NASDAQ$SBRA

Sabra Health Care REIT Inc · Q2 2020 earnings

Q2 2020 earnings · · Investor relations

Briefing

Sabra's Q2 2020 financial results were announced, revealing a mixed performance impacted by the COVID-19 pandemic.

Sabra Health Care REIT reported a net income of $29.623 million for the second quarter of 2020. The company's operations were impacted by occupancy declines and increased operating expenses due to the COVID-19 pandemic. However, rent collections remained strong, and the balance sheet remained healthy with significant liquidity.

  • Net income attributable to common stockholders was $0.14 per diluted common share.
  • FFO, Normalized FFO, AFFO and Normalized AFFO per diluted common share were $0.43, $0.45, $0.42 and $0.44, respectively.
  • Liquidity of $955.3 million as of June 30, 2020.
  • Net Debt to Adjusted EBITDA of 5.00x (5.54x including the unconsolidated joint venture).

Headline financials

Total Revenue

$154M

Previous: $219M-29.8%
EPS (adj)

$0.45

Previous: $0.76-40.8%
AFFO per diluted common share

$0.42

No prior period
Normalized AFFO per share

$0.44

No prior period
Net Debt to Adjusted EBITDA

5

No prior period
Capital Expenditures

-$113M

Previous: -$8.6M-1212.4%
Free Cash Flow

-$83.2M

Previous: $75.1M-210.8%
Net Income

$29.6M

Previous: $83.7M-64.6%
Operating Income

$145M

Previous: $219M-33.7%
Gross Profit

$154M

Previous: $219M-29.8%
Cash & Equivalents

$28.3M

Previous: $47.6M-40.6%
Total Assets

$6.02B

Previous: $6.12B-1.6%
Stock-Based Comp

$2.38M

Previous: $2.8M-15.0%

Revenue & EPS history

Sabra Health Care REIT · Revenue · Quarterly

$154M

Q2 2020-29.8%vs Q2 2019
Beat estimate in 9 of 16 quarters(56%)
ActualEstimate

Revenue by segment

Sabra Health Care REIT · $154M total across 3 segments · Q2 2020

  • Rental and related revenues
    $113M-0.1%
  • Resident fees and services
    $38.6M+7.0%
  • Interest and other income
    $2.61M-96.3%

Forward guidance

The company focuses on maintaining a strong balance sheet with ample liquidity. Sabra is prepared to provide support to its operators as warranted and will continue to look for opportunities to strengthen its portfolio through strategic dispositions and opportunistic acquisitions.

Tailwinds

  • Government assistance may bolster operators.
  • Slowing occupancy declines.
  • Resumption of admissions.
  • Strategic dispositions to strengthen portfolio.
  • Opportunistic acquisitions to strengthen portfolio.

Headwinds

  • Operational recovery may be slower than expected.
  • Potential delays in operational recovery.
  • Cost of capital makes material acquisitions challenging.
  • Maintaining leverage within targets.
  • Avoiding any disruption to ratings.

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 Q2 2020

Historical avgQ2 2020

-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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