024 GUIDANCE
We are introducing 2024 earnings guidance ranges as follows (attributable to common stockholders, per diluted common share):
-
Net Income:
$0.53 -$0.57 -
FFO:
$1.33 -$1.37 -
Normalized FFO:
$1.34 -$1.38 -
AFFO:
$1.38 -$1.42 -
Normalized AFFO:
$1.39 -$1.43
Earnings guidance above assumes no 2024 acquisition or disposition activity.
Commenting on the fourth quarter’s results,
LIQUIDITY
As of
CONFERENCE CALL AND COMPANY INFORMATION
A conference call with a simultaneous webcast to discuss the 2023 fourth quarter results will be held on
ABOUT SABRA
As of
FORWARD-LOOKING STATEMENTS SAFE HARBOR
This release 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 identified, without limitation, by the use of “expects,” “believes,” “intends,” “should” or comparable terms or the negative thereof. Examples of forward-looking statements include all statements regarding our expectations regarding earnings growth; and our other expectations regarding our future financial position (including our earnings guidance for 2024, as well as the assumptions set forth therein), results of operations, cash flows, liquidity, business strategy, growth opportunities, potential investments and dispositions, and plans and objectives for future operations and capital raising activity.
Our actual results may differ materially from those projected or contemplated by our forward-looking statements as a result of various factors, including, among others, the following: increased labor costs and historically low unemployment; increases in market interest rates and inflation; pandemics or epidemics, including COVID-19, and the related impact on our tenants, borrowers and
Additional information concerning risks and uncertainties that could affect our business can be found in our filings with the
TENANT AND BORROWER INFORMATION
This release includes information regarding certain of our tenants that lease properties from us and our borrowers, most of which are not subject to
NOTE REGARDING NON-GAAP FINANCIAL MEASURES
This release includes the following financial measures defined as non-GAAP financial measures by the
CONSOLIDATED STATEMENTS OF INCOME (LOSS) (dollars in thousands, except per share data) |
|||||||||||||||
|
Three Months Ended |
|
Year Ended |
||||||||||||
|
2023 |
|
2022 |
|
2023 |
|
2022 |
||||||||
Revenues: |
|
|
|
|
|
|
|
||||||||
Rental and related revenues (1) |
$ |
93,037 |
|
|
$ |
103,318 |
|
|
$ |
376,266 |
|
|
$ |
400,586 |
|
Resident fees and services |
|
61,256 |
|
|
|
52,699 |
|
|
|
236,153 |
|
|
|
186,672 |
|
Interest and other income |
|
9,104 |
|
|
|
8,968 |
|
|
|
35,095 |
|
|
|
37,553 |
|
|
|
|
|
|
|
|
|
||||||||
Total revenues |
|
163,397 |
|
|
|
164,985 |
|
|
|
647,514 |
|
|
|
624,811 |
|
|
|
|
|
|
|
|
|
||||||||
Expenses: |
|
|
|
|
|
|
|
||||||||
Depreciation and amortization |
|
42,876 |
|
|
|
49,927 |
|
|
|
183,087 |
|
|
|
187,782 |
|
Interest |
|
27,940 |
|
|
|
27,898 |
|
|
|
112,964 |
|
|
|
105,471 |
|
Triple-net portfolio operating expenses |
|
4,689 |
|
|
|
4,640 |
|
|
|
17,932 |
|
|
|
19,623 |
|
Senior housing - managed portfolio operating expenses |
|
45,189 |
|
|
|
39,155 |
|
|
|
177,313 |
|
|
|
142,990 |
|
General and administrative |
|
16,679 |
|
|
|
10,853 |
|
|
|
47,472 |
|
|
|
39,574 |
|
(Recovery of) provision for loan losses and other reserves |
|
(358 |
) |
|
|
153 |
|
|
|
191 |
|
|
|
141 |
|
Impairment of real estate |
|
7,268 |
|
|
|
21,440 |
|
|
|
14,332 |
|
|
|
94,042 |
|
|
|
|
|
|
|
|
|
||||||||
Total expenses |
|
144,283 |
|
|
|
154,066 |
|
|
|
553,291 |
|
|
|
589,623 |
|
|
|
|
|
|
|
|
|
||||||||
Other (expense) income: |
|
|
|
|
|
|
|
||||||||
Loss on extinguishment of debt |
|
— |
|
|
|
— |
|
|
|
(1,541 |
) |
|
|
(411 |
) |
Other income (expense) |
|
28 |
|
|
|
4 |
|
|
|
2,598 |
|
|
|
(1,097 |
) |
Net loss on sales of real estate |
|
(732 |
) |
|
|
(7,430 |
) |
|
|
(76,625 |
) |
|
|
(12,011 |
) |
|
|
|
|
|
|
|
|
||||||||
Total other expense |
|
(704 |
) |
|
|
(7,426 |
) |
|
|
(75,568 |
) |
|
|
(13,519 |
) |
|
|
|
|
|
|
|
|
||||||||
Income before loss from unconsolidated joint ventures and income tax expense |
|
18,410 |
|
|
|
3,493 |
|
|
|
18,655 |
|
|
|
21,669 |
|
|
|
|
|
|
|
|
|
||||||||
Loss from unconsolidated joint ventures |
|
(761 |
) |
|
|
(88,317 |
) |
|
|
(2,897 |
) |
|
|
(98,032 |
) |
Income tax expense |
|
(493 |
) |
|
|
(124 |
) |
|
|
(2,002 |
) |
|
|
(1,242 |
) |
|
|
|
|
|
|
|
|
||||||||
Net income (loss) |
$ |
17,156 |
|
|
$ |
(84,948 |
) |
|
$ |
13,756 |
|
|
$ |
(77,605 |
) |
|
|
|
|
|
|
|
|
||||||||
Net income (loss), per: |
|
|
|
|
|
|
|
||||||||
|
|
|
|
|
|
|
|
||||||||
Basic common share |
$ |
0.07 |
|
|
$ |
(0.37 |
) |
|
$ |
0.06 |
|
|
$ |
(0.34 |
) |
|
|
|
|
|
|
|
|
||||||||
Diluted common share |
$ |
0.07 |
|
|
$ |
(0.37 |
) |
|
$ |
0.06 |
|
|
$ |
(0.34 |
) |
|
|
|
|
|
|
|
|
||||||||
Weighted average number of common shares outstanding, basic |
|
231,224,840 |
|
|
|
230,986,260 |
|
|
|
231,203,391 |
|
|
|
230,947,895 |
|
|
|
|
|
|
|
|
|
||||||||
Weighted average number of common shares outstanding, diluted |
|
233,200,180 |
|
|
|
230,986,260 |
|
|
|
232,792,778 |
|
|
|
230,947,895 |
|
(1) |
See page 5 for additional details regarding Rental and related revenues. |
CONSOLIDATED STATEMENTS OF INCOME (LOSS) - SUPPLEMENTAL INFORMATION (in thousands) |
|||||||||||||||
|
Three Months Ended |
|
Year Ended |
||||||||||||
|
2023 |
|
2022 |
|
2023 |
|
2022 |
||||||||
Cash rental income |
$ |
87,233 |
|
|
$ |
96,501 |
|
$ |
352,277 |
|
|
$ |
385,033 |
|
|
Straight-line rental income |
|
1,693 |
|
|
|
1,219 |
|
|
|
5,392 |
|
|
|
8,261 |
|
Straight-line rental income receivable write-offs |
|
(1,004 |
) |
|
|
— |
|
|
|
(2,514 |
) |
|
|
(17,068 |
) |
Above/below market lease amortization |
|
1,229 |
|
|
|
1,569 |
|
|
|
5,821 |
|
|
|
6,299 |
|
Above/below market lease intangible write-offs |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
326 |
|
Operating expense recoveries |
|
3,886 |
|
|
|
4,029 |
|
|
|
15,290 |
|
|
|
17,735 |
|
|
|
|
|
|
|
|
|
||||||||
Rental and related revenues |
$ |
93,037 |
|
|
$ |
103,318 |
|
|
$ |
376,266 |
|
|
$ |
400,586 |
|
CONSOLIDATED BALANCE SHEETS (dollars in thousands, except per share data) |
|||||||
|
|
|
|
||||
Assets |
|
|
|
||||
Real estate investments, net of accumulated depreciation of |
$ |
4,617,261 |
|
|
$ |
4,959,343 |
|
Loans receivable and other investments, net |
|
420,624 |
|
|
|
411,396 |
|
Investment in unconsolidated joint ventures |
|
136,843 |
|
|
|
134,962 |
|
Cash and cash equivalents |
|
41,285 |
|
|
|
49,308 |
|
Restricted cash |
|
5,434 |
|
|
|
4,624 |
|
Lease intangible assets, net |
|
30,897 |
|
|
|
40,131 |
|
Accounts receivable, prepaid expenses and other assets, net |
|
133,806 |
|
|
|
147,908 |
|
Total assets |
$ |
5,386,150 |
|
|
$ |
5,747,672 |
|
|
|
|
|
||||
Liabilities |
|
|
|
||||
Secured debt, net |
$ |
47,301 |
|
|
$ |
49,232 |
|
Revolving credit facility |
|
94,429 |
|
|
|
196,982 |
|
Term loans, net |
|
537,120 |
|
|
|
526,129 |
|
Senior unsecured notes, net |
|
1,735,253 |
|
|
|
1,734,431 |
|
Accounts payable and accrued liabilities |
|
136,981 |
|
|
|
142,259 |
|
Lease intangible liabilities, net |
|
32,532 |
|
|
|
42,244 |
|
Total liabilities |
|
2,583,616 |
|
|
|
2,691,277 |
|
|
|
|
|
||||
Equity |
|
|
|
||||
Preferred stock, |
|
— |
|
|
|
— |
|
Common stock, |
|
2,313 |
|
|
|
2,310 |
|
Additional paid-in capital |
|
4,494,755 |
|
|
|
4,486,967 |
|
Cumulative distributions in excess of net income |
|
(1,718,279 |
) |
|
|
(1,451,945 |
) |
Accumulated other comprehensive income |
|
23,745 |
|
|
|
19,063 |
|
Total equity |
|
2,802,534 |
|
|
|
3,056,395 |
|
Total liabilities and equity |
$ |
5,386,150 |
|
|
$ |
5,747,672 |
|
CONSOLIDATED STATEMENTS OF CASH FLOWS (in thousands) |
|||||||
|
Year Ended |
||||||
|
2023 |
|
2022 |
||||
Cash flows from operating activities: |
|
|
|
||||
Net income (loss) |
$ |
13,756 |
|
|
$ |
(77,605 |
) |
Adjustments to reconcile net income (loss) to net cash provided by operating activities: |
|
|
|
||||
Depreciation and amortization |
|
183,087 |
|
|
|
187,782 |
|
Non-cash rental and related revenues |
|
(8,699 |
) |
|
|
2,183 |
|
Non-cash interest income |
|
(372 |
) |
|
|
(2,285 |
) |
Non-cash interest expense |
|
12,265 |
|
|
|
11,094 |
|
Stock-based compensation expense |
|
7,917 |
|
|
|
7,453 |
|
Loss on extinguishment of debt |
|
1,541 |
|
|
|
411 |
|
Provision for loan losses and other reserves |
|
191 |
|
|
|
141 |
|
Net loss on sales of real estate |
|
76,625 |
|
|
|
12,011 |
|
Impairment of real estate |
|
14,332 |
|
|
|
94,042 |
|
Other-than-temporary impairment of unconsolidated joint ventures |
|
— |
|
|
|
57,778 |
|
Loss from unconsolidated joint ventures |
|
2,897 |
|
|
|
40,254 |
|
Distributions of earnings from unconsolidated joint ventures |
|
3,469 |
|
|
|
— |
|
Other non-cash items |
|
(3,704 |
) |
|
|
2,167 |
|
Changes in operating assets and liabilities: |
|
|
|
||||
Accounts receivable, prepaid expenses and other assets, net |
|
(11,078 |
) |
|
|
(6,443 |
) |
Accounts payable and accrued liabilities |
|
8,344 |
|
|
|
(13,250 |
) |
Net cash provided by operating activities |
|
300,571 |
|
|
|
315,733 |
|
Cash flows from investing activities: |
|
|
|
||||
Acquisition of real estate |
|
(78,530 |
) |
|
|
(92,204 |
) |
Origination and fundings of loans receivable |
|
(11,418 |
) |
|
|
(23,812 |
) |
Origination and fundings of preferred equity investments |
|
(11,023 |
) |
|
|
(8,021 |
) |
Additions to real estate |
|
(84,855 |
) |
|
|
(54,473 |
) |
Escrow deposits for potential investments |
|
— |
|
|
|
(780 |
) |
Repayments of loans receivable |
|
9,274 |
|
|
|
5,272 |
|
Repayments of preferred equity investments |
|
5,460 |
|
|
|
5,376 |
|
Investment in unconsolidated joint ventures |
|
(5,235 |
) |
|
|
(142,910 |
) |
Net proceeds from the sales of real estate |
|
247,622 |
|
|
|
87,304 |
|
Net proceeds from sales-type lease |
|
25,490 |
|
|
|
— |
|
Deposits for potential sale of real estate |
|
— |
|
|
|
8,000 |
|
Insurance proceeds |
|
5,801 |
|
|
|
— |
|
Distributions in excess of earnings from unconsolidated joint ventures |
|
544 |
|
|
|
— |
|
Net cash provided by (used in) investing activities |
|
103,130 |
|
|
|
(216,248 |
) |
Cash flows from financing activities: |
|
|
|
||||
Net (repayments of) borrowings from revolving credit facility |
|
(104,338 |
) |
|
|
204,046 |
|
Proceeds from term loans |
|
12,188 |
|
|
|
— |
|
Principal payments on term loans |
|
— |
|
|
|
(63,750 |
) |
Principal payments on secured debt |
|
(1,979 |
) |
|
|
(17,516 |
) |
Payments of deferred financing costs |
|
(18,142 |
) |
|
|
(20 |
) |
Payment of contingent consideration |
|
(17,900 |
) |
|
|
(2,500 |
) |
Issuance of common stock, net |
|
(2,682 |
) |
|
|
(4,810 |
) |
Dividends paid on common stock |
|
(277,447 |
) |
|
|
(277,157 |
) |
Net cash used in financing activities |
|
(410,300 |
) |
|
|
(161,707 |
) |
Net decrease in cash, cash equivalents and restricted cash |
|
(6,599 |
) |
|
|
(62,222 |
) |
Effect of foreign currency translation on cash, cash equivalents and restricted cash |
|
(614 |
) |
|
|
268 |
|
Cash, cash equivalents and restricted cash, beginning of period |
|
53,932 |
|
|
|
115,886 |
|
Cash, cash equivalents and restricted cash, end of period |
$ |
46,719 |
|
|
$ |
53,932 |
|
CONSOLIDATED STATEMENTS OF CASH FLOWS (CONTINUED) (in thousands) |
|||||||
|
Year Ended |
||||||
|
2023 |
|
2022 |
||||
Supplemental disclosure of cash flow information: |
|
|
|
||||
Interest paid |
$ |
102,409 |
|
$ |
97,723 |
||
Income taxes paid |
$ |
1,670 |
|
|
$ |
1,657 |
|
Supplemental disclosure of non-cash investing activities: |
|
|
|
||||
Decrease in loans receivable and other investments due to acquisition of real estate |
$ |
4,644 |
|
|
$ |
14,311 |
|
FUNDS FROM OPERATIONS (FFO), NORMALIZED FFO, ADJUSTED FUNDS FROM OPERATIONS (AFFO) AND NORMALIZED AFFO (dollars in thousands, except per share data) |
|||||||||||||||
|
Three Months Ended |
|
Year Ended |
||||||||||||
|
2023 |
|
2022 |
|
2023 |
|
2022 |
||||||||
Net income (loss) |
$ |
17,156 |
|
|
$ |
(84,948 |
) |
|
$ |
13,756 |
|
|
$ |
(77,605 |
) |
Add: |
|
|
|
|
|
|
|
||||||||
Depreciation and amortization of real estate assets |
|
42,876 |
|
|
|
49,927 |
|
|
|
183,087 |
|
|
|
187,782 |
|
Depreciation, amortization and impairment of real estate assets related to unconsolidated joint ventures |
|
2,192 |
|
|
|
6,239 |
|
|
|
8,697 |
|
|
|
22,095 |
|
Net loss on sales of real estate |
|
732 |
|
|
|
7,430 |
|
|
|
76,625 |
|
|
|
12,011 |
|
Net gain on sales of real estate related to unconsolidated joint ventures |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
(220 |
) |
Impairment of real estate |
|
7,268 |
|
|
|
21,440 |
|
|
|
14,332 |
|
|
|
94,042 |
|
Other-than-temporary impairment of unconsolidated joint ventures |
|
— |
|
|
|
57,778 |
|
|
|
— |
|
|
|
57,778 |
|
FFO |
$ |
70,224 |
|
|
$ |
57,866 |
|
|
$ |
296,497 |
|
|
$ |
295,883 |
|
Write-offs of cash and straight-line rental income receivable and lease intangibles |
|
1,030 |
|
|
|
— |
|
|
|
2,519 |
|
|
|
15,831 |
|
Lease termination income |
|
— |
|
|
|
(139 |
) |
|
|
— |
|
|
|
(2,477 |
) |
Loss on extinguishment of debt |
|
— |
|
|
|
— |
|
|
|
1,541 |
|
|
|
411 |
|
(Recovery of) provision for loan losses and other reserves |
|
(358 |
) |
|
|
153 |
|
|
|
191 |
|
|
|
141 |
|
Deferred tax valuation allowance related to unconsolidated joint ventures |
|
— |
|
|
|
19,613 |
|
|
|
— |
|
|
|
19,613 |
|
Support payments paid to joint venture manager (1) |
|
— |
|
|
|
6,370 |
|
|
|
— |
|
|
|
12,250 |
|
Other normalizing items (2) |
|
4,551 |
|
|
|
842 |
|
|
|
1,546 |
|
|
|
3,428 |
|
Normalized FFO |
$ |
75,447 |
|
|
$ |
84,705 |
|
|
$ |
302,294 |
|
|
$ |
345,080 |
|
FFO |
$ |
70,224 |
|
|
$ |
57,866 |
|
|
$ |
296,497 |
|
|
$ |
295,883 |
|
Stock-based compensation expense |
|
2,449 |
|
|
|
2,086 |
|
|
|
7,917 |
|
|
|
7,453 |
|
Non-cash rental and related revenues |
|
(1,918 |
) |
|
|
(2,787 |
) |
|
|
(8,699 |
) |
|
|
2,183 |
|
Non-cash interest income |
|
8 |
|
|
|
(602 |
) |
|
|
(372 |
) |
|
|
(2,285 |
) |
Non-cash interest expense |
|
3,086 |
|
|
|
2,794 |
|
|
|
12,265 |
|
|
|
11,094 |
|
Non-cash portion of loss on extinguishment of debt |
|
— |
|
|
|
— |
|
|
|
1,541 |
|
|
|
411 |
|
(Recovery of) provision for loan losses and other reserves |
|
(358 |
) |
|
|
153 |
|
|
|
191 |
|
|
|
141 |
|
Deferred tax valuation allowance related to unconsolidated joint ventures |
|
— |
|
|
|
19,613 |
|
|
|
— |
|
|
|
19,613 |
|
Other adjustments related to unconsolidated joint ventures |
|
131 |
|
|
|
(1,099 |
) |
|
|
502 |
|
|
|
(5,155 |
) |
Other adjustments (3) |
|
141 |
|
|
|
44 |
|
|
|
365 |
|
|
|
2,474 |
|
AFFO |
$ |
73,763 |
|
|
$ |
78,068 |
|
|
$ |
310,207 |
|
|
$ |
331,812 |
|
Cash portion of lease termination income |
|
— |
|
|
|
(139 |
) |
|
|
— |
|
|
|
(2,477 |
) |
Write-off of cash rental income |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
71 |
|
Support payments paid to joint venture manager (1) |
|
— |
|
|
|
6,370 |
|
|
|
— |
|
|
|
12,250 |
|
Other normalizing items (2) |
|
4,536 |
|
|
|
827 |
|
|
|
1,485 |
|
|
|
1,077 |
|
Normalized AFFO |
$ |
78,299 |
|
|
$ |
85,126 |
|
|
$ |
311,692 |
|
|
$ |
342,733 |
|
Amounts per diluted common share: |
|
|
|
|
|
|
|
||||||||
Net income (loss) |
$ |
0.07 |
|
|
$ |
(0.37 |
) |
|
$ |
0.06 |
|
|
$ |
(0.34 |
) |
FFO |
$ |
0.30 |
|
|
$ |
0.25 |
|
|
$ |
1.27 |
|
|
$ |
1.28 |
|
Normalized FFO |
$ |
0.32 |
|
|
$ |
0.37 |
|
|
$ |
1.30 |
|
|
$ |
1.49 |
|
AFFO |
$ |
0.32 |
|
|
$ |
0.34 |
|
|
$ |
1.33 |
|
|
$ |
1.43 |
|
Normalized AFFO |
$ |
0.33 |
|
|
$ |
0.37 |
|
|
$ |
1.33 |
|
|
$ |
1.47 |
|
Weighted average number of common shares outstanding, diluted: |
|
|
|
|
|
|
|||||||||
Net income (loss) |
|
233,200,180 |
|
|
|
230,986,260 |
|
|
|
232,792,778 |
|
|
|
230,947,895 |
|
FFO and Normalized FFO |
|
233,200,180 |
|
|
|
232,059,703 |
|
|
|
232,792,778 |
|
|
|
231,851,542 |
|
AFFO and Normalized AFFO |
|
234,021,772 |
|
|
|
232,868,137 |
|
|
|
233,883,279 |
|
|
|
232,784,543 |
|
(1) |
Funding for support payments did not require capital contributions from Sabra but rather were funded with proceeds received by our Enlivant unconsolidated joint venture from TPG for the issuance of senior preferred interests. |
|
(2) |
Other normalizing items for FFO and AFFO for the three months ended |
|
(3) |
Other adjustments for the year ended |
REPORTING DEFINITIONS
Includes behavioral hospitals that provide inpatient and outpatient care for patients with mental health conditions, chemical dependence or substance addictions and addiction treatment centers that provide treatment services for chemical dependence and substance addictions, which may include inpatient care, outpatient care, medical detoxification, therapy and counseling.
EBITDARM
Earnings before interest, taxes, depreciation, amortization, rent and management fees (“EBITDARM”) for a particular facility accruing to the operator/tenant of the property (not the Company), for the period presented. The Company uses EBITDARM in determining EBITDARM Coverage. EBITDARM has limitations as an analytical tool. EBITDARM does not reflect historical cash expenditures or future cash requirements for facility capital expenditures or contractual commitments. In addition, EBITDARM does not represent a property’s net income or cash flows from operations and should not be considered an alternative to those indicators. The Company utilizes EBITDARM to evaluate the core operations of the properties by eliminating management fees, which may vary by operator/tenant and operating structure, and as a supplemental measure of the ability of the Company’s operators/tenants and relevant guarantors to generate sufficient liquidity to meet related obligations to the Company.
EBITDARM Coverage
Represents the ratio of EBITDARM to cash rent for owned facilities (excluding
Funds From Operations (“FFO”) and Adjusted Funds from Operations (“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
Normalized FFO and Normalized AFFO*
Normalized FFO and Normalized AFFO represent FFO and AFFO, respectively, adjusted for certain income and expense items that the Company does not believe are indicative of its ongoing operating results. The Company considers Normalized FFO and Normalized AFFO to be useful measures to evaluate the Company’s operating results excluding these income and expense items to help investors compare the operating performance of the Company between periods or as compared to other companies. Normalized FFO and Normalized AFFO do not represent cash flows from operations or net income as defined by GAAP and should not be considered an alternative to those measures in evaluating the Company’s liquidity or operating performance. Normalized FFO and Normalized AFFO also do not consider the costs associated with capital expenditures related to the Company’s real estate assets nor do they purport to be indicative of cash available to fund the Company’s future cash requirements. Further, the Company’s computation of Normalized FFO and Normalized AFFO may not be comparable to Normalized FFO and Normalized AFFO reported by other real estate investment trusts that do not define FFO in accordance with the current Nareit definition or that interpret the current Nareit definition or define FFO and AFFO or Normalized FFO and Normalized AFFO differently than the Company does.
Skilled Nursing/Transitional Care
Skilled Nursing/Transitional Care facilities include skilled nursing, transitional care, multi-license designation and mental health facilities.
Specialty Hospitals and Other
Includes acute care, long-term acute care and rehabilitation hospitals, facilities that provide residential services, which may include assistance with activities of daily living, and other facilities not classified as Skilled Nursing/Transitional Care,
Stabilized Facility
At the time of acquisition, the Company classifies each facility as either stabilized or non-stabilized. In addition, the Company may classify a facility as non-stabilized after acquisition. Circumstances that could result in a facility being classified as non-stabilized include newly completed developments, facilities undergoing major renovations or additions, facilities being repositioned or transitioned to new operators, and significant transitions within the tenants’ business model. Such facilities are typically reclassified to stabilized upon the earlier of maintaining consistent performance or 24 months after the date of classification as non-stabilized. Stabilized Facilities generally exclude (i) facilities held for sale, (ii) strategic disposition candidates, (iii) facilities being transitioned to a new operator, (iv) facilities being transitioned from being leased by the Company to being operated by the Company and (v) leased facilities acquired during the three months preceding the period presented.
*Non-GAAP Financial Measures
Reconciliations, definitions and important discussions regarding the usefulness and limitations of the Non-GAAP Financial Measures used in this release can be found at https://ir.sabrahealth.com/investors/financials/quarterly-results.
View source version on businesswire.com: https://www.businesswire.com/news/home/20240227748505/en/
Investor & Media Inquiries: (888) 393-8248 or investorinquiries@sabrahealth.com
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