NASDAQ$SBRA

Sabra Health Care REIT Inc · Q1 2021 earnings

Q1 2021 earnings · · Investor relations

Briefing

Sabra Health Care REIT's Q1 2021 results were announced, featuring updates and guidance for Q2 2021.

Sabra Health Care REIT reported a net income of $0.16 per diluted common share for Q1 2021. The company has collected 99.9% of forecasted rents since the pandemic's start and is seeing occupancy recovery with increased vaccine uptake and decreased infection rates.

  • Net income, FFO, Normalized FFO, AFFO and Normalized AFFO per diluted common share were $0.16, $0.39, $0.40, $0.39 and $0.39, respectively.
  • EBITDARM Coverage for the Skilled Nursing/Transitional Care portfolio increased 0.06x over the fourth quarter of 2020 to 1.99x, with Skilled Mix improving 10 basis points to 39.6%.
  • 99.9% of forecasted rents have been collected from the beginning of the COVID-19 pandemic through April 2021.
  • Average occupancy in the portfolio has begun its recovery as vaccine uptake has increased and COVID-19 infection rates have decreased.

Headline financials

Total Revenue

$152M

Previous: $149M+2.0%
EPS (adj)

$0.39

Previous: $0.45-13.3%
FFO per diluted common share

$0.39

Previous: $0.42-7.1%
Normalized FFO per share

$0.40

Previous: $0.45-11.1%
AFFO per diluted common share

$0.39

Previous: $0.44-11.4%
Normalized AFFO per share

$0.39

Previous: $0.44-11.4%
Net Debt to Adjusted EBITDA

4.84

No prior period
Capital Expenditures

-$39.5M

Previous: -$79.2M+50.2%
Free Cash Flow

-$6.04M

Previous: -$44M+86.3%
Net Income

$33.4M

Previous: $35.2M-5.0%
Operating Income

$142M

Previous: $142M-0.5%
Gross Profit

$152M

Previous: $149M+2.0%
Cash & Equivalents

$24.9M

Previous: $54.1M-54.0%
Total Assets

$5.96B

Previous: $6.09B-2.1%
Stock-Based Comp

$2.29M

Previous: $2.36M-3.1%

Revenue & EPS history

Sabra Health Care REIT · Revenue · Quarterly

$152M

Q1 2021+2%vs Q1 2020
Beat estimate in 7 of 16 quarters(44%)
ActualEstimate

Revenue by segment

Sabra Health Care REIT · $152M total across 3 segments · Q1 2021

  • Rental and related revenues
    $113M+6.5%
  • Resident fees and services
    $36M-9.9%
  • Interest and other income
    $2.94M+3.2%

Forward guidance

The company provided guidance for the second quarter of 2021, expecting net income per diluted common share of $0.13 - $0.14, FFO per diluted common share of $0.38 - $0.39, and AFFO per diluted common share of $0.37 - $0.38.

Tailwinds

  • Senior Housing - Managed Portfolio Average Quarterly Occupancy: Wholly-owned: 77.0% - 79.0%
  • Senior Housing - Managed Portfolio Average Quarterly Occupancy: Unconsolidated Joint Venture: 68.0% - 70.0%
  • Investments of $86 million with a weighted average initial cash yield of 9.0%, including the 116-unit Senior Housing - Managed community acquired May 1, 2021 for $32.5 million.
  • Dispositions and loan repayments of $9.4 million, with associated Annualized Cash NOI of $0.5 million.
  • Maintain Net Debt to Annualized Adjusted EBITDA (including unconsolidated joint venture) below 5.50x on expected Annualized Adjusted EBITDA between $470 million and $472 million as of June 30, 2021.

Headwinds

  • Financial effects of the COVID-19 pandemic have made it more difficult to accurately forecast future earnings, primarily within the Senior Housing - Managed portfolio.
  • Guidance is limited to the second quarter of 2021.
  • The estimated amounts above do not include any anticipated funds from the Provider Relief Fund for our Senior Housing - Managed communities.
  • Capital expenditures in our wholly-owned Senior Housing- Managed portfolio of $4.6 million.
  • There are no additional negatives provided.

Historical earnings impact

How earnings announcements have historically affected this stock's price.

Avg. return before/after earnings

Based on 20 quarterly earnings reports · overlaid with Q1 2021

Historical avgQ1 2021

-0.5%

Avg return

Earnings day

-0.2%

Avg return

5 days after

-0.4%

Avg return

30 days after

45%

27 / 60 earnings

Positive

+10.4%

Q1 2022

Best reaction

-13.1%

Q3 2022

Worst reaction

Earnings price reactions
QuarterReport dateReaction (Day 0)+5 days+30 days
Q1 2026-0.5%+0.1%-2.3%
Q3 2025+2.3%+4.2%+11.7%
Q1 2025+1.2%+0.1%-0.2%
Q4 2024-1.0%-0.8%+4.3%
Q3 2024-4.8%-4.1%-4.3%
Q2 2024-0.1%-1.1%+4.7%
Q1 2024-1.7%-1.7%-5.1%
Q4 2023+0.4%+0.4%+6.0%
Q3 2023+0.7%+2.0%+1.6%
Q2 2023+0.8%-0.9%-1.2%
Q1 2023-0.5%+1.7%+1.7%
Q4 2022-4.2%-6.3%-22.0%
Q3 2022-13.1%-3.5%-7.1%
Q2 2022+0.0%+2.9%-4.0%
Q1 2022+10.4%+6.0%+10.4%
Q4 2021-3.9%-0.7%+5.6%
Q3 2021-2.1%-0.1%-11.2%
Q2 2021-3.7%-4.7%-8.7%
Q1 2021-2.2%+0.0%-1.3%
Q4 2020+1.7%-3.6%-0.8%
Q3 2020-4.0%+15.7%+27.6%
Q2 2020+4.4%+7.7%+5.9%
Q1 2020-5.7%-1.6%+35.6%
Q4 2019-3.5%-11.1%-50.1%
Q3 2019+3.3%+0.6%-6.4%
Q2 2019+5.5%+4.5%+8.5%
Q1 2019-1.6%+0.5%-0.5%
Q4 2018-2.7%-9.6%-2.0%
Q3 2018-0.6%-1.4%-12.9%
Q2 2018-0.3%-0.3%+3.4%
Q1 2018+3.3%+2.9%+7.6%
Q4 2017+2.8%+4.8%+0.2%
Q3 2017-1.5%-2.7%-2.7%
Q2 2017+1.6%+0.9%-4.1%
Q1 2017-10.2%-8.8%-14.2%
Q4 2016+0.6%+5.4%+6.7%
Q3 2016-8.9%-7.2%-0.4%
Q2 2016+1.6%+2.4%+6.6%
Q1 2016+4.4%
Q4 2015+8.3%
Q3 2015-2.9%
Q2 2015-4.6%
Q1 2015-6.0%
Q4 2014-0.9%
Q3 2014-0.9%
Q2 2014-2.0%
Q1 2014-2.6%
Q4 2013+0.8%
Q3 2013+4.1%
Q2 2013-7.3%
Q1 2013+2.4%
Q4 2012+0.0%
Q3 2012+2.6%
Q2 2012+3.0%
Q1 2011-4.6%
Q1 2012+2.4%
Q4 2011+5.1%
Q3 2011+7.5%
Q2 2011+3.9%
Q4 2010-6.5%

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